Sentiments of optimism and pessimism affect the value of cryptocurrencies, making it hard to predict it. Analysts do not know where the price of Bitcoin will go, but short-term predictions are very accurate.
The price of Bitcoin is one of the most discussed topics worldwide, as millions of people are attentive to its sudden fluctuations. Volatility is one of the factors defining that indicator in the short term, but that is different in the long run.
Supply and demand determine the price of cryptocurrencies, so making predictions about it is complex. The value of Bitcoin is related to the sentiments of optimism and pessimism of many people.
Those guessing the price of Bitcoin also do not know where it is going, even if they use advanced tools for their technical analysis. However, some predictions are more accurate than others, especially in the short term. For that reason, holders are the ones whose trades win beforehand.
The Value of BTC is Not Necessarily a Mystery
Although it is difficult to predict the price of cryptocurrencies, their behavior is not. In other words, the value of Bitcoin in some contexts allows for some security if those conditions occur again.
Forecasting that the price will reach USD 700,000 within ten years would not be very credible. However, it will be very high as the conditions leading to its birth are still there.
The elitism about the access of millions of people to the financial system has become more acute. Besides, governments have increased the level of surveillance and control, as well as inflation. Those conditions have made the appreciation of Bitcoin very vertical.
These Other Factors Ensure the Long-Term Rise in the Price of Bitcoin
Governments and banks have tried to maintain or widen the gap between themselves and people, thus boosting the price of Bitcoin. Furthermore, the pioneering cryptocurrency has other internal characteristics that drive it higher in the long run.
The issuance of the cryptocurrency is limited, as there are only 21 million coins available. That guarantees its appreciation as a growing number of people use it. Contrary to national currencies, Bitcoin is deflationary since its supply will always be the same.
Considering these factors, the value of Bitcoin makes long-term investment one of the best options. Although the level of adoption of Bitcoin is imprecise, it could expand with the direct arrival of new generations of investors.
The Use of Cash Disappears Due to Crisis
Another factor that will determine the value of Bitcoin 10 years from now is the dominance of digital platforms. The use of cash is disappearing for reasons of both progress and crisis.
Although cash is disappearing, the custom of governments and centralized entities to control private lives continues. For that reason, decentralized cryptocurrencies like Bitcoin and private ones like Monero could win against CBDCs.
These advantages of cryptocurrencies allow predicting that their value will increase proportionally within ten years. Cryptocurrencies are in the early stages, so investing before Bitcoin costs USD 100,000 could bring advantages in the medium and long term.
By Alexander Salazar
