Bitcoin has become a household name, and almost everybody has heard about it. This is a digital currency that slightly differs from fiat currency. It uses a peer-to-peer (P2P) payment method, eliminating intermediaries like banks and other financial institutions. The coin pioneered the cryptocurrency space and is still at the top of the pile despite the volatility it experienced in 2022.
Studying Bitcoin’s past performance will familiarise you with its price movements. For example, the coin experienced its biggest gain in 2021, reaching a high of $68,789 on 10th November. Before this, Bitcoin couldn’t climb back to its previous all-time high of $20,000 in 2018.
BTC had an interesting period from 2009 to 2018, where its value went from virtually nothing to thousands of dollars. This massive rise is credited to Bitcoin halving.
A long-term Bitcoin investment is generally a better option. After the turbulent past few months, we predict that Bitcoin’s value will rise steadily to around $22,000 by the end of 2022, $35,000 by the end of 2023 and up to $78,000 by 2025.
Besides looking at BTC’s historical prices, we also need to analyze how the price is determined and the causes of the price fluctuations. Like any limited commodity, the law of supply and demand controls the price.
For example, Bitcoin’s value will increase when the demand for new tokens is higher than the supply, which usually occurs with Bitcoin halving. However, this factor will have a minimal volatile effect when the maximum supply of tokens has been issued. Cryptocurrency experts estimate the likelihood of this occurrence to be up to the year 2140.
Media coverage is another factor that increases investor interest in Bitcoin. For instance, in 2017-2018, the renewed interest in Bitcoin was primarily fueled by the media frenzy. As a result, an imbalance between supply and demand occurred, causing the price to soar.
So, is Bitcoin a good investment? This can be a profitable venture considering its value has risen from a few cents to over $68,000. Our predictions suggest that BTC will continue to appreciate in the coming years.
Although Bitcoin’s value has increased significantly since its inception, you are not too late to buy. Moreover, since it is a highly volatile asset, you can profit from the price fluctuations both in the short and long term.
A return on investment (ROI) of 31,106% is unmistakable evidence that investing in Bitcoin is profitable. Moreover, price forecasters believe that BTC’s value will continue to rise in the foreseeable future as it becomes more accepted.
However, it is essential to note that Bitcoin investment is still risky. Also, owning Bitcoin in some countries is dangerous, and authorities are looking for ways to regulate it.
Where to buy and invest in Bitcoin? Selecting a reliable exchange or broker is crucial to investing in Bitcoins. Like investing in stocks on the internet, you will need a safe and cost-effective platform to optimize your trading. eToro is one of the best online platforms to buy and sell Bitcoins, especially for beginners. It has a user-friendly interface and is regulated by the FCA, SEC and ASIC.