Overview
Everyone can’t invest or own Bitcoin. Since its inception from 2009 to towards the end of the mining cycle 2140, the total number of Bitcoins to be mined is 21 million. Currently, Bitcoin’s value is entirely different, and it is surging to great heights, with its current value of 55,618.53 USD, and still, it is expected to go up. Bitcoin, the leading cryptocurrency, has the potential for additional gains in the long term; there is a possibility that the price can go up to $146,000 as predicted by experts. This is the major reason that institutional investors continue to invest their portfolios with Bitcoin at the cost of gold, and people are starting to buy 0.0025 bitcoins for long-term gains. As this year started, the price of a Bitcoin is rapidly increasing & some experts have predicted that the value of Bitcoin may reach $100,000 soon. In that case, if you are also planning to invest in Bitcoin. In that case, Bitcoin Pro is a fully automated platform for crypto & Bitcoin trading that uses an intelligent & unique trading algorithm that scans the crypto market. To know more about this, you can check the authentic review on Bitcoin Pro. And, In this article, let’s find out why you should own at least 0.0025 Bitcoin.
Current Value of Bitcoin
- Since its creation in 2009, this virtual currency has had a very volatile trading history. In 2013, it witnessed the first price hike when the price of 1 Bitcoin went up to 1124 USD. In 2017 November, the Bitcoin price skyrocketed and reached record highs, where the price of one Bitcoin was sold at approximately 20,000 USD.
- Due to market fluctuations, the price of Bitcoin started to stumble in the forthcoming months. In the 2020 third quarter, there were 18.5 million Bitcoins in circulation globally, and its market capitalization was approximately USD 200 billion.
- Bitcoin’s price increased in 2020, and experts opined that this growth is unsustainable; on the contrary, they also remarked that it is a legitimate currency that is competing over Gold and might hit $146,000.This implies that people are moving towards “digital gold,” which drives the demand for this cryptocurrency.
- When there is a total shutdown of economic activity in 2020 because of the pandemic, the price of Bitcoin started to reach enormous heights, which led the people to invest in a fraction (0.0025) of Bitcoin for future gains.
- Bitcoin price surged and was worth 50,000 USD when Tesla had invested USD 1.5 billion in Bitcoin. Bitcoin’s demand increased and was traded on worldwide cryptocurrency exchanges.
Experts say Bitcoin at $146,000 is a Definitive Possibility
- From its inception in 2009 to the end of the mining cycle 2140, 21 million Bitcoins need to be produced, and few of them are lost permanently. Today, 87% of the total amount of Bitcoins are mined, and in the next 120 years, there will be 2.8 million Bitcoins yet to be produced. The process of mining will be more challenging, and Bitcoin will become more difficult to produce.
- In a research note, analysts at JP Morgan Chase have forecasted the long-term Bitcoin price to target above $146,000. It is based on the assumption that this cryptocurrency will grow more popular and can be treated as an alternative to gold, which has been used traditionally to combat volatility hedge, inflation, and protection against USD’s falling value.
Reasons why Bitcoin may reach $146,000
- In 2020, due to a steady increase in the Bitcoin price and the potential to buy Bitcoin in fractions (0.0025), it was available for people to buy this cryptocurrency. Paypal, the payment services company, made it possible for their account holders to transact online using this cryptocurrency.
- Many financial institutions and investors like Paul Tudor Jones, Stanley Druckenmiller, have stated that they have started allotting their funds into Bitcoins or they are open to doing so. In the present situation, JPMorgan seeing the upsurge for this cryptocurrency indicates that it is building up its speculative long-term positions and has invested in small amounts in Bitcoin, seeing its potential growth.
- Few factors that influence the Bitcoin price – 1. The media’s hype over the Bitcoins boom in value had drawn new buyers to invest and make money. 2. Because of its upsurge in price, traditional finance firms are investing in Bitcoins. 3.Bitcoin is compared with gold which goes with the trends in the worldwide economy.
- According to JP Morgan Chase & Co, “Bitcoin has a potential to reach $146,000 in the long term as it competes with gold as an asset class”. Currently, Bitcoin’s market cap is over $575 billion that should increase by 4.6 times to arrive at a theoretical price of $146,000, if it wants to match the Gold’s total private sector investment through exchange-traded funds, coins, and bars as predicted by Nikolaos Panig and his team.
- As experts have predicted, the increase in the use of Bitcoin as gold-like security, will help drive the Bitcoin price further into the ecosystem. Also, they point out that outflow from ETFs, or gold pegged exchange-traded funds, and the inflow into digital currencies will drive the price of the digital currency.
So, Why Should You Own at Least 0.0025 Bitcoin?
- Retail investors and institutions are showing keen interest in digital assets in extraordinary numbers. For example, in 2020, between Q3 and Q4, the average institutional Investments in the world’s biggest crypto fund increased from $2.9 to $6.8 million. The price of Bitcoin rose to 47% in December alone.
- Over the years, the supply of Bitcoins has increased, and because of halving every four years, Bitcoins are reduced in supply to 15% in 2012, 5% in 2016, and 2% in 2020, which is a 1/3 reduction each time, which is known as stock-to-flow-ratio. This implies that it has an impact on its price too.
- Nikolaos Panig wrote in a note that, even though Bitcoin has the largest market cap, and might reach the price of $146,000, the outlook will depend on the Bitcoin volatility combining with that of Gold that should inspire more institutional investors, which might take time.
- Also, the experts at JPMorgan predicted that the long-term bitcoin price might target $ 146,000; it will be based on the presumption that Bitcoin will grow in popularity, and as a substitute for gold, that has been used traditionally as a volatility hedge, inflation and also used as a protection against a falling USD.
Final Thoughts
Bitcoin is one of the most popular and leading digital currencies that was created after the 2008 financial crisis. It permits people to eliminate banks and other traditional methods and helps in peer-to-peer transactions. Bitcoin has become the most prominent feature among the various other cryptocurrencies. Even though people have confessed they have lost their Bitcoins in the early stages, there is still the hype about the Bitcoin boom. As bitcoin’s price continues to move further, people are investing in Bitcoin to benefit from its long-term value.