The future of bitcoin is expected to look like this
Bitcoin will continue to make waves in the crypto and global markets in 2021, with its price rising to unprecedented levels. In this article, we look at the future of bitcoin and what you can expect as an investor or investor in 2022.
How did bitcoin perform in 2021?
In terms of price, 2021 was a particularly buoyant year, with new highs being set. In November, a bitcoin was worth around $68,000, while in July it was worth half that amount, around $35,000.
As in most years, the value of bitcoin fluctuated dramatically last year, but we know that price volatility is a constant for cryptocurrencies in general. We have previously written about what is affecting bitcoin's price.
That said, there is no doubt that 2021 was the year when bitcoin surpassed its traditional pricing limits, and this brought with it a widespread rise in popularity for cryptocurrencies. If you're keen to dive into trading, use our software, which will help you with the volatility of the market!
With growing public interest in bitcoin, more and more banks and countries are accepting it as legal tender.
What will the future of bitcoin look like in 2022?
The more bitcoin is at record highs, the greater the chance of a collapse in its value seems. This is when many investors decide to "cash out" of the gains they have made.
Cryptocurrencies are an unpredictable asset class, and no one knows how high the price of bitcoin can go. For this reason, and because governments are looking at how best to regulate cryptocurrencies, the risk of investing in bitcoin is very high. For help on whether you should enter the crypto market, contact us!
As with investing in general, it is impossible to predict how digital currencies will perform this year. But as certain trends have prevailed time and again throughout bitcoin's history, there are some reasonable predictions.
Firstly, price volatility is likely to persist, leading to price drops and price spikes. However, in the long term, bitcoin will certainly increase in value over the course of the year.
Second, changes in the regulation of cryptocurrencies should be expected, given the increasing frequency of changes that are now taking place.
Thirdly, the overall penetration of cryptocurrencies will continue to increase. Their growing popularity will lead banks and companies to incorporate cryptocurrency-related services into their systems.
Prediction with concrete numbers
It is generally accepted among experts that the future of bitcoin in 2022 is that it will reach $100,000. In fact, the most controversial point in the debate is not whether this will happen, but when.
Some had previously predicted that this psychological threshold would be reached in the first quarter of 2022 - well, we see that this has not been the case.
In recent months, the crypto market has increasingly tracked the stock market, which in turn reacts to changes in global economic factors (e.g. war in Ukraine, inflation). However, the gradual take-up of Web 3 will continue to drive demand for crypto. This in turn will lead to an increase in the value of bitcoin.
At the other end of the spectrum, experts believe that the value of bitcoin will fall below USD 10,000 this year.
As we can see, opinions are sharply divided, with many possible outcomes to the current situation. It will be exciting to see how it all plays out - we can't wait!