What do you know about cryptocurrencies? Bitcoin is in an upward market trend, also known as “bull market” territory. Who expected a digital currency, which wasn’t inspiring confidence, would suddenly increase and entire the market? It seems to be a perspective way of making money in the last years. Is it safe to trade bitcoin now, according to its unstable price, which suddenly changes?
However, to date, bitcoin reached its highest value – about 61k in USD. Bitcoin may have already become more expensive when you’re reading this, according to the goals that it reached before – 30, 40, 50k. What should we expect later? Should we believe the hype around bitcoin, or should we treat this as a way of attracting money to a crypto market?
Today we are going to talk about the relevance of bitcoin trading and its actual price. Is it actual right now when the leading cryptocurrency reached the highest value? You can check out the articles about bitcoin price predictions published earlier to discover that they have become true. Let’s try to find the answers together while analyzing the changing of bitcoin price in previous years.
What will bitcoin worth in the future?
It can be a very useful superpower to predict the future if we are talking about bitcoin price, which recently reached about 61k USD. Let’s look at the most popular bitcoin price predictions by analyzing its changes in the last years.
Well, first of all, we want to highlight that bitcoin can drop to zero. It’s only an assumption, so remember to trade bitcoin wisely, don’t believe the hype, and don’t go all-in to prevent losing all your deposit.
Such a kind of activity, like crypto trading, requires extraordinary attentiveness and responsibility. Living at the moment is exactly good, but in that case, you should predict for tomorrow.
Will Bitcoin rise?
Exactly yes, but there is a list of nuances. According to statements of many reputable and famous people, we can suggest that Bitcoin will rise. Probably all the traders understand this, but it is essential to realize that we won’t see a permanent increase in crypto. It will drop again, like in 2018 and 2020 years.
Let us remind you that at the end of 2017, Bitcoin reached almost 20k in USD, then dropped to 4 k at the beginning of 2019. A crypto exchange corrected until the summer of 2019 turned more than 10k, but dating to March 2020 fell to 5k again. And finally, in March 2021, the bitcoin price climbed above 60k in USD. Let’s consider the predictions of experts. It is possible to reach an all-time high of $100,000, to as much as $400,000 based on experts’ predictions.
Although it may seem strange, Bitcoin price is expected to reach $100,000 to as much as $1 million per BTC. In an exchange with Business Insider in May 2017, Liew, a partner at Lightspeed Venture Partners, famed as the first investor in the social media app Snapchat, said that the Bitcoin price could “realistically” reach $500,000 by 2030. Renowned crypto statistician Willy Woo says his $200,000 bitcoin price prediction for the end of 2021 now “looks conservative” and believes it may even soar as high as $300,000.
What’s the proof?
Well, think about it:
- The mining procedure is getting more difficult and expensive, which proves the future rise of bitcoin price, according to the limited amount of crypto coins. If you didn’t know, the possible amount of bitcoins is 21 million.
- Lost keys and passwords to crypto wallets reduce the number of coins mentioned above, reducing the indicator of supply while keeping a demand previous.
- Authoritative people and investment funds start trusting and buying crypto, which can be treated like a green light like to trade bitcoin.
What affects bitcoin price?
- Supply and demand
Consider two factors, which provide a significant influence on any product on the market. What does it mean? With the increase in demand, the bitcoin price will rise when the maximum amount of bitcoins is limited – theoretically 21 million coins. The actual amount of available bitcoin in circulation could be reduced, as people have lost their passwords to wallets and even died.
- Cryptocurrencies competition
Bitcoin is precisely the most popular cryptocurrency, which seems to be leading among others. However, thousands of other cryptocurrencies are out there, like Tether (USDT) and Ethereum (ETH), trying to fight for our attention.
There is a particular pattern – when the bitcoin price drops, other cryptocurrencies drop parallelly.
- Media hype and bitcoin news
That factor, which affects bitcoin price, motivates people to believe the hype around cryptocurrency. According to a changing of a bitcoin price today, media makes bitcoin more needed and wanted. At the same time, many people start investing in cryptocurrencies, treating them like making easy money.
On the other hand, media provides an opportunity for people interested in trading an unlimited amount of helpful information, which may help you answer questions like “how to trade bitcoin, “what is the best cryptocurrency to trade, “crypto signals.”
Bitcoin news keeps traders aware and updated and may prevent an unwanted loss and encourage a significant profit.
- Cost of mining
As you know, bitcoin is a computer file that is stored in a ‘digital wallet’ app on a smartphone or computer, and it also requires a producing process which is known as “mining.” The cost to create a BTC is derived from the mining process’s electrical consumption. Consider an interesting fact that it takes about ten minutes to produce one bitcoin.
Can bitcoin price drop to zero?
In theory, it is possible that bitcoin can crash and its price drop to zero, but who knows? You can familiarize yourself with a report about the risk of Bitcoin collapsing to zero in the span of a day. By using Bitcoin’s historic returns to calculate its risk-neutral disaster probability, the authors found that the likelihood of an unspecified disaster dropping Bitcoin price to zero ranged from between 0% to 1.3%.
These things can not be predicted, but according to bitcoin’s recent development, we can indeed say that it is a future. It is also possible that in case of crashing a bitcoin, other cryptocurrencies will rise.
A bit of advice – never go all-in, check out bitcoin news, stay aware and updated.