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With the evident growth, bitcoin has now become a household name. Whether owning it or not, people all over the globe know enough about bitcoin to get into a conversation about it. That’s not it; people nowadays are actively gaining knowledge about how to trade bitcoins because of their potential to give favorable earnings.
Many finance experts predict that Bitcoin will only grow in the coming days. Some may say the opposite, but if we look at the current situation, the future of bitcoin looks promising.
Bitcoin chart and current Bitcoin price
What Is Bitcoin?
Bitcoin represents a decentralized digital currency based on blockchain technology that you can buy, sell and exchange directly without an intermediary like a bank. A platform created by someone, who is still unknown, has paved the way for many other cryptocurrencies.
Bitcoin is a cryptocurrency that is decentralized from any control. It is an open ledger, and the cryptocurrency, the digital currency, is traded free from any authority regulating it.
The purpose of its creation was to replace the actual currency with it and make it a global digital currency that could be exchanged irrespective of the geographical barrier. It uses a decentralized peer-to-peer mechanism, making it free from any intermediary or regulatory authority.
Since nobody or authority is regulating it, it is considered illegal to trade in many countries. Due to the risks involved, any government authority stays away from any matter that involves bitcoin. It has a transparent, decentralized platform that anybody can access. Even after so many risks are involved, projections of bitcoin prices are much higher. It is still growing in demand and will continue to grow because of its potential to replace paper currency.
What is Bitcoin price prediction in 2023?
Bitcoin price prediction based on technical analysis in the last ten years and the latest government trading policies shows gradual price increases. The expected price will stay below $20 000 in 2023. Most countries accept Bitcoin crypto, and people see it as a safe currency.
What Determines the Price of Bitcoin?
The price of bitcoin determines supply and demand on the market because economic news can not impact the price of bitcoin. Bitcoin does not depend on the economy of any country or bank. However, world regulation and any ban on bitcoin trading (in any country) indirectly impact bitcoin prices. Additionally, Bitcoin price (BTCUSD) impacts the US dollar rate. If the US dollar price increase, BTCUSD will drop.
You can see that price of bitcoin dropped rapidly when China or India forbade bitcoin trading. All strict regulations in blockchain cryptocurrency trading can indirectly impact the bitcoin price. When some Bitcoin owners see terrible news related to Bitcoin (government restriction or social media information), they tend to sell Bitcoin, and the price of this cryptocurrency falls.
How Is Bitcoin Created and How Does Its Market Work?
Bringing bitcoin into market circulation is done by bitcoin mining. Just like gold is mined out to be physically bought and sold. It is created when a miner solves a computative puzzle and creates a new block. As a reward, they issued bitcoins.
But, creating and granting bitcoins every time a block is created can bring too much bitcoin into circulation, resulting in a decline in the value of the bitcoin. So, to eliminate this fact, it follows a reward-halving technique. According to this, the reward is halved after every 210,000 blocks are created.
The halving technique helps BTC (short for bitcoin) to maintain its scarcity and hence maintain its value in the market. Like gold, bitcoin is also limited in quantity, even after being a digital currency. This is why many people call bitcoin digital gold.
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Bitcoin has proved its potential by showing its power to change how transactions were made earlier. It has stood up to every reason it was created for. Though it was created mysteriously by someone named Satoshi Nakamoto, its purpose was clear from the very beginning. It was designed to remove the transaction barriers and show the few people holding power to control the money that there is another way where transactions can be freely made over the globe.
Bitcoin Price Index
Bitcoin started as nothing. Its value at the beginning of its journey was not worth a single penny. Nobody had enough trust in this cryptocurrency for many reasons. It came out mysteriously, and its identity was only virtual. It was the first of its kind, so there was no knowledge about how cryptocurrency works and is traded. In simple words, people were not aware of the whole concept of cryptocurrency.
As time passed, people became aware of bitcoin, its worth, and how it plans to replace the overrated paper currency. With time its value increased, and more people over the globe started bitcoin trading. As the demand grew, after a few years of finding its worth, people accepted bitcoin and traded above $1,000.
Later, in 2017, bitcoin took the world by storm when it made bitcoin holders millionaires. In 2017, it reached its previous all-time high price of $20,000. It made a significant impact on the crypto market. People started to see the potential of cryptocurrency. As a result, more cryptocurrencies were introduced in the market. It was evident that even after being just a virtual currency, bitcoin is an asset one can hold for the long term.
But, bitcoin has a highly volatile identity. The absence of any regulatory body makes it even more unpredictable and unstable. This could be why after hitting the former highest price, it took a u-turn in 2018. There was an 80% fall in the price, and bitcoin started trading at its bottom, $3,000. It shocked many, as they had higher expectations, and now they were skeptical if it would ever rise again.
Many people knew the potential of this cryptocurrency and had faith that there would be a rise in its value. Traders took advantage of the bear market and opened long positions. In 2019, bitcoin started showing improvement. It started trading above $13,000 before falling below %7,000.
In 2020, it further came down below $4,000. It was the impact of the market crash due to the pandemic. But many countries like the US introduced many ways and efforts to survive the hit. As a result, the market condition improved, and bitcoin started moving upward.
In 2021, bitcoin showed its all-time high to date. It stood at the value of $65,000, which showed that bitcoin is never going out of trend. The rise and fall is the market condition, but it will find its way up.
Bitcoin Price Prediction by Experts
Many experts have shared their reviews on Bitcoin and what they expect or predict about its future. Let us look at some of these forecasts.
- Robert Kiyosaki- the author of the bestselling book Rich Dad, Poor Da- has praised bitcoin and gold and tells his readers the benefits of investing in both assets. He has predicted that bitcoin will one day reach up to $75,000.
- Adam Back is a bitcoin developer and the CEO of Blockstream (the technology that helps store and transfer bitcoins). He has predicted that bitcoin can reach as high as $300,000 in the coming years.
- Plan B- Plan B is a bitcoin expert who created a stock-to-flow model based on the scarcity of bitcoin. According to this model, the price of bitcoin will go above $280,000 in the next two years.
- Vinny Lingham- He is the CEO of Civic and an entrepreneur in South Africa. He predicted that in 2017, bitcoin would fall as low as $3,000, which became true.
- Daniel Masters- he is an analyst at global advisor. He predicted in 2017, when the price went extremely low to $3,000, that the bitcoin value would increase up to $4,500. His prediction was proved correct, but the bitcoin price crossed even that mark and reached $20,000 that year.
- Peter Brandt- His prediction came more as a shock to the market. He said that there would be a more than 70% fall in the value of bitcoin. After reaching a high of $20,000, nobody expected bitcoin to fall to such a level. But his prediction became true when the price dropped to $3,000 in 2018.
- Bloomberg- The huge finance media giant predicted in their research for 2020 that bitcoin will jump from $8,000 to more than $20,000. This prediction was also accurate.
End of 2021
Currently, bitcoin is trading above $60,000 after coming down from it is at an all-time high of $65,000. According to the technical analysis, if bitcoin remains in its bullish run, then it is expected to reach a price of $100,000 by the end of the year. But, if it exits the run, it will fall to as low as 50% of its current value.
2022 to 2023
When the bitcoin price reaches another peak in its bullish trend, the market will eventually experience a bearish trend for the next 2-3 years. But even in its bearish trend, it is not expected to fall below $20,000. Although this price can be overwhelming for many traders, they can use the technique of shorting at the bounce in the cost of the bitcoin.
2024 to 2025
Bitcoin uses the halving technique, which reduces the bitcoin creation in the market by half after every four years. In this technique, the bitcoins issued or rewarded to every blockchain created are reduced by half. This helps in creating a scarcity of this asset and prevents the value from going down due to too much supply. If there is too much supply, it will not retain its importance as a unique cryptocurrency.
The next halving of bitcoin is scheduled for 2024. This may result in a bullish trend and reduced supply, taking bitcoin to a new high. Expert analysts have predicted this price to go beyond $400,000.
The future of bitcoin is as bright as the sun. From the very beginning, it has experienced a bumpy road, and so is its lot going to be. Those who traded bitcoin have had a good experience. It was created with the motive of replacing global currencies. As it is taking steps towards this goal, it is succeeding. Being so technologically advanced has paved the way for many other cryptocurrencies. With increased cryptocurrencies in the market, it has become a layman’s term for the general public and is widely used. But if it can reach its goal, it is uncertain.
Purchasing bitcoin these days is as simple as buying groceries. You can purchase through your visa or master cards or online payment accounts like Venmo or PayPal. It is no longer restricted to the hands of the few. Still, anyone who wishes to invest or trade can purchase bitcoin, whether it’s a small vendor or significant multinational cooperation. It is safer to say that even after being highly volatile, bitcoin will retain its demand throughout its life.
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