When the price of Bitcoin hit a record high of $68,000 in November, people were happy to record this. However, investors’ happiness was short-lived, as the price quickly fell back to $46,000.
In the eyes of cryptocurrency enthusiasts, there are two possible options in Bitcoin’s hands regarding the value of the currency. It could rise to the $52,000 mark by the end of the year, or it could fall further to $43,000 by the end of the year.
However, it all depends on the number of investors joining the market. If a lot of investment is made in the cryptocurrency in the coming year, Bitcoin could potentially reach $100,000 by early 2022. However, if the opposite happens, Bitcoin’s future will be completely uncertain and we don’t know if the price will fall further.
At the beginning of 2021, Bitcoin opened at $30,000. However, the price of Bitcoin saw huge fluctuations during the year, which led to Bitcoin gaining a lot of value in time. However, the cryptocurrency market is also growing due to the rising price of Bitcoin. With the pressure of the rising price of Bitcoin, other cryptocurrencies have also become popular over time.
Well, this should be a concern for cryptocurrency investors. Most investors see the volatility in the price of bitcoin as part of its existence, but this can damage their savings. The cryptocurrency price is expected to rise in the coming months, but we’re not sure about that at all. The price of Bitcoin has been steadily rising over the past decade.
In contrast, bitcoin was only an investment model when it was established in 2020. the 2020 price gives bitcoin a value of $30,000 before the balance opens in 2021. In addition, Bitcoin has become an important part of the lives of many people around the world.
Today, people use bitcoin as a payment method, transaction, and institutional investment across any country’s geographical borders. However, there is a positive mindset that if there are more bitcoin investors in the future, the price of bitcoin could be as high as $100,000 by 2022.
Drivers of Bitcoin’s value
Bitcoin emerged as the world’s first cryptocurrency and it now affects the complete financial ecosystem of different countries. 2009 saw Satoshi Nakamoto create the cryptocurrency by recording transactions to prove his ownership.
However, what used to be a simple investment model is now more than that. It has revolutionised the world’s financial ecosystem but is still not backed by any central government or banks. It cannot be combined with monetary policy, inflation policy, or any measure of economic growth due to the lack of support from any national financial system.
The price determination of Bitcoin depends on the supply of Bitcoin and inflation. The supply of Bitcoin slowed by 6.9% in 2016. However, it declined by 4.4% in 2017 and even by 4% in 2018. The mining process contributes to the price value of Bitcoin.
Furthermore, some of the most popular Asian countries such as India and Pakistan are also looking to increase their bitcoin portfolios by investing in digital tokens. The fixed costs of cryptocurrency mining, infrastructure, and power consumption play an important role in determining the price.
In addition, an increasing number of large investors are putting money into Bitcoin. It will add to their portfolios and is proposed to lead to an increase in Bitcoin’s market capitalisation. Investors from the UK, France, Germany, the US, and even some trendy countries in the UAE will start investing in bitcoin more than ever before. It will create a storm in the market and increase the liquidity of the relevant sites.
Bitcoin is set to double in 2022. There is a heated debate between cryptocurrency investors and analysts about the likelihood of Bitcoin reaching a price mark of $100,000 by mid-year.
However, these are all addictions about the coming year. The future of Bitcoin is also very bright, as the cryptocurrency ecosystem will take over the global financial markets by 2050. According to one study, the months in which Bitcoin overtakes the global financial markets at a very fast pace will occur between 2035 and 2040.