Have you decided to take part in the campaign? You can buy Bitcoin from Webull, eToro, and Voyager.
As recently as last year, the claim that Bitcoin could reach $ 100,000 by 2025 seemed like an overly optimistic prediction to most investors. Fast forward to just a few months in 2021, and JP Morgan analysts predict that Bitcoin could cross the $ 150,000 mark. As institutional investors like Tesla, Square, Grayscale and PayPal add Bitcoin to their balance sheets, sentiment in the cryptocurrency markets has changed positively, with a bitcoin of $ 100,000 (or more) on the table for 2021.
Bitcoin is the first decentralized peer-to-peer cryptocurrency that introduced the world to blockchain technology and later became Decentralized Finance (DeFi). If Bitcoin price enters another rally, the question arises: will Bitcoin hit $ 100,000?
$ 100,000 is impossible or possible
Bitcoin remains an extremely volatile asset. To see if it is possible for Bitcoin to climb to $ 100,000, it is best to take a look at price movements from previous cycles.
At the time of its introduction in 2009, Bitcoin was trading for less than 1 cent. Bitcoin had its first rally about a year later, appreciating to over $ 30 per BTC. A few months later, Bitcoin entered its first bear market and hit a floor of around $ 2.
Fast forward to 2013, Bitcoin entered another rally, hitting all-time highs of over $ 1,200 – resulting in a 40,000% ROI for investors buying at the previous all-time high. Over the next year, Bitcoin depreciated below $ 200.
In 2017, Bitcoin entered another bull market, appreciating to around $ 20,000 – an 800 percent return from the previous high of 1,200. The following years would develop into a bear market for Bitcoin, hitting a local low of around $ 3,200.
The post-Covid rally marked an all-time high for Bitcoin at just under $ 65,000 per coin – within the next few months, the price of Bitcoin consolidated with a local low of $ 29,000.
If these bitcoin bull cycles continue to grow modestly, it is possible that bitcoin could hit $ 100,000. That would put Bitcoin’s market cap at around $ 2 trillion, not far behind Microsoft’s $ 2.4 trillion market cap.
Analysis and predictions for the value of Bitcoin
Bitcoin’s value is determined by a few different factors, including block rewards and market sentiment. Considering that every 4 years the amount of Bitcoin that is being paid out to miners is halved, it is slowly affecting the supply in circulation, which affects the price.
The current market sentiment for Bitcoin appears to be very strong as the price recently broke all-time highs as well as the release of Bitcoin ETFs on the NASDAQ. Investors can now invest without physically buying the asset themselves. Institutional demand for Bitcoin is stronger than ever as companies try to expand into the DeFi space.
Will Bitcoin be unstable at $ 100,000?
If the cycles in Bitcoin price continue to remain consistent, it is likely that Bitcoin will not be a stable asset for the foreseeable future. Historically, when Bitcoin hits an all-time high and price has peaked, the price will consolidate for a period of time before entering its next bull run, resulting in dramatically volatile prices.
Benefits of Investing in Bitcoin
There are many advantages for investors to invest in Bitcoin. The market never closes, which allows traders to buy or sell Bitcoin at any time of the day. Another attractive aspect of Bitcoin would be its limited supply – where there will only ever be 21,000,000 BTC ever minted.
Disadvantages of investing in Bitcoin
A major disadvantage of investing in Bitcoin is that it is a difficult asset to value, which leads to its volatility. It’s important to remember that the value of speculative assets like crypto, art, and gold depends on what people are willing to pay for them.
Another downside to Bitcoin would be the nature of the asset. Given that Bitcoin is a store of value, Bitcoin may not be your best bet if you are looking for a cryptocurrency to invest in for microtransactions or to buy digital assets. There are altcoins that offer different functions for small transactions like this one.
Mining and proof of work
Bitcoin relies on the archaic proof-of-work consensus mechanism, in which computers validate blocks of transactions by solving math puzzles every 10 minutes, a process known as mining.
The first computer to solve the puzzle and complete the transaction will be rewarded with a small portion of BTC. Every 4 years, the block reward for Bitcoin is halved, known as “halving”. Historically, Bitcoin has entered bull markets around the halving. The rewards directly affect the supply of BTC in circulation, which affects the price.
Best Online Exchanges to Buy Bitcoin
Traders have many different crypto exchanges to choose from, including Coinbase, Webull, eToro, IBKR, and Voyager. A centralized exchange is a great way for individuals to start buying cryptocurrencies. Check out what each exchange has to offer as they offer different features for investors.
1 minute review
Coinbase is one of the largest trading platforms for cryptocurrencies on the Internet. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally easy to buy and sell large cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which has more order types and advanced features.
While Coinbase doesn’t offer the cheapest prices or the lowest fees, its simple platform is easy enough for absolute beginners to master in just a single trade.
- New cryptocurrency traders
- Cryptocurrency traders interested in important pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to use
- Comprehensive mobile app reflects desktop functionality
- The Coinbase Earn feature rewards you with crypto as you learn more about available coins
- Higher fees than competitors
safely through the Interactive Broker website
1 minute review
eToro, headquartered in Cyprus, England and Israel, has been offering forex products and other CFD derivatives for retail clients since 2007. A major asset to eToro is its social trading activities, including OpenBook, which allows new clients to copy trading with the platform’s top performers. Its social trading features are top notch, but eToro is losing points due to the lack of tradable currency pairs and disappointing research and customer service features
- US-based cryptocurrency traders
- Social and Copy Traders
- Simple user interface
- Community engagement and tracking of other traders
- 25 cryptocurrencies
- Extensive network of social trading functions
- Large customer base for new dealers to imitate
- US traders can only buy cryptocurrency
Bitcoin as an investment
As an investment, Bitcoin is completely speculative. There is a huge following who believe the DeFi room is a bubble waiting to burst. Others believe that it is the most revolutionary technology we have ever built and it will completely restructure society.
If you’re looking to invest in a long-term crypto project, Bitcoin can be a great investment for you. Always remember – don’t invest more than you can afford to lose, and Bitcoin can always be a volatile asset.
frequently asked Questions
Is Bitcoin a Good Investment in 2021?
Is Bitcoin a Good Investment in 2021?
This year so far, Bitcoin has outperformed almost any other asset. Bitcoin’s price has risen 73% since January this year and there is no evidence that this momentum has shifted downward. Many cryptocurrency investors believe that 2021 will be a great year to invest in Bitcoin, as the long-term logarithmic charts show.
Can Bitcoin Reach $ 1 Million?
Can Bitcoin Reach $ 1 Million?
For Bitcoin’s price to reach $ 1 million, its market cap would have to reach $ 18.6 trillion – roughly 20 times what it is today. If history is any clue, the price of Bitcoin is unlikely to reach $ 1 million in this market cycle.
Benzinga has developed a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.
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