What will be the price of Bitcoin in 2021 and beyond? Will Bitcoin go up or go down? Many people are hunting for bitcoin price. In this post, we will analyze historical bitcoin price and share factors that will help you to predict the future trend of bitcoin.
Bitcoin is one of the best performing currency in the year 2020. The cryptocurrency bitcoin has grown over 300% in the last 12 months. The price of a single bitcoin in Jan 2020 was 6 Lakh and in Jan 2021 the price of bitcoin is 23 Lakh. This means bitcoin has grown four times in one year.
The price of bitcoin is growing rapidly. If you have invested in bitcoin or planning to invest in bitcoin here is complete information about bitcoin including price history and prediction.
What is bitcoin? How to purchase bitcoin in India?
Bitcoin (BTC) is a cryptocurrency created in 2009. BTC is a digital or virtual currency completely decentralized. It is not like paper money like dollar, euros or rupees which are controlled by banks. This means no central authority control BTC. BTC is completely virtual and online. You can use BTC for buying products and services online.
Bitcoin is a computer file that is stored in encrypted format inside the wallet assigned to a specific person. BTC can be transferred from one wallet to other via P2P network.
In India, trading in cryptocurrency was banned. However, the supreme court has given a verdict in March,2020 that cryptocurrency exchange and trading in cryptocurrency is allowed in India. This means bitcoin buying, selling, trading or mining is not illegal by any law in India.
There are multiple BTC exchanges in India. You can look for a suitable exchange for buying BTC. Bitcoin can be purchased using a credit card. The most popular Bitcoin exchanges in India are Coinbase, Coindesk, Zebpay, Unocoin, and WazirX. You need to submit your KYC documents to trade in cryptocurrency.
You require a wallet on your smartphone or computer to store BTC. It is advisable to keep a backup of the wallet at other location so that you don’t lose data.
Historical Price of Bitcoin
The historical price of bitcoin in INR is given below.
From the above bitcoin price history, we can say that bitcoin is volatile in nature. The currency is going up and down year on year. The first price rise in BTC was in 2014 where BTC price jumped 10 times from 2013 price. The second price rise was in 2018 where the price of single BTC reached to 9.72 Lakh but in 2019 the price was crashed to 2.71 Lakh. In 2021 the price has reached to all-time high and currently trading at 23 Lakh. (Jan 2021)
Bitcoin Price Prediction 2021 and beyond
BTC price as of Jan 2021 in the dollar is $31000. What would be price of bitcoin in 2025? Do you think the price would reach $60000?
Well, looking at price variation it is very difficult to do price prediction of Bitcoin. No one can give a sure shot prediction. However, I tried to collect various pointers that will help you in knowing in which direction the bitcoin price will go.
Popularity & Adoption
The first factor which is affecting bitcoin is popularity and adoption. There are multiple cryptocurrencies available in the market are ripple, ethereum, neo, emercoin but the most famous is bitcoin. Bitcoin is adopted by many people. The growing popularity is affecting price. As more people are attracted to this currency the price is growing. Many people are using this currency as a medium of transaction online. Looking at usage and popularity & adoption the price of BTC is likely to go high in the future.
Supply and Demand
Supply and demand is a most common factor that affects the price. Bitcoin supply is dependent on the miner. The BTC is produced by mining. To do mining computing power is required. Additionally, one needs to solve complex mathematical equations and puzzles. After solving puzzle and equation mining take place. This means supply is difficult for this currency. On the other hand, the demand for this cryptocurrency is growing and likely to increase in the future.
The price history of bitcoin shows that it is volatile in nature it goes up and down frequently. However, it is an appreciating asset at the long run. You can see that in the last ten years this currency has grown multiple times and likely to grow further in the future.
Should you invest in Bitcoin?
A digital currency BTC is great investment option. The price of BTC is growing multifold that does not mean you can invest in bitcoin blindly. Please remember that Bitcoin price is not growing based on fundamentals. It is driven by supply and demand. Key points to remember while investing in bitcoin are given below.
- Bitcoin is a decentralized currency and banned in many countries.
- Bitcoin is a digital currency one needs to be cautious as the currency is stored online in a wallet.
- The price of bitcoin is highly volatile.
- Bitcoin is only for the high-risk investor. A risk-averse investor should stay away from this currency.
- Make sure to select the best cryptocurrency exchange for buying cryptocurrency.
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