Upon its launch in January 2009, Bitcoin gained massive popularity for its credibility, longevity, features, and benefits. Many developers, miners, and technology enthusiasts followed this cryptocurrency actively until, in June 2022, it experienced a crash, leaving investments in shambles. At the moment, if you were to convert 1 BTC to USD, you’d get around $26,050.00, which was a massive decline from its previous value of $67,617.02
While the decline leaves hope, experts predict that Bitcoin will recover to $25,200 by 2024 and could reach $45,000 by 2025. While these Bitcoin forecasts are just speculations, allow us to explain the basis of these predictions and why BTC is still a good investment alternative in this article.
1. Bitcoin Maintains Security
In this world of constant surveillance, cryptocurrency is a breath of fresh air, and BTC is no exception. Bitcoin uses cryptographic encoding to maintain its security and fidelity. This involves cryptographic hash functions transforming a data collection into an alphanumeric string with a fixed length, later termed a hash value. Any tiny changes in the original data can change the hash value. This makes it highly impossible to predict which initial data set will create a specific hash value, enabling the creation of digital secrets and unforgeable digital signatures.
2. Bitcoin’s Rules are Permanent
Bitcoin has some rules that remain permanent. One such rule is that no matter how many new coins are mined and added to the circulating supply regularly, the currency will not cross over its 21 million coin cap. This contrasts with world governments that print more money daily and call it quantitative easing, but with Bitcoin, no company can make more of it. This way, your investments will not be manipulated by any governments, banks, or companies, making Bitcoin a scarce asset that appreciates over time.
3. Bitcoin Fundamentals Are Inclined Toward Financial Liberty
Bitcoin was not created out of thin air; rather, it was brought to life by Satoshi Nakamoto for a philosophical reason. Satoshi introduced the genesis block, the first block in the Bitcoin world, with an encrypted message: “Chancellor on the brink of second bailout for banks.” This referred to a news article from January 3rd, 2009, about a big financial crisis.
Satoshi pointed out that the financial mess was caused by big banks being uncareful with everyone’s money, and the government used the taxpayer money to give massive exit bonuses to the top folks who messed things up. Bitcoin is an intelligent investment amidst this chaos because it is a transparent and open blockchain that gives us control over our money.
4. Bitcoin is Great for Diversification
One of the attractive aspects of Bitcoin is that it can be used as a diversification tool for its minimal correlation with traditional asset classes. In essence, the fluctuations in Bitcoin’s price are mainly independent of the ups and downs observed in the stock market and other conventional investments. Bitcoin can become a distinct asset class by establishing itself as a new store of values.
For those who currently hold bonds and equities, reallocating a portion of their holdings into Bitcoin could reduce portfolio volatility while simultaneously enhancing overall returns. Diversification emerges as a strong reason for investment in Bitcoin and cryptocurrencies.
Although BTC has had its share of ups and downs, one cannot overlook the incredible benefits it offers. Its supply cap ensures that its value increases over time, even if it has its phases of volatility. And the advantages it offers in terms of providing relief from financial surveillance and enabling portfolio diversification are unparalleled. We are positive that despite the ongoing crash, Bitcoin will recover its value soon.