If you are investing in cryptocurrencies, know about the Bitcoin Price Forecast: A boom or a bust?
The world’s oldest cryptocurrency, bitcoin, has attracted fans, investors, con artists, and, more recently, regulators since its inception in 2009. Not only is it a novel form of currency for many of its adherents, but it is also a ground-breaking technology that established the foundation for a brand-new type of economy—the cryptocurrency market—and introduced the world to the idea of decentralization. While some of these early investors were able to join the ranks of Bitcoin millionaires, many more lost hundreds or even thousands of dollars trying to predict its price movements. For others, it was a quick way to make money.
What does Bitcoin’s future hold?
There are two possible outcomes to consider when predicting the future of Bitcoin: the bear case as well as the bull case.
The Bull Case:
Sciberras presents a convincingly bullish Bitcoin picture.
He mentions that “the US is facing a banking crisis and growing debt obligations,” and that “there are serious issues in the global economy.”
“We could be in a situation where the USD is devalued if the US chooses to fix this by issuing more currency and expanding the money supply. Bitcoin’s role as a known, equitable, and resilient asset with a fixed supply and hard-to-change “rules of the game” could become appealing in this scenario.”
He also emphasizes the rising need for block space on the Bitcoin network as a result of recent innovations like ordinals and BRC 20 tokens. Concerns regarding Bitcoin’s long-term security budget could be alleviated by the increased demand, utility, and fees for miners. For the first time since December 2017, a Bitcoin block with miner revenue from transaction fees exceeding the block subsidy was mined in May 2023.
With increased lightning network development from Strike, Lightspark, MicroStrategy, and Spiral, the future may also see Bitcoin become more of a payment method. According to Sciberras, “Bitcoin could increase its overall utility and become more like money—helping it reach those lofty price targets” if it can continue making processes and adoption in the payment front.
The Bear Case:
However, bitcoin is not an exception to the rule, as with any investment, there are potential drawbacks. Sciberras provides a few scenarios that have the potential to lower the price of Bitcoin.
“There are worries over bitcoin’s drawn-out security, given the block award will keep on diminishing, potentially undermining security,” he alerts. The price of Bitcoin could also be hurt by short-term sell pressure.
Another concern is the effects on politics and the environment. Sciberras states: ” The White House has proposed imposing a tax on bitcoin miners in the United States of America of up to thirty percent in response to ongoing attacks on bitcoin’s effects on the environment. In a similar vein, bitcoin’s price action could be put in jeopardy if it continues to be targeted for its energy consumption.”
At long last, a swing in opinion against Bitcoin and digital money by states could diminish costs. ” According to Sciberras, the United States is becoming increasingly hostile toward Bitcoin and cryptocurrencies.”
Cryptocurrency prices could drop if this pattern continues. Furthermore, if Bitcoin undermines nations’ syndication on cash because of far and wide reception, states could move to confine it.
Even though Bitcoin’s future is far from certain, a wide range of factors stand to significantly influence its course. Both the bullish and negative situations have their benefits and expected entanglements, and the truth will surface eventually which wins.
