What does the remainder of 2018 hold for cryptocurrencies?
Last year was truly memorable for cryptocurrency investors. After beginning the year with a combined market cap of just $17.7 billion, the aggregate value of every virtual currency soared to $613 billion by year’s end. In percentage terms, we’re talking about an increase in market cap of better than 3,300%, which is likely the single-greatest year for any asset class in history. By comparison, the stock market, which is arguably the greatest creator of long-term wealth, has gained about 7% annually, inclusive of dividend reinvestment and when adjusted for inflation.
These incredible gains have the crypto investment community wondering what could possibly be next. Though no one knows that answer with any certainty, I’m absolutely willing to take what we’ve learned about virtual currencies so far and make seven educated guesses at what the remainder of 2018 might hold for this burgeoning asset class. In no particular order, and with no assurances that any or all of these predictions come true, here’s what investors might expect from cryptocurrencies for the rest of 2018.