3rd Day of Christmas: 2018 Prediction

The Bitcoin Bubble Will Burst

Well, we have a whole 12 months to get this one right, so it’s a bit of a sure bet, isn’t it? Or is it?

The news is rife with people who a few years ago, in an act of nerdy posturing, bought their mate a beer using bitcoins – a beer that has cost this poor chap what could have been a tidy profit of something in the region of £2,500 if he had sold the same amount of Bitcoin today.  One of our very own agents here at CounterHack towers ‘nearly’ bought a whole Bitcoin through Mt. Gox in February 2014 for approx £600, just as the currency exchange spectacularly imploded following a series of hacks and mismanagement.  That same Bitcoin today would be worth about £12,400!

At the time of writing, the value of Bitcoin has increased in value by a staggering 60% in the past five days!  It’s officially the fastest-growing asset in the world this year.   Even the most seasoned of lay-person would assert that this ballistic trajectory can’t carry on unabated indefinitely.  After all, what goes up, must come down!

And yet, we’re in unchartered waters; cryptocurrency bares almost no resemblance to ‘normal’ currency in terms of how it’s created (‘mined’), regulated, secured and traded.  So all the well-known models of traditionally traded currencies may not apply.  The current value of $16,700 per Bitcoin has even been predicted to continue to soar to $60,000 in 2018!

These dizzying numbers, somewhat inevitably, also catch the eye of the cyber-baddies.  As recently as last week, another Bitcoin mining exchange called NiceHash fell victim to a ‘highly professional’ and sophisticated cyber-heist with the gang making off with upwards of $80 million USD of the crypto-loot.  Unfortunately, with the currency still being unregulated, unless the coins are recovered, the loss to the owners of them will be permanent.

So, as tempting as it may be to bet the farm on making a quick buck on the back of the Bitcoin, we would certainly urge caution and only invest what you’re willing to lose!

Meanwhile, grab the popcorn, sit back and wait for the Big Bang.

We will keep an eye on the currency and can keep you updated on our Twitter and LinkedIn.