November 18, 2016
Expect 2017 to be a very good year for Bitcoin’s price. That’s according to prominent Bitcoin investor Barry Silbert, who shared his ten predictions for the upcomming year.
He recently shared his top ten predictions for 2017 at DCG’s annual Bitcoin & Blockchain Summit.
Overall, DCG is excited about applying Bitcoin and its underlying blockchain technology to trade finance, supply chain, identity and verification, cross-border payments, and as a speculative investment.
10. Bitcoin as a store-of-value reemerges as a key theme
Bitcoin has been dubbed “digital gold” and for good reason Silbert expects traditional investors to start taking Bitcoin more seriously and adding it to their portfolios.
9. Bitcoin becomes more accessible to retail and institutional investors via ETF(s)
Bitcoin ETFs have huge potential to bring institutional investors into Bitcoin. While Silbert’s own GBTC and SolidX”s XBTC are already making Bitcoin more palatable to traditional investors, the much anticipated “COIN” ETF and others should help bridge the gap between cryptocurrency and legacy finance.
8. Cross border payments/remittances using Bitcoin will hit $1 billion run rate
Remittances are one of Bitcoin’s most promising use-cases, as they are cheaper and faster compared to legacy service providers. Bitcoin remittances could unseat incumbents such as Western Union as Bitcoin infrastructure continues to improve. This comes alongside plummeting smartphone technology costs around the globe, solving the proverbial “last mile” problem.
7. Exponential Bitcoin transaction growth in India, Japan & Middle East
Bitcoin’s global transaction volume has been on a steady incline since its beginnings. Moreover, tech-focused countries like India — where mobile commerce is booming — saw some robust growth in Bitcoin adoption lately.
6. Explosion of blockchain POCs focusing on supply chain
The blockchain hype has permeated into almost every industry. One key area where blockchain technology could be beneficial is the supply chain and global trade. In fact this industry is already testing and implementing blockchain technology. For example, IBM and Tsinghua University in China just partners up to improve food quality through the supply chain.
5. Identity solution competition heats up…but no leader emerges
Identity on the Bitcoin blockchain is a touchy subject. But blockchain ID solutions could indeed solve many real life problems. These could include anything from verifying your identity to registering millions of undocumented people around the globe — something the UN is currently looking into.
4. SEC comes down hard on ICOs
It’s no secret the Securities and Exchange Commission (SEC) is aware of Bitcoin But some have warned the regulator’s next move is to close in on ICOs (initial coin offerings). The SEC could deem these as securities that may be subject to regulation. Although many in the cryptocurrency space ignore these warnings, they currently do so at their own risk.
3. First >$50 mm M&A transaction
The Bitcoin space has already seen some notable million-dollar mergers and acquisitions. Thus, topping $50 million is not out of the question— particularly as the nascent cryptocurrency industry grows and matures.
2. Micropayment models materialize
Bitcoin micropayment solutions are already being integrated into- web-browsers,data-storage,social media platforms, and more. Micropayments — as small as a fraction of a cent — could finally be sent through the internet using bitcoin. This could flip the ad revenue model on its head through disintermediation. It could also pay content creators as well as consumers directly.
1. Bitcoin price on 12/31/2017 will be “higher”
Silbert has been noted to make bullish regarding Bitcoin’s price in the past. Given the currency’s stellar performance the past few years, the price could certainly go “higher” if not to the moon.