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Is It Too Late to Invest in Bitcoin?

In February 2011, Bitcoin cost $1. 10 years has passed and BTC is $51,000. Having spent $100 to buy Bitcoins back then, you would have $5,100,000 today.

This could be considered one of the best investments of the 21st century, unattainable for the stock market and other assets. After such a shocking takeoff, most people consider the lost profit and regret that "the train left". But professional participants in the financial markets may think differently.

For example, Ari Paul, CIO and co-founder of the BlockTower Capital investment company, believes that BTC can potentially generate more than 10 times profit over the next two years. He suggests that the current bull market may last until the end of 2022, and Bitcoin by that time would be able to strengthen in the area between $100K and $400K.

Apparently, Tesla also believes in the six-figure price of Bitcoin, with the latest news that the company has officially invested $1.5 bln in Bitcoins. Moreover, it is preparing to sell its electric cars for BTC.

Visa also seems sure of the bright future of Bitcoin. The payment system is developing an API that will help banks to provide services for buying and selling cryptocurrencies to retail customers. The work is expected to be completed by the end of 2021.

Seems incredible? But who could think 10 years ago that the main cryptocurrency would rise in price by 51K times?

Given the above, the Bitcoin project looks like one whose prospects could seem inexhaustible, despite the impressive growth over the past 10 years. Looking at the chart with a logarithmic price scale, it should be noted that the ascending channel (1 and 2) has been deploying for the entire decade, and the level of $100K  (3) seems to be really achievable.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.

Cryptocurrency CFDs are not available to trade in all jurisdictions.

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Comments: (4)

Francesca G
Francesca G - Medium - London 26 February, 2021, 18:181 like 1 like

I don't think it is too late to invest - referring to your graph Bitcoin seems very well set to hit that $100k mark and like you mentioned no one knew that 1 BTC would ever be worth $50k 10 years after its creation. This is explaining nicely the BTC evolution.

A Finextra member
A Finextra member 01 March, 2021, 14:192 likes 2 likes

Normally I invest only in things I understand the business mode of or in something that I want for personal reasons. What is the usability of BC? Not for payments since it is too slow. Not instead of a precious metal like gold since it does to have the usability for jewellery or as indistrial metal. Not as a collectors item - the only existing digital value - no, it can and is  replicated. What is the expected future valuable usability of BC except for paying criminals for e.g. ransomeware attacks? The only reasonable investment reason seems to be the expectation that somebody else in the future will pay more for it? 

Adrian Pollard
Adrian Pollard - ISTANEX - https://istanex.com/ - Turkey 02 March, 2021, 09:14Be the first to give this comment the thumbs up 0 likes

Def not to late, the money supply is huge and so BTC at $1 trillion today is tiny when compared to the multi-trillion dollar markets out there.

Gold is huge and BTC has room to grow into the new gold. If you are reading this, you are early.

A Finextra member
A Finextra member 02 March, 2021, 09:33Be the first to give this comment the thumbs up 0 likes

As soon as the corona pandemic is easing its pressure on the economies in the world, "traditional" investments are going to make a come-back. This due to that we will start travelling again, spend more time in the office, eat out, go shopping, spend money on the comforts of life, laid-off people go back to work and increase consumption. Oil, gas, mining companies, manufacturing of goods, T/E services will make a come-back. A lot of investment money can be drawn away from spectacular future expectations of new high-tech into main-stream. The vaccine industry will however keep its interest up since we likely need vaccines for more pandemic viruses to come. BTC risks losing a lot of interest among more traditional investors. 

Greg Nilson

Greg Nilson

Financial Analyst

FXOpen

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