The price of Bitcoin surged in value at several points, including the lead-up to 2023, before exploding in price during the general economic recession and global inflation.
Let’s see what the data tells us about Bitcoin’s price predictions.
Table of Contents:
What is Bitcoin & How Does It Work? ⭐
Bitcoin is an experimental digital currency launched in 2009, using “blockchain” technology to verify transactions.
This digital currency might not be as decentralised as it claims to be, or independent of any central bank or government, but it does open up the ability to trade value across waters.
Bitcoin works on a peer-to-peer basis, meaning that you don’t have to, in theory, need to involve any third party such as banks or payment processors in the process of transferring money from one person to another. In practice, other than coins like Monero there is very limited online privacy - with KYC (know your customer) rules being one example.
The entire system is based on cryptography, and this means that there is no need for a trusted third party like a bank or credit card company in order for you to send money. This makes it relatively secure and trustworthy as there is lowered odds of fraud when using bitcoin.
At the moment, the general consensus among financial experts is that Bitcoin prices will rise in the long run.
This is likely because of a number of factors, including the vast adoption of the coin by countries and large financial institutions, and the fact that the overall market is growing and more people are getting involved in the trading of cryptocurrencies.
This is not the first time the price of Bitcoin has fallen. In fact, it has fallen at one of its fastest rates (Source: Motley Fool) but not faster than the other cryptocurrencies in history. The question is, will it continue to plummet?
In simple terms, to understand where we are in the evolution of digital currencies, we need to start with what we don’t do with it… Digital currency is not secure money, but a new class of assets that have value because people believe it does, and it’s prone to volatility.
In fact, money was already digital before crypto came onto the scene. It’s just harder to be controlled by institutions and governments. Forms of digital currencies occurred once the financial exchange came into existence.
These exchanges trade everything from stocks and traditional currencies to bonds to commodities like oil and metals. Digital currency is based on speculating on the value of goods, where on a new blockchain technology that has revolutionised the way we store and transmit information.
It’s not just financial transactions that have been transformed by the technology: almost any type of business or government transaction is now far more traceable and trackable data can be stored and verified much more efficiently.
This means that with blockchain technology, we are seeing a new kind of “financial transparency” that is revolutionising business and government practices.
Timeline of Bitcoin’s Price Since its Creation 📒
The chart below shows the price of Bitcoin over the last 13 years. It shows the dramatic increase in value that took place in 2009 to July 2022.
What is striking about this chart is that the price of Bitcoin fluctuated wildly inside of specific years, but overall has dramatically increased in price relative to its early years. Sometimes it would rise by 10% in a single day, other times it would rise by more than 3000% in a year.
To put things into perspective, it’s still popular. This demonstrates that even though people believe in the value of Bitcoin, its price is very much a function of supply and demand and very prone to economic uncertainties that occur during times of war and high inflation, the latter of which Britain is currently seeing.
Bitcoin’s Value in 2022
In 2022, the price of Bitcoin was predicted to reach £50,000 by some, £100,000 by others, to crash by the rest. All-in-all, most people probably agree that the price will probably go up again, however this may take a long time. Later in this guide, we’ll focus on what actual financial experts have said about the Bitcoin price prediction in the years to come. Jump ahead to their predictions now, by clicking here.
How to Buy Bitcoin
When someone wants to purchase a large amount of Bitcoin (full guide) they usually trade fiat money such as pounds or euros into the cryptocurrency using an online exchange.
Then the amount of cryptocurrency desired can be traded for the amount of the fiat money. This is how you buy Bitcoin and other cryptocurrencies. There are many different types of exchanges where you can trade fiat money for cryptocurrencies.
These can be online exchanges like Kraken or trading houses like CME. When trading fiat money for cryptocurrencies you can either buy the coins with cash or trade a cash deposit for an electronic future.
When you’re ready to buy your first Bitcoin, you should look for an exchange that offers trading in large, established cryptocurrencies like the U.S. dollar, Euro or British pound.
How to Sell Bitcoin?
It is possible to sell your Bitcoin at any time and make a profit. If you choose to sell your Bitcoin at a set price, you’ll receive the stated amount. If the price goes up, you’ll lose money. If the price goes down, you’ll make money.
There are a number of different ways to sell your Bitcoin, including an online exchange, a securities brokerage or through a third party. If you choose to sell through a third party, make sure to find out the details about how much you have to sell and the fee you’ll have to pay.
Bottom line - What causes Bitcoin to fall or rise in price?
The main reason that Bitcoin falls in price is because of demand and supply. During the bull market in 2017, 2019, and 2021, when the price was very high, there was lots of demand from all kinds of investors who wanted to trade Bitcoin.
The supply of Bitcoin was very low when the market was high, so people were able to buy a lot more Bitcoin than if the market had fallen. When the market falls, adoption follows as people try to cash out of their Bitcoins and sell them to buy goods and services.
The main cause for a rise in the price of Bitcoin is when investors anticipate future rises and buy now to sell later. This is known as a ‘pyramid scheme’, which makes the coin potentially very parasitic.
The Future of Bitcoin: Will it rise again?
People guess at the future, and sometimes they’re right. It’s like the wind. We can only plant seeds and hope that they carry off to the next generation.
So the price of Bitcoin is very much up in the air. Even though the price has skyrocketed in the past year, then fell, it seems unlikely that it will reach the levels of Bitcoin in early 2022 any time soon, let alone go higher.
However, long-term, it may go beyond what we saw at its peak. It is therefore very much possible that in 2023 Bitcoin will be worth much less. There is a great deal of excitement around this new technology and many believe that it will completely disrupt the financial world. But we are seeing a global recession.
Overall, the value of a Bitcoin is much less stable than the value of a gold coin. Making predictions about the future value of cryptocurrencies is very difficult as they are largely unproven and their price movements are largely unpredictable. However, with Bitcoin it is very much the exception rather than the rule. It’s the most important crypto.
Bitcoin Price Prediction - Warren Buffet
Warren Buffett is a legendary American businessman who is also known as "The Oracle of Omaha". He was born in 1930 and he has been investing for most of his adult life.
He is an investor, who started out investing in the stock market and has gone on to become one of the richest people in the world.
He has been nicknamed "The Sage of Omaha" because of his successful investment strategies. He has made billions investing in a variety of companies including GEICO, Coca-Cola, Berkshire Hathaway and more. Buffet is also known for being very generous with his money and giving away large sums to charitable causes.
Buffet believes that Bitcoin isn’t worth anything. He says he wouldn’t buy all of Bitcoin if you offered him it for 25 bucks. But he’d pay a billion times that for just one percent stake of all of America’s farmland. While he’s being tongue-in-cheek, he’s dead serious in principle!
Bitcoin Price Prediction - Ray Dalio
Ray Dalio is an American finance expert who has become one of the most influential investors in the world. He made his fortune by investing in a number of different financial institutions, and now he funds several hedge funds and investment companies. He has been called "the man who knows what nobody else knows," and according to Forbes magazine, he's worth £13.5 billion.
Ray Dalio makes money by investing in a number of different financial institutions. He started off by investing in the New York Stock Exchange, which allowed him to make money with stock options. After that, he invested in hedge funds, which is where he made the bulk of his fortune. In addition to this, Ray has invested in a number of other investments and companies such as Bridgewater Associates and various funds.
He became one of the richest people in the world, and managed to do it without having to work for decades. He's also made his money while managing his own funds, which means that he doesn't have to pay any fees or commissions. However, he makes money by investing in other financial institutions and hedge funds.
While he didn’t give a prediction specifically, as that would be reckless, Dalio seems to agree with Buffet in principle. He believes that Bitcoin’s innate value is limited enough that it’s impossible for the price per coin to reach an insane figure like $1 million (£750,000).
Bitcoin Price Prediction - Mike Novogratz
Mike Novogratz is a former Goldman Sachs partner who left the company to start a hedge fund that focuses on cryptocurrencies such as Bitcoin, Ethereum and Litecoin.
According to Bloomberg, his net worth is estimated at over 700 million dollars due to his success in the cryptocurrency market. The biggest difference between him and other financial experts is that he made his money from investing in cryptocurrencies rather than from speculating them like other experts do.
This makes him one of the few people who are actually making money from Bitcoin prices rising rather than falling, which is why people see him as very credible when it comes to predicting how prices will change over time.
Mike believes that bitcoin isn’t going away, so it will never reach next-to-nothing in value. It’s a key “macro asset” for the times. Unlike fiat currency, bitcoin is a scarce resource. You can’t just print more. It needs a bit of a break during the massive global inflation sweeping the world - and when it’s time, the sled could get back on the road. In his view, there was a big bubble all around, and we’re seeing it pop - to roughly paraphrase.
How Many Bitcoins Exist?
There will only ever be 21 million BTC mined by miners worldwide. This was accomplished by setting a hard cap on the amount of bitcoin produced every year at 21 million coins per year starting at block number 478559 in the year 2140 (this block was mined on January 3rd, 2140).
However, the rate at which Bitcoin is mined has been slowing down over time as more people get involved with mining cryptocurrencies and utilise more sophisticated mining rigs to mine them much faster than ever before possible back in 2009
What Institutions Have Adopted Bitcoin? 🏢
There are a number of large institutions that have adopted Bitcoin. For example, PayPal, Microsoft, Starbucks, Tesla, even KFC. A while back, El Salvador became the first nation on the planet to recognize bitcoin as a national currency.
It's the currency of choice for the Ethereum network. The cryptocurrency is also used by Circle, which is a company that provides mobile payments and crypto-wallets. It's also the preferred currency for Bitmain, which is a mining equipment manufacturer based in China.
It can also be used in remittances, which is an industry that's worth billions of dollars per year.
I Need to Grow Savings, What Can I Invest In?
Skills, communities, health, and growing food. The benefits of building your own community and homestead are numerous. Here are just a few of the advantages that you will enjoy once you decide to start building these types of communities:
- ☑️ You'll live longer. Having health, skills, and a thriving community that's full of people who love living in the same place will help to create a sense of belonging for everyone involved, which is something that's incredibly valuable for well-being.
- ☑️ You'll be able to create a strong sense of community by gathering together as many people as possible who share common values and interests. This can be done on an individual level or on a group level depending on your specific needs.
- ☑️ You'll be able to engage in activities that create value, which will help you to develop better relationships with others, which is something that's extremely important in today's world.
As you can see, the future of Bitcoin is very much up in the air. It’s unpredictable, volatile and has a very small market cap compared to other major cryptocurrencies, so it’s not something you can just rush into. You’ll need some research and a handicapping.
Keep in mind that two of the most successful financial investors in history have doubts about the innate value of Bitcoin - preferring things that grow hard value, like farmland. So keep in mind what you have that you can grow: your health, well-being, and families.