Bitcoin BoardThe year 2013 has been the “best” year for Bitcoin so far. The price has surged to insane heights (Currently $950 per BTC), the adoption by merchants has exploded and Bitcoin is in the news everyday. As 2013 is coming to an end, it is time to have a look at what is going to happen to Bitcoin in 2014.
1. Big Price Increase
The BTC price will increase drastically in 2014, as new developments around the currency evolve. There will be more people investing in the cryptocurrency, along with more company’s like Bitpay and Coinbase being built around Bitcoin. These developments are creating a stronger infrastructure for Bitcoin which will stimulate the price.
2. Bigger Merchant Adoption
Because of the price increase, and new exiting start-ups like the Bitcoin ATM or the TREZOR physical wallet, there will be more exposure for Bitcoin in the press. This will educate more and more companies about Bitcoin, and its advantages. This will increase merchant adoption at a large scale, and if one big company takes Bitcoins, more will follow.
3. Governmental Acceptance
2014 will also be the year that Governments will look deeper in the Bitcoin protocol. The currency is no longer treated as a joke, and the financial banks & institutions are getting worried. This means that the Government needs a way to tax or regulate Bitcoin, because it is obviously not going away. The first hearings in the U.S. government earlier this year were very positive for BTC, so we expect good news this year for cryptocurrencies. With Silkroad gone, they are finally ready into accepting it as a regular legit currency.
4. Big Investors Coming On-Board
The big spike in the price of Bitcoin we predict in our first point, will be powered by big investors. There are billions of dollars heading their way to be pumped in the Bitcoin economy. This will create a surge in price as more investors jump on board. The best part is, not only do the investors invest in BTC, they also invest in the infrastructure of the coin. This has already happened this year, when Coinbase got 6 Million dollars funding from investors. Wall Street is also ready for Bitcoins, and backtesting the XBT price on the Bloomberg Terminal has already began.
5. Bitcoin Going Mainstream
Bitcoin going mainstream? It could happen in 2014. There are various factors that play a big role in mainstream acceptance of Bitcoins, and the biggest might be Governmental Acceptance. When the currency is labeled as a legit payment method, it will go mainstream. Buying Bitcoins will also become more easy, which will add to the process of mainstream acceptance. Add a bigger amount of merchants who accept the currency, and you see our point.
6. (Bonus) Bitcoin Vs. Litecoin
In 2014 Bitcoin is going to compete with its little brother Litecoin. We believe that 2014 will be what 2013 was for Bitcoin, and that means that BTC and LTC will need to find a way to exist side by side. We think that Litecoin and Bitcoin can surely exist together as the 2 major online payment system seeing that LTC is a lot faster. Bitcoin will be used to do big purchases, Litecoin will be used to do small and quick purchases. Our advice? Pick up some Litecoins while they are still cheap.
So, there you have it! Our view on 2014, and what we believe is going to happen in 2014. Got something to add? Leave a comment!
