Is Bitcoin (BTC) a Good Investment in 2024?
The idea of Bitcoin was first introduced on a whitepaper back in 2008 by an anonymous identity using the alias Satoshi Nakamoto. It was later launched functionally in January 2009. The main idea behind the innovation was to decentralize international transactions, which means that no single party would have higher authority within a transaction. This took power away from transaction-facilitating organizations like banks and remittance agencies who were charging not-so-favorable fees for their services back then.
Bitcoin made all the sense a decade ago, with zero to little competition by other cryptocurrencies. But what about now? With more than 20,000 cryptocurrencies currently trading across global markets, does Bitcoin still have a competitive edge over them? And should you invest in it as of 2023? This guide will cover everything you need to make that decision.
Start Investing in BTC Now With ByBit!What is Bitcoin (BTC)?
Bitcoin is a kind of digital currency that can be used to undertake transactions directly on an exchange or through wallets. One doesn’t need the facilitation of a third party in order to enable these transactions. It is supported by blockchain technology. Now as technical as it sounds, the concept of blockchain is really simple to understand. It is, as the name suggests, a chain of blocks, with each block containing data relating to transactions that have taken place. This data acts as a public record of transactions from the beginning of the said cryptocurrency till today. Using this ledger, anyone can validate the presence of Bitcoins in the market, making it virtually hack-proof. If someone was to try and make fake Bitcoins, they would get instantly caught as the counterfeit coins would have no trace in the ledger.
Apart from being the primary cryptocurrency, Bitcoin also commands the title of being the largest cryptocurrency by market capitalization. It was at its all time high price of $68,990.90 back in January 2023, with its market cap almost breaching the $1.3 trillion mark, but has fallen nearly 66% since then. Here’s a brief summary of Bitcoin.
| 5th August, 2023 | BITCOIN |
|---|---|
Max. supply |
21,000,000 BTC |
Circulating supply |
19,112,662.00 BTC |
1-year price high |
$68,990.90 |
1-year price low |
$17,744.90 |
Markets |
Bybit, eToro, Binance, Coinbase |
Source: Coinmarketcap
Bitcoin Price Performance 1 y, 1 m
Bitcoin Price 1y Return |
9.38% |
Bitcoin Price 1m Return |
117.38% |
Bitcoin Chart
Top 7 Reasons To Buy Bitcoin in 2024
The price has corrected significantly
Bitcoin is currently trading at a discount of nearly 66% from its all-time high. While this fall might seem like a crash for majority of assets classes, it is just another routine correction when it comes to cryptocurrencies. A general rule of thumb investors adhere to is the buying-the-dip methodology where an asset is accumulated during its correction. So given the distance from the peak for Bitcoin’s price currently, experts believe that its price has higher chances to find a support somewhere around the current levels, representing a buying opportunity.
Institutional Adoption
When Bitcoin was first launched, all market participants were highly skeptical about its adoption. But slowly and gradually, people are now accepting the innovation and utilizing it for their own operational requirements. In fact, many investment firms and funds now have a portfolio dedicated primarily to cryptocurrencies, majority of which have Bitcoin as the most heavily weighted constituent. This adds a lot of attention and reliability to the crypto’s name as retail investors generally act upon the advisory of these firms.
Lightning network success
The Bitcoin network can process nearly 4.6 transactions per second. While this might be slower compared to the likes of Visa, it does get ahead when it comes to the transaction costs involved. As per blockchain.com, the average fees per transaction (in USD) for Bitcoin currently is approximately $1.43, while the same for Visa can go as high as 3.55% of the transaction amount + a $0.10 flat fee. This has led to a considerable migration of users to the crypto platform for transaction facilitation.
Bitcoin has store value
The maximum supply of Bitcoin is fixed at 21 million coins. This means that beyond this point, Bitcoin will provide store value given its limited supply. To understand this better, take the example of gold, which obviously has a limited supply available. In order to store the value of fiat money, investors generally invest their money in gold, which in turn preserves value against factors like inflation. Experts believe that Bitcoin as an investment borrows some of its behavior from gold, having similar characteristics like limited supply and store value, and so many also call it “digital gold.”
The halving cycle makes bitcoin scarce
Let’s first understand what does the halving cycle mean. In order to mine Bitcoin, the miners solve complex computer equations. For solving such equations successfully, they are rewarded with blocks of Bitcoin, and each block contains a fixed amount of bitcoin (6.25 BTC per block currently.) For every 210,000th block mined, the number of bitcoins awarded per block gets halved. So by the next halving cycle (predicted to take place in 2024), miners would only get 3.25 BTC per block, reducing the supply of Bitcoin in the market. And as the basic laws of economics suggest, lower supply, with even stable demand (if not higher,) leads to a higher price.
The bitcoin bull cycle theory
As with any other asset, analysts believe that the price of Bitcoin too moves in cycles. It is said that every Bitcoin bull run is followed by a crypto winter, where the price of the currency falls anywhere between 60-80%, but not significantly breaching the previous cycle high. The same cycle has taken place currently with Bitcoin sustaining the sub-$17,000 levels and bouncing back from there. If this theory is deemed to be correct, then the next bull run might not be far.
Bitcoin is the benchmark for cryptocurrencies
While this might sound ironic, Bitcoin is actually stable relative to the other cryptocurrencies (excluding the currency-pegged stable-coins.) And as it is also the primary crypto, experts often see it as the benchmark for comparison for alternative coins. This adds a lot of trust and following behind its name.
Top 3 Reasons Not to Buy Bitcoin (BTC)
Regulatory Concerns
The governments of countries around the world have majorly been against the idea of cryptocurrencies. In fact, countries like China, Egypt, and Turkey have even banned their use for routine transactions. These events lead to uncertainty regarding the future acceptance of Bitcoin.
Fear of Recession
The current geopolitical environment has everyone worried about the possibilities of an upcoming recession. And generally, when recession strikes, the assets which are relatively newer take the biggest hit in the prices. This makes Bitcoin a risky short-term bet currently.
Divided Forecasts
While many analysts believe that the price of Bitcoin has bottomed out, some still have the notion that there’s further downside to it. This passes the baton on to the investor to decide on who they want to believe in, and then take an informed decision.
Top 5 Tips for Buying Bitcoin
Divide your total capital into ‘n’ equal parts and keep accumulating Bitcoin gradually to smoothen out the effect of price volatility.
Use technical analysis to identify key entry points, i.e. support levels, and wait for them to make your investment.
Only use your own money and never borrow money to make investments in Bitcoin.
Use Bitcoin as a source of portfolio diversification and not as your primary investment. It is always advisable to not put all of your eggs in one basket.
Only invest in it if your investment horizon is long-term (i.e. 3-10 years.) Doing so can filter out the effect of short-term volatility and increase the chances of making a profit. Also, only risk the amount you can afford losing.
Where to Buy BTC?
Bitcoin can be traded on a variety of crypto exchanges. You can choose from the following options.
Bybit
Exciting rewards program
Advanced trading platform with technical tools
Free educational resources
High leverage provisions
One of the fastest transaction processing speed
eToro
Zero commissions on leveraged transactions
Accepts PayPal (outside of US)
User-friendly platform
Sign-up bonuses
Social platform for interaction with other traders
When To Buy Bitcoin? Bitcoin Price Analysis
Bitcoin price prediction by TU is prepared automatically on the basis of technical analysis of moving averages and indicators for each timeframe (interval) separately. Select the timeframe you need to find out Bitcoin price prediction for today.
NOTE!
Signals may differ on different timeframes. If you want to buy BTC and hold the cryptocurrency for longer than one week, it is best to use the signals on daily and weekly timeframes. Timeframes from 5 minutes to 1 hour are best suitable for short-term transactions.
How High Can Bitcoin Go in 2024, 2025, 2030
TU has compiled long-term predictions of various crypto analysts and experts for Bitcoin. However, it is important to keep in mind that these predictions are only forecasts and do not guarantee the exact result in future. Financial assets are subject to many risks that can lead them to deviate from predictions. That being said, the following predictions are taken as the best market estimates for Bitcoin in the long run.
Bitcoin Price Prediction 2024, 2025, 2030Bitcoin Price Prediction 2024
| Month | Minimum Price | Maximum Price | Average Price | Change |
|---|---|---|---|---|
| September 2023 | $18,543.383 | $27,269.681 | $21,815.745 | 1.83 % |
| October 2023 | $18,487.962 | $27,188.180 | $21,750.544 | 1.52 % |
| November 2023 | $18,424.454 | $27,094.786 | $21,675.828 | 1.18 % |
| December 2023 | $18,357.157 | $26,995.819 | $21,596.655 | 0.81 % |
Bitcoin price Prediction - 2025, 2030, 2033
| Year | Price in the middle of the year | Price at the end of the year | Average growth, % per year |
|---|---|---|---|
| 2023 | $19,905 | $32,801 | +53% |
| 2023 | $36,666 | $31,686 | +48% |
| 2024 | $29,587 | $31,358 | +46% |
| 2025 | $36,062 | $40,699 | +90% |
| 2026 | $44,698 | $49,168 | +129% |
| 2027 | $53,593 | $57,978 | +170% |
| 2028 | $62,326 | $66,641 | +210% |
| 2029 | $70,479 | $71,073 | +231% |
| 2030 | $75,071 | $79,045 | +268% |
| 2031 | $75,225 | $67,244 | +213% |
| 2032 | $70,270 | $73,282 | +241% |
| 2033 | $62,642 | $65,093 | +203% |
| 2034 | $55,739 | $57,475 | +168% |
Should I Invest in Bitcoin (BTC) Right now? Conclusion
Bitcoin is a safer bet compared to other cryptocurrencies if one wants exposure to the cryptocurrency market. On the other hand, it is a relatively riskier asset when compared to other asset classes such as stocks, bonds, forex, and commodities. So one’s decision of investing in Bitcoin then boils down to their purpose and expectations from the investment.
Experts suggest that it's sensible to add a little exposure to bitcoin with the idea of portfolio diversification in mind, and that a good investment horizon for Bitcoin could be anywhere between 3 to 10 years. Lastly, one must understand the risks involved in Bitcoin investing and invest only the sum they can afford losing.
FAQs
Is staking allowed in Bitcoin?
The staking mechanism isn’t primarily available for Bitcoin. However, it can be kept as collateral with various exchanges to earn interest on, which would replicate the staking process.
What is a Satoshi?
A Satoshi is the smallest unit of Bitcoin, such that 1 Satoshi = 0.00000001 BTC.
Who controls the Bitcoin network?
No single person has authority over the Bitcoin network. It functions as a public ledger shared by all its users across the globe.
Is Bitcoin backed by any real asset?
No, the only backing for Bitcoin is the transaction ledger and the collective trust of its users on its utility.
Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.