December 28, 2017
Nick Colas who has been in cryptocurrency sphere for four years has analyzed that bitcoin in 2018 would trade between $6500 to $22000. However, the Bitcoin was trading at the volume of $15500 at the time of announcement on December 27.
The first wall street analyst Nick Colas says that the top digital currency would drop from the current price in coming year.
Looking at the asset volatility closely for upcoming year. Data Trek Research founder Nick Colas divulged that it has risen around 1600 percent since past year.
He officially stated,
“Bottom line: bitcoin can rally to $22,000 and still be reasonably price. Else, plummet to $6,500 and also be correctly value”. Colas said in his daily note. “We expect to see bitcoin trade for both prices in 2018”.
The announcement is followed by Hosp prediction on Bitcoin stating that it may hit $60000 but another crash is coming. Colas prediction is as similar as Hosp expect that figures.
2017 was an amazing year for Bitcoin. The digital coin which was trading below $1000 during January 2017 has grown beyond $15000 in December 2017. Though, many appreciated it as a revolution, and other criticized it as a bubble, fraud etc, one thing to mark is that despite the controversy, Bitcoin is continuously hitting the new record every day. However, the sudden drop of Bitcoin from $19000 on December 18 has affected the other cryptocurrencies but the digital coin is recovering its value after the Christmas crash.
Colas compare the Bitcoin price to the amount of $100 bills in circulation and wrote that Bitcoin’s primary “real” use case right now is person asset protection, further he adds, money laundering and tax evasion in consideration.
Justification goes like this, if the value arrives to ten percent of $100 bills in total then calculating $110 billion by 17 million Bitcoins it would go down $6500 but using thirty three percent, it would go up to $22000.
Between these figures, we get value of 14035. He stated that this value is as similar as the value we are enjoying right now.
Lastly, Colas wrote
“”The only way it goes substantially higher is if/when someone comes up with a large-scale business that uses bitcoin. That may come in 2018. But for now that scalable use case is asset protection, so that’s how we value bitcoin today”.