Bitcoin has made many crypto traders rich overnight with its massive value increases. It started trading at only $0.09 and reached an all-time high of $68,789! If you held crypto from the start and sold it at the right time, you would’ve made a %766,566 return on investment.
Today, however, Bitcoin is struggling to surpass the $18,000 threshold, leaving many crypto fans wondering what the future holds for cryptocurrency’s golden child. If you want a concise picture of everyone’s predictions about the future of Bitcoin, keep reading this handy article.
The History of Bitcoin and the Middle Scenario
Bitcoin is governed purely by the economic forces of supply, demand, and speculation. No amount of work, value-adding efforts, or regulations can ever directly affect Bitcoin’s price. The only thing that has a direct influence on the price of Bitcoin is people’s interest.
The blockchain is designed so that there will only ever be 21 million Bitcoins available. If there is a high interest in Bitcoin ownership, the price will climb.
If everyone becomes interested in selling Bitcoin again, the price will drop. Because of this, it’s safe to say that the Bitcoin market behaves like a standard economic cycle. There are localized ups and downs, but the general trend of Bitcoin’s value is upward.
You can even see a repeating pattern in Bitcoin’s value on a graph. There are steady climbs followed by crashes, but the value never goes below that of the previous crash, and it always climbs to a newer, greater height. There’s almost no reason for this pattern not to continue.
Future of Bitcoin: Best-Case Scenario
What would be best for crypto holders and enthusiasts is if more people get involved in crypto mining and trading. Bitcoins need to be produced through mining and trading, and we haven’t hit the 21 million mark yet. Because of this, the market still behaves as if there is an unlimited amount of Bitcoins available.
If more people take to crypto trading, we could reach 21 million Bitcoins sooner. Once that happens, the price of a Bitcoin will start to increase very quickly. This blog speculates that the entire Bitcoin trade could be worth $5,48 billion by 2030.
Future of Bitcoin: Worst-Case Scenario
There are two doomsday scenarios for Bitcoin. The first is continued slowing in interest and production until the trade of cryptocurrencies dies completely. This is unlikely in the near future, however, because many cryptocurrencies offer special tax benefits for rich individuals.
The second doomsday scenario is more likely: that many first-world governments regulate cryptocurrencies out of existence. The US is currently trying to regulate cryptocurrencies after the FTX collapse, which could lead to high taxes on crypto, a prohibition on crypto, or more state-backed tokens. In any of these scenarios, Bitcoin stands to lose its value as people become disinterested in it or forced to use its competitors.
Is Bitcoin Worth It?
At present, Bitcoin is underperforming because of the FTX crash, but that isn’t the end of the story. It’s not likely that governments will be able to get legislation in place to regulate Bitcoin before we hit 21 million coins. Because of this, the future of Bitcoin is bright enough for smart and patient investors to see good returns on their investments.
Buying Bitcoin is one way to safeguard your money from inflation and make gains in the long term. If you want to learn about other takes on investing, check out our business blog and grow your fortune today.
