For anyone who gets to hear the word ‘Cryptocurrency‘, Bitcoin is not far out. Most investors would have their trading journey start with this crypto monster. The world understood that Bitcoin is a big deal when celebrities like Elon Musk and many others started sharing their thoughts on public platforms. Being the first-ever cryptocurrency to land its feet in the market Bitcoin has always been buzzing amidst the trend variations.
Bitcoin, the primitive cryptocurrency, has come to the limelight as it became the most expensive coin within the crypto space. As the digital asset grew stronger, many still speculate the asset may surge towards $100k very soon! But with the current market trends, doubts and queries are appearing. Will BTC put its setbacks away and keep moving towards the $100k milestone?
For questions like these and many, for anybody inquisitive of starting their crypto journey, it is quite natural to dig out for answers on the internet. Though the current trends are fluctuating, an investment in Bitcoin can be a smart decision, anyway.
Have you ever heard about ‘Bitcoin Pizza day’? Celebrated on May 22, every year, this day marks the event where back in 2010, a software developer in Florida bought 2 pizzas with 10,000 Bitcoins!
Bitcoin is the top and the most popular cryptocurrency in the world. It is an innovative payment network using peer-to-peer technology. Bitcoin works on a completely decentralized system using the open-source protocol. Mining can be one good option to get hold of some Bitcoins.
Bitcoin (BTC) Overview
|All time high
||$64,863.10 Apr 14, 2021
|All time low
||$65.53 Jul 05, 2013
What Is Bitcoin (BTC)?
Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.
Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”
Some concepts for a similar type of a decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.
Who Are the Founders of Bitcoin?
Bitcoin’s original inventor is known under a pseudonym, Satoshi Nakamoto. As of 2020, the true identity of the person — or organization — that is behind the alias remains unknown.
On October 31, 2008, Nakamoto published Bitcoin’s whitepaper, which described in detail how a peer-to-peer, online currency could be implemented. They proposed to use a decentralized ledger of transactions packaged in batches (called “blocks”) and secured by cryptographic algorithms — the whole system would later be dubbed “blockchain.”
Just two months later, on January 3, 2009, Nakamoto mined the first block on the Bitcoin network, known as the genesis block, thus launching the world’s first cryptocurrency.
However, while Nakamoto was the original inventor of Bitcoin, as well as the author of its very first implementation, over the years a large number of people have contributed to improving the cryptocurrency’s software by patching vulnerabilities and adding new features.
Bitcoin’s source code repository on GitHub lists more than 750 contributors, with some of the key ones being Wladimir J. van der Laan, Marco Falke, Pieter Wuille, Gavin Andresen, Jonas Schnelli and others.
What Makes Bitcoin Unique?
Bitcoin’s most unique advantage comes from the fact that it was the very first cryptocurrency to appear on the market.
It has managed to create a global community and give birth to an entirely new industry of millions of enthusiasts who create, invest in, trade and use Bitcoin and other cryptocurrencies in their everyday lives. The emergence of the first cryptocurrency has created a conceptual and technological basis that subsequently inspired the development of thousands of competing projects.
The entire cryptocurrency market — now worth more than $300 billion — is based on the idea realized by Bitcoin: money that can be sent and received by anyone, anywhere in the world without reliance on trusted intermediaries, such as banks and financial services companies.
Thanks to its pioneering nature, BTC remains at the top of this energetic market after over a decade of existence. Even after Bitcoin has lost its undisputed dominance, it remains the largest cryptocurrency, with a market capitalization that fluctuated between $100-$200 billion in 2020, owing in large part to the ubiquitousness of platforms that provide use-cases for BTC: wallets, exchanges, payment services, online games and more.
How Much Bitcoin Is in Circulation?
Bitcoin’s total supply is limited by its software and will never exceed 21,000,000 coins. New coins are created during the process known as “mining”: as transactions are relayed across the network, they get picked up by miners and packaged into blocks, which are in turn protected by complex cryptographic calculations.
As compensation for spending their computational resources, the miners receive rewards for every block that they successfully add to the blockchain. At the moment of Bitcoin’s launch, the reward was 50 bitcoins per block: this number gets halved with every 210,000 new blocks mined — which takes the network roughly four years. As of 2020, the block reward has been halved three times and comprises 6.25 bitcoins.
Bitcoin has not been premined, meaning that no coins have been mined and/or distributed between the founders before it became available to the public. However, during the first few years of BTC’s existence, the competition between miners was relatively low, allowing the earliest network participants to accumulate significant amounts of coins via regular mining: Satoshi Nakamoto alone is believed to own over a million Bitcoin.
Mining Bitcoins can be very profitable for miners, depending on the current hash rate and the price of Bitcoin. While the process of mining Bitcoins is complex, we discuss how long it takes to mine one Bitcoin on CMC Alexandria — as we wrote above, mining Bitcoin is best understood as how long it takes to mine one block, as opposed to one Bitcoin.
How Is the Bitcoin Network Secured?
Bitcoin is secured with the SHA-256 algorithm, which belongs to the SHA-2 family of hashing algorithms, which is also used by its fork Bitcoin Cash (BCH), as well as several other cryptocurrencies.
What Is Bitcoin’s Role as a Store of Value?
Bitcoin is the first decentralized, peer-to-peer digital currency. One of its most important functions is that it is used as a decentralized store of value. In other words, it provides for ownership rights as a physical asset or as a unit of account. However, the latter store-of-value function has been debated. Many crypto enthusiasts and economists believe that high-scale adoption of the top currency will lead us to a new modern financial world where transaction amounts will be denominated in smaller units.
The top crypto is considered a store of value, like gold, for many — rather than a currency. This idea of the first cryptocurrency as a store of value, instead of a payment method, means that many people buy the crypto and hold onto it long-term (or HODL) rather than spending it on items like you would typically spend a dollar — treating it as digital gold.
The most popular wallets for cryptocurrency include both hot and cold wallets. Cryptocurrency wallets vary from hot wallets and cold wallets. Hot wallets are able to be connected to the web, while cold wallets are used for keeping large amounts of coins outside of the internet.
Some of the top crypto cold wallets are Trezor, Ledger and CoolBitX. Some of the top crypto hot wallets include Exodus, Electrum and Mycelium.
How Is Bitcoin’s Technology Upgraded?
A hard fork is a radical change to the protocol that makes previously invalid blocks/transactions valid, and therefore requires all users to upgrade. For example, if users A and B are disagreeing on whether an incoming transaction is valid, a hard fork could make the transaction valid to users A and B, but not to user C.
A hard fork is a protocol upgrade that is not backward compatible. This means every node (computer connected to the Bitcoin network using a client that performs the task of validating and relaying transactions) needs to upgrade before the new blockchain with the hard fork activates and rejects any blocks or transactions from the old blockchain. The old blockchain will continue to exist and will continue to accept transactions, although it may be incompatible with other newer Bitcoin clients.
A soft fork is a change to the Bitcoin protocol wherein only previously valid blocks/transactions are made invalid. Since old nodes will recognise the new blocks as valid, a soft fork is backward-compatible. This kind of fork requires only a majority of the miners upgrading to enforce the new rules.
Some examples of prominent cryptocurrencies that have undergone hard forks are the following: Bitcoin’s hard fork that resulted in Bitcoin Cash, Ethereum’s hard fork that resulted in Ethereum Classic.
https://coinmarketcap.com/alexandria/article/bitcoin-vs-bitcoin-cash-vs-bitcoin-sv Bitcoin Cash has been hard forked since its original forking, with the creation of Bitcoin SV.
What Is the Lightning Network?
The Lightning Network is an off-chain, layered payment protocol that operates bidirectional payment channels which allows instantaneous transfer with instant reconciliation. It enables private, high volume and trustless transactions between any two parties. The Lightning Network scales transaction capacity without incurring the costs associated with transactions and interventions on the underlying blockchain.
Where Can You Buy Bitcoin (BTC)?
Bitcoin is, in many regards, almost synonymous with cryptocurrency, which means that you can buy Bitcoin on virtually every crypto exchange — both for fiat money and other cryptocurrencies. Some of the main markets where BTC trading is available are:
Bitcoin Fundamental Analysis
Bitcoin is a cryptocurrency that posses much similar features and utilities to the traditional currencies. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
Introduced more than a decade ago by an anonymous person or a group of persons known as Satoshi Nakamoto, Bitcoin has definitely taken the world by a surprise. This has been possible especially with its impressive rate of adoption and incredible price movements. It would appear as though that bitcoin would have to fight its way straight into the heart of classical finance, its place in its single-handedly built crypto ecosystem, is however undeniable.
BTC Price Prediction 2021
The year 2021 initiated with a good note with the price surpassing $30,000. The BTC price showcased less volatility and maintained a steady growth. Within just a month, the price achieved the milestone by crossing $50,000 and trended within the same range till the end of February 2021.
The price rose high by the mid of March 2021 by surpassing $60,000 for the first time ever in history. Maintaining the bullish trend, the price of Bitcoin smashed a new All-Time High at $64,863 on April 14, 2021, and trends within a similar range at press time.
Sticking to the fact that mining Bitcoins involves high powered computers consuming high energy. Elon Musk, shared his opinion about this referring to environmental concerns arising with BTC mining. Thereby, Tesla suspended Bitcoin acceptance.
On this very day, worrying about Musk stepping back from BTC, a huge amount was cleared from the crypto market, with Bitcoin having enough part in it. Around 30% of fall happened in just 24 hours. Following this, China imposed a ban on Bitcoin mining which led to a huge wreck in the market as Chinese traders hold back a significant amount of Bitcoin. The US tax law has also played a major role in the crash of BTC. Currently BTC is recouping with the crash gradually.
Supposing, if Bitcoin is subjected to such controversies in the coming months, then the price can be affected deeply and might plunge after being traded at $49,000 to $42,367.
However, being the First ever found cryptocurrency and the most expensive one, Bitcoin also offers lower transaction fees. If the network works on making it cheaper in the coming months, it may attract more investors. In case this happens, the price might hike up to $64,339.
If the network does not plan for any improvements to happen within this year, then the price may trade at average figures with usual buying and selling pressure. By the year’s end, Bitcoin might trade at $49,996.
Bitcoin Price Prediction 2022
If Bitcoin ends this year marking at higher values, then it might continue to start the next year in a bullish trend. If this happens, the BTC price might kickstart 2022 with $65,017. In contrast, if this year closes at the minimum values, then the next year will commence with a bearish note. Then, the BTC price starting in 2022 might be $43,448.
Bitcoin has planned for improvements in the financial ecosystem and might end up in new partnerships. If this becomes a reality, many investors will enter the network causing the price to soar up to $89,466.
However, if Bitcoin still works on the improvements on a revolution in the network, then it might lead the year with only current users. In such a case, the price might trade at $79,776.
On the other hand, if the network does not pay any attention to work on the scalability and security of the Network, then the price can collapse and hit minimum levels at $71,994.
Price Prediction For The Next 5 Years
If Bitcoin works on diversification and increases liquidity, it can attract more possible investors. Also, many may start trading Bitcoin due to FOMO. If this happens, Bitcoin will gain a huge amount of traders and the price might skyrocket to $2,00,086 by the end of the next five years.
But if it falls prey to any criticisms due to mining that causes harm to the environment, the price might become highly volatile. Also, if there is any regulation laid in the future, it can lose many investors due to uncertainty. If this happens the price might plunge to $1,24,763.
However, if it manages to find a way from the controversies raised, then with the persisting traders, the price may move at $1,63,114.
Bitcoin Market Prediction
According to WalletInvestor’s algorithm-based forecast, Bitcoin can be a profitable investment for the long term. Bitcoin would go up to $80,562 or more in the coming year and hit $1,61088 by 2025.
According to DigitalCoinPrice, Bitcoin’s price will meet an uptrend. Bitcoin could trade at an average price of $59, 214.71by the end of 2021 and would exchange at $1,16,822.36 by 2025.
According to TradingBeasts, Bitcoin can trade above $48,118.719 by the end of 2023 or the beginning of 2024. However, by the end of 2024, the price may head towards $53,793.204 as its average.
According to Gov. capital, Bitcoin can hit the best possible price of $49,603.81 after a year from now.
According to PrimeXBT, the BTC price may hit $32500 by the end of 2021. Further, the price may slash drastically and drop around $30K in 2022. As the price rallied and slashed in 2017/18 and the current rally in 2021 and expected drop in 2022, a similar phase may be seen in 2024/25 also.
Our Bitcoin Price Prediction
Bitcoin initiated the year 2021, with a trading price of $31.474.76 by early January and hit an ATH above $64K. With a bullish movement, the price efficiently started to rise. BTC’s price would likely pump and may reach newer heights by enhancing its blockchain as well as the transaction speed. But currently, there is a pull-down in the price and the price trends in future may vary from what it was believed to be.
If the network works on black market activity and protects itself from cyberattacks, then the security will be enhanced. In that case, the BTC price may hit highs at $62,290. On the contrary, if the market crashes anytime soon, or the Proof of work system is debated, then the price can plunge as it did previously and reach $43,221.
Also read: SafeMoon Price Prediction, How High Will The Price Hit by 2021?
Influencer‘s BTC Price Prediction
Tim Draper Prediction
The popular capital investor predicted that the price of bitcoin will reach $250,000 by 2022.
Max Keiser Prediction
TV host and popular bitcoin bull, Max Keisier predicted that bitcoin would hit $400k by the end of 2020. He made this pronouncement early this year and this was the first time he had to change his prediction of 2012.
Anthony Pompliano Prediction
Anthony Pmopliano (also known as Pomp) predicted that bitcoin would be worth $100,000 by the end of the year 2021.