Starting with the last months of 2020, until now, Bitcoin created a bubble that is growing, but the risk of collapsing is still always present. Some experts and crypto enthusiasts predict a bright future for this cryptocurrency, hoping it will reach the historical rate of more than $100,000 per one BTC. But. others aren’t that optimistic, and they think this year will be the end for this currency and finally, the others will have a chance to shine bright among the others. The crypto market isn’t much stable by itself, and things can change every minute, and the options we have are very limited. On the other hand, if BTC collapses, it will either give a chance to the other currencies to become big, or the whole market will be destroyed and forgotten in a few years.
According to bmmagazine.co.uk, the current spike is just an illusion that will disappear very soon. As the interest grows, there will be a need for a price correction, something like inflation, and huge changes may apply, that will influence the rates in unpredictable ways. Some experts predict that the next halving event will literally wipe about 90% of the current rate. Bitcoin is a very volatile currency, and ups and downs are expected. The worst thing is that no one can predict when it will happen, and how, because no one expected that it will go over $60,000 but yet, here we are – watching the golden days of the first cryptocurrency in the world.
Why it’s still worth investing in?
Some predictions say the price may double, or even triple the value before it crashes. But, don’t forget, nothing is for sure. Those who invested in the past now have a chance to make a fortune of it. Also, keep in mind that this cryptocurrency exists pretty long time, and it needed nearly a decade to go over $10,000, then $20,000, so right now it can be around $60,000 in just a few weeks. When some bubble grows without a particular control (and the cryptosystem can’t be controlled by some bank or government), it can easily pop and burst. Surely, the people who invested in it don’t want that to happen, but the law of balance in nature defines it.
Hopefully, this rapid growth will soon take a stable path, and Bitcoin will become an example for the other currencies. But, we can’t also exclude the possibility of “crash and burn”, because no one has ever predicted any of the patterns that occurred in the last decade.
Another reason why it may crash is the limitation. As you know, the number of Bitcoins available is strictly limited, and a huge number of them circulate between traders. Just a small amount is left for mining, so the demand is huge. No one knows if there will be another supply of Bitcoins after all are mined, or they will simply exist on the network and in the holders’ wallets.
If you want to understand some market better, then you have to compare it with another one. For example, you have a limited number of special products, and the demand is pretty high. The customers are ready to pay every price you ask them, and you are happy to make a profit. At the same time, they are satisfied with what they get. They ask for a second order, but there are still people who are interested in it but never tried it before. So, if you sell them all, you will end up with no products, and no customers. If you don’t have anything else to offer, you will have to close your store. Following this pattern, Bitcoin can really crash, and those who already have some of it will trade and exchange, but there will be no purpose for the blockchain to exist. It’s risky for the whole crypto market, according to the example, but knowing that there are still a lot of cryptocurrencies around, including Ethers, Ripple, Litecoins, Tether, and even Bitcoin Cash, it will still exist, until one of them reaches the same popularity and value, and cause the same scenario.
The adoption of the cryptocurrencies
According to BitcoinEvolution, any popular money brands like Visa and MasterCard are planning to adopt cryptocurrencies, which will bring some kind of stability, especially for Bitcoin, but after some period they will become just a usual currency that is nothing more different than dollars or euros. On the other hand, it will prevent huge rises and drops too. More institutions are interested to take control over the crypto assets or implement their usage as a regular payment method.
Also, many online casinos let the players deposit cryptocurrencies, or choose to be paid with them. There are many fields where it’s completely adopted, including freelance writers, who accept to get paid with BTC, or some sellers and service providers too. If a general acceptance is accomplished, the market will become more stable immediately, and more people will use digital currencies, but that is not necessarily good for the crypto market.
If they are widely accepted, as we said, they will lose their crypto nature, because we already know how to virtually own some amount of money, using our credit and debit cards, and it will be the same as that. But, it’s too early to predict some things like that, knowing that in some countries they are completely forbidden and illegal.
The worst-case scenario is that if BTC crashes, the whole market goes with the flow, and there is no way back. It’s at high risk, especially because of the options for profit, and everyone tries to get some piece of it, while they still can. Above we saw a lot of interesting scenarios, but we can’t deny that there is a chance for the whole market to go down together with Bitcoin. Everything we know about cryptocurrencies will fade away, until something new appears, and attracts interest.
But, none of these predictions is exact, because as we know, this market is so unpredictable and tricky, and things are changing while we drink our coffee.