When looking at the big picture, the upside potential of cryptocurrencies remains undeniable. Bitcoin specifically fits the bill as a sound investment strategy for the mid and long terms. 

This asset’s mass adoption is increasing by both retail and institutional investors as time goes by. And while many choose to convert BTC to ETH at this time, others prefer to heavily expose their portfolio to the #1 crypto by market cap. 

In this article, we will try to assess the value behind Bitcoin and provide some 2023 price forecasts gathered from experts in the field. This should allow you to make up your mind about whether Bitcoin remains a good investment for the future. 

BTC: Why Is This Asset so Expensive? 

Bitcoin is the first true form of decentralized money. Launched in 2008, it has been around for almost 14 years, which has provided it with a pioneering status in the crypto market. 

Over the years, it has managed to gain incredible value and recognition from both mainstream and institutional investors. Even countries like El Salvador have declared it legal tender, underlining its incredible store-of-value characteristic. 

The most important fact about Bitcoin is that its issuance is independent of any outside interference. Bitcoin supply is limited to 21 million coins that are obtained through a process commonly referred to as mining. Powerful computers (nodes) compete with each other to solve mathematical puzzles, which allows them to reach consensus and validate transactions on the Bitcoin network. 

Consequently, Bitcoin is governed by an algorithm, which is hardcoded into its protocol. This makes transactions on the network entirely decentralized, borderless, and immutable. 

What Determines Bitcoin’s Price

The original cryptocurrency is leading the market by a large margin. It has a market cap of $570B at the moment of writing and takes up around 43% of the entire crypto ecosystem. Its current price of $30,000 is a far cry from its all-time high of $69,000 that was reached in November 2021. 

That said, this doesn’t mean that Bitcoin has lost its value. Many factors determine Bitcoin’s price, which are observed on macro and microeconomic scales. Since Bitcoin is a commodity, its value depends mostly on the laws of supply and demand. 

As supply increases and demand decreases, the price goes down. Conversely, as supply decreases and demand increases, the price goes up. But what factors impact supply and demand? Here are a few examples: 

  • Scarcity: it exists in a limited quantity. 
  • Supply on exchanges: as fewer people are willing to sell their coins, the supply on exchanges decreases, increasing the price. 
  • Regulations: crypto remains largely unregulated, which means news about governments releasing regulation statements can impact the price negatively. 

Also read: Learning The Most Significant Crypto Term- P2P Or Peer To Peer Network

BTC: Expert Forecasts for 2023

So, what do experts and analysts on the internet think about Bitcoin’s potential for the next year? We’ve gathered the opinions of some reputable sources to provide you with the following BTC price prediction for 2023.  

  • Digitalcoinprice.com expects Bitcoin to reach $46,518, as they are pricing in the current market sentiment, which is quite poor. 
  • Priceprediction.net has a much more optimistic take and provides a price of $64,734. 

In either case, it seems that experts are reaching a consensus that Bitcoin’s price will continue to increase in the long term, making it an excellent investment option. 

Is It Late to Purchase Bitcoin?

There’s a saying in the crypto community that the best time to buy Bitcoin was 10 years ago, and the next best time is today. Crypto investors are unanimous in that there’s no bad time to buy BTC, as long as you are considering the long term. 

For example, if you purchase a bitcoin at its current price of $30,000, and the price follows the prediction provided above, you would be able to make $16,518 in just one year. That’s a 50% capital increase, which is very unlikely to happen for any other type of asset. 

Keep in mind that it remains a risky investment, and if you are looking for more stability, you should look into a Tether price prediction instead. 

Final Take

Bitcoin is the king of all cryptocurrencies and leads the market, whether it goes up or down. As such, many consider it to be a benchmark in crypto prices. It also holds much better in bear markets than altcoins, making it one of the best possible crypto investments today. 

Leave a Reply

Your email address will not be published