Bitcoin was officially launched in 2009, so it’s already been 15 years since the birth of this asset that has become investors’ favorite, changing people’s perception of money, and empowering them to take control of their financial lives.
The journey of Bitcoin has been a spectacular one so far, and although some looked at it with skepticism in its early days, the digital asset has proven to be a profitable investment for those willing to navigate the tumultuous crypto waters.
Bitcoin’s resilience is unquestionable as it has faced major challenges, criticisms, and wild price swings over the years, and yet, it’s still standing tall these days, with investors still believing in its long-term potential. Moreover, market analysts are making an optimistic prediction about Bitcoin for the future, believing that it wouldn’t be impossible for Bitcoin to reach a potential value of $2,647,051.20 by the next decade. Are there any guarantees that the price of Bitcoin will see an upward trajectory? Definitely not, but many factors point towards steady growth. If you’ve been considering learning where to buy bitcoin, this may be a sign to start doing your research about the asset and allocating your money to it effectively to reap substantial returns.
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Bitcoin’s noteworthy events in 2024: a price peak, a new halving, and the emergence of BTC ETFs
The narrative for Bitcoin has taken a powerful turn, with its price skyrocketing to a staggering $ 96,291.11. This price peak was fueled by an important milestone in the Bitcoin ecosystem: the approval of BTC ETFs in the US, which have brought a total net inflow of $12.38 billion since the moment they were listed. ETFs, or exchange-traded funds, refer to a type of security that monitors an asset’s underlying performance – in this case, Bitcoin- enabling investors to add exposure to the asset’s price without directly holding the asset in their portfolio. Spot Bitcoin ETFs have increased the demand for Bitcoin, resulting in an upward movement for the cryptocurrency’s price only shortly after their approval. In other words, there was never a better time to invest in Bitcoin than now, especially if you want to avoid the hassle of finding the right crypto exchange and learning how to store your funds safely.
The approval of ETFs is undoubtedly changing the game in the Bitcoin ecosystem, but it’s not the only event that’s been making headlines recently. The fourth halving that took place in April also marks a substantial milestone in Bitcoin’s journey, but unlike previous ones, it has notable differences that are worth discussing here. In the past, retail investors made up most of the crypto community, but now, institutions are also present in the market, and they are putting their money in BTC ETFs, resulting in a buying rate that is much greater than it used to be. Moreover, Bitcoin also proved its viability as a store of value recently, as its inflation rate fell under 1% after the halving, which is notable, considering that in its first eight years of existence, Bitcoin’s inflation rate remained above 10%. Now, only 450 remain to be mined every day, making Bitcoin scarcer than ever, and it wouldn’t be surprising to see it dethroning gold, which was considered the ultimate inflation hedge for so long. While the long-term impact of the 4th Bitcoin halving is yet to be seen, the stars seem to align to make this event unique and transformative for the Bitcoin ecosystem. With ETFs here, a low inflation rate, and a current supply shock, it wouldn’t be surprising to see Bitcoin exceeding everyone’s expectations again.
Does Bitcoin have a bullish future?
Overall, market analysts are optimistic about the future of Bitcoin, but as always, it’s impossible to guarantee any outcome because there are way too many factors at play. The global economy is still facing serious issues, and if the failures that banks saw in 2023 continue this year as well, the government could be forced to print more money, thus devaluing the US dollar. This would make Bitcoin a more appealing asset, as no one can change its fixed supply. And let’s not forget about the recent innovations in the Bitcoin ecosystem, including ordinals, Runes, and BRC-20 tokens, which have increased demand for block space. This enhanced demand along with real-world utility and fees for miners could reduce concerns over the long-term security budget of Bitcoin. Moreover, the increasing adoption of the Lighting Network is worth considering when analyzing the future of Bitcoin, as it could turn the asset into a payment method and not just a store of value. If Bitcoin continues to see adoption in the payment front, its utility will likely increase, making the asset more “money-like” and helping it achieve lofty price targets.
ETFs can also be a catalyst for the bullish future of Bitcoin because they have already lifted its price substantially and will push it even further if they continue to maintain their popularity among institutional investors. But they’ve done more than just impacting the BTC price – ETFs have also enhanced the legitimacy of Bitcoin, and there’s a good chance that this will lead to broader adoption, painting an optimistic picture for the future of the crypto asset.
Do all these things mean that Bitcoin won’t face any potential hurdles? Not at all – if governments continue to target Bitcoin, this will likely put pressure on the asset’s long-term sustainability. There are other concerns as well, especially regarding Bitcoin’s long-term security, which is associated with the decrease in the block reward. So, going back to the initial question, there are many reasons to believe that Bitcoin will have a bullish future, but that doesn’t mean a bearish scenario is out of the question. Remember, we’re talking about crypto here, where prices can fluctuate overnight – nothing is predictable within this landscape, so it’s best to approach the future with caution.
Takeaway
It would be easy to deem Bitcoin just as the oldest cryptocurrency, but it’s also a groundbreaking technology that has introduced the idea of decentralized currencies, laying the groundwork for a new type of economy – the crypto market. Naturally, market enthusiasts are eager to know where Bitcoin will be headed in the following years, and overall, the predictions are optimistic, but it’s advisable to keep a cool head and not rush into making investment decisions before doing your research and, if necessary, consulting with a financial advisor.