Tesla recently revealed that it has moved almost 8% of its reserves to Bitcoin, as soon as this news was cracked on February 8, Bitcoin surged more than 16%, reaching a new all-time high.
Jack Dorsey's payments company Square recently invested $ 50 million in Bitcoin and this is not the first time the company has shown interest in cryptocurrencies. In 2018 they launched a crypto trading app called CashApp and also formed an independent team called Square Crypto in 2019 that contributes to the open source work of Bitcoin. All of this clearly shows the company's confidence in Bitcoin and cryptocurrencies.
What is Bitcoin and what makes the price of Bitcoin go up?
Bitcoin, created by Satoshi Nakamoto, is the first cryptocurrency to be born. It is a decentralized digital asset that is not controlled by any third party, such as banks or governments.
Each transaction is verified and stored on the blockchain by miners who are incentivized for each block that is verified.
Every four years or after every 210,000 blocks it is halved when new bitcoins enter circulation as block rewards produced by miners, and after each halving, the miners' rewards decrease by 50%.
For example, in 2009, the system started with 50 coins mined every ten minutes, which was reduced to 12.5 bitcoins, two halves later, and now it is 6.25 bitcoins after the third half that took place in May 2020.
This process will continue until the 21 million bitcoins are cut in half.
These halving often lead to an increase in price, as with each halving, the supply of coins shrinks while demand remains the same, having said that the next halving is expected in 2024.
Bitcoin price history
Bitcoin is a highly volatile asset and accurately predicting its future price is challenging.
In 2013, it started with a price of $ 13.50 and rose to $ 220 in early April, only to fall around $ 70 towards mid-April.
We've seen a lot of ups and downs throughout the coin's journey, in January 2018 it fell by almost 50% and then recovered much better in mid-2019.
In 2020 it managed to hit a cap of just under $ 10,000 and also saw a low of $ 5,000 in the market crash in mid-March, and since then the coin has recovered quite well.
Prediction of the most important traders on the price of Bitcoin
1. Jeremy Liew
Lightspeed Venture Partners, one of the first investors in Snapchat and an active investor in a business insider exchange in May 2017, expressed his confidence in Bitcoin and predicted that it would reach $ 500,000 by 2030, his prediction was also supported by Peter Smith, the CEO and co-founder of blockchain.
2. Mike Novogratz
A former hedge fund manager and cryptocurrency enthusiast, he predicted in March 2019 that the market capitalization of bitcoin is expected to exceed the market capitalization of gold at the time, which was $ 7.5 trillion. And he hopes this will happen in ten years.
3. Wences Casares
CEO and founder of Xapo, he is also a strong believer in bitcoin who got involved in it in 2011. During a consensus conference in New York in 2017, he estimated that bitcoin would reach $ 1,000,000 in five to ten years, which means not before of 2022 but with a delay of 2027.
4. Chamath Palihapitiya
He is a co-owner of Golden State Warriors and founder of Social Capital, he started his investment journey in 2012, his enthusiasm for bitcoin can be determined by the fact that at one point he owned the 5% of all bitcoins in circulation. . His short-term prediction suggests that bitcoin will hit $ 1,00,000 in the next 3-4 years and, in the long term, he predicts that it will hit the $ 1 million mark in or by 2037.
Crypto Galaxy Index
According to the report Crypto Galaxy Index (BGCI) from Bloomberg's June, an analyst believes that unless there is a significant failure in bitcoin, investors will continue to appreciate this value.
They optimistically suggest that bitcoin has an advantage over crude oil, gold, stocks, and commodities.
To add even more, they said that every time BTC drops in volume, it rises again with an increase in value compared to previous years.
They quote: “After the 60% decline of 2014, at the end of 2016, crypto reached the peak of 2013 […] After the decline of almost 75% in 2018, Bitcoin will approach the record of around $ 20,000 this year , in our opinion.
6. Adam Back
He is a cryptographer and crypto pioneer predicted that the value of bitcoin would skyrocket to $ 3,00,000 per bitcoin in the next five years.
He believes that hyperbitcoinization can lead to Bitcoin reaching $ 10 million.
"$ 100,000 bitcoin doesn't seem that far off since we already crossed the $ 10,000 threshold a few times when few expected even $ 1,000 a few years ago and $ 10,000 seemed insane," Back said via Twitter .
Bitcoin price prediction 2021
Bitcoin has performed quite well and has started its bull run, macro investors like Paul Tudor Jones are buying it as a hedge against inflation. Now it doesn't rely on institutional adoption to continue its bull run as more and more people see it as a hedge against inflation to retain value.
Additionally, countries like the US, Japan, and South Korea are incredibly open to integrating bitcoin and other cryptocurrencies into their financial system through regulation. Towards the end of 2021, bitcoin is estimated to reach $ 19,169.44 *.
Bitcoin price prediction 2022
With the rapid widespread adoption that bitcoin is experiencing, we can expect that by 2022 the adoption rate of bitcoin will triple. Bitcoin doesn't seem too far off before it replaces fiat in many cases. By 2022, Bitcoin could reach $ 32,000, given that the advances are stable.
Bitcoin price prediction 2025
The fourth bitcoin halving is expected to take place in 2024, which means that we can expect to see an increase in price by 2025. It is expected to reach an all-time high of $ 100,000, up to $ 400,000 based on the predictions of the experts.
Based only on the Fibonacci extensions, additional short, medium and long-term price targets can be found. Using just the math, the Fibonacci ratios point to prices of $ 75,000, $ 64,000, $ 47,000, $ 31,000, and $ 25,000 for possible new price registrations. Source: Prime XBT
Bitcoin price predictions based on quantitative models
Bitcoin Price Prediction Based on Mayer's Multiple Approach
Trace Mayer; A hedge fund manager created the Mayer Multiple model that helps predict the ideal times to buy and sell bitcoin, which is determined by dividing the current price of bitcoin divided by its 200-day daily exponential moving average (EMA).
The average Mayer Multiple since the creation of Bitcoin is 1.39 and at the time of writing this article is approximately 1.15.
The best long-term results are obtained by stacking bitcoins as long as the Mayer Multiple is below 2.4
Bitcoin Price Prediction Based on Bitcoin NVT Ratio
It is another approach used to determine the future price of bitcoin; NVT refers to the relationship between the value of the network and the transaction, which is very similar to the PE relationship used in the stock markets.
A high bitcoin NVT indicates that the valuation of the network is moving faster than the value that is transmitted on your payment network.
This often happens when the network is experiencing growth and attracting investors.
It is calculated by dividing the market capitalization, which is the value of the network, by the daily value of BTC transmitted through the blockchain.
Bitcoin Live Forecast: Live Bitcoin Price 2020
BTC / USD price in real time
Currently, the BTC / USD live price suggests that Bitcoin (BTC) is trading at $ 49,090.51 with the price of BTC rising from 3,82% today. Bitcoin's market capitalization is $ 914,253,333,176 with 18,642,612 BTC currently circulating. The 24-hour price movement chart indicates that BTC was traded worth $ 51,240,142,239. (Bitcoin price prediction today in USD).
Live price BTC / INR
Currently, the BTC / INR Live price suggests that Bitcoin (BTC) is trading at Rs 3601002.45 with the BTC price rising by 3.82% at present.
Frequently Asked Questions About Bitcoin Price Prediction
1. Will Bitcoin increase in value?
According to experts and crypto enthusiasts, a large part of the people are optimistic about the increase in value of Bitcoin in the coming years.
2. Is it smart to invest in Bitcoin?
It is up to you and your goal, as if you were looking for a long-term investment or a short-term investment. Also, it is highly recommended that you do a thorough research before making any investment decisions.
3. How is the price of Bitcoin determined?
The price of Bitcoin, like any other currency, is determined by supply and demand.
4. Can Bitcoin be exchanged for real money?
You can get Bitcoin with fiats like USD or Euro. But Bitcoin is a virtual electronic currency with an efficient built-in transfer system. You have to put it on an exchange and convert it into fiat money to exchange it for real money.
5. How often does the price of Bitcoin change?
Bitcoin price can change in seconds, there is no standard price change frequency for Bitcoin.
6. What was the lowest price of Bitcoin?
The lowest price was in October 2010, when Bitcoin was worth less than a dollar and cost $ 0.125, and in 2011 from February to April, it was trading at $ 1.00.
7. Is Bitcoin the same price all over the world?
Yes, the price of Bitcoin around the world is the same, only when you change to your local fiat currency, the price of 1 BTC varies in that case. For example, in USD, 1 BTC equals $ 9,385.89 USD and when it comes to INR, 1 BTC equals Rs 7,13.080.32.
8. What is the difference between the bid price and the ask price?
The offer price is the highest price a buyer pays for security, and the offer price is the lowest price.
9. Is Bitcoin safe and legal?
Bitcoin allows for transparency and decentralization, and different countries have specific rules and regulations.
10. How do I start buying bitcoins?
You can buy Bitcoin easily with the help of a credit or debit card, with fiat currencies. You can even convert 300+ cryptocurrencies to Bitcoin instantly.
11. How much does it cost to buy 1 Bitcoin?
1 Bitcoin equals $ 55,000 as of March 26, 2021.
12. Can Bitcoin crash to zero?
This is one of the things whose probability is almost impossible.
13. How does Bitcoin work?
Bitcoin is a virtual currency, which is powered by blockchain technology, where all transactions are recorded in a public ledger called the blockchain.