Bitcoin started 2021 with a maddening momentum as the world’s largest cryptocurrency surged to never seen before price points. As Bitcoin’s price neared the $60,000 mark over recent weeks, investors and crypto enthusiasts are wondering just how high the price can go.
There has already been a number of Bitcoin price predictions to the effect that the price might cross the coveted $100,000 mark in 2021 and experience its most bullish market ever.
So, as Satoshi Nakamoto’s invention breaks through to unimaginable levels this year, more people are developing interest and looking to invest in one of the most popular digital asset coin.
But what exactly is Bitcoin, and why is it so popular? How does Bitcoin work? Has it always been successful? How high can the price go this year? How does Bitcoin’s future look? We answer this and many other questions you might have in the guide below.
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What is Bitcoin and How Does it Work?
Bitcoin is the world’s leading cryptocurrency by market capitalization, daily volumes, price and even popularity. Launched in 2009, Bitcoin was the first decentralized form of digital cash that sought to make it easier for people to send and receive money without the need for mainstream intermediaries like banks.
So, instead of using intermediary financial institutions, Bitcoin uses a technology known as Blockchain to create a currency that can be traded anonymously. These allow two people to directly transact with each other without using third parties like banks. Bitcoin has since grown from an idea to a digital coin that is now set to disrupt the financial market.
But how does it work and why is it so popular?
How Bitcoin Works
Unlike fiat currencies and other assets like gold or silver, which can be seen and touched, Bitcoin is merely a computer file that you can store in a digital wallet on your smartphone or computer. This means that you cannot go to a bank and withdraw it like you would do with a fiat currency like U.S. dollars.
The digital asset is powered by Blockchain, an open-source code that creates a ledger that can be accessed by anyone. In this case, every transaction made is known as a ‘block’. This block is ‘chained’ to the central code to create a permanent record of every transaction ever made.
To buy and sell bitcoin, you need a digital wallet. This wallet contains two types of keys that allow you to initiate transactions then digitally sign them to provide proof of authorization. These are known as public and private keys. You can either buy Bitcoin from other people or become a miner and verify transactions for Bitcoin rewards.
To become a bitcoin miner, you will need high-speed computers with a lot of processing power. Every time new blocks are mined, it increases the total number of Bitcoin in existence by 6.25 bitcoins. However, the number of Bitcoin in existence at any given time cannot be more than 21 million.
Bitcoin in 2021: Everything You Should Know about the Price Surge
2021 is merely two months old, but Bitcoin has already broken records that were unimaginable a few months ago. For the first time in history, the cryptocurrency breached the $50,000 mark this year. The demand for the digital asset has remained high even during the coronavirus pandemic that bottlenecked most economic sectors last year.
Many Bitcoin enthusiasts believe that the bull run is far from over, and the coin will strike even higher numbers this year. This brings us to an inevitable question; What inspired Bitcoin’s current price surge?
There are several possible reasons. One of the most obvious is the recent outpouring of endorsements from renowned business moguls, celebrities and major institutions and companies.
For instance, at the start of January, Tesla chairman and billionaire Elon Musk announced that Tesla would be investing $1.5 billion in Bitcoin this year. According to experts, Musk’s might have altered Bitcoin’s outlook causing a stream of other celebrities and companies to declare their interest in the digital coin.
Right after, MicroStrategy, the business intelligence company, declared its interest in an attempt to take advantage of the meteoric rise and probably encourage more investors to follow suit. Financial firms like PayPal and Mastercard have already joined the Bitcoin craze and significantly boosted the pool of potential investors by facilitating cryptocurrency transactions.
There is also the New York Digital Investment Group (NYDIG), which plans to hold more than $25 billion of Bitcoin by the end of this year. NYDIG Asset Management has also lobbied for a US-based Bitcoin Exchange Traded Fund (EFT), naming Morgan Stanley as a participant in the SEC filing.
This kind of ETF would make Bitcoin more accessible, and further boost its market capitalization. As a result of these institutional adoptions, more people invest in Bitcoin, causing a historic surge in its price. Other factors like Economic instability due to the coronavirus pandemic and industry developments have also contributed to the price bump.
But has Bitcoin always been this valuable?
Bitcoin Price History: A Response to the 2008 Financial Crisis
Despite the outlandish highs that Bitcoin has achieved this year, the cryptocurrency has not always had a smooth ride. From its early days and until recently, Bitcoin has recorded one of the most volatile trading histories. A year after it was created, Bitcoin’s price per token increased from $0.0008 to around $0.08.
Image Source: Trading Economics
Since then, the price has experienced maddening fluctuations only comparable to the 17th century’s Dutch Tulip Mania or the Beanie Babies fad of the 80s. Ideally, the Bitcoin price movement is a reflection of investor enthusiasm or disaffection at different times. During its short history, Bitcoin has already undergone multiple bubbles and surges.
The big question is, has the price always been high? How did Bitcoin’s value look like in the early days?
While it might look like a dream investment right now, early Bitcoin investors will tell you that they have had some of the bumpiest trading rides in the last ten years. Whether it is the daily volatility, multiple scams, or the lack of regulation, trading in Bitcoin hasn’t exactly been a walk in the park.
The first of Bitcoin’s many bubbles materialized in 2011 when the price jumped from $1 to $32 within three months, representing a 3200% surge from April to June. Just as early investors were beginning to get their hopes high, the price plummeted in November and bottomed out at $2.
It took a few months before investors regained their enthusiasm. The following year, in 2012, the price grew to hit the $4 mark by May then rose to $13.20 by August 15. At the start of 2013, Bitcoin was trading at around $13.40. By April 2013, this price had risen to $220, then again plummetted to $70 within the first half of that same month.
This was the first of two bubbles that burst that year. Towards the end of 2013, Bitcoin was exchanging hands at around $123.20 in early October. By December, the price had surged to $1156.10, then dramatically steeped down to $760 three days later.
2015 marked the beginning of a volatile journey for Bitcoin investors as the price touched a new low of $315. For the most part fo that year, the price played below the $300 mark until October, when it began another ascent that took it above the $1000 at the beginning of 2017.
From there, it quickly spiked to more than $20,000 in December 2017. This attracted a lot of media attention and put Bitcoin in the limelight. It also represented the biggest crush ever recorded. Bitcoin recorded another steep descent that humbled it below the $4,000 mark before it started rising again in January 2019. It reached and surpassed the $10,000 mark by mid-2019, then played below that mark for most of 2020.
Another ascent began in October 2020, taking the price to the current all-time high of nearly $60,000 per token.
How is Bitcoin fairing in 2021 so far, and how high can the price go before the years ends?
Let’s take a look at some of the most notable predictions for this year.
Bitcoin Price Predictions in 2021
With big names in the business and entertainment sector speaking approvingly of Bitcoin, the cryptocurrency might just have its best year yet. We might also be looking at the biggest bubble of all as the bull run turns parabolic.
So far, several previous Bitcoin price predictions are on par with the current market standing, with the value expected to close the year at around $100,000 to $400,000. Anthony Pompliano, a well-known bitcoin supporter and partner at Morgan Creek Digital, is one of those who believe that Bitcoin will be worth more than $250,000 by the end of this year.
Pompliano, who claims that more than 50% of his net worth is held up in Bitcoin, had previously predicted that the coin would be exchanging hands at around $100,000 by December 2021. However, he later revised this figure to $250,000 after realizing the massive growth potential in Bitcoin.
Different banks have also given their predictions as to how the coin will end the year. For instance, CitiBank analysts give a figure that is slightly higher than that of Pompliano; $300,000 by December 2021. JPMorgan has also affirmed that Bitcoin has great potential to grow. Although it does not give an exact number, the bank seems confident of Bitcoin’s future growth.
Other Cryptocurrency enthusiasts like Mike Novogratz and Bloomberg’s Mike McGlone settle for a more realistic number. Novogratz, who manages a cryptocurrency hedge fund, predicts that Bitcoin might end the year slightly above the $65,000 mark.
On the other hand, Bloomberg Analyst Mike McGlone predict $50,000 in 2021. In a sense, McGlone’s prediction has already come true since Bitcoin passed that mark in February. McGlone also predicts that BTC will be worth $170,000 in 2022.
Bitcoin price prediction platform Stock-to-Flow bets the coin will achieve $100,000 per token by December 2021.
Read Also: 2021 Bitcoin Price Predictions
Bitcoin Price Predictions 2022 – 2023
Most Bitcoin analysts and experts have made several predictions that go as far as 2023 in regards to Bitcoin’s value. Some of the projections are reasonable, with others being outrightly bullish. Either way, judging by the current market trends, it is possible that a good number of these predictions might come to pass.
Citibank’s Thomas Fitzpatrick predicts that the coin will be worth $318,000 by 2022. Fitzpatrick, who is the global head of the CitiFX Technicals, compares Bitcoin’s price movements to the 70s gold market. Looking at similar predictions, it is possible that Fitzpatrick’s one, although feasible, might be a bit too optimistic.
Image: Alistair Maine/Twitter
For instance, Shervin Peshivar, an angel investor and co-founder of Sherpa Capital and Hyperloop One, pins Bitcoin’s price at $100,000 by 2022. This prediction came after Peshivar met Michael Saylor, the CEO of MicroStrategy, a pro-bitcoin company.
Longforecast.com doesn’t wander too much from this figure. The economy forecast agency predicts that Bitcoin will kick off 2022 at around $123,999 and experience slight highs and lows throughout the rest of the year.
According to LongForecast, Bitcoin will be trading at $152,125 by the end of March 2022, then stabilize between $100,000 and $140,000 until November. December might see a drop that will hold until April 2023, when the price might go above the $140,000 mark again. This will slowly fall from June and settle at lower than $80,000 by December 2023
Bitcoin Price Predictions 2024 – 2025 and Beyond
Being a highly speculative market, predicting the value of a cryptocurrency for the next five or so years is not easy. Most of these predictions don’t stand a chance of coming true. However, they give a general picture of future price patterns and what long term investors can expect.
Already a few Bitcoin optimists have made predictions that go as far as 2030. For instance, Jeremy Liew, a partner at Lightspeed Venture Partners, believes that Bitcoin can realistically touch $500,000 by 2030. These sentiments are backed by several other enthusiasts, including Peter Smith, the CEO of the world's most popular Bitcoin wallet, Blockchain.
The Winklevoss twins share Liew’s prediction. Tyler and Cameron Winklevoss are Bitcoin billionaires and co-founders of the crypto exchange platform Gemini. The twins predict that Bitcoin will potentially reach a $500,000 price per token with a market cap of around $9 trillion by 2030.
On the other hand, Kay Van Petersen, who is an investment and trading analyst at Saxo Bank, confines himself to a more realistic figure of $100,000 by 2027. Petersen had previously successfully predicted that Bitcoin would surpass the $2,000 mark by 2017. However, given the volatility of the crypto market, it is possible that he might be wrong this time. So, we can neither rule out nor support this prediction.
Former hedge fund manager and bitcoin investor Mike Novogratz predicts the cryptocurrency will enjoy a $7.5 trillion market cap by 2029. Andy Edstrom of WESCAP, an investment advisory firm, draws from Novogratz prediction and places Bitcoin’s market cap at $8 trillion by 2030.
Of course, some bullish predictions seem to have overestimated Bitcoin’s bull ability to run. For instance, Wences Casares, the founder of Bitcoin wallet Xapo, predicted that the coin will be worth $1 million by 2027. Looking at the current price, the prediction seems a bit overstretched and unlikely to come true.
In fact, it doesn’t help that Chamath Palihapitiya of Social Capital predicts the same figure to be achieved ten years later in 2037. Bitcoin might still have a long way to go before hitting the $1 million mark.
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Past Bitcoin Price Predictions That Came True
Although predicting the prices of cryptocurrencies is not as easy as predicting price movement in the stock market, there are a few predictions that came true.
Let’s look at some industry experts who made correct calls over the past years:
- Tim Draper: In 2014, the billionaire venture capitalist predicted that Bitcoin would hit $10,000 by 2018. Draper’s prediction did not only come true in late 2017 but also doubled by the end of 2018.
- Mike Novogratz: Novogratz made the same prediction as Tim Draper that Bitcoin would cross the $10,000 mark by 2018. Novogratz, who has allegedly invested more than $150 million in cryptocurrencies, has also predicted that Bitcoin will achieve a $7.5 trillion market cap by 2029.
- Daniel Masters: The analyst at Global Advisors predicted that Bitcoin would reach $4,400 in 2017. In August 2017, Bitcoin crossed that mark and more than doubled by the end of the year.
- Vinny Lingham: This South African Internet Entrepreneur predicted in 2016 that Bitcoin would be worth between $2,000 and $3,000 in 2017. Given that this was a more conservative figure than that of Daniel Masters, it came true a bit early in mid-2017.
- Peter Brandt: Brandt’s prediction was slightly different since he warned Bitcoin price would fall instead of rising. The veteran commodities trader predicted that Bitcoin would fall by more than 80% after its meteoric rise to the $20,000 mark in 2017. True to Brandt’s word, Bitcoin fell to as low as $3,200 by the end of 2018.
The Future of Bitcoin: What Experts Are Saying About Bitcoin’s Potential Growth
Given that Bitcoin has been on the uptrend for some time now, predicting its price has become easier than it used to be in its most volatile years. Many experts have come out to express their views in regards to Bitcoin’s future.
Leading the pack is Adam Back, a Bitcoin developer and CEO of Blockstream. Back believes that Bitcoin will soon reach the $300,000 mark even without further institutional adoption. Max Keiser of the Keiser Report parallels Back’s optimism by setting a target of between $100,000 to $400,000 Bitcoin value in the long term.
Being one of the most outspoken Bitcoin supporters, Keiser has previously made bullish predictions concerning the price of Bitcoin. He still believes that the cryptocurrency is set for a lucrative future.
More recently, Bitcoin got a huge boost when controversial Tesla CEO Elon Musk expressed his faith in Bitcoin's future by investing $1.5 billion. After Musk’s endorsement, Bitcoin’s price hiked to $44,000 with a valuation of around $800 billion.
Elsewhere, investor and entrepreneur Robert Kiyosaki believes that Bitcoin will soon be worth more than gold. According to Kiyosaki, the price of Bitcoin will reach $75,000 in the next three years, with that of gold playing around $3,000 an ounce.
James Ledbetter, former editor-in-chief at INC and current publisher of the fintech Newsletter FIN, predicts that Bitcoin will see more mainstream adoption this year. According to Ledbetter, some U.S and European banks will soon allow transactions using Bitcoin.
While most financial experts see a strong future in Bitcoin, there are also the more conservative ones who think you still need to be careful since this is a volatile asset. For instance, investor Mark Cuban warns that Bitcoin is only as good as gambling, and you should never invest more than you can afford to lose.
Microsoft founder Bill Gates, also warns that you should be careful and not put too much faith in Bitcoin.
Check Out: Why Bitcoin Is Going To Explode In 2021
Conclusion: Will the Price of Bitcoin Keep Rising?
The parabolic rise of Bitcoin’s value brews optimism and concerns in equal measures. While some people are confident that Bitcoin will blossom beyond the current all-time high, others are worried that we might be looking at the biggest bubble in crypto history.
It’s really not easy to tell where Bitcoin is headed. However, if current trends and experts' predictions are anything to go by, Bitcoin might surprise us with new price records in the next few years.
Already, the cryptocurrency has seen more adoption this year compared to any other year. Most people, even those who previously booed the idea of a cryptocurrency, are now warming up to Bitcoin.
This, coupled with the promising price projections from industry experts, indicates that Bitcoin will rise even higher than it is now. But how high? We can’t tell. However, some predictions go as high as $1 million per BTC someday.
And if the current bull run persists, Bitcoin will soon disrupt traditional finance to become a universally accepted currency.
Conclusion: Is Bitcoin a Good Investment in 2021 and Beyond?
Most people would naturally want to know if Bitcoin is a good investment right now and whether the value will rise in the future.
Based on the various expert predictions and the past price history, it is clear that the price of Bitcoin is on the uptrend. So, while we cannot accurately predict the value of Bitcoin in the long run, there is plenty of evidence to suggest that we will be seeing bigger numbers than today.
So, how much will Bitcoin (BTC) be worth?
FInancial experts and analysts are both expecting Bitcoin value to reach extreme highs. Based on BTC Projections from DigitalCoinPrice.com, the coin is expected to rise significantly in the coming years.
In fact, the platform thinks the Bitcoin price will be $120,000 in 2021, rising to $210,400 by the end of 2022, $285,000 by the end of 2023, $355,000 by the end of 2024, and an impressive $473,000 by the end of 2025.
The below figures outline some of the potential high and low of BTC price forecasts offered by analysts and financial experts.
Put simply, Bitcoin is low-risk investment with lots of potential rewards. Keep in mind that cryptocurrency investment is very speculative. Therefore, you need to closely watch the market and only invest when the signs are good.
You should definitely do some research before you consider adding BTC to your portfolio.
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