Bitcoin owners might see their cryptocurrency increase in value later on this year, despite a recent slump in the value of the world’s biggest digital currency.
Speaking to MyBroadband, blockchain expert Simon Dingle said that while he abstains from making personal predictions regarding the price of Bitcoin, market data points to a rally at the end of this year.
“I don’t pretend to know the future. Markets tend to cyclically pick up at the end of the year and drop off again early in the next,” Dingle said.
“If that holds true for crypto this year, then we can expect the sideways slide in the market to continue until well into November, and then pick up again towards the end of the year.”
Dingle added that Bitcoin would remain the dominant cryptocurrency, with other tokens losing value in comparison as adoption of Bitcoin increases.
“I expect the market to be harsh towards most alt-coins and bullish towards Bitcoin as we see it further its dominance and second-layer protocols assist in scaling.”
While he expects the price of Bitcoin to rally towards the end of this year, Dingle has no idea exactly how significant this price increase will be.
“I really don’t spend much time thinking about the price of Bitcoin – and no time pretending to predict the future,” he said.
“Market cycles suggest that we’ll see a rally towards the end of 2018. How big it will be is anyone’s guess.”
The future of Bitcoin
Dingle added that Bitcoin still has a bright future due to the powerful technology being built on top of the blockchain and its adoption as a store of value.
He said that the Lightning Network was also a major factor influencing the success of the cryptocurrency.
“The Lightning Network is a major contribution to Bitcoin in terms of scaling the network and making smaller payments faster and cheaper,” Dingle said.
“Bitcoin is scaling the same way that the Internet – and in fact any other information network – does, in layers.”
“Bitcoin introduced sound money to the digital world and is growing in adoption as a store of value and settlement protocol,” he added.
Dingle added that while other cryptocurrencies are based on good ideas, none have proven themselves the same way Bitcoin has.
“I believe Lightning will open the taps on payments and take Bitcoin to the next level,” he said.
“There are other cryptocurrency projects that I love and follow – but none of them have proven themselves yet. It’s early days.”
While some believe that cryptocurrencies were in a bubble at the end of 2017, Dingle calls this comparison ridiculous.
“The dotcom bubble at its height was orders of magnitude larger than the entire cryptocurrency industry has ever been – especially in today’s money,” he said.
“What you saw in 2017 was just the beginning of mass adoption for a movement that will continue for decades. This isn’t about technology, it’s about humanity reinventing trust and commerce.”
“It’s the biggest societal undertaking of the modern world. This is just the beginning.”
Dingle follows a collection of other blockchain projects in addition to Bitcoin, including Ethereum, Monero, Chia, Grin, and IOTA.