Forecast of Bitcoin to $1M: is it possible?
When it comes to crypto, there are so many rumors and buzz that it becomes difficult to separate rumors from sound arguments: in today’s article we will discuss arguments that support a forecast that sees Bitcoin reaching the 1 million price.
The Importance of Knowledge Before Forecasting and Speculating Bitcoin Price
The first thing you need to do when predicting Bitcoin and other crypto prices is to equip yourself with the right knowledge. Without knowledge and basic understanding of how cryptos and their underlying blockchain technology work, it is impossible to know whether certain arguments are true or not.
When you know how something works, it becomes exponentially easier to understand how things can unfold under certain conditions.
Many new investors see crypto trading as a way to make money and achieve financial freedom. But doing so without certain skills and knowledge will ensure failure.
The trading knowledge base offered here will teach crypto and forex traders how to open a position, set stop loss, take profit and analyze crypto markets.
There are also valuable resources on risk management, which is the key to not losing money. And trading strategies also offer the ability to plan ahead and avoid emotional imbalance when trading.
Delving into the practical side of trading can help beginners acquire basic trading skills and knowledge. After understanding the basics of trading, it is important to discuss the factors that can affect Bitcoin prices and provide an analysis framework to define future trends.
What Factors Increase the Bitcoin Price?
There are several factors that have a high potential to increase the Bitcoin price
- Increase in adoption – the adoption of BTC is increasing every day and many investors are trying to buy bitcoin to make money when the prices will start to rise again.
- Limited Supply – Scarce resources tend to fetch huge prices when demand increases. Since Bitcoin is limited to 21 million, it constantly increases the price of Bitcoin as the number of maximum Bitcoins is limited. Additionally, Bitcoin is a deflationary asset as its supply is still limited to 21 million Bitcoins and mining rewards are halved every four years.
- Institutional Acceptance – As giants like Tesla and others talk about BTC and even buy it, this could boost Bitcoin’s price as institutional buyers tend to invest in long-term assets. Institutions always research the market before investing in it, and since many investors are buying BTC, this can be seen by the average person as a good chance to jump in and buy Bitcoin.
- BTC is a digital gold – Some best-selling authors like Robert Kiyosaki call Bitcoin a digital gold, and they have a point. Bitcoin just like gold has the potential to save value and protect wealth in times of economic crisis and uncertainty.
As long as there is data to support Bitcoin’s increased adoption claims and institutions continue to buy more Bitcoin, prices are predicted to continue to rise.
Bitcoin is better than gold: top arguments
Although many investors believe that Bitcoin is digital gold, there are strong arguments to suggest that Bitcoin is better than gold.
- Portability – Bitcoin can be stored in digital wallets and transferred across borders much easier than gold. It is possible to move wealth with Bitcoin all over the world with a single transaction. This alone makes Bitcoin a much better option than gold when it comes to transferring money and moving wealth. When you use gold, you must declare it before you can travel. Since gold is a physical resource, it is more difficult to store.
- Divisibility – it is possible to divide bitcoin into very small units, making it easier to use it for daily transactions when needed. Gold cannot be divided equally.
- Supply – gold is mined every day and the supply is always increasing, whereas for Bitcoin there are a total of 21 million coins and mining rewards are halved every four years, making it a deflationary asset. Bitcoin in this regard beats gold without competition.
- Transparency – all transactions are stored on the blockchain and are publicly available in the case of Bitcoin, while tracking gold transactions is more difficult.
- Security – Bitcoin is protected by cryptography and all transactions are stored on an unbreakable blockchain. The Bitcoin network is decentralized, meaning it is not controlled by any authority.
- Availability – Bitcoin is easily bought and sold via multiple exchanges and peer-to-peer transactions, while buying and holding gold is more difficult.
- Flexibility – Bitcoin is very flexible to use, from daily transactions to storing the wealth, it is more flexible than gold. Gold is not used for transactions and is mainly a way of storing value.
With all the above arguments on Bitcoin’s side, it is clear why its price is so high and has the potential to reach the moon.
Predictions: Is $1M Bitcoin Inevitable?
With increased usage and reduced mining rewards, Bitcoin’s supply is limited while demand is increasing by the year.
The price will rise with almost 100% certainty. Bitcoin has great value as it is possible to transfer money from country to country without borders, faster and cheaper.
This ability to quickly store and move wealth and its flexibility along with increased adoption and scarcity make Bitcoin the perfect asset to invest in. If the price reaches 1 million per Bitcoin, the total market capitalization of bitcoin will be $21 trillion.
To put that into perspective, the total world economy is around $100 trillion and the crypto market is around $1.21 trillion.
The most realistic price for Bitcoin is about 100k as that is a very realistic number. Since the price of Bitcoin is only going to rise, it is a super attractive digital asset right now.
