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With the evident growth, bitcoin has now become a household name. People all over the globe, whether owning it or not, 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 all because of its potential to give favorable earnings.
It is predicted by many finance experts 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.
Current Bitcoin price
Bitcoin chart
What Is Bitcoin?
Bitcoin represents s 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. Being the first of its kind, the market value of a single bitcoin has been increasing ever since its launch, reaching as high as $50,000, with a much higher bitcoin projected growth.
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 which makes it possible to be free from any intermediary or any regulatory authority.
Since there is nobody or authority 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 the paper currency.
Bitcoin live rate
Below is presented live exchange rate of bitcoin:
What is Bitcoin price prediction?
Bitcoin price prediction based on technical analysis in the last 10 years and the latest government trading policies shows gradual price increase. The expectation is that the price increase in value 25%-100% in the next two years. The majority of 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 economical 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 of bitcoin trading (in any country) impact indirectly on bitcoin price.
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 price of bitcoin. When some Bitcoin owners see bad news related to Bitcoin (government restriction or social media news) they tend to sell Bitcoin and the price of this crypto currency falls.
How Is Bitcoin Created and How Its Market Works?
Bringing bitcoin into market circulation is done by bitcoin mining. Just like gold is mined out to be able 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. Just like gold, bitcoin is also limited in quantity, even after being a digital currency. This is why many people call bitcoin digital gold.
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 created to remove the transaction barriers and show the few people holding the 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 even 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 the cryptocurrency works and is traded. In simple words, people were not aware of the whole concept of cryptocurrency.
As time passed, people got aware of bitcoin, its worth, and how it plans to replace the overrated paper currency in the future. With time its value increased and more people, over the globe, started bitcoin trading. As the demand grew, after few years of finding its worth, bitcoin was accepted by people and was 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 huge 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 that one can hold for the long term.
But, bitcoin has an extremely volatile identity. The absence of any regulatory body makes it even more unpredictable and unstable. This could be the reason 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 came as a shock to many, as they had higher expectations and now they were skeptical if it will ever rise again.
There were many people who knew the potential of this cryptocurrency and had faith that there will be a rise in its value. Traders took the 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 upwards.
In 2021, bitcoin showed its all-time high to date. It stood at the value of $65,000 that showed that bitcoin is never going out of trend. The rise and fall is the market condition but it will find its way up.
Today, a single bitcoin is traded at a price above $40,000. And because of its halving technique, there is no way its value will decrease. It is forecasted to increase 50% in value in the coming years, maybe even more.
Bitcoin Price Prediction by Experts
Many experts have shared their reviews on Bitcoin and what they are expecting or predicting about its future. Let us look at some of these forecasts.
- Robert Kiyosaki- the author of the bestselling book, Rich Dad, Poor Dad, has been openly praising bitcoin and gold and also 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- he is a developer of bitcoin and the CEO of Blockstream (the technology that helps in storing and transferring bitcoins). He has predicted that bitcoin can reach as high as $300,000 in coming years.
- Plan B- Plan B is an expert in bitcoin 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 will fall as low as $3,000, which became true.
- Daniel Masters- he is an analyst at global advisor. He made the prediction in 2017 when the price went extremely low to $3,000 that the bitcoin value will increase up to $4,500. His prediction was proved correct but the bitcoin price crossed even that mark and reached $20,000 in that year.
- Peter Brandt- His prediction came more as a shock to the market. He said that there will 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 fell 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.
Projections of Bitcoin Price
Looking at the reviews and predictions of the experts it is not false to say the future of bitcoin is very bright. From less than $1 to $60,000 currently, bitcoin showed enormous growth and its worth. If we listen to these experts there will be significant growth in the value of bitcoin in the upcoming future. To predict this growth many experts use technical analysis. The technical analysis can tell you what can be expected in the coming time period. Following are the technical analysis of bitcoin for the coming years.
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 price of the bitcoin.
2024 to 2025
Bitcoin uses the halving technique which reduces the bitcoin creation in the market by half after every 4 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, reduced supply, and may take bitcoin to a new high. The expert analysts have predicted this price to go beyond $400,000.
Conclusion
The future of bitcoin is as bright as the sun. From the very beginning, it has experienced a bumpy road and so is its future going to be. Those who traded bitcoin have had a promising experience. It was created with a motive to replace the global currencies. As it is taking steps towards this goal it is evidently succeeding. Being so technologically advanced has paved the way for many other cryptocurrencies. With increased cryptocurrencies in the market, it has become a layman term for the general public and is widely used. But if it will be able to reach its goal, it is uncertain.
Purchasing bitcoin these days is as simple as purchasing groceries. You can purchase through your visa or master cards or through online payment accounts like Venmo or PayPal. It is no longer restricted in the hands of the few but anyone who wishes to invest or trade can purchase bitcoin, whether it’s a small vendor or large multinational cooperation. It is safer to say that even after being highly volatile, bitcoin will retain its demand throughout its life.
