Bitcoin is somewhat of a craze at the moment with massive price increases and falls, media stories talking about bubbles and collapse, meetups, conferences, and people from all walks of life discussing if it’s in a bubble or not.
The price of bitcoin is presently falling, and many people holding the coin are already panicking with great concern over the present situation of the pioneer cryptocurrency. However, smart potential investors already see the present situation as an opportunity to get into the Bitcoin market and make some good investments. If you are asking if you should buy bitcoin next or not, you might want to read this post about bitcoin prediction.
First, What Is Bitcoin
Bitcoin is a cryptocurrency invented in 2008 by an unknown person or group of people under the name Satoshi Nakamoto. It was created as a decentralized digital currency that uses cryptography to control the creation and transfer of money. As opposed to traditional currencies, Bitcoin operates on a peer-to-peer network, where no middlemen are involved between transactions. This means that users can transact directly with each other without having to go through banks or any other financial institutions in between.
It is important to note that Bitcoin is not regulated by any government or central authority; instead, it is maintained by individual computers connected together via its own blockchain technology.
Advantages of bitcoin over traditional currencies
If you have heard about Bitcoin for a while, chances are that you might have heard about some of its benefits over traditional currencies. So let’s call this a quick reminder. Below are some of its advantages:
- Security: Bitcoin and cryptocurrencies, in general, are more secure payment system
- Anonymity: it protects your privacy better
- Decentralization: Not owned or controlled by one single authority or government. So it gives you better control over your asset
- Transaction speed and low transaction fees: Compared to banks and other financial institution, cryptocurrencies allow you to transfer money quickly and with lower fees.
- No inflation: It protects you against inflation. And many people consider Bitcoin as a better store of wealth compared to any other means.
What Are Some Use Cases Of Bitcoin?
The most common use case for bitcoin is to buy things online. But there are others, too. Some people have been using cryptocurrencies as a way to send money to friends and family in other countries, avoiding hefty fees from traditional payment providers like Western Union.
They’ve also been buying illegal goods on the dark web – drugs and guns, mostly – which you can’t do with cash because it’s hard to exchange large amounts of cash without attracting attention from authorities.
Another reason why people invest in bitcoin is that they think its price will go up over time (like any other investment), but their main motivation isn’t necessarily profit – it’s more that they believe in the technology behind it and want to support it by making an investment.
Bitcoin Price History
When considering if it’s wise to invest in bitcoin now, checking its price history is a good place to start. In 2009, the price of one bitcoin was $0.0001. Ten years later, that same Bitcoin was worth around $1,200. Although there have been many ups and downs in the price of the coin over the years, it is evident that it has tremendously grown through the years.
Bitcoin experienced the best year ever in 2017 when the asset took the world by storm during the crypto bubble. It caused many people to become extremely rich while also opening the eyes of the whole world to the possibilities locked up in cryptocurrency for the future. Bitcoin reached its first all-time high in 2017 when it rose to $20,000 per BTC.
Since then, Bitcoin has been on the high and low. However, investors are still getting blessed by this parabolic behavior of Bitcoin. Presently the price of one BTC is $29,000. Now, let’s consider what its value might be in the next couple of years.
Bitcoin Price Prediction
Even though Bitcoin is presently struggling to get back to its feet after being hit in 2021, experts in the Bitcoin ecosystem have released predictions about the future of the coin. If you want to invest in Bitcoin, you will want to know what the future will look like for the coin in the next couple of years.
Bitcoin price in 2022
The present price of BTC is about $29,000, but experts have suggested that it will likely cross the $60K barrier before the end of the year as more and more people try to take advantage of the present fall, hence pulling the coin back to its feet.
Bitcoin price prediction for 2023
As more investors come into the Bitcoin ecosystem, the price will also gain some momentum. Therefore, we may expect to see Bitcoin rise to reach $64,500 in the first few months of the year. And if things continue to favor the coin, it might reach $79,833 before the end of the year.
Bitcoin price prediction for 2024
There may not be much growth to experience by Bitcoin in 2024 because it is the year of halving. Experts suggest that this might have a significant impact on the price of the coin, especially at the opening of the year. But towards the end of the year, the asset might start getting some trickles of growth and start picking back up. So Bitcoin price may not rise more than $82,431 in 2024.
Will Bitcoin Hit 100k?
The short answer is maybe. The long answer is that it’s complicated. Bitcoin prices are determined by a complex web of factors, including supply, demand, and speculation. While some analysts expect bitcoin’s value to continue rising over the next several years – with some projecting that Bitcoin could hit 100k – others predict lower highs or even a downward spiral for the currency.
Factors That Determine Bitcoin Price
The bitcoin price is determined by supply and demand. The more people who want bitcoin, the higher its price will go. This is because there are only so many bitcoins in circulation, and more people using it means that there needs to be more supply to keep up with demand.
Other factors that influence the price of bitcoin include:
- How much bitcoin is left to be mined (about 2 million). As this number decreases, so too does the available supply of new bitcoins, which can affect its value.
- Bitcoin adoption rate. If an increasing number of companies accept bitcoin as a form of payment, or if governments start regulating it favorably and adopt policies that encourage use of cryptocurrency generally (for example, Japan’s decision a couple of years ago), then demand for Bitcoin could increase quickly – causing prices to rise sharply overnight – but this is unlikely given current trends in regulation worldwide.
How to Buy Bitcoin?
You can buy bitcoins from exchanges like Coinbase, Anycoin Direct, or Gemini, or directly from other people via marketplaces like LocalBitcoins. If you want to trade professionally and have access to fancy trading tools, you might want a broker like XTB or eToro.
How to Store Bitcoin
Bitcoin storage can be done either by keeping your Bitcoins on an exchange or in a hot wallet that you can access online or by storing them offline in the form of a hardware wallet such as Trezor or Ledger Nano S.