Today’s discussion is about Bitcoin as a cryptocurrency which has garnered the number one spot for a long time now. Many people and analysts believe that Bitcoin has the potential to reach heights way above $100,000 dollars. However, other analysts state that the crypto is most likely going to enter a period of destabilization where it is reduced to around $40,000 dollars. Let’s look at some of the aspects.
Note for the chart we picked the cost of a Bitcoin in every April, so if you were wondering why it doesn’t show that it almost hit $20,000 in 2017 is because it happened in December and quickly lost value. Additionally it hit $61,000 in 2021 which occurred in November. Every price point that we see is from every April from 2016 to 2024 (current). Here is a graph you can check to see the price yourself. Also here is Google’s cost tracker.
Invest in Bitcoin?
I personally hate this question as it should always be up to you to invest in something from stocks, homes, cryptocurrencies, businesses, and research/development. This is one of the worst questions you can ask as it can lead you astray which could potentially cost you hundreds to thousands of dollars. Do not follow advice from this blog or any other influencer, blogger, or “professional”.
Guess what? We all lie to act like we know what we are talking about to get your clicks. In reality, the best advice for everyone that I’ve personally heard is to invest very small amounts in whatever you want to. This will cause your money invested overtime to increase just like a 401k or Roth IRA. Never, and I mean never invest your livelihood into something like a cryptocurrency as you can potentially lose it all.
Remember that regular people move markets barely unless we do it all at the same time with thousands of us. Most of the markets these days move by big money with billions invested into something. For example, if a theoretical company “Zandaferex” has billions invested in Bitcoin and they sell off when they think they made enough money, they can potentially crash it, cash out, and reinvest when the price falls to make more money.
TLDR:// Invest your money in small bits, but more frequently so it adds up to a large amount. This won’t hurt too much if the market gets worse. It also won’t benefit you if the market pops off. HOWEVER, if you end up putting $10,000 overtime and the market doubles you still made money. Plus you aren’t risking your life savings.
Can Bitcoin Reach 100K?
From what we can see with the graph above, Bitcoin has had major downfalls and major rises in history. From the time of it’s inception where it was 9 cents in the early 2000’s it has increased dramatically. Based on trends from the past, we can clearly see that the price of a Bitcoin will most likely reach $100,000. There is one slight problem with this idea even though it most likely will reach this amount.
The main reason it will most likely reach 100k or more is because Bitcoin half’s every four years which is occurring this April of 2024. It has also done this process once in 2020, 2016, and 2012. This makes the fake digital currency raise value as it’s harder to obtain Bitcoin through mining processes. In essence, Bitcoin has a final amount that it will reach which will mean there can be no more supply.
Finally, with Bitcoin having a capped amount and it getting harder to obtain makes its value rise dramatically, with a responding fall over the next two years. Most likely, over the next two years Bitcoin will lose it’s total cost until the next half event in 2028. Here’s where things get a little difficult. As Bitcoin’s value continues to increase other cryptocurrencies which have more efficiency, less cost for transactions, and less cost to buy may end up growing as Bitcoin may eventually fall due to it’s future inaccessibility.
Why is Bitcoin Important?
Bitcoin is considered important for several reasons:
- Decentralization: Unlike traditional currencies managed by governments and central banks, Bitcoin operates on a decentralized network using blockchain technology. This decentralization reduces the control that any single entity has over the currency, potentially increasing transparency and security.
- Financial Inclusion: Bitcoin can provide financial services to people without access to traditional banking systems, especially in underdeveloped or unstable regions.
- Store of Value: Many view Bitcoin as a digital equivalent to gold—a store of value during economic uncertainty. Its capped supply contributes to this perspective.
- Innovation in Payments: Bitcoin offers a way to transfer value across the globe quickly and without the need for traditional banking intermediaries, often at lower transaction costs.
Current Uses of Bitcoin
Currently, Bitcoin is used for:
- Investment: Many people buy Bitcoin as a speculative investment, hoping its value will increase over time.
- Transactions: Bitcoin is used for both international and domestic transactions, providing a method of payment that bypasses traditional banking channels. This can be especially useful for remittances and for transactions in places where the local currency is unstable.
- Store of Value: Similar to precious metals, Bitcoin is used by some as a hedge against inflation and currency devaluation.
- Innovative Technology Platforms: Bitcoin’s underlying technology, the blockchain, is being explored for various other applications, including in digital identity, supply chain management, and more.
Future of Bitcoin: Will It Be Abandoned?
The question of Bitcoin being abandoned as it reaches its supply cap of 21 million coins (expected around the year 2140) is a subject of much debate:
- Mining Incentives: Even after all Bitcoins are mined, miners can still receive transaction fees as incentives to process transactions and secure the network. These fees could become more significant as the network grows and transaction volumes increase.
- Adaptability: The Bitcoin protocol can be updated if consensus is reached among the community. Although changing fundamental aspects like the supply cap is controversial and challenging, the community has adopted significant changes in the past (like Segregated Witness).
- Continued Use: As long as Bitcoin remains useful and valuable to its users, whether as a store of value, medium of exchange, or for other uses, it’s unlikely to be entirely abandoned. The dynamics might change, but the network can continue operating with transaction fees as an incentive.
Bitcoin’s future is not set in stone, and like any financial asset, its viability will depend on a complex interplay of technological, economic, and social factors.
What About Altcoins?
The future importance and usability of altcoins—cryptocurrencies other than Bitcoin—depend on a variety of factors. Here are some considerations that might influence the prominence and usability of altcoins:
1. Innovation and Features
Altcoins often introduce new features or improvements not found in Bitcoin, such as faster transaction speeds, lower fees, privacy enhancements, or different consensus mechanisms (like proof of stake). These innovations can address specific market needs and attract users looking for functionalities that Bitcoin doesn’t offer.
2. Market Adoption
For any cryptocurrency to become more usable and important, it needs widespread adoption. This can be facilitated through partnerships with businesses, integration into payment systems, or being used in applications that solve real-world problems (e.g., supply chain tracking, decentralized finance).
3. Regulatory Environment
The regulatory landscape can significantly affect the usability and importance of altcoins. Positive regulation can lead to increased adoption and legitimacy, while strict regulations might inhibit growth. Different countries may have varying stances on different aspects of cryptocurrencies, including privacy features, which can affect specific altcoins differently.
4. Community and Developer Support
The strength and activity of a cryptocurrency’s community and development team are critical. A robust, active community can drive improvements and maintain the ecosystem, helping to ensure the long-term viability and reliability of the currency.
5. Economic Factors
Altcoins can also be influenced by broader economic factors, such as the state of the global economy, trends in investment (like the growing interest in digital and decentralized finance), and the evolution of blockchain technology.
6. Scalability Solutions
Many altcoins are working on solving scalability issues inherent in blockchain technology. Those that succeed in doing so without compromising on security or decentralization may see increased adoption for broader applications beyond simple transactions, such as in enterprise solutions or complex decentralized applications.
Future Outlook
Okay to recap everything we know about the potential is that yes the main cryptocurrency known as Bitcoin will most likely reach over $100,000 at some point in time in the future. The use of the crypto can highly change this dynamic as it’s not very usable right now other than storing currency, sending transactions, and using it as an investment.
In the near future of 2 years timespan, based on the previous trends it seems it’s currently at a high right now which will most likely fall down to a lower amount than $70,000 until the next half event happens. This means don’t put all your eggs in one basket, don’t invest your life savings, and don’t bankrupt yourself based on this crypto. You can always just invest small amounts just like you can in stocks.
Some altcoins may become more important or usable than others based on how well they manage these aspects. It’s also possible for new altcoins to emerge and become significant players in the market, just as some existing ones might fade away if they fail to innovate or maintain user and developer interest.
Overall, the cryptocurrency space is highly dynamic and speculative, and while altcoins have the potential to become more important and widely used, predicting which ones will succeed can be challenging. One thing to know is that the future of cryptocurrency can be wild and may be incorporated to our everyday life, but at this point in time it’s still a mystery of whether it will be adopted.