Anyone with the internet and a keen sense of thirst for knowledge would have heard of bitcoins. It was the most google-searched word in 2020 and as the early investors started to see the benefits associated with bitcoins, the effect slowly snowballed as many more individuals began to invest in this lucrative opportunity. As with any investment, cryptocurrencies also saw a majority of critics that raised their eyebrows at the almost overnight success this sector saw. But as more time has passed and people have seen that the bubble of crypto is still present in all its glory, the skeptics have turned into believers.
Bitcoins were the first cryptocurrency that originated in the market and, therefore, they are the longest-standing ones. Since it is a digital and decentralized form of currency that can be used to buy, sell, and trade goods and services, without the oversight of banks and institutions, the people’s faith in this currency grew fast. Since the investors have complete control and autonomy over the money that they use and spend in this market, their desire to increase their portfolio in this sector increased. The bitcoin price and overall value fluctuate almost daily, however, since its inception, it has always been the most dominant crypto in the market. This steady dominance has also played a huge role in the investors’ trust and willingness to put their money on BTCs.
Bitcoin’s journey to success – Created in 2009 by a mysterious individual, Satoshi Nakamoto, it rapidly garnered millions of followers, just reached a peak value of $65,000 for only one Bitcoin, and remains the favorite of everyone in the cryptocurrency sector in its more than a decade-long adventure. Even though more coins were introduced in the subsequent years, bitcoins gained traction that seemed to be never-ending or yielding to other cryptos in the market. As the value of bitcoin increased in the market from 2009 onwards, it gained popularity among many new investors as well who eventually played a huge role in creating a demand for this crypto in the youth. The power of social media cannot be downplayed here as TikTok, YouTube, Instagram, and Twitter turned out to be the biggest marketing areas for bitcoin. Association with big companies like Microsoft in 2014 also gave it a boost. Today, the market cap for bitcoin is more than 820 billion dollars globally which is the most any investment asset has ever seen. Currently, one bitcoin price in India is around 34,35,926 INR approximately which has seen remarkable growth in this decade.
Bitcoin’s price projections in 2022 – The investment opportunities never cease to exist. However, today is the time of caution. Most investors, new or old, would like to know the expected trajectory of their potential investments to be able to make an informed decision about spending their money with minimal risk and loss. Therefore, experts in the field have taken out time to analyze bitcoin’s growth and its patterns throughout these last 10 years to be able to understand how it may do in 2022. Cryptocurrencies are said to have a great future in the coming years, however, the volatility of the market cannot be downplayed. Therefore, experts suggest investing around 5-10% of the overall portfolio in cryptocurrency to mitigate the risks even in case of an unexpected market crash. Not only to minimize risks, but this strategy also works best for long-term investment and savings. With backing from Tesla and other major companies, the faith in bitcoin is almost unwavering – the price, in this case, is only expected to grow. Research conducted in Switzerland predicts the price of bitcoin to fall in the bracket of 50,000 to 75,000 dollars this year.
Reasons for the fluctuations in the price – While the market trends for cryptocurrencies are not predictable to a great extent, there are a few reasons that have emerged in the last couple of years that could determine the rise and fall of bitcoin prices:
- Scarcity – Out of the 21 million bitcoins that can exist, 18.5 million BTCs are already in circulation. This means that a very minimal number of coins are left to be mined and distributed. As the scarcity and depletion point comes near, the demand for these coins is expected to increase exponentially. Investors would be scrambling to get their hands on these coins at the earliest.
- Mainstream integration – The rate at which new investors are buying and entering the world of cryptocurrency is immense. No other trend has been adopted as fast as crypto technology. This acceleration in the adoption of the technology can be a huge factor in pushing the value of bitcoins higher. Even exchange platforms are reporting unusually high traffic on their websites.
- Mining cycles – The bitcoin mining process undergoes a phenomenon called halving every four years. As the number of coins decreases, the miners reduce the introduction of new coins into the market. The rate at which new coins enter the market is reduced which eventually impacts the value of the existing bitcoins.
The price projections of bitcoin are supposed to be on the rise in the coming years. With the above factors in mind, it would be ideal to invest in this crypto at the earliest before the price skyrockets due to halving, scarcity, and mainstream adoption. Find an exchange platform and purchase BTCs from reliable sites.
