Bitcoin Price Prediction: Growth Predictions For The Future
Are you curious about Bitcoin price predictions? What will Bitcoin be worth in the future? In this blog post, we'll take a closer look at some growth predictions for Bitcoin and outline what could happen in terms of its value. Stay tuned to find out more!
The last year has been an incredible journey for the cryptocurrency world. More and more folks are entering the crypto space, especially after seeing some of the astonishing growth Bitcoin has achieved in just ten years. It's hard to argue with the asset class when it performs so well.
Still, the crypto space has many ups and downs, which can scare away investors. However, predictions at Bitcoin's futures prices indicate that the asset still has room to grow. Let's examine how these predictions are made on such a volatile asset. This info could help you make a life-changing investment!
What Is Bitcoin?
Cryptocurrency Name: Bitcoin
Ticker Symbol: BTC
Circulating Supply: 18,660,000 BTC
All-Time High: $64,863.10
Average Annualized Return: 230.6%
Bitcoin was the first cryptocurrency to exist. It was released back in 2009, supposedly responding to the United States' economic recession of 2007. The point of the currency was to create a deflation-based digital currency that existed outside of a government's control.
We don't know who made Bitcoin, exactly. The author of the original white paper was a person named Satoshi Nakamoto. This paper outlines their idea for creating a "peer-to-peer version of electronic cash."
From their name, we get the Satoshi, a subdivision of Bitcoin like cents are to the U.S. dollar. However, Bitcoin can be divided into eight decimal points rather than just two with the U.S. dollar.
How does Bitcoin Work?
Ultimately, Bitcoin creates a digital wallet in the cloud or on hardware like a computer or smartphone. That wallet is recorded as having so much Bitcoin via the blockchain, which is the algorithm underpinning the entire ecosystem. If you have access to that wallet, you can use the Bitcoin associated with it.
You can direct Bitcoin to other wallets using their wallet address. A wallet address is a long string of characters associated with and identifying that wallet. You never put your name or home address with this wallet, though. Its only identifying feature is the wallet address.
Also, you can't access another wallet's Bitcoin without its seed phrases, which are words that unlock the wallet similar to a password recovery question on a website.
Once you have another wallet's address, you plug that into the crypto service of your choice and send them the money. The transaction gets calculated on the blockchain, and the funds are transferred to the other wallet when the transaction is confirmed. Transactions are calculated by miners or people who dedicate computing power to the blockchain.
Here's a summary of how Bitcoin works:
- Individuals and businesses create a wallet for themselves on hardware
- Wallet addresses are exchanged to transfer Bitcoin between wallets
- Transactions are confirmed on the Bitcoin blockchain by miners.
How To Predict Bitcoin Prices
Much like other assets, predicting Bitcoin prices today is difficult. In addition to its volatility, Bitcoin is susceptible to the same factors that affect other investments like stocks and trade goods. However, all asset classes share the same characteristics, meaning that we can use similar tools to figure out longer-term projections for Bitcoin's price.
While this sounds highly advanced, technical analysis refers to using data about an asset to determine whether it is better to buy or sell it. This data includes trading volume, price action, moving averages, etc.
The point of this data is to tell you, at a glance, the direction that an asset is moving in on the market. By reading this data, you can know if it's time to start buying into or selling out of an asset based on data rather than market sentiment.
A while ago, folks figured out that Bitcoin tends to follow a logarithmic function in its price history. Over four years, Bitcoin goes through a similar price cycle, with the average price of Bitcoin increasing over time. This pattern is called the Bitcoin rainbow chart
This chart takes the average moving price of Bitcoin and assumes a default average based on the graph's formula. From there, prices above and below the expected average are given buy or sell designations, depending on whether the band is above or below the graph.
The rainbow chart is helpful only in understanding the general flow of Bitcoin's price history. The past performance of an asset doesn't mean it will follow the same patterns in the future, but it's a handy tool for getting a baseline of the market's status.
Tuning in to the finance portion of the news or reading the finances section of your favorite news outlet can also help clue you in on Bitcoin's future. This reporting can affect the price of Bitcoin.
Articles about Bitcoin doing well tend to increase its price as news outlets pick up on the action. These articles encourage more people to buy in because they believe that if the news talks about it, it must be a good buy! Likewise, negative press about Bitcoin can scare people out of their holdings, causing them to sell, driving the price of Bitcoin down.
Overall, review the general sentiment of Bitcoin in these news pieces. By following the tone of the news, you can stay ahead of market trends before others realize what's happening.
Bitcoin Price Forecasts
Above are the projected prices for Bitcoin at the end of each listed year. These Bitcoin price predictions are based on the current technical data available and the belief that the adoption and utilization of Bitcoin will increase over the next decade.
Bitcoin Price Prediction For 2025
With the recent news of Bitcoin becoming legal tender in some South American countries, it’s clear that Bitcoin is becoming widespread at a faster rate than before. Companies such as Tesla and financial firms holding Bitcoin means that more prominent players in the private sector are getting involved, too.
More and more money is entering the Bitcoin arena, meaning that the price will continue to go up on average. At the moderate rates expected by current technical analysis, Bitcoin is poised to reach around $200,000 by the end of 2025.
Bitcoin Price Prediction For 2030
For the next decade, it’s not unrealistic to think that cryptocurrency will have become widespread. Given that the technology went from primarily unheard of to being used by big companies in the last ten years, there could be more room to grow. Also, two more halvings are supposed to happen in the next ten years, meaning that the drip of Bitcoin into the economy will decrease over time, driving up the price.
However, ten years is a long way out for a budding technology like Bitcoin. While we expect Bitcoin to go up, it’s hard to envision a world where Bitcoin is $1 million or more, as others might think. Something closer to $500k matches more closely with previous price history.
What Is Behind the Rise of Bitcoin?
While many factors have helped Bitcoin get to where it is today, there are a few key reasons that Bitcoin has risen to be the dominant cryptocurrency in the asset class.
Those reasons are:
- Bitcoin was the first cryptocurrency to exist.
- The adoption and usage of the coin have increased over time.
- Regulatory bodies in government bring attention to the asset in their discussions of rules.
Let’s talk about each of those reasons in detail.
Bitcoin Was the First Crypto
By being the first of its asset class, Bitcoin has garnered more attention than the rest of its peers. As the saying goes, time in the market is better than timing the market. With its time in the crypto space, Bitcoin has persisted through highs and lows, proving the validity of its underlying principles and the strength of its blockchain network.
Adoption Has Gotten Easier
At first, it wasn’t easy to buy Bitcoin. You would have to go to specific websites that were hard to find via search and trust that you were giving money to the correct individual or business.
Now, with the advent of trusted cryptocurrency exchanges, buying Bitcoin has gotten much more straightforward. Rather than sending money to a stranger over the Internet, you could instead create an account on an exchange. That account would then let you connect your bank and use the money to buy Bitcoin with minimal headaches.
Governments Are Taking Notice
As Bitcoin has grown in adoption, governments around the world have taken notice of this currency. Because Bitcoin isn’t connected to any government or regulatory board, it falls to federal agencies to determine how they want to handle the asset. In 2014, the United States ruled that cryptocurrencies were property, not currency, meaning they fell under capital gains tax laws.
When governments make rules around Bitcoin, that press draws attention to the asset. Some portion of the people that see this news will then be interested and buy into Bitcoin. Do this for Bitcoin’s twelve-year lifespan so far, and you can see why Bitcoin has lasted as long as it has.
How To Buy Bitcoin
Once you’ve researched and are ready to invest in Bitcoin, you might wonder where to buy it. In general, Bitcoin and other cryptocurrencies are best purchased from dedicated crypto exchanges. Other financial services like Robinhood or PayPal are convenient but should be avoided.
This is because the point of Bitcoin was to have you be the master of your finances. Part of this ownership is exclusive rights to the Bitcoin wallet in question. If another company has that wallet, they can deny you access to the wallet if something happens to your account. With an exchange, you can transfer the crypto off the platform and into hardware or cloud-based wallet of your choice.
In general, these are the steps to buy Bitcoin on an exchange:
- Pick an exchange: Pick a dedicated crypto exchange that allows you to transfer the crypto off the platform after the purchase.
- Have ID ready: Some exchanges have “Know Your Customer” laws, meaning you must prove your identity first.
- Connect a bank account: This bank account is how you will transfer funds into the exchange to buy Bitcoin.
- Buy Bitcoin: Buy Bitcoin as you see fit, transferring it into a wallet of your choice.
Accumulate Bitcoin through Day Trading
Some folks out there make it their job to buy and sell Bitcoin as a day trader. They’ll use the volatility of the asset to buy and sell Bitcoin at the best times they can, hopefully generating money for themselves over time.
Day trading is risky, but the pay-off can be pretty big. It’s up to you to decide if the Bitcoin you buy is for you to hold long-term or sell.
As an asset, Bitcoin doesn’t have stock as a company does. Instead, there are companies out there that are related to Bitcoin, such as computer hardware manufacturers and crypto exchanges.
If you want to invest in Bitcoin-related companies, you can invest in those companies instead of Bitcoin. You’ll be invested in that particular company instead of the asset itself, but if you’re used to buying and selling stocks, this could be a more familiar option for you that still exposes you to the cryptocurrency space. You can even buy stocks with crypto if you want!
Being a young asset, Bitcoin is still confusing to many people. Here are some of the common questions we’ve seen about Bitcoin and its price over the next ten years.
Is Bitcoin Legal?
In most countries, Bitcoin is a legal currency but not an official currency. Different countries will treat Bitcoin in unique ways regarding economic and tax laws, though.
Is Bitcoin Safe?
The underlying blockchain of Bitcoin is highly decentralized, meaning that it is nearly impossible for Bitcoin to be hacked or altered on a whim. Since wallets belong to individuals or businesses, it’s up to the individual or company to keep their wallets safe.
Why Should I Trust Bitcoin?
Because the blockchain acts as a ledger for all transactions, Bitcoin is transparent about its transaction history. Anyone can look at this ledger and see where the money moves around.
Can Bitcoin Reach $100k?
Based on current projections, Bitcoin should reach $100k by the end of 2025 at the latest.
Will Bitcoin Ever Reach $1 Million?
While it’s possible Bitcoin can reach $1 million sometime in the future, many factors could keep it from doing so in the next decade. Conservative estimates put Bitcoin at $500k by the end of 2030.
When Will the Bitcoin Bubble Burst?
While Bitcoin is very volatile and complex to predict the price of at times, Bitcoin does not appear to be in a bubble in 2021. In fact, as cryptocurrency adoption increases, the asset's price should continue to climb and eventually stabilize.
Can Bitcoin Crash or Die?
Thanks to its decentralized design, Bitcoin is challenging to crash or kill. As long as some hardware is dedicated to processing transactions globally, Bitcoin can continue to act as a currency.
Who Owns the Most Bitcoin?
It is rumored that the creator of Bitcoin, Satoshi Nakamoto, holds the most significant Bitcoin wallet, with nearly 1 million Bitcoins inside of it.
Is Now a Good Time To Invest in Bitcoin?
Bitcoin is predicted to continue increasing in price over the next ten years. That means that now is a good time to invest in Bitcoin as a long-term strategy for building wealth and participating in the future of finance.
Bitcoin and cryptocurrency can potentially change our financial system as we know it. By placing financial tools in the hands of the individual and giving them direct control of their money, Bitcoin has the chance to help those less fortunate get ahead.
In this post
- What Is Bitcoin?
- How does Bitcoin Work?
- How To Predict Bitcoin Prices
- Rainbow Chart
- News/Media Coverage
- Bitcoin Price Forecasts
- What Is Behind the Rise of Bitcoin?
- How To Buy Bitcoin