The last few months of the year 2020 or rather the entire year 2020 seems to have taught a very specific lesson to the world: NOTHING IS STABLE!
This includes your employment, bank account, lifestyle, or for that matter anything. Then why blame cryptocurrencies alone for being volatile???
In fact, Bitcoin has stood the test of time as a Savior for the whole world rewriting the definition of speed, transparency, and reliability. Thanks to the revolution called: Blockchain
Bitcoin: The Promise of Dawn
Competing and bracing in the tough markets, Bitcoin is a digital cryptocurrency that has elevated its own stature being called a digital gold or virtual asset with no constraints of logistics or state borders. It is one cryptocurrency that refuses to bow down to central government pressures or be chained in defective and regulatory monetary shackles.
Pandemic has brought to its fore a technological revolution that has shown a beacon to investors in the form of Bitcoin and guess what? All with just an internet connection and a smartphone! Bitcoin has made it possible for everyone to store and transfer value in a currency that is resistant to manipulation.
Due to Bitcoin, we can see the opportunity to take the power out of the financial institutions and provide a better service. Bitcoin operates universally, i.e., for the first time, there is a possibility of a global currency.
Bitcoin: Navigating the Historic Journey
The origins of Bitcoin can be founded in the year 2009 when a pseudonymous person Satoshi Nakamoto emerged in the news. His epic idea of creating a currency that would run on the blockchain and ensure maximum transparency and security at the same time simultaneously being scientific was considered highly “INCREDIBLE” and brought a lot of turbulence in the initial phase of price offering!
It would not be less than a mystery of how Bitcoin scaled a count of $30,000! It is unbelievable how the numbers are still rising.
Mining is the process through which Bitcoins are released in circulation and by which transaction records in the system are added and verified. Various computer chips are used for mining like Application-Specific Integrated Circuits (ASIC) and more advanced processing units like Graphic Processing Units (GPUs) known as “mining rigs.” By the end of December 2020, it is estimated that there should be 4 million Bitcoins in the world.
Bitcoins can be accepted as a means of payment for services/products provided. If you have a physical store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you up on it; the transactions can be handled with the hardware terminals through QR codes and apps. An online business can easily accept bitcoins by just adding this payment option to the others it offers credit cards, PayPal, etc.
Bitcoin: Alternative to Fiat?
Dedicated Bitcoin activists still advocate using Bitcoin in place of fiat money. However, there are many Bitcoin supporters who believe that digital currency is the future. The factors leading to Bitcoin’s adoption by institutions and companies primarily are based on the following fundamentals:
- Faster Payment process as the cost of the transaction is kept low to enable investors to transact using the credit card
- Low/minimum payment fee and no hidden or hefty charges; neither by brokers nor by banks
- Not dependent on any payments from the bank or its network
- Accessibility: No approval required from any third party
- Alternate to physical commodity
- Easy to store and secure offering maximum reliability without going through the trouble of carrying bulky bags
- Power in the hands of User and investors eliminating the role of intermediary
- Confidentiality of Investor and transaction preserved with utmost discretion as no KYC revealed and payments are not linked to traditional verifications
- Acceptance of payments from any source or origin
- Enabling payments and transfers through the press of a button on the users’ cell phones
- The most important they are Fraud-proof as they are stored in a public ledger and all coin owners are encrypted to ensure the legitimacy of record keeping.
- Dan Schatt, CEO of the crypto lending platform Cred believes, “Whilst the current global liquidity crisis has the potential to destroy some asset classes, in the short-term bitcoin and cryptocurrencies will prevail. Bitcoin could have a massive run if more investment funds are permitted to invest in the form of ETFs and other financial vehicles. The floodgates will open when the regulatory environment becomes more funds and endowments.”
Bitcoin: Will it Rise in Price?
Bitcoin, a sheer pioneer by performance has been growing in leaps and bounds. Bitcoin is already rising over 80 percent in the last 12 months and has already crossed the previous all-time high of $20,000 as last seen in December 2017.
According to experts and analysts, the bitcoin price will reach a new high above $25k soon. The price has been steadily moving up since October. In spite of the escalation in its value, analysts are cautiously looking at the cryptocurrency’s outlook. The Bitcoin Fear & Greed Index is also flashing “extreme greed,” which usually means a correction is due.
The good news is that this correction shall abate after the year-end as soon as the value touches the $24,000 level again. Nostalgia seeps in the trends, whenever the bitcoin marked a sudden price increase, history repeats as it followed by a correction of 20 to 30%. Bitcoin, the world’s largest cryptocurrency, has more than doubled its price this year, a wild rally that’s reminiscent of its tremendous price surge in 2017 that saw it narrow in on the $20k mark.
Governments worldwide are taking measures to restore the economies and it is set to have an influential impact on Bitcoin too. This should make Bitcoin an active and safe haven for investors and industry experts. According to CNBC International, some crypto fans say it’s down to the unprecedented wave of stimulus from governments and central banks around the world aimed at tackling the coronavirus crisis. Such measures, they say, devalue fiat currencies, making bitcoin an attractive alternative.
The Spectacular Twists and Turns in Bitcoin Saga
Bitcoin has had a historic voyage throughout and that could be the main reason for its popularity too. The historic voyage actually began way back in 2013 when it actually showed prominent signs on the crypto exchanges. Bitcoin began trading at $13.50.
After a brief rally, the price had reached a peak of well above $220 in early April, before correcting down around $70 by mid-April. Bitcoin prices began to trade upwards in October and November of 2013. To everyone’s surprise and among all hopes, BTC price traded around $100 at the beginning of October and reached a high of $195 by the end of the month. In the next month, the currency went from around $200 to over $1,075 by the end of November. This tremendous price movement was caused by new exchanges and miners in China entering the crypto marketplace.
As known to all cryptocurrency sentiments, the price for Bitcoin too began to get volatile after scaling these peaks. It came to a point that people were facing withdrawal issues from the exchange. The price reached a high of $1,079 at the beginning of December 2013. Later, the BTC price fell and reached around $760 by the end of the first week with a drop of 29%. This showed a real loss of faith and downward spiraling of a trend.
Even though there was stability achieved in trading to some degree to around $920 in January 2014, an enormous crash shook the entire community in early February, Bitcoin price was trading around $850 in the first week of February, but it fell and reached around $580 by the next week with a massive fall of 32%. This was the historic time when price continued to fall and it seemed there would be no hope of betterment for this currency. Middle of July 2014 the currency traded at $600 and eroded to around $315 at the beginning of 2015.
The summer of the year 2015 brought some relief with the price gradually stabilizing and early November 2015 saw stability in terms of price to some extent during the mid-2015. However, early November saw another massive spike. Certain specific exchanges posted around $275 on October 23 to a brief close of about $460 on November 4. Bitcoin continued to be traded at around $360 at the end of November 2015 breaking the $1000 mark in early 2017.
There has been almost no looking back as crossing the $1000 mark was an Epic in the history of Bitcoin with investor confidence slowly restoring and pulling new investors. October 2017 saw the price reaching $5000 and November witnessed a doubling to $10,000. The Bubble talk began around this time when on December 17, the price of Bitcoin scaled $19,783.
However, it was too short-timed and the rise was not sustained. Bitcoin crashed rapidly to below $7,000 by April 2018 and below $3,500 by November 2018. A Renaissance phase is observed by many experts for Bitcoin prices starting the year 2019. This resurgence was seen both in price as well as the volume when it broke all bounds bursting to around $10,000 by June 2019. Once again the tremors of Bitcoin were felt, sinking the price to around $7,000 by the end of the year 2019.
Bitcoin: Let Us Consult the Industry Experts
“Bitcoin should reach $500,000 by 2030”-, Jeremy Liew, a partner at Lightspeed Venture Partners
“Bitcoin’s market cap is expected to surpass gold’s then market cap which was $7.5 trillion.”- Mike Novogratz, a former hedge fund manager, and crypto enthusiast.
“Bitcoin shall reach $1,000,000 in five to ten years times which means no sooner than 2022 but as delayed as 2027.”- Wences Casares, CEO, and founder of Xapo.
“Bitcoin will reach $1,00,000 in the next 3 – 4 years and for the long run will reach the mark of $1 million in or by 2037.”- Chamath Palihapitiya, Co-owner of Golden State Warriors and founder of Social Capital.
“Bitcoin will continue to be appreciated by investors.”- Bloomberg’s Crypto Galaxy Index (BGCI) report
“Bitcoin shall soar to $3,00,000 per bitcoin in the next five years.”- Adam Back, a cryptographer and crypto pioneer.
“The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced. If this medium to longer-term thesis proves right, the price of gold would suffer from a structural flow headwind over the coming years,” JPMorgan said.
Bitcoin: Slow & Steady or Fast & Ready
The Pandemic which was a curse for fiat proved a blessing for Bitcoin in this year 2020. Bitcoin started luring investors mainly due to so many rises and falls witnessed abruptly. With pandemic leaving no hopes of financial development and recession lurking in the corner, massive job losses being reported worldwide, surprisingly the Hope Index of investors gave a significant bullish nudge to Bitcoin, and ownership of the currency rose enormously. It started being viewed as a coveted digital asset and this was the time when it was even compared with Gold.
Many Countries like Venezuela, Malta, etc. started including Cryptocurrencies in their monetary system and UNO even documented the movement of this crypto trend in their White Paper keeping in perspective the DeFi sector advantages.
Then came the journey when there has been no looking back…
Rising constantly starting out at $7,200 on January 1 and closing at $18,353 on November 23 Bitcoin emerged as a ruler of the cryptocurrency market with a clear gain of 155%.
Bitcoin Astrology: Forecasts 2021-2025
Realizing and appreciating the value of this digital gold alias Bitcoin, it has been recommended for long-term beneficial investment by experts and institutional investors. Global government monetary stimulus packages and near-zero interest rates are further contributing to the deterioration of the scarcity of fiat currencies.
The price upward trend has been predicted purely on the merits of Bitcoin viz. Security and Reliability. A further influence on prices for this currency can be seen based on the inflow of funds by institutional investors in the long-term. In light of the Pandemic and uncertainty prevailing around it, the cash segment has taken a major hit taking the deficit of nations to a phenomenal level even for developed countries like the USA. According to Bill Miller, Mutual Fund Legend and Chief investment officer of Miller Value Partners, “Bitcoin’s supply is growing around 2.5 percent a year and the demand is growing faster than that”.
Analysis from Bloomberg Intelligence sets Bitcoin forecast 2025 at $100,000 as most measures of demand and adoption support an upward trajectory for BTC.
The End of the year 2021 shall see Bitcoin reaching $19,169.44.
Bitcoin Price Prediction 2022 is predicted at $32,000, given all other factors being stable and no emergency scenario changes.
Bitcoin Price Prediction 2025 seems to be the year of the Bull with Bitcoin at an all-time high of $100,000, to as much as $400,000.
It is very much likely that Bitcoin will double in price, but it is also possible it may not. This is merely for the reason that it is not supported by any specific regulatory authority or regime. Some could have made thousands of dollars in Bitcoin after an early $100 investment, but when the recent charts started to look a lot like a stock market bubble, many probably took their money and ran.
Bitcoin: Light at the End of Tunnel or Lighted Tunnel
World economists are finally realizing that current financial systems are flawed and unstable. The world needs much more stable and reliable currencies like Bitcoin. Bitcoin has gradually pervaded the mainstream consciousness and gained traction. It has stood the test of times and shall continue to do so provided it sees a mass adoption. More importantly, it promotes a culture of Equal Opportunity without any discrimination or unemployment threats.
In the unlikely event of a significant change for the worst, the bitcoin price should continue to appreciate. Unforetold period of central-bank easing is accelerating the maturation of the first-born crypto toward a digital version of gold while accentuating oversupply constraints in most of the market.
Shall We then Call Bitcoin: A Revolution in the Era of Evolution!
Frequently Asked Questions
Is Bitcoin A Bubble?
People do have this misconception as cryptocurrencies are prone to volatility. It is the same case though with Fiat currencies as well. However, Bitcoin has stood the test of time. As the value of this digital asset has surprisingly been fair and consistent over the last 5 years, people fear the cycle may change for bad. There is an equilibrium of supply and demand and Bitcoin has proved to be stable.
Is Bitcoin Safe?
Based on a mathematical and scientific blockchain algorithm, it is highly unlikely that Bitcoin gets hacked. As owners of Bitcoin, you are anyway Masters of your own wallet and hence safekeeping thereof falls in your periphery of accountability.
How are Bitcoins created?
Mining is the process that generates Bitcoins and hence naturally the resource is limited. The nodes of computers are racing to get into a complex algorithmic formula to work out an equation, which finally makes it possible to attain this digital asset.
Can I make money with Bitcoin?
Certainly. In order to become a Billionaire, you need to take all risks as a Billionaire before reaping the reward. You need to constantly track the price and do your due diligence. Don’t remain satisfied or satiated with modest gains. Wait for the right opportunity and time to reap rich dividends of Bitcoin’s price advantage. For some, it is a blessing who have virtually turned rich overnight, though not everybody has the same faith and patience.
Why do people trust Bitcoin?
Bitcoin happens to be the most transparent, scientific, and decentralized asset. No wonder its advantages override its limitations.
Why should I use Cryptocurrency over fiat?
Many countries today have understood that depending on fiat currencies alone is not posing any brighter future advantages and thus gradually towards cryptocurrencies. As a deflationary asset and digital, safety and decentralization are ensured with Bitcoin as much as value appreciation!
What happens when Bitcoins are lost?
Unfortunately, such a scenario should not arise and hence it is your duty to keep your Bitcoins safe. The ideal would be to note down and keep safe all your passwords and seed phrases for your exchange wallets and hard wallets.
How long does it take to mine a Bitcoin block?
The average block confirmation time in the Bitcoin blockchain is 10 minutes. That means that every 10 minutes, the first miner to solve the crypto puzzle receives a block reward.
How long does it take to mine 1 Bitcoin?
A specific parameter that controls the computing power is needed to mine a Bitcoin block, i.e., hashing power. This parameter changes every 2,016 blocks according to the current total amount of mining power on the Bitcoin network. With that in mind, the current Bitcoin block reward is 6.25 Bitcoins.
Of course, with the current competition among miners, the chance of being the first to solve the puzzle and receive a reward is extremely small. Therefore, miners combine their equipment’s computing power in mining pools.
How difficult is it to make a Bitcoin payment?
Not at all. Bitcoin payments are as easy as your debit or credit card purchases and can be received without a merchant account. Payments are made from a wallet application, either on your computer or smartphone, by entering the recipient’s address, the payment amount, and pressing send. You may also scan the QR code.