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Is Bitcoin Still The Most Valuable Cryptocurrency Asset On The Market?

Is Bitcoin Still The Most Valuable Cryptocurrency Asset On The Market?

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Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase

Hannah Parker

The supply and demand factors that determine the price of bitcoin are two simple words. When bitcoins are in high demand, their price goes up. If there is less demand, it goes down.

Based on future expectations, the price of Bitcoin shows how much people will pay to buy it at a given time. The same goes for the price of any currency, fiat or cryptocurrency.

It is still quite volatile because Bitcoin’s market capitalization is small compared to the US dollar and the euro. As the market matures, it is likely to become less volatile. The funny thing about this is that no one can predict when it will happen. It could be five, ten or twenty years in the future.

Will the value of Bitcoin increase?

Many factors indicate that Bitcoin is a profitable and valuable crypto-asset. These factors include:

  • Limited Supply: The supply of bitcoin is limited. It is currently limited to 21 million. There are currently 17,651,995 (84%) bitcoins available in the market. It may take 120 years to reach the 21 million mark.
  • Technological development: New features, security improvements and state-of-the-art automation tools, such as The Bitcoin Method for example, can help increase the use of Bitcoin and positively affect its price.
  • Favorable regulations: If governments support the use of Bitcoin, it would increase its price.
  • Public Perception: If more people see and trust Bitcoin as a valuable asset or currency, it will increase its demand and price.

Factors Against Bitcoin’s Rise?

The price of Bitcoin can fall due to technical problems, ecosystem failure and unfavorable restrictions, market manipulation, negative media attention or any other reason that causes people to lose faith in the currency.

Remember that Bitcoin can be traded in pairs like other currencies. Bitcoin’s price trends can be quite different when it’s exchanged for US dollars, unlike, say, Ethereum for Ethereum.

Mainstream Institutional Adoption of Bitcoin

In 2021, many mainstream companies from various industries expressed their interest in blockchain and cryptocurrency. For example, AMC said last year that it would accept Bitcoin payments. Square and PayPal, two of the biggest fintech companies, are betting on the crypto deal by allowing customers to make purchases on their platforms. Tesla continues to debate whether the company will accept Dogecoin payments despite having billions in crypto assets. Experts are expecting more from this buy-in because of the huge focus on the growth of the crypto industry. It is highly likely that larger, more global companies will be able to accelerate this adoption in the second half of 2022.

Bitcoin is a good indicator for the crypto market because it is the largest cryptocurrency by market capitalization and the market tends to follow its trends.

The value of Bitcoin was on a wild rise until 2021, setting a new record last November when it rose above $68,000. It crashed in 2022.

Crypto markets and Bitcoin have fallen this year due to continued macroeconomic uncertainty. This has been mainly due to rising inflation, weak stock markets, rising interest rates and fears of a recession. Bitcoin lost more than two-thirds of its value between November and December and has fallen as low as $17,000. Experts are still divided on whether Bitcoin has already bottomed out. While some say Bitcoin has bottomed out, others believe it could fall to $10,000 by 2022.

Due to this volatility, experts recommend that your crypto investments do not exceed 5% of your portfolio.

Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase

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