Bitcoin has been one of the most exciting markets this year, and it seems like we are only just getting started. As a result of the recent decline in Bitcoin price, many investors have been concerned that this signals the beginning of the end for the worldâs leading cryptocurrency. However, nothing could be further from the truth. In fact, many experts believe that this is only just the beginning. There are some serious implications regarding why Bitcoin will hit 100K in 2024.
A Brief History of Bitcoin
There are some important contextual details that need to be mentioned when talking about why Bitcoin will hit 100k in 2024. Bitcoin first came into existence back in 2009, at which time it started with a market cap of $0. It took almost a decade for Bitcoinâs market cap to hit $100 billion, and it took another 4 years for it to hit $1 trillion. So, the fact that itâs currently sitting at $100 billion is actually pretty impressive. One important thing to mention is that Bitcoin has the chance to be a lot more valuable than it is today. The reason for this is that the supply of Bitcoin is actually quite limited. There are a total of 21 million Bitcoins that will ever exist. Out of these 21 million Bitcoins, roughly 16 million are currently in circulation. So, there are only 5 million left.
Limited Supply is the key to Bitcoinâs growth
As Bitcoinâs supply becomes increasingly limited, the only way for its price to go is up. Additionally, there are a few other reasons that the value of Bitcoin could increase. - First and foremost, investors are likely to be drawn towards Bitcoin as the general sentiment towards cryptocurrencies increases. - Secondly, the regulatory environment surrounding cryptocurrencies is likely to become more relaxed over time, which will likely attract more investors. - Thirdly, Bitcoinâs value is likely to increase as investors search for a store of value in times of economic uncertainty. It is a sound investment in times of economic uncertainty because it is decentralized and it cannot be devalued by governments. These are just some of the reasons Bitcoinâs price will likely increase as its supply becomes increasingly limited.
Sentiments and Regulatory Environment are Key
As weâve already discussed, Bitcoinâs price will likely increase as its supply becomes increasingly limited. However, it is important to note that there are additional factors that could affect the price of Bitcoin as well. - One important factor is the sentiment surrounding the cryptocurrency market. If the general sentiment towards cryptocurrencies is positive, then investors will be more likely to buy Bitcoin, which will cause its price to increase. - A second factor that could affect the price of Bitcoin is the regulatory environment surrounding it. As cryptocurrencies become more popular, governments are likely to implement regulations surrounding them. - It is important to note that the regulatory environment could have both positive and negative effects on Bitcoinâs price. The positive effect would be that the regulations would increase the legitimacy of the cryptocurrency market, which would likely attract more investors. The negative effect would be that the regulations would make it more difficult for people to access Bitcoin.
Bitcoin will be the go-to asset in a crisis
One important thing to note about Bitcoinâs function as a store of value is that it is a very good hedge against economic crises. This is because economic crises usually lead to a decrease in the value of fiat currencies. - However, because Bitcoin is not tied to any countryâs economy, it will likely be the go-to asset in a crisis. This means that people will be more likely to turn to Bitcoin for stability when their governmentâs fiat currency is in crisis. - This is all the more reason to believe that the price of Bitcoin will continue to soar as its supply becomes increasingly scarce.
Bitcoin as a Store of Value
Beyond its use as a hedge against economic crises, Bitcoin is also likely to become even more valuable as a store of value. - This is because as the worldâs economy grows, people will likely want to have their money sit in assets that will serve as a hedge against climate change. - Bitcoin meets these requirements because it is a decentralized digital asset that cannot be affected by rising global temperatures. - This is all the more reason to believe that the price of Bitcoin will continue to soar as its supply becomes increasingly scarce and people continue to look for ways to protect their money against climate change.
In the end...
In summary, there are some serious implications regarding why Bitcoin will hit 100k in 2024. This is because as the supply of Bitcoin becomes increasingly limited, and more investors use it as a store of value, the price of the cryptocurrency will increase. - Furthermore, the regulatory environment surrounding cryptocurrencies is likely to become more relaxed as the general sentiment toward them increases. This will likely attract more investors to the market, which will further increase the price of Bitcoin. - Lastly, Bitcoin is likely to be the go-to asset in a crisis, as well as a hedge against climate change. This is all the more reason why it will likely become increasingly valuable as its supply becomes increasingly limited.
