Bitcoin (BTC) is a decentralized fintech that may replace fiat currency across the globe. We may be moving towards one world currency and that may be Bitcoin or some other Central Bank Digital Currency (CBDC). Because Bitcoin holds so much potential, traders and investors want to have a view of Bitcoin price prediction forecast.
Are you on the hunt for what will Bitcoin be worth from 2021 to 2025? You are in the correct place. In fact, our Bitcoin price forecast extends beyond 2025 and goes till 2050. We will take a look at Technical analysis and Fundamental analysis of Bitcoin. In addition, we will take in Crypto experts recommendation on their public Bitcoin price prediction.
Since Bitcoin was born into existence since 2009, the cryptocurrency world is really hard to make accurate predictions. Forget accurate, you will not even able to make range predictions right if there’s no solid strategy.
There were some people who believed Crypto will never take-off. Whereas, others thought BTC would completely replace fiat currency within a few years. Neither of the groups are right as of now. But, we’ve seen Bitcoin price to skyrocket multiple times and also crash to low levels multiple times in a decade.
Since Bitcoin is volatile, predicting Bitcoin price with complete accuracy is really tough nut to crack. However, we have some Crypto influencers and Crypto analyses to have an idea on Bitcoin price, basis solid strategy.
In this article, we will be looking at top Bitcoin price predictions for 2021, 2022, 2025, 2040 and 2050. Whether you are a novice investor or an experienced investor looking to rake in profits by keeping up with cryptocurrency trends, continue reading this important Bitcoin price prediction forecast today.
Introduction to Bitcoin
Let’s begin with simple terms: Bitcoin is a form of money. There is no company or organization which is in control of Bitcoin except a big network of powerful computers. You can use Bitcoin as a form of currency or trade / invest against its prices on various cryptocurrency exchanges.
It is a completely new asset class with a strong decade of existence, warranting at least a portion of your portfolio for diversification. You may think it’s easier to do what bitcoin price prediction this week will be. But, you need to know that Bitcoin price is volatile.
- Bitcoins are a medium of exchange in personal or business-based transactions. You can either send Bitcoin Cash or Bitcoin in place of money (if the receiver accepts it) or even store your Bitcoin currency in a digital wallet.
- You can exchange Bitcoins for other traditional currencies or cryptocurrencies. The easiest way to do that is through a cryptocurrency exchange. You can find multiple ways to handle your Bitcoin through an exchange.
Here’s an ultimate guide to Bitcoin price prediction that you can use to know how the cryptocurrency asset may fare in the future and why.
What is Bitcoin Price Now and Why is its Price Going Up Now?
The Bitcoin price today is reaching an all-time high. The cryptocurrency broke through the $19,000 barrier for the first time in three years. This is such an upscale since March when Bitcoin, much like other financial assets fell to its lowest value of $4,000. Unlike the 2017 prime run the cryptocurrency underwent, this time, it is for different reasons.
- Two Major Investments – In Bitcoin, major investments and transactions can move the entire cryptocurrency market. MicroStrategy and Square, two corporates invested $425M and $50M respectively on Bitcoin in September and October 2020.
- Public Support – Many major financial giants like JPMorgan have been talking positively about cryptocurrency. While many of them shared negative opinions about Bitcoin early on, now, a lot of them agree that this investment is ‘even better than gold’.
- Increase in Bitcoin Custody – Grayscale Investments, to provide custody services for the wealthy investors owning Bitcoin, picked up 40,000 Bitcoins themselves. Both Greyscale and CashApp together have bought 85,000 Bitcoins meaning these two companies have purchased almost half the total Bitcoin mined in the Q1 of 2020.
- Bitcoin Halving – This process occurs every 4 years and cuts the supply by half while the demand remains more or less the same. When this happens, the price of Bitcoin goes up. This Bitcoin halving happened in May 2020.
- PayPal Interest – One of the world’s most popular payments app, PayPal announced that it would be enabling cryptocurrency buying and selling on its platform. According to their statement, this would apply to four major cryptocurrencies, Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.
Bitcoin Price Action History
There has been a lot of actions and movements in the price of Bitcoin ever since it was started back in 2009. At the very start, Bitcoin traded at $0. At around July 2010, you could buy a single Bitcoin for just $0.0008 to $0.08.
It was in the starting months of 2013 when Bitcoin took – off. The first rally for the digital currency was in the same year when the price went to $220 from $13.50 per Bitcoin, and it crashed in the same year as well to $70.
In November 2013, the price touched a peak of $1,075 per Bitcoin because of new entrants and miners into the market from China. The price then continued to be volatile over the year 2014 due to various reasons with the exchanges that managed the transactions.
In 2015, the prices showed more stability in November, showing a little spike from $275 to $460 per Bitcoin. Throughout 2016, the prices continued to rise to reach a breakthrough of $1000 in 2017. In October 2017, the price reached $5000 and doubled in the next month to around $10,000.
On December 17 2017, the cost of one Bitcoin touched $19,783. But through the initial half of 2018, the prices crashed considerably, falling below $3500 in July 2018. 2019 saw another rise in prices touching $10,000 in June but again saw it crashing down to $7,000 per coin by the end of the year.
2020 has been a good year so far for Bitcoin with the prices steadily increasing from January 1 at $7,200 to closing on November 23 at $18,353 per Bitcoin. This is due to increased interest in the cryptocurrency, Bitcoin halving, and heavy investments from major financial giants.
What Factors Affect the Price of the Bitcoin?
Bitcoin is different from a stock because there is no governance for it by a corporation. Also, to determine or predict the price, there is no Security and Exchange Commission (SEC) balance sheet of Form 10-Ks that one can review.
Since Bitcoin is also not governed by any government or a central bank, the inflation rates, economic growth, and monetary policy do not apply to it. So, wondering what then determines Bitcoin price prediction? Here are some factors:
Supply and Demand
This is a classic factor that affects the price of any commodity, not just Bitcoin. In this case, though, the Bitcoin protocol is designed in a way to create new Bitcoins at a particular rate which slows down with time.
To put into numbers, the growth in 2016 was 6.9% and in 2018 was, 4.0%. This can lead to situations where the demand increase may surpass the supply increase and this can increase the price. The slow-down in the growth of Bitcoin is due to the halving of the block rewards, in other words, this can be thought of as an artificial inflation system.
Another factor that affects the supply and the price is the total cap on the number of Bitcoins that can exist. The number right now is 21 Million.
Once every 210,000 coins, the Bitcoin halving event takes place, where the miners get only half the reward for mining new blocks.
The block reward has thus reduced from 50 BTC in 2009 to 6.25 BTC in mid-2020. In simple words, each bitcoin halving event makes the network generate lesser bitcoins. If the demand remains more or less the same, the price may increase.
Mostly, the price increases since miner cost goes up to mine and network has to take in the cost to keep it secure. So, around Halving, you can always expect price to increase to match the cost for miners.
Competition from Other Asset Classes
Bitcoin is easily the most famous cryptocurrency, but slowly, there are plenty of others that are attracting the attention of traders and investors. Some of them being the Ethereum coin and the Litecoin and new asset classes through Ethereum ERC-20 tokens provides for Decentralized Finance.
Since the barriers of entry are minimal, there is a good increase in new coin offerings every year. For the investors though, it’s good news because they get more baskets to invest in, and increased competition means the prices are lower. However, Bitcoin still has the edge as of now since it is the most visible.
Unclear Cryptocurrency Regulation in the US
The laws around Cryptocurrency in the US are still not clear as this asset class is new and rapidly developing. Regardless, it is in the attention of the government and there is some progress in reaching a clear definition.
The Securities and Exchange Commission calls cryptocurrencies ‘securities’, but the US Commodity Futures Trading Commission defines it as a ‘commodity’.
Despite the rising popularity, this confusion has created uncertainty. There has also been an introduction of many financial products where Bitcoin is the base asset.
This allows investors to enter this market even if they cannot afford the real Bitcoin. So, the demand increases. It also gives a chance for institutes and corporates to invest if they find the Bitcoin either undervalued or overvalued and move the prices in the opposite direction.
Just like with any financial assets, geo-political risks increase the volatility. Bad news on this front means lesser adoption with the fear of crashing markets and overall uncertainty in the region.
With the increase in public panic, the price of the Bitcoin falls rapidly concerning the currency. With good news, however, the price rises sharply within a short period.
Inflationary Fiat Currency
Bitcoin is a valuable financial instrument in some developing nations which face higher inflation rates. Unlike the case in the USA, where the volatility of Bitcoin is higher compared to USD, it may not be the case in other developing countries.
During a financial crisis, where people invest panic-struck in other classes of money, Bitcoin is a good option in these cases. Thus, the demand may increase causing prices to go up.
Bitcoin Prediction Forecast Techniques
While it is hard to tell the future, smart traders and analysts have figured out various models and techniques with which they can conduct Bitcoin price prediction.
Given how volatile the cryptocurrency asset is, these Bitcoin price forecast models can help set-up some degree of planning if you are looking to invest in this financial instrument.
In this short guide, we explore the more used (and powerful) prediction techniques and see how they work!
Stock to Flow Model to Predict Bitcoin Price
Many ‘versions’ of this model has already been in use for other financial instruments long before a user proposed the same for Bitcoin. This user is a trader who goes by the Twitter name ‘PlanB’. This Bitcoin price prediction tool can work for other cryptocurrencies as well if they have the prerequisites. These initial requirements for an asset to make sense of this model are if you know the visible supply and a maximum supply.
So, assets like Gold, Silver, and other precious metals can be eligible to be predicted using this Bitcoin price forecast. The model deems no longer effective when the Bitcoin reaches the maximum supply available.
There are two terms which one must understand the Stock to Flow Model.
Stock – It is the total size of the asset at a particular time. Currently, there are around 18M Bitcoins in the world under circulation.
Flow – It is the total production measured yearly for an asset. For Bitcoin, currently, the production rate is 657K per year.
Divide the two and you get the Stock Flow ratio. For Bitcoin, it is currently 27. This means that it will take 27 years for Bitcoin to reach the maximum available supply.
The user PlanB suggested this asserts that there is a significant relationship between the Stock to Flow ratio and market value.
Taking into consideration the total amount in circulation and the rate of minting every year, the model does Bitcoin price prediction to touch $100,000 in 2021 and $1M in 2025. So far, the model has been pretty strong in justifying the correlation that PlanB proposed.
Mayer Multiple Model Bitcoin Price Prediction
This model is the brainchild of Trace Meyer, a well–known hedge fund manager and a Bitcoin adapter. It makes use of the moving average parameter that is one of the effective ways to determine the performance of a dynamic financial asset like stocks etc. One can use this Bitcoin price forecast model to predict the best times to either buy or sell Bitcoin. What this essentially does is that it takes the current price of the Bitcoin and divided the exponential moving average for 200 days, measured daily.
From this, one can get a picture of when the Bitcoin was bought (overbought) in excess or sold in excess (oversold).
Trace Meyer performed multiple simulations and concluded that it is best to buy in Bitcoin when the Mayer Multiple is under 2.4. But note that, this Bitcoin price forecast model is on historical data, and it may not be accurate to base one’s financial decision on this. As the volatility of Bitcoin decreases, the effectiveness of this model also reduces because the peaks of prices and transactions stand out less in longer time – frames.
Bitcoin Network to Value Transaction Ratio
This ratio determines the value of a Bitcoin. Mathematically, it is determined by multiplying Price with Adjust Supply and dividing this product by Daily Transaction Value in a particular currency.
From this Bitcoin price prediction tracker, a trader can determine if it is valued more than it should or less. If the NVT Ratio is high, it means that the value in the network is surpassing the total transactions transmitted through Bitcoin’s payment network. Well, what it means further is that either more investors are buying it because they see high growth in it, and consequently high returns, or the price of the Bitcoin has reached a bubble. The NVT Ratio has a normal range, and if it goes above that, it is a signal for investors or traders to reduce their Bitcoin transactions.
The founders of this Bitcoin price forecast technical indicator have asserted that you can use it for other cryptocurrencies as well. But it makes sense only when the transmitted value over the network represents the usage of the network well.
Technical Analysis – Bitcoin Forecast
Technical analysis is the cumulative study of trends in statistics obtained through historical data or volume price analysis. Using these charts and graphs, you can understand trends in price movements and evaluate how strong or weak a cryptocurrency asset is.
These analyses can affect the current cryptocurrency buyer in two ways – psychological and reflexive. The former deals with making actions based on how the past was affected. For example, many traders tend to buy a cryptocurrency asset, and contrary to their expectation, if it declines, they will be ready to sell it the moment it reaches break – even. The latter deals with the following actions based on the trends shown on the charts. For example, if more number of traders follow a particular strategy, you can expect the Bitcoin price prediction chart patterns to follow an outcome. The more people who join in adopting this strategy, the more likely will this trend be sustained.
Technical Analysis Trends
Talking about trends, there are three types. The upward trend is when the cryptocurrency asset is on the up, that is, it is making higher peaks and higher depths. The downward trend is the opposite, the cryptocurrency asset is making lower peaks and lower depths. The sideways trend is when the value of the cryptocurrency asset more or less, stays on the horizontal level.
But not that, these movements are not as straight-forward as they seem to be. When there is an upward trend, there is also ‘resistance’ that is the level where the trend may stop or rebound, indicating that a lot of traders are taking action at that point. Similarly, ‘support’ is a level during a downward trend when it may rebound or pause, indicating a lot of traders taking actions (making transactions) at that point.
Using these two technical analysis concepts coupled with advanced tools, the traders can make a forecast on the specific cryptocurrency asset. Bitcoin price prediction today usd needs to be tracked closely, if you want to trade based on technical analysis.
If you are looking for a solid crypto day trading strategy, we have it covered for you!
Fundamental Analysis – Bitcoin Price Prediction
In Fundamental analysis, you consider variables in economic, financial, and other areas to determine the actual value of the Bitcoin or other cryptocurrency asset. This is different from the technical analyses where you see the movements of the assets to make decisions.
In this evaluation process, the analysis goes deep into the technology on which Bitcoin works to understand how it’s scaling might affect the price. With Bitcoin analysis, there is no option for the analysts to see the company’s balance sheet to determine how their stocks might perform. Instead, they do fundamental analysis through a whole set of new parameters, some of them listed below:
- Transaction Activity of Bitcoin Whales: These ‘whales’ are investors and traders with a significant amount of funds that can move the entire bitcoin industry with their transactions.
- Mempool size: This is the pool where all the unconfirmed Bitcoin transactions lie. If the mempool size is bigger, more time it will take for the Bitcoin transactions to be confirmed.
- Hash Rate: This metric correlates with the Bitcoin mining power. That is, it measures the computing powers with which miners are working to validate the Bitcoin. If the computing power is more, the more secure it is.
- Bitcoin Halving: This happens every four years, where the supply entering the Bitcoin network reduces and the demand, on paper, remains the same. This can drive up the price of the Bitcoin.
- USDT Premium: This is a numerical value which is essential, the percentage by which a USDT price on the exchange is more or less than the value of $1. USDT in theory is a stable coin whose value is supposed to mirror the price of the US Dollar. If the USDT price is positive, it may signal higher upcoming prices of the Bitcoin and vice-versa.
Bitcoin Price Prediction: Yearly Forecasts
Disclaimer: All of Bitcoin price predictions today are just predictions and forecasts based on historical data and expert analyses. Do not use these as the sole basis for your transactions of Bitcoins or other cryptocurrencies. These may be inaccurate concerning how the real markets roll out in the years predicted.
Do you think it is easy to do Bitcoin price prediction tomorrow? Never take it for granted. It is really difficult to predict short term and long term price for Bitcoin.
Bitcoin Price Prediction 2021
The first factor to consider for the 2021 forecast is the Bitcoin halving which took place in mid – 2020. As per historical data, the prices of Bitcoin increased one and a half years after the halving event. The first halving saw an increase of $5180%, 18 months after the event. Similarly, the second halving saw an increase of 2977%, 18 months after the event.
Also, with this halving event, the amount of Bitcoins in the market has become scarce. As of now, the demand remains strongly backed by investments from major financial companies around the world and renewed trust in the asset. What this means is that one can expect the price to flare for most of 2021.
The next forecast parameter to consider is the Stock–to–Flow graph. According to historical data, this has been little accurate to estimate the Bitcoin prices in the coming years. According to this, the value of Bitcoin will touch approx. $75,000. It is not exactly the price but the worth of the Bitcoin-based on this model.
The Bitcoin price prediction from different analysts vary in a big range. However, many of them suggest being optimistic about the prices of Bitcoin in the upcoming year, provided there are no surprises.
Bitcoin Price Prediction 2022
Some experts believe that the adoption rate in 2022 will triple. By 2022, one can also expect many transactions to happen directly through Bitcoins than traditional Fiat currencies. If the advancements are stable, the price of the coin may touch an average of $32,000 by 2022.
According to Trading Beasts, the minimum price expected at the end of 2022 was around $11,800. The maximum price is predicted at roughly $17,460. But these numbers are considerably less than the optimistic predictions for 2022. People predict the price to reach anywhere between $28,000 to $400,000 within the next 5 years.
Tip Draper, a renowned advocate for Bitcoin has predicted that the prices of Bitcoin could touch $250,000 by the end of 2023 because he believes in its bright future concerning the traditional fiat currency.
It can be somewhat strengthened by an interesting historical pattern. That is, it took around 24 months for the Bitcoin to reach the market peak in 2013 from November 2011. The next market peak was achieved in 35 months during December of 2017. Using this trend, it may take 46 months for the cryptocurrency to reach its next market peak in 2022. Although it’s just a Bitcoin price prediction, the real outcome of the prices will only depend on a set of events leading to 2022 and what happens during that year.
Bitcoin Price Prediction 2025
Cryptocurrency experts and investors remain optimistic about the long-term rise in the prices of Bitcoin. Raoul Pal, a Wall Street veteran and Real Vision CEO has predicted that Bitcoin will touch $1M by 2025! He backed this prediction by performing a regression on a log chart considering from the time of inception of the Bitcoin. Since the Bitcoin also halves in its mining reward every four years, this can add more momentum to the bullish trend as predicted by him. This claim is backed to some extend by the Stock-To-Flow model too.
But a more seemingly ‘realistic’ prediction has been made by Bloomberg Intelligence at $100,000 as the demand and supply seem to be positive through the next 3-4 years. They predict that the prices will rise due to the increase in institutional investments and the concept of digital gold circulating. They expect that If a Bitcoin ETF launches in the US, it will be easier for institutes to invest in Bitcoin.
Bitcoin Price Prediction 2040
Bitcoin, at the time of writing, is predicted to enter a fresh bull cycle. Of course, by the time 2040 arrives, there will be a lot of bull-runs and dry-runs, but general predictions assert that even the lowest of Bitcoin prices will be in 7-digits in 2040.
According to the Stock-to-Flow model which has been fairly accurate till now, the Bitcoin price prediction for 2030 ranges between $1M to $10M. It would not be silly to predict the price of Bitcoin crossing the billion-dollar mark in the next decade considering price peak estimations.
Bitcoin Price Prediction 2050
2050 is again a long-term forecast but some believe the prices of Bitcoin will only increase as time progresses, some also bravely claim that Bitcoin would find it harder to fight and exist against government regulations. Some believe that governments may keep control of the volume of Bitcoin by-passing strict laws or even banning the use of cryptocurrency.
If this happens, Bitcoin can fall back to less than $100. But on the other hand, if the governments support the use of Bitcoin, its price may touch more than a million dollars for a coin, and cryptocurrencies could become mainstream.
But it may not be a bad idea to stay optimistic as more and more businesses have started to include Bitcoin as one of their payment options. If more people start transacting through Bitcoin, the demand may increase and may even surpass Gold in value.
With this, the value of Bitcoin could be anywhere more than at least $500,000 by 2050. There is some math behind this, though. It is predicted that all 21M Bitcoins will be in circulation by 2140 if the conditions remain predictable. As of now, 80% of the Bitcoin is in circulation with the remaining 20% planned to be mined in the next 120 years.
By 2050, Bitcoin can cross the market cap of $10 trillion and move ahead of Gold that is currently at $9 trillion. Assuming there are 20M Bitcoins in supply at 2050, the price of a single coin would roughly be $500,000. This is a more realistic and mathematical backed prediction, but with the high volatility of the cryptocurrency, it is better to wait and see how prices move year by year, decade by decade.
Bitcoin Price Prediction Forecast
Let us see what famous Crypto influencers, experts and research teams have to say about their BTC price forecast
Bloomberg Research 2020 Bitcoin Report
Bloomberg recently released a comprehensive analysis carried out by their experts on Bitcoin price forecast on how the asset will fare in the future. The report claimed that Bitcoin tended to add a zero to its price. Considering that, and the maturing period, the price could be well in the region of $100,000 in the next 5 years.
The report also emphasized the supply decline and demand rise of Bitcoin. Compared to gold, the market value at the time of writing for Bitcoin is only $190 Billion, while for the metal it is roughly $9 trillion. But large investments from multiple financial organizations in 2020 could be a sign of increasing trust. Unlike stocks, the supply for Bitcoin is fixed and is declining considering the annual percentage while the demand is currently increasing. This can push prices up further, and Bitcoin has the potential to become similar to the digital version of gold.
In the Bloomberg database, the price of Bitcoin was most correlated to Gold since the beginning of the decade. The Bitcoin-gold relationship is about 0.44 mainly due to the introduction of Futures in Bitcoin. To conclude, the report claimed that only a significant negative event can happen to reverse the increasing adoption and price of Bitcoin over the long term.
Chamath Palihapitiya Bitcoin Price Prediction
The Virgin Galactic Chairman is highly optimistic about the future of Bitcoin, and he has predicted that the price of the asset will touch a million dollars soon. According to him, everyone must have 1% of their assets in Bitcoin. In a recent podcast, he revealed that he bought a lot of Bitcoins in bulk in 2013. Now, his funds are with a company that uses it for trading purposes, and Chamath gets cash and dividend from it.
But according to him, Bitcoin right now is still too speculative to be reliable. However, looking at a 10 – year trajectory, he said that it is a binary investment, and the value will either be in ‘zero’ or in ‘millions’. He claimed that Bitcoin in the future may serve as quasi–gold whose value is determined by the participants and not the central banks as in the case of gold.
Chamath advises that the Bitcoin investments must not be based on events such as coronavirus, market crashes, etc. Instead, he said it makes sense to invest in Bitcoin quietly and let the investment grow over time.
Max Keiser Bitcoin Price Forecast
According to Max, the price of the Bitcoin will touch $28,000 with the bullish pattern the cryptocurrency asset has been following. According to the Bitcoin expert, the relentless printing of paper money by the government has also some hand in the bull run of Bitcoin.
Max Keiser published a series of tweets where he predicted a peak of $28,000 for Bitcoin followed by a setback, followed by which the cryptocurrency will reach six figures. He believes that since precious metals like Gold and Silver are difficult to source, the market will eventually move to Bitcoin that can create a surge in its demand. With the COVID climate, the US Government is printing more money that is weakening the US dollar. With this development, Gold and Bitcoin can be considered safer investments, according to him.
Mike Novogratz BTC Prediction
Mike Novogratz, CEO of Galaxy Digital that is a crypto-merchant bank has predicted the price of the world’s most popular cryptocurrency to touch $65,000 after reaching a high of $20,000. He stated that this is possible due to the influx of lots of new investors and low supply. He has always been a supporter of Bitcoin and believes it strongly in the long run.
Moreover, the price will only increase as more people embrace it in their financial portfolio. He first predicted the price of the Bitcoin to first touch $20,000 in 2019. Then, Mike Novogratz adjusted his prediction for 2020 at $12,000.
Robert Kiyosaki Bitcoin Forecast
Like many other experts, the businessman and famous Author posted on Twitter through a series of tweets stating his bullish position on Bitcoin. According to his Bitcoin price forecast, the price will shoot up to $75,000 in 3 years.
In his fear of a ‘dying economy’, has had bought assets in three asset-classes, gold, silver, and Bitcoin. In this prediction, the price of the Bitcoin would increase by 97% every year having the most favorable potential for profit among the three asset classes he had invested. His support for cryptocurrency has been for a long. He has spoken on the media several times optimistically about its future.
Adam Back Bitcoin Prediction
He is the original developer for Bitcoin, and according to many people, the head behind the Satoshi Nakumoto pseudonym. His Bitcoin price forecast had stated that within the next five years, the price of the Bitcoin will touch $300,000.
Mostly this could be because of the excessive printing of fiat currency by countries around the world. Due to the covid-19 pandemic, Governments are inflating the asset prices by printing more currencies and devaluing it. According to him, the main reason for the surge in Bitcoin prices will not be an institutional investment. But, the current volatile environment which can draw people towards this form of asset.
He also said that it maybe a way for people unemployed and working from home to ‘preserve’ money.
Wences Casares Bitcoin Prediction
The founder and CEO of Xapo, a Bitcoin wallet startup, and one of the board members of PayPal have predicted at a conference in New York that the price of the Bitcoin will touch the much-coveted $1 million mark before 2027. He initially developed an interest in Bitcoin due to the highly volatile nature of the Argentinian currency.
According to him, if Bitcoin succeeds, it will act as a super-currency which will have one position on top of all national currencies. Further, he stated in his report that Bitcoin will be one non-political standard of settlement and value.
The Bitcoin price forecast model which Casares follows is straight-forward. He considers the total number of users and multiplies it by $7000.
Stock-to-Flow Model via Scarcity
Scarcity refers to the lessening in supply while demand remains strong. It falls in the same class as gold and silver but the only difference is: Bitcoin is digital. Using the stock-to-flow model to quantify this scarcity had revealed that the market value of Bitcoin will touch $1 trillion after the halving event in 2020. This means the price of Bitcoin in the year after May 2020 will be around $55,000. But, we all know this did not happen.
Bitcoin Price Prediction – Frequently Asked Questions (FAQs)
A lot of people around the world have a growing interest in Bitcoin. Since it is a new form of investment, it is exciting and a little intimidating at the same time. To help answer some basic questions which almost every investor/trader, newbie or experienced, has, here are some FAQs.
Will Bitcoin go up in value?
Bitcoin has a lot of potential. It’s a digitalized form of currency and is not bound to any country politically like fiat currencies. According to experts, in the long run, the price and value of the Bitcoin may go up. In the short term, however, it is difficult to gauge if it is going to rise or sink. This is because of the highly volatile nature of the cryptocurrency.
Is Bitcoin a good investment?
A good investment is obtaining a good return after a certain expected period. Bitcoin, as of now, is still a highly volatile financial asset. You may either gain or lose your capital if invested for the short term. In the longer term, however, you may expect to get some gains. Having said that, invest only a small portion of your investment budget on Bitcoins now. And, wait for the longer term for it to mature.
What will Bitcoin be worth in 2025?
Different experts share different ranges for their expectation of Bitcoin in 2025. Some have called for more realistic predictions of around $50,000 per coin. Whereas, others have claimed it to touch a humongous $1 million per coin too. However, given the highly volatile nature, it is hard to pin down to one value or range prediction. But, given the current scenario, one can be optimistic for its value to rise by 2025.
What will Bitcoin be worth in 2040?
Here too, experts have a wide range for their expectations. But, in reality, if there are no major unforeseen global events, price of BTC may be in seven figures USD. For this to happen, the demand needs to stay strong and Bitcoin needs to stay relevant for years.
Will Bitcoin crash to zero?
It is not impossible, but the chances of it happening is less than 1%. Everyone will grab Bitcoin at lower prices less than $4,000 or similar levels. Bitcoin is still in the nascent stages, and until it takes time to settle, price volatility will exist.
While Bitcoin crashing to zero maybe a little far-fetched, the biggest volatility or crash is caused by major events. Some major events include China Government banning Bitcoin trading or big exchange scams like CoinCheck scam. Huge transactions of Crypto whales in coordination also moves it heavily.
Is it smart to invest in Bitcoin now?
With optimistic predictions from many experts, you may invest a small portion of your investment fund in Bitcoin. And, see if it grows. But, do not shell out your entire savings to this cryptocurrency. Moreover, be in a position that even if you lose your investment capital, it will not affect your livelihood.
How do Bitcoin coins fluctuate with countries banning its use?
Some governments are against the use of Bitcoin because of the heavy fluctuations in value, no regulation, etc. Banning Bitcoin will reduce significantly, depending on the population of the country, the demand. As a result, the price may crash.
Can Bitcoin be converted to real money?
Cryptocurrency exchanges allow you to convert your Crypto for Fiat money. But, remember you need to finish Know Your Customer (KYC) for them to follow Anti-Money Laundering (AML) regulations. They need to make sure this is legit money coming in and going out of the exchange. Once you sell your crypto, the wallet balance reflects the amount you sold. Then, you can transfer your wallet balance to your bank account.
How often does Bitcoin price change?
As of now, it is a very volatile asset. The prices of Bitcoin can fluctuate within even seconds. Many crypto-trading platforms offer live Bitcoin prices that typically update every second.
Is the price of Bitcoin the same across the world?
Due to the inefficiency in the market, the price of Bitcoin may be different in other parts of the world. In such a case, it becomes hard for transactions from users in particular geographical locations.
Takeaway – BTC Price Forecast and Long-Term Price Predictions
It is hard to put a Bitcoin price forecast for tomorrow and beyond. And, that is because of the heavy volatility of the financial instrument. But, we have tried our best to educate with the BTC price forecast prediction using various analyses and expert opinions.
However, there is growing optimism for this asset even amongst some financial experts and investors. If nothing drastic happens, it would not be surprising if Bitcoin touches six figures in this decade. Then, I won’t be even surprised to see seven figures in the next decade. If you are looking to invest, make sure you invest capital, you would not mind losing even if Bitcoin crashes.
There are some people who take Bitcoin price prediction to the next level with machine learning. Take a look at them if you are interested.
If you want to make automatic trades cashing on the volatility of Bitcoin, you may want to build crypto trading bot. Don’t have the expertise to build, no worries! Just use the existing crypto bots in the market that do a good job already. If you want to take it one step further, consider learning bitcoin high frequency trading.
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates