Copy of Will bitcoin rise again?
Bitcoin (BTC) is considered the world’s first and most popular cryptocurrency. It has been through many ups and downs since its inception in 2009. It has risen and fallen several times; its average level in 2023 is less than half its peak value in 2021. Many people wonder if Bitcoin will rise again; this article will answer the question.
What Determines Whether BTC Will Rise Again
- Use Case
Cryptocurrencies follow the law of supply and demand like any other asset. The higher the demand for a token, the higher its price. Every token needs legitimate use cases to spur an increase in value, and BTC isn’t lacking in this criterion. Common use cases for this token include
- E-commerce transactions: Many online stores now accept Bitcoin for payments. Customers can pay directly from their crypto wallets instead of stressing themselves to convert tokens to fiat currency first. The price of Bitcoin is bound to increase if more online retailers start accepting it for payments.
- Cross-border payments: Cross-border transactions pose a major problem that Bitcoin helps solve. Despite an explosion in global trade, sending fiat currency across borders is still tricky. There are many rules and red tape, and the popular cross-border payment platforms charge significantly for their services. Bitcoin provides a workaround because people can exchange it with little hassles; they can send Bitcoins across borders, and the recipient can easily convert it to fiat when needed.
- Gaming: Many games allow players to buy in-game currency and virtual items with BTC. Players can also gamble with BTC and earn money from their skills.
- Trading and speculation: Trading remains a big part of BTC usage worldwide. This token’s global daily trading volume exceeds $20 billion, meaning there’s a huge market for it.
If these common use cases for BTC become more popular, the token will likely rise.
- Community Engagement
Popularity plays a crucial role in the value of a token. The more popular a coin is, the higher it’ll likely rise. The good news is that BTC has a competitive advantage in this criterion. It’s the most popular cryptocurrency by a wide margin, which helps maintain its value. Any newcomer to the crypto sector likely starts with Bitcoin, and this popularity will not end soon.
Bitcoin remains the most popular cryptocurrency worldwide, meaning it has a higher chance of appreciating than other tokens.
- Regulations
Regulation is vital to any cryptocurrency’s market value. After the 2022 cryptocurrency crash, regulators have increasingly tightened their belts on digital tokens. For example, the U.S. Securities and Exchange Commission (SEC) has labeled many popular tokens as securities and sued exchanges for listing them without explicit permission as required for securities.
Global crypto exchanges have also booted privacy-focused tokens such as Zcash and Monero, causing their values to slump.
If regulators clamp down on Bitcoin transactions, its value will likely drop. The good news is that BTC has been relatively spared from the brunt end of regulators’ sticks. For example, the SEC classifies Bitcoin as a commodity, unlike many other tokens it classifies as securities.
- Mining
BTC has a maximum supply of 21 million tokens. So far, 19.4 million tokens have been mined, leaving a relatively small amount for miners. BTC has a higher chance of appreciation as it nears its maximum supply. If demand stays the same and there’s no new supply, that’ll spur a Bitcoin price increase.
Will Bitcoin Rise Again?
Many factors point to BTC having a high likelihood of rising again. Use cases are exploding, community engagement has remained firm, regulations are relatively friendly, and the supply is near its limit.
We can’t say with 100% certainty, but Bitcoin can potentially increase in value in the coming years.
Disclaimer: This article is not investment advice and does not constitute an offer or solicitation to purchase an asset. Investment involves risk, and past performance is not indicative of future performance. Investors must perform their research before making any decisions.
