It goes without saying that Bitcoin is one of the best inventions in the financial industry in the modern era. It presented us with a futuristic payment method.
Not only that, but it allowed people to dive into this occupation and make money. Some research has stated that there could be as many as 100,000 millionaires around the world thanks to Bitcoin.
As 2023 keeps unfolding, Bitcoin does not seem to be slowing down. On the contrary, it keeps rising in value constantly. One of the theories about its value is that it has the potential to go as high as $100,000. According to CryptoBlokes, Bitcoin holds 56% of the cryptocurrency market
We wanted to take a look at this case and see why it is believed for Bitcoin to reach a six-figure value for the first time in history.
The Massive Spike In Value Recently
The first indicator that showed us that Bitcoin has the potential to rise in value is the fact that Bitcoin is known to rise in value a lot in a short period. That is due to the fact that it has a high volatility rate. Take a look at the most recent spike in value.
In November 2023, Bitcoin was valued at around $10,000. All of that changed in December when Bitcoin broke the 2017 record in value and topped $20,000 for the first time. Four months later, Bitcoin managed to rise to $60,000 in value.
Numerous events such as the famous Tesla investment helped the cryptocurrency reach this milestone. Considering the fact that Bitcoin does not show any signs of slowing down, it is believed that it will continue to rise and reach the mark of $100,000 later this year.
People Are Constantly Joining the Network
The network has advanced a lot in the past couple of years. Due to the potential that Bitcoin has, thousands of people register to the network to try and make some money. Not only that, but trading sites, which are the marketplaces for selling/buying Bitcoins, have advanced a lot as well.
These days, reputable platforms such as bitcoin-code.io even use advanced AI systems that analyze the market and use the data to make accurate predictions on the future fluctuations.
The results are then shared with the traders who gain knowledge on when is the best time to sell their Bitcoins. The daily profitability rate at sites such as the one we just mentioned is high, hence the process of trading with this cryptocurrency is much easier than earlier.
Experts State That the Best is Yet To Come
Finally, the history of halving events has shown us that Bitcoin usually spikes in value a year and a half after the halving event ends. There have been 3 halving events so far. The first one was in the second half of 2012, the second halving event was in mid-2016, and the third was in May, 2023.
The first spike in value that Bitcoin had was in January 2014. The second one came in December 2017. As you can see, they are exactly a year and a half after halvings ended. By going with that flow, Bitcoin is believed to spike in value somewhere around autumn of 2023.
Because the cryptocurrency has already reached a value of $60,000 and it does not plan on stopping down, experts believe that it will continue to rise at a steady pace and peak later this year.
Predictions for the Rise in the Value of Bitcoin
The Bitcoin price depends on many factors, like demand, supply, block rewards, condition of the market, and much more. The miners who use blockchain get block rewards, and the reward value is 6.25 BTC which is given every 10 minutes. It affects the supply and circulation of digital currency.
In every four years, the block rewards become half. If we talk about institutional demand, then BTC is quite sturdy. After Tesla added $1.5 billion to their balance sheet, various companies started following this virtual currency.
As per records, it is found that at least 40% of the institutional clients are exposed to these digital assets. Many people have predicted the price hike of BTC in 2023, and it should go above $100,000.
Can a Bitcoin Be Unstable After the Hike?
In the future, if the logarithmic chart remains accurate, then there are more chances that it will be stable. But many people predict that the value can change, and when it goes to $100,000, it will become unstable.
Undoubtedly, the predictions are happening according to the assumptions. Therefore, it is hard to tell whether it becomes unstable, or not. You have to wait for the results to know about the future outcome.
Pros of Bitcoin Investment
Now, many investors are planning to buy Bitcoin and earn massive rewards by trading or selling them later. Undoubtedly, you can sell any time whenever you want. The significant advantage is the finite supply, and you can get benefits from it.
But many investors rely on a factor, i.e., volatility. If you are capable enough to take risks, then you should grab this opportunity. It is a high-risk investment with high chances of getting rewards.
Cons of Bitcoin Investment
BTC is an intangible virtual currency without any value or revenue. Therefore, many people stay away from such an investment because they know that they will not take any benefit. There are other valuables in the market with high selling value.
Individuals can buy them and provide a good return. Due to the high risk, it is not advisable to invest in BTC. You can consider other safe options for long-term investment.
Investment in Bitcoin depends on the mathematics that you have to do it yourself. It is simple math which needs analyzing of data and calculating possible outcomes. Nowadays, many companies and individuals are exploring BTC and start investing in it. They find something beneficial, which makes them invest in it.
If we talk about the adoption curve, then Bitcoin is going up. When the supply gets scarce, many investors buy Bitcoins at that time. You need to analyze the market to know the current scenario and know whether you are making the perfect investment or not.
It is necessary to do some maths and prepare yourself while getting involved in cryptocurrency. The process of learning is quite time-consuming, but it will help you to make the right decisions. Undoubtedly, a hike in price is expected by experts. But you have to study the market before making any decision.
These indicators are more than valid, which is why so many traders are joining now and using the momentum to invest in the cryptocurrency and wait for it to spike. If you are thinking of starting this journey, make sure you get familiar with Bitcoin trading and learn all the details about the process.