Bitcoin is still popular in 2022. So many other cryptocurrencies have come up but, Bitcoin still holds. There is no 100% sure prediction that Bitcoin will be an ideal investment in 2022, but there are several indicators that Bitcoin will continue offering a good investment opportunity. Here are five reasons Bitcoin continues rising.
There are more people using Bitcoin, buying and selling the crypto, and more businesses accepting this digital form of payment. Between the last quarter of 2020 and the last quarter of 2021, the number of Blockchain wallet users grew from 43 million to 62 million. The number is still going up, showing that more people are going for crypto.
More people are also buying Bitcoin and buying using Bitcoin. Companies, such as PayPal are now using Bitcoin more and they retain the coins for their customers. You can buy up to $68,000 worth of Bitcoin in a week on PayPal. More than 26 million merchants who use PayPal can now accept Bitcoin as payment.
You will see more businesses today that accept PayPal, which is a good thing that shows the crypto is growing in popularity and in value. Even retirement accounts are now allowing Bitcoins. According to SFGATE, in their review of companies that specialize in Bitcoin IRA and Gold IRA, “Never in the history of finance have we seen a novel asset skyrocket in value at such a blistering pace.”
In 2009, there was a financial crisis that saw the value of fit currency depreciate very fast. This was the time that Bitcoin started rising steadily. At the time, most people did not know about Bitcoin, but its value grew very fast as the value of money was shaken.
More people are recognizing the unique value proposition that Bitcoin offers. According to Paul Tudor Jones, one of the most recognized macro traders, Bitcoin is more like Gold. Its unique value proposition was seen when the coronavirus of 2019 struck. Within a very short time, the world was facing great monetary inflation (GMI). Thanks to the steadiness of Bitcoin, many traders are considering it a safe haven.
The steady growth of Bitcoin has not always been up, but it has grown in thousands of percentages since it launched in 2009.
The rise in the value of Bitcoin has not been smooth. Over the years, the value has risen more than 10,000% only to fall significantly. Between June and November 2011, Bitcoin lost 93% of its value, going all the way to $2 from $29. In August 2012, the coin again lost 56.7% of its value. In 2013, having grown in value significantly, Bitcoin lost about 52% of its value in 6 hours. Between December 2017 and December 2018, the crypto lost about 83.8%.
Even with all these drops in value, the value of Bitcoin has been going up. It grew from a meager $2 to more than $5,000 today. Bitcoin has had its ups and downs and some skeptics keep pronouncing it dead, but it keeps rising. Some experts predict that it may hit $100,000 by the end of 2022, we can only wait and see.
Bitcoin remains a limited commodity. There will only ever be 21 million bitcoins, and so far, about 17.6 million bitcoins have been mined. There is also research that shows that about 4 million bitcoins might be lost already, leaving an even smaller number of bitcoins for people to buy. Bitcoin has to be mined using complex algorithms just like gold is mined from the ground. As the demand for the coins increase, so will the value.
Currently, only about 1% of the world owns Bitcoins. More people are starting to discover the importance of Bitcoin in digital markets, and this will only increase its value.
Bitcoin allows you to hold your cash anonymously. The process of opening an account and having your own Bitcoins is easy, and you can do it within minutes. Today, governments around the world are regulating Bitcoin, which is a good thing. If it is regulated, more people will have trust in it and will start using it. This is how the value of Bitcoins grow and how you make money from the crypto.
Even though it is a good idea to invest, you need to understand the market first. Note that it is not a get-rich-quick-scheme as you will need to wait for a few years to make some good money on it.