Is Bitcoin Going up in 2022?
- April 21, 2022
- No Comment
It is quite tough to ignore Bitcoins (BTCs) if you want to make a profitable investment. It became a top-performing asset because its price increased by 9,000,000%. No other asset has ever shown such staggering growth!
The Bitcoin Genesis Block was created by Satoshi Nakamoto in 2009. Its price was $0.00 when the first 50 BTC came into circulation. It took only ten minutes to create a new block on the Blockchain when Bitcoin was the first digital asset of its type.
Investors started taking interest in Bitcoin when its price became $1 in 2011. It was a major milestone for this new currency and the price rose to $30 by the end of 2011. Such an amazing price growth has drawn many new investors and thus Bitcoin became the most valuable currency of the 21st century.
Bitcoin investors have experienced some ups and down within the last two years. Is Bitcoin going up in 2022? Let’s find out!
Which Factors Influence the Price of a Bitcoin?
You may probably know that no government backs Bitcoin and this cryptocurrency is not issued by any central bank. Therefore, inflation rates, monetary policies, and other factors that influence the value of fiat currency do not affect BTCs.
Factors that influence Bitcoin’s value are as follows:
- Supply of this cryptocurrency
If an asset’s supply is scarce, its value will automatically increase. This logic applies to everything and Bitcoin is no exception. If there were an unlimited supply of BTCs, it could be readily available. It could never become as valuable as it is now.
This cryptocurrency was capped at 21 million. Crypto miners have already mined about 19 million Bitcoins. Experts believe the remaining 2 million Bitcoins will be mined by 2040.
Chainalysis is a forensic company. It published a financial report in 2017 estimating 2.78 million to 3.79 million Bitcoins have been lost forever! People, who bought this asset years ago, have lost the track of their treasure. Those lost coins are inaccessible and there will be no more coins once the remaining 2 million BTCs are mined.
So, the supply is limited and demands are extremely high. People prefer BTCs more than any other crypto asset. Therefore, its demands are increasing and causing unbelievable hikes in Bitcoin price.
Fiat currency is still the most popularly proffered currency for buying goods and services. Most local retailers and service providers do not accept cryptos because they don’t know much about these digital assets.
People are buying cryptocurrencies as digital assets. They plan to make a profit by selling these assets when their prices are high. Investors consider BTCs a better alternative to conventional assets. They can remain anonymous while trading this currency.
Even though most users do not disclose it, they own Bitcoins. Many people are willing to buy more, even if the prices are increasing again. BTC’s price has already increased by 22% since the beginning of this year. It can get much higher if it continues to allure new investors!
- The cost of mining
There was a time when any PC user with decent processing power could mine Bitcoins within ten minutes. Competition between crypto miners increased as Bitcoin’s prices grew. Now, it takes hundreds of ASIC miners to add just one new node in the blockchain!
Recent studies reveal that Bitcoin’s price also depends on the cost of mining one BTC. Infrastructure cost, electricity fee, mining facility maintenance cost, etc. increase the cost of mining BTCs. As the mining cost increases, fewer cryptos are produced and prices increase.
The latest statistics reveal that crypto miners are producing 900 BTCs per day. Crypto miners will produce 328,500 Bitcoins by the end of 2022 if their operations run smoothly.
- Competing crypto assets
Bitcoin has dominated the cryptocurrency market for more than a decade. Many new Altcoins emerged with time. None of them became as popular as Bitcoin still is! This cryptocurrency accounted for over 80% of the crypto market capitalization in 2017. That share percentage reduced to 50% in 2021!
Investors understood the benefits of other cryptocurrencies and bought them instead of buying BTC. The growth potential of other cryptos and their lower price are responsible for Bitcoin’s reducing market share.
Will Bitcoin’s price go down as the year progresses? Will other cryptos eliminate the dominance of the world’s most popular crypto asset? Bitcoin’s 2022 price predictions show that it will get costlier and more valuable with time! So, it is going to dominate the crypto market this year!
Bitcoin Price Forecast 2022
The latest forecast suggests that Bitcoin’s price can increase 60% in comparison to what it was at the beginning of 2022. It can get as high as $93,717 and then drop to $76,360 by the end of this year.
It is great news for Bitcoin cloud mining professionals. They can produce more coins and hold them until prices go up. If the forecast is accurate, investors are going to make a huge profit by selling BTC at much higher prices.
Limited supply and growing global demands will make this cryptocurrency more scarce and expensive. Its price will be the same across the globe, but it won’t stop investors from buying more BTCs.
Today’s investors can sell this asset at much higher prices in the future. Therefore, all potential investors want to take advantage of current prices and hold the asset until its prices increase.
It does not matter how many cryptocurrencies are there in the market. Bitcoin will remain the top pick of all the crypto investors. It will be near its maximum limit one day and then circulating BTCs will trade at much higher prices.
Some crypto analysts believe Bitcoin will cross the $75,000 mark by 2022. Some experts believe it may hardly get as expensive as $50,000 per BTC! Even though you don’t trust forecasting services, BTC will get more expensive with every passing year. It will be a smart investment to invest in this cryptocurrency now.
Cryptocurrencies are becoming legal assets across the globe. Sooner or later, their prices will hike and then it will be too late to buy popular cryptocurrencies at affordable prices. So, invest now!