No one can predict the price of bitcoin at any given time. Just about everyone – from tech enthusiasts to financial analysts to amateur investors – is trying to. But as much as some predictions will inevitably prove to be lucky and appear prescient, this is a volatile new type of asset that can go any which way, and do so very quickly. At this point, even the most carefully generated, knowledge-driven predictions are essentially just educated guesses.
What we do know however is what factors might affect bitcoin moving forward. We can’t say exactly when or exactly how significant the impact will be. And to be sure the list is longer than the four items we’ll highlight below. But these are certainly among the key factors to watch for in the near future as you attempt to analyze the world’s leading cryptocurrency.
The Dwindling Supply
It’s well known that there is a finite supply of bitcoin in the world. Exactly 21 million bitcoins will ever be mined (though some of what’s already been mined is believed to be permanently lost), and the supply is expected to run out sometime in 2140. However, that information is somewhat misleading. That’s because about 80 percent of bitcoins have already been mined, which means the supply is starting to slow down – and fairly quickly. The entire bitcoin system allows for little inflation, and there’s at least a chance that as demand increases and the supply slows down the value of a bitcoin could go up.
At this time ethereum represents an alternative – but not a competitor – to bitcoin. However, there are some cryptocurrency analysts who believe that could change, which means it’s always worthwhile to monitor ethereum’s movement. Because this cryptocurrency is designed for adaptation and evolution, the thinking among some is that it simply has more growth potential. So, if you begin to see ethereum catching up to bitcoin, you’ll certainly want to pay attention.
The Sports Betting Market
The sports betting market is something that isn’t often talked about with relation to bitcoin, but it probably should be. We’ve already seen bitcoin integrate fairly seamlessly with online casinos, and it’s also come up in the daily fantasy sports sector, with FanDuel in particular making use of it. These developments coupled with the fact that the U.S. appears to be on the cusp of fully regulated sports betting certainly leave the door open to a new and very active industry welcoming crypto transactions. It’s something that could come about suddenly and which could certainly boost demand for bitcoin.
Up until 2018, bitcoin regulation really hasn’t been a concern in the U.S. However, there are some indications that this may be changing, which would likely affect bitcoin in a negative way. The state of New York has begun to take a closer look at some popular exchanges with questions over whether or not they’re operating fairly for users, and it’s also said that bitcoin could face new regulation with lawmakers raising new fears about untethered cryptocurrency. It’s nothing to overact to just yet, but as with the other factors listed here, it’s something to keep a close eye on if the bitcoin market interests you.