What is Bitcoin?
There is no point in introducing Bitcoin, the biggest cryptocurrency of all time. It paved the way to and set the pace all the following coins. Bitcoin was probably the hottest investment of all time. Once it could be bought for mere pennies. In 2017, the Bitcoin price increased to $ 20,000. Some people say it is too late to buy Bitcoin and further investment will make no sense. Some say that Bitcoin is just beginning to gain momentum on the market after the overall crisis. ChangeNOW, a leading non-custodial instant crypto exchange service, makes a Bitcoin price prediction for 2019.
What happened to the Bitcoin price?
It is public knowledge that the number of BTC that can be mined is limited to 21 million. While governments print new money when they like it, the number of new Bitcoins entering the market is tightly controlled and has a strict limit. Not only the total number of bitcoins is limited but the entry of new coins to the market is slowing down, as their mining becomes more and more difficult.
Once it was possible to mine on your home computer and get more than 50 Bitcoins. Now, to create a block, you will have to either join the mining pools, linking the power of your personal computer with other computers, or buy expensive specialized mining equipment. The number of bitcoins received for creating a block is reduced approximately twice every four years. Until the end of November 2012, the reward for the found block was 50 bitcoins. For 9 years of existence of Bitcoin, this figure has decreased by 4 times – to 12.5 Bitcoins. This mechanism is crucial for the investment value of Bitcoin. It was a plan of Bitcoin creator Satoshi Nakamoto that reducing the number of new Bitcoins entering the market will make the value of the coin grow, unlike national currencies experiencing constant price drop.
Since the very beginning, the Bitcoin price was overvalued to the speculations on the market. Over the entire history of existence, there have been several instances when Bitcoin has lost more than 40% of its value. However, it always recovered afterwards. You can investigate those periods on this over time Bitcoin price graph.
Bitcoin price prediction 2020
One may think that the market is desperate, trying to predict the Bitcoin price using machine learning, guessing whether to sell or buy BTC at any moment. We do believe in the coin as we saw its past and saw how it regained its strength over and over again.
To sum up, it is difficult to make predictions with the current state of the market. If the stock markets suffer in the near future (and this is very likely) or if Bitcoin ETF will live up to the hopes of the community, prices for Bitcoin as an alternative currency may rise quickly. Most likely, the cost of Bitcoin will continue to grow continuously, and this makes it a good long-term investment.
We hope you enjoyed our Bitcoin price prediction for 2019 – if yes, stay tuned for more!