I like to wait a few weeks after the New Year to make predictions because everybody makes them then. To avoid the rush here are a few highly unscientific and probably inaccurate predictions about altcoins in 2018.
The biggest cryptocurrency stories of 2018 will include:
- Ethereum (ETH) – will skyrocket in 2018 my gut feeling is $2,000 Ether, but $5,000 Ethereum is possible. The reason for all the projects on Ethereum, and all the ERC20 tokens out there. Ethereum had a Coin Price of $1,340.86 and a Market Capitalization of $130.057 million, on 15 January 2018, according to our friends at Coin Market Cap.
- Ethereum (ETH), Bitcoin (BTC), Ripple (XRP), and several other cryptocurrencies will see major price increases and major price drops in 2018.
- A lot of people will lose a lot of money in cryptocurrency in 2018.
- A lot of people will make a lot of money from cryptocurrency in 2018.
- At least one major initial cryptocurrency offering (ICO) will be exposed as a total scam.
- Regulators like the US Securities and Exchange Commission (SEC), the European Securities and Market Authority (EMSA), and the British Financial Services Authority (FSA) will crack down on ICOs big time. Hopefully, they’ll clean up the market at least get rid of the worst offenders. Personally, I welcome such enforcement efforts because the ICO market is out of control.
- A good rule of thumb about such crackdowns to remember is that American authorities generally don’t regulate enough and European bureaucrats tend to overregulate.
- At least one major video cryptocurrency commentator will get busted for taking part in an ICO pump and dump scam.
- A number of publicly traded companies will follow Kodak (NYSE: KODK) and Long Blockchain’s (NYSE: LBCC) lead and start cryptocurrency mining.
- More publicly-traded companies will launch ICOs.
- Regulators will pull the plug on at least one publicly-traded company’s ICO.
- At least one major media outlet, probably CNBC, will make a big effort to portray all ICOs as scams, and everybody who owns cryptocurrency as a crook.
- ICOs will lead to major lawsuits and make a lot of money for attorneys.
- If there is a breakout cryptocurrency of 2018 it will be Einsteinium (EMC2) because it seems to be the most ethical altcoin out there. I also think Einsteinium’s plans to sell computing-power and tax mining have the potential to generate a lot of cash. Einsteinium had a Coin Price of 80.6¢ (0.0006 ETH) on 15 January 2018.
- At least one charity ICO will be exposed as a total scam.
- There will be ICOs for Christians, Moslems, and people with specific religious and political beliefs. Many of these will eventually be exposed as scams.
- UnikoinGold (UKG) is likely to be a breakout cryptocurrency because of its connections with Mark Cuban and use in gaming. Unikoin Gold reached a Coin Price of $1.17 (0.00089040 ETH) on 15 January 2018.
- Regulators will go after UnikoinGold and the platform behind it; Unikrn. This will occur after some politician or attacks Unikrn for corrupting youth by promoting gambling.
- There will be at least proposal to ban cryptocurrency in the United States that will fail.
- A lot of Bitcoin fans will get shocked when money flows into Ethereum.
- A major company or bank will start accepting Ethereum payment.
- At least one major investment bank; possibly Goldman Sachs (NYSE: GS), will start issuing Ethereum or Bitcoin futures.
- JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon will say more stupid things about cryptocurrency that the media will report as “wisdom.”
- Ethereum’s Coin Price will spike if the Telegram or Kodak ICOs are ERC20 (Ethereum-based).
The Biggest Cryptocurrency Story of 2018 is Government Altcoins
The biggest cryptocurrency event in 2018 will be the appearance of a government-issued cryptocurrency or a government ICO. There are plans for government ICOs in Venezuela and Estonia.
The Estonian effort is the most serious right now, but specifics on it are light. The Estonian ICO would have major effects because the Baltic Nation is part of the European Union and the Eurozone.
The Estonian plan is associated with Ethereum, and its creator Vitalik Buterin. There are also unconfirmed rumors that the Estonian Estcoin might be associated with a government-sponsored and regulated exchange for blockchain investments.
Expect the Ethereum Coin Price to shoot up if Estonia releases a cryptocurrency and the EU doesn’t try to kill it. There will be major speculative bubbles around both Ether and Estcoin if there is an Estonian ICO.
Speculative Bubble in oil-based cryptocurrency possible
Venezuela’s President Nicholas Maduro is planning a new oil-based cryptocurrency called the Petro. Details on it are limited, but I’d stay away considering the source. Maduro is a Marxist Donald Trump who has run his nation’s economy into the ground.
The Petro looks like a pump-and-dump scam; or worse an effort by Maduro and his cronies to move their money out of the country of the country, before the mob storms the presidential palace. Maduro is not the only corrupt leader thinking that way; Vladimir Putin is also considering an oil-based altcoin, The Oil Price reported.
Expect a major speculative bubble in oil-based crypto because oil prices are high right now. Brent Crude was trading at $69.96 (0.53274 ETH) a barrel and OPEC Basket Crude was trading at $67.38 (0.513755 ETH) a barrel on 15 January 2018, according to The Oil Price. The bubble will spike far higher if a major Middle Eastern oil producer like Iraq, Iran, or Saudi Arabia jumps on the ICO bandwagon.
China Cryptocurrency would be the Biggest Disruptor of all
There is a Black Swan event that has the potential to disrupt the entire cryptocurrency market beyond recognition in 2018. It is an initial cryptocurrency offering sponsored by the People’s Bank of China (PBOC).
The PBOC is China’s central bank and it has been actively researching cryptocurrency for some time. A PBOC cryptocurrency in 2018 is unlikely but it is possible. A triggering event would be a dramatic drop in the value of China’s fiat currency the Yuan. This might occur because the PBOC would want to stop money from flowing from the Yuan to cryptocurrency.
A PBOC altcoin would boost all major cryptocurrency Coin Prices because it would make altcoins respectable. It would probably be the catalyst for major corporations to start accepting altcoin payments.
One thing is very certain 2018 going to be a very interesting year in cryptocurrency. Another certainty is that the altcoin markets are in for a very bumpy ride in 2018; so fasten your seatbelts investors, because you will need them.
Disclaimer: This commentary is intended as food for thought, not as financial or investment advice!! Please, folks, do your own research and thinking and make up your minds.