This year we heard a lot of trending news pertaining to cryptocurrency, particularly Bitcoin, which has been the leading the digital currency race for many years now. All across the world, investors see the rise of Bitcoin every year, which is luring more and more enthusiasts toward it.
However, it brings us to the critical questions – What will be the future of Bitcoin and how will it fare in the upcoming years? Many investors, even laypersons who consider investing in Bitcoin, want to know what the value of Bitcoin will be in the short and long run.
This article seeks to inform all Bitcoin enthusiasts about the future of this virtual currency. However, before we venture further, let us take a look at the rapid rise and fall history of Bitcoin.
The rapid rise and fall history of Bitcoin
From January 2009 to February 2010, Bitcoin had a nil value.
On 17 March 2010, Bitcoin received its first value of $0.003 when BitcoinMarket.com exchange (non-operational now) started operations with it.
At the beginning of 2011, Bitcoin got the value equal to $1.
By the end of 2012, Bitcoin was valued as high as $13.
By the end of 2013, Bitcoin was quite unstable when it gained the value of $1,000. It crashed to $500 and then stabilized between $650 and $800.
The next year, in 2014, the price of Bitcoin spiked to $1,000 but then dropped to $340 in April 2014.
By the end of 2015, the price of Bitcoin was valued at $504.
At the end of 2016, the coin’s price was equal to $700.
At the beginning of this year, that is in January 2017, Bitcoin was priced at $1,000. In that month, Bitcoin reached a mark that was short of only $13 as compared to the all-time apex of Bitcoin on 30 November 2013. It was also the second time in the history of this cryptocurrency that it surpassed the $1,000 yardstick for the eight years of its existence. However, within 10 days, Bitcoin plummeted after the Chinese administration issued a statement on cryptocurrencies.
Then, the cryptocurrency saw a surge for $1,000 in May 2017, making its value equal to $2,000. During this time, Bitcoin was embraced by Japan for accomplishing legal transactions, owing to which Bitcoin saw a hike. This was the very first regulation of cryptocurrency in a country.
The price of Bitcoin further augmented for $1,000 in August 2017, making it $3,000 when Bitcoin experienced a hard fork, which is a split in the cryptocurrency blockchain. The separation didn’t affect the rising value of Bitcoin, and soon it reached $4,000.
Further, in early October 2017, Bitcoin reached $5,000, and in the later part of the month, it touched $6,000. This situation happened because people were anticipating 2 hard forks for the cryptocurrency. They were supposed to take place in November, owing to which many individuals began purchasing Bitcoins to split BTC (the Bitcoin token) and earn extra money through it.
How does the present market trend influence the future prospects of Bitcoin?
A lot of experts make their forecasts for Bitcoin prices, and many of these forecasts even come true. However, it shouldn’t be ignored that the Bitcoin market is still extremely erratic and unstable. Just like other Bitcoin aficionados, we have also predicted some scenarios for the future of Bitcoin backed by a few arguments from Bitcoin experts.
After seeing the rapid upsurge in the value of Bitcoin, it is easy to say that a rise of $1,000 is not a hard thing for Bitcoin. Previously, the everyday oscillations in Bitcoin did not surpass the $550 to $600 range; but now they do. That is why in future we can suppose that Bitcoin can rise and fall even by $1,000 in a day.
However, a few professionals say that the more vacillations a cryptocurrency sees, the more volatile it will be. Nonetheless, this cannot be true in the case of Bitcoin since the elevated instability is subject to its short lifespan and implies the increasing volume of the cryptocurrency. Thus, Bitcoin will certainly reach new heights in the upcoming years, and it is yet to be seen how high it reaches in the following year.
Are Bitcoin and Altcoins Interconnected?
Rather than other cryptocurrencies affecting Bitcoin, it is a further way round. Since Bitcoin is the King of all digital currencies, it affects the price of other cryptocurrencies. Just like all fiat currencies are priced with the foundation of Dollar, all virtual currencies are valued at the base of Bitcoin.
So, when there is a fluctuation in Dollar, it affects the price of other fiat currencies. In the same way, any change in Bitcoin affects the price of other digital currencies. This means that when Bitcoin changes, Ethereum and other such cryptocurrencies will also fluctuate. This is how other cryptocurrencies are affected by Bitcoin.
Government and legal regulations can also influence the value of Bitcoin, both positively and negatively. For instance, if a government makes a cryptocurrency official, then it can affect the cryptocurrency positively. However, if a country bans a cryptocurrency, then it can have negative implications.
For instance, Ecuador banned cryptocurrency, and a few nations made it official to be used for tax transactions. There is also an example of the Cyprus banking disaster when the government abducted the funds. All these events didn’t go unnoticed by the cryptocurrency community at the time and affected the price of Bitcoin significantly.
However, owing to the legal framework inadequacy in many nations, cryptocurrency has to face many obstacles since the legal standards for the digital currency are still in the framing mode. Moreover, cryptocurrency cannot be controlled wholly, which means that it can also be made as a case against the government regulations.
Bitcoin is the most highly-valued cryptocurrency till date. Although Ethereum is also on a rise, it still has to go a long way to catch up with Bitcoin. Seeing the rapid rise of Bitcoin, more and more investors are eyeing it every day and looking for the ways to get into it. Some prefer to put their money in Bitcoin-related startups, others opt for Bitcoin mining. But the most widespread approach to Bitcoin investment is still “buy and hold”. Sounds pretty straightforward, but it is actually not. The key consideration here is to pick the right Bitcoin service platform that is reliable and secure. One of such platforms is CEX.IO, a London-based cryptocurrency exchange that has been flawlessly operating since 2013. CEX.IO is trusted by the investors worldwide as it offers the most favorable conditions for Bitcoin buying and ensures superior security of user funds.
A few investors gauge the volatility of Bitcoin as too risky to invest in it. And, on the other hand, some of the investors regard Bitcoin as a new asset sector that shouldn’t be neglected as it can revolutionize the international financial industry subsequently. Such investors put their money in Bitcoin hoping that they will win in the long term.
Overall, Bitcoin has been touching new highs in its value in a span of 9 years. Moreover, owing to its worldwide acceptance, Bitcoin is forecasted to enter the mainstream financial sector in several economies in the future. Bitcoin’s rise shows us that it certainly has a good future in terms of the BTC/USD exchange rate.