Bitcoin is one of the most popular cryptocurrencies, but an inevitable downfall has been registered recently despite its high demand. If you take the market researcher’s opinion, they will give you some hope as some believe it’s going to hit $100,000 soon. A sigh of relief for investors! For the last four months of 2022, its value has been around $45,000, gradually it increased. As we all know, crypto is a highly volatile industry, and you never know when a digital asset will experience a skyrocketing price and which one will drop to the lowest.
Amidst price fluctuations, this popular currency retains its past glory in the market. Well, this ever-unpredictable digital currency market throws a host of challenges to investors and traders. When investing, you need to gather adequate information about the market price.
Being an investor, you must be worried about the future of Bitcoin; here are the top 5 predictions.
High competition from global businesses
The rising demand and popularity have made it more vulnerable to competition from global entities who, too, are keen on launching their currency. The hype generated in the digital currency market is enabling more people to learn about crypto and the technology behind it. Most big companies have already got a fair idea of the potential of Decentralized currencies and in the meantime, they can come up with their own.
For example, brands like Facebook or Google, with a launch of their cryptocurrency, can prove to be a massive hit in the market and can quickly sweep bitcoin’s market.
Volatility in price may continue
As the value of bitcoin is not associated with any factors like inflation or other real-world market changes, it undergoes unexpected ups and downs beyond imagination. No matter how cautious an investor is when putting their hard-earned money in Bitcoin, there’s no guarantee of avoiding losses.
Some marketers opine a steady rise in the value could reach up to $50,000 next year; however, such predictions cannot be called valid as highly volatile bitcoins may rise or depreciate.
Achieving worldwide acceptance
Though crypto is booming in the market, few people still find it difficult to depend on it. The year 2020 proved rewarding for this digital currency as some companies allow their customers to buy bitcoin or even sell this coin, which is really are remarkable feat.
Gradually, it is felt that people are putting trust in cryptocurrencies, and one prime reason can be the success stories of people. In fact, some notable celebrities and entrepreneurs’ names are linked to crypto, which is adding more to its popularity; hence acceptance is more now.
Regulatory practices might be stringent
As the DeFi system is devoid of any regulatory practices, scams are commonplace. By looking at the vulnerability of this platform, countries like the USA and China are taking a step towards imposing regulatory norms on cryptocurrencies.
It can be expected that in the coming years, bitcoin investors can safely carry out transactions without the fear of being hacked or cheated. According to market analysts, regulations on crypto will directly impact its value, which might be a point of concern for future investors.
Threat from the government entities
Recently a survey by the Bank for international settlement undermined the fact that almost 80% of central banks are planning to issue their digital currency. Amongst the major nation in the world, China took perhaps the first fruitful initiative towards including their digital currency, and you will be surprised to know that the digital yuan is in the news.
If other nations start following China’s footsteps, then the demand for bitcoin or any other cryptocurrency will experience a significant setback. Well, these are all assumptions and should not be used to make any investment decision. The crypto market is most unpredictable, and you never know when things will change for the better or worse. Hence, it is suggested to take professional help before taking a step towards investment.
