Bitcoin is one of the most popular cryptocurrencies. But because of the unpredictable nature of the current economy, a lot of investors are worried about Bitcoin prices and its future. So, in this article, we will talk about Bitcoin price prediction.
In the June edition of the Crypto Research Report (CRR), the price prediction of Bitcoin was revealed. The CRR report used the ‘’equation of exchange’’ model to forecast Bitcoin’s future price. This report revealed a lot of interesting data.
What is Bitcoin?
Before we go any further let us learn the basics. In case you are new to trading you should know that Bitcoin is a digital currency or cryptocurrency. Bitcoin was launched in 2009. In March 2014, the IRS stated that Bitcoin would be taxed as property. Bitcoin is an online version of money. You can use it to buy products and services.
How Does Bitcoin Work? :
There is no physical copy of Bitcoin. Each Bitcoin is a computer-generated that is stored in a ‘’Digital Wallet’’ on a smartphone or computer. You can send Bitcoins to other peoples’ digital wallet. You can also receive Bitcoins from other people. You can find every record of each transaction in a public list called the blockchain.
How Can One Get Bitcoins?
There are multiple ways you can get Bitcoins:
- You can buy Bitcoins with cash.
- When you sell a product or a service you can let people pay you with Bitcoins.
- You can ‘’mine’’ Bitcoins.
Mining: When people set up powerful computers to try and get Bitcoins it is called mining. It can take years to get a single Bitcoin this way.
Bitcoin Price Prediction
Experts expect Bitcoin prices rise to $19,044 in 2020, $341,000 in 2025, and $397,727 in 2030. Bitcoin cash’s price should climb up to $414, $6,690, and $13,016 during the same time periods. The report states that the market price for all cryptocurrencies today is approximately $212 trillion. Bitcoin prices have taken a plunge due to the pandemic and the economy tanking. At the end of 2019, the price of Bitcoin was $7200. This means Bitcoin has penetrated less than 0.44% of its total addressable markets. If somehow Bitcoin manages to reach 10%, its non-discounted utility price would reach nearly $400,000.
There are more than 40 million cryptocurrency users worldwide. If a country has high GDP the citizens are more inclined to use cryptocurrencies. In late June, Bitcoin price was $8,905. Currently, Bitcoin price is just under $11,500. So, the price of Bitcoin (BTC) has increased by nearly 30%.
Factors that Influence Bitcoin Price
There are many factors that can influence the price of Bitcoin. Some of them are:
- The Fading Dollar: Due to the pandemic and the US economy struggling to reopen, the US dollar’s value has fallen against other reserve currencies. Bitcoin is likely to benefit during this time of economic uncertainty and dollar weakness. The US dollar has already dropped to a two-year low. A lot of investors are finding it wise to invest in Bitcoin. Many people are finding Bitcoin a smart investment because of the pandemic and currencies worldwide taking a hit. This economic crisis has made cryptocurrencies a smart investment idea. Prices of many cryptocurrencies are increasing as a result.
- Gold Correlation: In recent months, due to the falling dollar, gold and Bitcoin have seen a more correlated price cycle. The price of Bitcoin has been increasing steadily. Because of this, the public image of BTC as a store of value has strengthened. Both Bitcoin and gold have demonstrated an inverse correlation with stocks during this pandemic. The similarities in the price cycles of gold and Bitcoin hint that investors might be considering BTC as a store of value and a safe haven asset instead of a risk-on asset such as single stocks.
- Long-term Macro Metrics: Various on-chain macro metrics suggest that investors are increasingly purchasing BTC with the intent of holding. That is why Bitcoin is seeing an extended accumulation phase. A cryptocurrency-focused investment firm named Grayscale found that the number of BTC held for over a year has increased substantially. Crypto market analysis firm Unfolded said that the number of Bitcoin addresses holding more than $11 million hit a new all-time high. As time goes by more large-scale investors are accumulating BTC. Most on-chain data and macro factors point toward a high probability of an upsurge in Bitcoin prices in 2021.
Before you invest in Bitcoin you should always check the price prediction. The price prediction and an educated guess will save you from losing money. In this article, we have talked about Bitcoin price prediction and different factors that influence the price of Bitcoin. We hope you found this helpful.