What’s the Future of Bitcoin?
The market cap of Bitcoin as of 1st of January 2020 was $130,580,829,150. This year, the first crypto token’s market cap reached an all-time high at 600 billion USD; the market cap is the product of the total number of bitcoins in circulation multiplied by its price.
A lot of speculation surrounds the cryptocurrency space in general and bitcoins in particular. As the first open-source, decentralized cryptocurrency released in 2009, Bitcoin experienced a drastic increase in its value from nothing to $41,973 as of the 8th of January 2021.
Bitcoin is a decentralized virtual or digital currency that is not controlled by a central authority, unlike fiat currencies. Bitcoins are the closest cryptocurrency to real money and have garnered mainstream adoption in a very short time.
Bitcoin transactions are recorded publicly in a distributed ledger, also known as a blockchain network. The blockchain technology makes for safer and secure bitcoin transactions with increased transparency; this safety element is the main reason for the surging popularity of bitcoins.
Unlike traditional currencies, Bitcoin is created by a popular process termed Bitcoin Mining. There is a limit to the number of bitcoins that can be mined, which is 21 million. At the time of writing this article, 2,401,787.5 bitcoins are left to be mined. Today, the current trading price of a Bitcoin is $58,842.79 with a market cap of $1,097,744,363,102. The price of a Bitcoin is increasing every day and gaining popularity. Now, several investors/users are planning to invest in Bitcoin as experts predict that the value of Bitcoin will increase in the future. If you are also planning to invest in Bitcoin. Bitcoin Aussie System is an innovative way to invest in Bitcoin; it uses an algorithm that auto trades for users. To know more about the Bitcoin Aussie System, you can read their reviews.
Bitcoin reached an all-time high on the 16th of December 2020 at $20,600. In less than 30 days, the value doubled to $41,973 as of 8th January 2021. The last quarter of 2020 witnessed a lot of Bitcoin investments from some of the leading industries as follows: Square Inc put roughly $50 million of the total assets in Bitcoin.
Massachusetts Mutual Life Insurance Company purchased $100 million in bitcoin, accounting for approximately 0.04% of the company’s general investment account. While this may be true, individuals also find bitcoin trading as a speculative investment to be an ideal means of diversifying their financial portfolios.
With more people understanding the true potential and uses of Bitcoin, the value of Bitcoin is only going to increase, especially. While supply remains constant, both demand and the price will naturally shoot up.
Bitcoin Price Prediction 2021
Some leading crypto and financial industry experts are speculating a 5x increase in Bitcoin’s market cap by the end of 2021. Let’s look at some of the bitcoin price predictions for 2021.
Everyone recognizes John McAfee for McAfee anti-virus solutions. According to John McAfee, the value of Bitcoin may rise to $1 million in 2021.
Tom Lee is one of the leading names from the traditional finance sector. According to him, the value of Bitcoin will rise to $64,000 by the end of 2021. Earlier, Lee had predicted a price value for Bitcoin at $10,000 in 2017, and as the historical data goes, the price of the crypto doubled the same year.
CEO of Brave New Coin, Fran Strajnar, predicts that by the end of 2021, the price of Bitcoin will reach an all-time high of $200,000.
While these figures are a far cry from the present value of Bitcoin, the arguments are based on facts like the limited supply of Bitcoin; the halving of Bitcoin reward for mining from 12.5 BTC to 6.26 BYC, among others.
Is Bitcoin a Good Investment?
Bitcoin, like any other cryptocurrencies, is a highly liquid and volatile digital asset. Due to this very reason, Bitcoin investors trade the crypto for profits. While this may be true, there’s the most important fact that Bitcoin is the closest crypto to any of the popular fiat currencies like EUR, USD, etc.
With the limited supply of the tokens at 21 million, many will certainly invest in bitcoins hoping to earn millions in the coming years. In fact, those who believed in the potential of bitcoins back in the days when the crypto made its mark in the market are certainly millionaires today.
Another prediction to support the above claim is from the Winklevoss twins, popularly referred to as the bitcoin billionaires who strongly believe that Bitcoin will soon disrupt the value of gold in the coming years.
It is never too late. While long-term investments have their own set of risks owing to the volatility of the cryptocurrencies, short-term investments are a whole new different story. The bottom line is lucrative investments revolve around speculations, and assessing the risks involved is important as the cryptocurrency market is highly volatile with equal chances for investors to either lose money or earn big.