Top 3 Reasons why is Bitcoin a Good Investment for the Future

The Bitcoin price has seen a stronger increase again in the last few days. Even in the bear market, cryptocurrencies repeatedly indicate that price increases are still possible in the future. While traditional financial experts and the media continue to criticize Bitcoin, analysts from the crypto space are extremely positive about Bitcoin’s forecast for the next few years. What are the key reasons for the extremely good Bitcoin forecast? Let’s look at the reasons as to why Bitcoin is a good investment for the future.

Bitcoin forecast

What is Bitcoin?

Bitcoin is the first and most well-known cryptocurrency. The first real decentralized currency was developed in 2008 based on Satoshi Nakamoto’s white paper and was first launched in January 2009. From a currency that was worth only a few dollar cents, Bitcoin developed into an investment asset that is now worth 5-digit prices in dollars per piece.

Bitcoin

Bitcoin is based on blockchain technology. The Bitcoin blockchain is a decentralized booking system. In this, transactions can be carried out peer-to-peer between 2 parties. No central third party is involved since the transactions are validated decentrally and then written and stored on the blockchain.

Over the years, bitcoin has become a symbol of autonomy and freedom in the financial market. Because Bitcoin is not controlled or influenced by any central authority such as a bank or a state. This independence has a special attraction for many investors.

How has the Bitcoin price moved in recent months?

In the last few months, the Bitcoin price has seen a sharper drop. This was because the bear market started and initially resulted in heavy losses across the market. The Bitcoin price reached its all-time high of over 68,000 US dollars in early November. After that high, it dropped to $ 48,000 by the turn of the year.

BTC course 1 year
Bitcoin price in the last 12 months, source: Coinmarketcap

This drop continued in January before the price was able to stabilize again slightly. It was only in May and June that the Bitcoin price suffered massive losses. In June, the price fell to a low below $ 18,000. Stabilization set in the weeks that followed and has continued to this day. Therefore, the forecast for Bitcoin is that the price of the cryptocurrency will tend to move sideways until the end of the year.

What is the long-term Bitcoin forecast?

While the Bitcoin price should now be more in the current areas in the bear market, a price explosion could follow in the next bull market. Here it is likely that the Bitcoin price will rise to a 6-digit value this time. Because Bitcoin started at the end of the last bear market at a low of $ 3,500 (2019). The price could therefore rise to $ 68,000 in 2021 and thus increase by a factor of almost 20.

If we assume that bitcoin will experience a similar surge in the next bull market and the bottom of the bear market could be in the $ 15,000- $ 20,000 range, then the next bull market peak forecast for bitcoin should be $ 150,000- $ 400,000 .

This Bitcoin forecast is an informed estimate based on the experience of the last Bitcoin cycle. Of course, such high numbers seem very optimistic to many people, since earlier moon numbers from certain forecasts from the crypto space have not come true. But if bitcoin continues to behave similarly to the past, these numbers are entirely possible.

When will this Bitcoin forecast come true?

The Bitcoin bear market should continue for a few more months. It is very likely that we will see sideways movements, falling or only slightly rising prices until 2024. Because then the next Bitcoin Halving is coming up. At that point, Bitcoin mining rewards will be halved again.

A bitcoin halving has been a starting signal for the bitcoin bull market in previous cycles. If this is the case again, we should already see Bitcoin prices rising in 2024 and an explosion in 2025. The Bitcoin forecast of a six-digit price should therefore arrive in 2025.

Why is Bitcoin a Good investment in the future?

Now many investors will be wondering what makes us and other analysts so sure that Bitcoin can continue to rise in price. We want to give 3 key reasons why the Bitcoin forecast is so good.

1. Internal Structure of the Bitcoin Blockchain

The Bitcoin blockchain was designed from the start in such a way that Bitcoin as a commodity should increase in value in the future. Three mechanisms are crucial here:

  • Bitcoin is limited. Only 21 million total Bitcoin can ever be created. Therefore, Bitcoin has a limited supply and is very similar to the precious metal gold, which is rare and limited in the world.
  • Over time, the creation of bitcoins becomes more and more difficult and takes longer and longer. This is because the blockchain is getting longer, making creating new blocks more difficult and time-consuming.
  • With every bitcoin halving, the rewards for bitcoin mining are halved. This ensures that the mining process becomes more and more unprofitable and difficult over time.

These mechanisms limit the supply of bitcoin while demand continues to increase. According to simple laws of the market, Bitcoin should therefore rise. This deflationary structure was planned for Bitcoin from the start.

Blockchain

2. Adaptation of the blockchain in the real world

Bitcoin first introduced blockchain technology to the world. There are now thousands of other cryptocurrencies and blockchain projects. In recent years, the adaptation of the blockchain in the real world has progressed more and more. Networks like Ethereum enable the rapid creation of decentralized applications on the blockchain.

The massive adaptation of the blockchain is progressing more and more over the years, which also causes the Bitcoin price to rise.. Bitcoin is by far the best-known cryptocurrency and implementation of the blockchain. Bitcoin should benefit from this status in the coming years and massively increase demand.

3. Alternative investment in times of crisis

The Bitcoin price has developed a dependency on the prices of the traditional financial markets in recent years. But in terms of its structure, Bitcoin should be more of an alternative to classic assets and benefit from falling prices. According to many financial analysts, this should be the case again in the future.

bitcoin crash

At the moment, there is a risk of a further increase in inflation in currencies such as the US dollar and the euro. There is also the threat of an economic recession. During this time, Bitcoin could once again become an asset that many investors invest in to protect themselves from falling prices. Due to increasing demand, the Bitcoin price can rise again.

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