How to Start with Cryptocurrencies | Episode 7: Future Prospects of Cryptocurrencies [Fudoshu Taro]
Among Bitcoin insiders, there are bullish forecasts predicting the price will rise more than tenfold in the next few years. On the other hand, some economists and prominent investors openly express pessimistic outlooks that cryptocurrency prices will go to zero. This time, we will have Shutarou Fudou provide his outlook on the future cryptocurrency market.
*This article is a reorganized version of an article from FX攻略.com May 2019 issue. Please note that the market information written in the body may differ from the current market conditions.
Shutaro Fudou (Fudō Shutaro) Profile
Foreign exchange instructor and author. Publishes seminar DVDs and interview CDs from a publisher. Besides giving lectures at financial exchanges, stock exchanges, FX brokers, and investment trust companies, he also writes for magazines and serves as a school lecturer for FX and stocks.
Official site：Shutaro Fudou’s "Behind the News Coverage"
twitter：https://twitter.com/syutaro_fudo
Differences Between Cryptocurrency and fiat Currency
The Japanese yen, US dollar, pound sterling and other currencies traded in FX are called fiat currencies, issued and managed by the central banks and financial authorities of the country or federation. In contrast, cryptocurrencies are not guaranteed by any state. Therefore, some critics and economic experts repeatedly state that cryptocurrencies have no value because there is no issuing body with real power. In response, issuers and investors in cryptocurrencies often argue that cryptocurrencies are not bound to any particular country and can enable international transfers with low fees, implying great future potential.
How to Predict the Market?
In FX and stocks, price movements and news up to now are used to identify technical patterns and rules derived from market experience, such as the Sack-Tied Five Methods, to forecast future price movements.
Now, an unidentified figure calling himself Satoshi Nakamoto published the blockchain foundational to cryptocurrencies (the idea of a distributed ledger that many people use to verify cryptocurrency transactions) around 2008 to 2009. In other words, cryptocurrencies have only about ten years of history so far. Therefore, I believe cryptocurrency forecasts should refer not only to technology but also to markets with longer histories like commodities and forex.
