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5 Major Factors that Will Drive Bitcoin Prices this Year

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Bitcoin enthusiasts may be feeling deflated lately. The great price recovery of 2018 never materialized, and predictions are modest for the coming year. However, the adoption of cryptocurrency continues to increase and that has many feeling optimistic.

Here are 5 of the most important factors to consider when you’re evaluating the slew of price predictions for cryptocurrencies in the coming years.

#1 The Bitcoin ETF Will Happen

Though it’s faced some initial setbacks, institutional investors want their hands on cryptocurrency and they will continue to push the SEC to allow the creation of a Bitcoin ETF (or one based around another major cryptocurrency). An influx of institutional investment wealth could change the game for any cryptocurrency.

#2 More Services Accept Major Cryptocurrencies

Bitcoin integration continues to spread rapidly in 2019, with more goods and services available to be paid for in Bitcoin than ever. Major retailers continue to adopt cryptocurrency, especially e-commerce platforms like Shopify that broaden the range of options to independents. Here are just some of the retailers who now accept Bitcoin:

  • Shopify
  • Overstock
  • Dish
  • PizzaForCoins
  • Microsoft
  • Reeds Jewelers
  • Gyft
  • CheapAir
  • and many more

#3 Lower Fees for Using Cryptocurrency

One issue that’s irked cryptocurrency users for years has been fees for withdrawing or depositing cryptocurrency itself into a cryptocurrency exchange, i.e., when you use funds to make a purchase or you move them to a hot or cold wallet.

As you start looking for information about buying Bitcoin, make sure you find a cryptocurrency exchange that makes it free to withdraw coins to your own wallet or use in a transaction. It’s normal to expect to pay some kind of fee when you deposit or withdraw fiat currency. However, exchanges like Bitbuy that make it free to move around the coins themselves can be very convenient for regular crypto users.

#4 The Risks of a 51 Percent Attack

A 51 percent attack was once a hypothetical fear of the blockchain, but it’s already begun to happen to smaller cryptocurrencies like Bitcoin Gold in May 2018. With more cryptocurrencies constantly launching, the smaller end of the cryptocurrency market is exposed.

Still wondering what a 51 percent attack really is? It’s where a group of miners collaborate and control over half the mining hashrate of a cryptocurrency. That 51 percent control means they can also control transactions within the network, opening the possibility of double spending and jeopardizing the legitimacy and value of the cryptocurrency.

Major cryptocurrencies like Bitcoin, Ethereum, Litecoin, or Bitcoin Cash or generally considered too big to be vulnerable, but in the future, smaller currencies could easily fall victim.

#5 Price Fluctuations Will Decide Who Owns Bitcoin

Investors love price fluctuation. People who already own Bitcoin when prices are crashing usually aren’t too happy, but risk-hungry investors thrive on a volatile market. It allows them to participate in recoveries and enjoy steep price appreciation curves.

But major price fluctuations aren’t great for businesses looking to use cryptocurrency in smart contracts or from customers. Extreme volatility will make companies very skeptical of agreeing to terms in cryptocurrency – though if they fix the monetary value of goods and services and expect a commensurate cryptocurrency payment, the cryptocurrency simply becomes a transaction tool.

As always, big things are afoot for cryptocurrency. Keep an eye on the latest developments.