Bitcoin has proven to be a phenomenal investment option since its inception. The original cryptocurrency has seen its price go up almost 20 times since 2018. With the latest prices soaring around $68,000 and a number of countries recognizing it as a currency, the future of Bitcoin seems to be promising.
The cryptocurrency has gone through several new all-time high rates. It has also seen several institutional buy-ins from major corporations. Governments around the world have increasingly shown interest in creating new regulations for Bitcoin and other cryptocurrencies.
So, what does the future hold for the original cryptocurrency? Will it continue on its journey to break new price records?
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Assessing the Next Decade in the Evolution of Bitcoin
Growing from just $500 to $68,000 within a span of just 5 years, the next decade is expected to be of great significance to Bitcoin’s evolution.
Besides the evolution of the financial ecosystem, there are a number of areas within this cryptocurrency’s ecosystem that investors should pay close attention to. The most important ones include:
- An asset that stores value
- A medium for conducting daily transactions
Institutional investors are increasingly interested in benefiting from the volatility in its prices. Many governments are proposing to make Bitcoin a valid currency for payment against goods.
However, challenges in the areas of security and scaling have made their effects felt in these areas. Security has been perhaps the biggest challenge, not just for Bitcoin, but for most cryptocurrencies. A more secure Bitcoin ecosystem is expected to further extend its popularity and adoption. If this area of concern is addressed, Bitcoin is expected to have a greater potential to go mainstream and gain a remarkable reputation in the next 10 years.
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Bitcoin as a Payment System
More technological developments are required within the Bitcoin ecosystem for its payment system to go mainstream. Whether it aims to become a viable form of payment or an investment asset, its blockchain should evolve to handle millions of transactions in an instant.
Bitcoin Gold and Bitcoin Cash emerged as new cryptocurrencies from the Bitcoin blockchain and have shown significant improvements in handling more transactions within a shorter span of time. This has been a promising development.
Given the amount of media coverage it has received, the Bitcoin ecosystem has already undergone significant developments in the past few years. With new regulations, this ecosystem is expected to expand further. You can learn more about bitcoin trading like Crypto Trading Service.
Major banks have taken note of the prevalence and growth of cryptocurrencies. Goldman Sachs has reopened its crypto trading desk. BNY Mellon has opened its custody services for digital currencies.
Tesla and PayPal are some of the biggest names that have invested in cryptocurrency. These steps by institutional investors are generating growing interest in the original cryptocurrency.
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How High Can Bitcoin Rise?
Bitcoin is seen as an effective indicator of the crypto market and for good reasons. It is the original cryptocurrency and has the largest market cap of them all. The market usually seems to follow its trends.
Its price has fluctuated widely in 2021. It touched its highest points in April and October before touching the all-time high price in November. After touching a price point beyond $60,000 in April, Bitcoin fell to less than $30,000 in the summer before rebounding. This wild level of volatility is what causes experts to have different opinions about Bitcoin investment.
The general consensus is that Bitcoin has shown a trend of long-term growth and short-term volatility. Many expect that it will cross the $75,000 mark in the near future. Some of the key factors expected to make a big impact on its future include:
- Cryptocurrency regulations
- Wider institutional cryptocurrency adoption
- Crypto ETF approval
Bitcoin Price Volatility & Investment
Bitcoin’s unique volatility gives more reason to investors to follow a steadier long-term approach to investment. When you buy it for long-term growth, it is important to ignore its short-term price movements. Ideally, investors should be following the “set it and forget it” approach. Investors should best avoid acting impulsively every time there is a price swing.
Given the fact that there are only a limited number of Bitcoins, its scarcity is expected to further fuel price growth. To add to that, Bitcoin gets halved every 4 years. Thus, the inflation rate gets cut in half every 4 years. All these factors point in one direction – the original cryptocurrency will continue to grow despite its trend of short-term volatility.
