3 Reasons Why Bitcoin Has a Golden Future

On January 3, 2009, a Bitcoin (BTC) live blockchain. Created as an alternative drive system free of central control. Where Bitcoin has been nearly worthless, we have seen a significant increase in price over the years. For example, Bitcoin reached its maximum in November 2021 Record above $69,044. We are currently hovering around $23,000. Further increase in price will depend on a number of factors. For example, inflation, Bitcoin “obsession” and institutional adoption play a role in further price developments.

inflation

In a recent article We have already discussed the current hyperinflation and what this means for Bitcoin. Paper currency They are government-backed currencies such as the euro or the dollar. Governments are totally in their power to print extra money. In the long run, this leads to a decrease in the purchasing power of the relevant currency.

Bitcoin is often rated just like gold a hedge or collar anti-inflation. Just like gold, the amount of bitcoin is limited. Our land contains a limited amount of gold. The more gold is extracted, the less gold is left in the ground. Similarly, we know about Bitcoin that there is a maximum of 21,000,000. Bitcoin production is also fixed in mathematical formulas.

It is the law of supply and demand that the price of bitcoin will rise as the dollar and euro continue to print. At the moment there are already more than 19.000.000 Bitcoin in circulation. This is not far from the total number of bitcoins that may be in circulation. In comparison, fiat currencies, such as the dollar, are heavily printed.

Bitcoin Halving

During Mining New bitcoins are created. Guarantee through math puzzles Miners Network security and all transactions are monitored. In return, they get bitcoin. The amount of bitcoin that will be available when these math puzzles are solved has been fixed since 2009. Every four years, the amount of bitcoin that becomes available in my king Half. This is also called half the name of the thing.

Historically, after the halving, we see a rising a period of time. For example, after the first halving in November 2021, the price increased from $12 to $1,200. The second halving happened in 2016. In the next two years, the price increased from $647 to $19,800. The last halving occurred in May 2020. Bitcoin then jumped from a low of $8,700 to $69,044.

The next halving will happen in 2024. Looking at the increases that bitcoin experienced after the aforementioned halving, The peak after the halving in 2024 is estimated at $284,272. The Winklevoss twins, who are around 1% of all bitcoins purchased in 2012Estimate the value of bitcoin after the halving for 2030 It could represent 500,000 dollars.

Institutional adoption

The interest of large corporations pushes large sums of money into the crypto world and makes owning cryptocurrencies accessible to the majority. For example, Michael Saylor, Former CEO of MicroStrategyguarantee it MicroStrategy for over 129,000 Bitcoin He has in possession. Goldman Sachs also announced in April that its wealth management division will offer bitcoin as an investment opportunity.