The Perfect Investment for 2025
Bitcoin is a finite commodity: there are only 21 million units and, as time goes on, it becomes increasingly difficult to mine. In this sense, it is more like gold than the dollar or other fiat currencies.
The world has been watching Bitcoin gain more than 200% of its value from May 2015 to June 2017 alone. As powerful as that rally was during those 24 months, the gains experienced by those who invested even earlier were exponentially greater.
During its first five years (2009 – 2013), for example, a bitcoin went from being worth pennies to $1 USD. For a whole week at the end of November 2012, 1 BTC was valued at over $1200, which would be shocking if you had bought a few coins by the end of 2012 and held on to them.
is the most powerful driving force that has driven Bitcoin’s earnings
In 2013, when I first wrote about Bitcoin, one of my main predictions was that by 2021, a single bitcoin would be worth between $500,000 and $1 million. These estimates were based on the assumption that there would be at least 14 million people worldwide who would use it as a store of value or as an alternative currency to fiat notes and coins. Considering the number of startups that have launched towards this goal in recent months – even a major energy company will incorporate blockchain technology into its business model – I am confident in my previous prediction.
What’s behind my trust?
If the number of people (not as investors) who own bitcoin doubles by 2021, it won’t be surprising to see a direct relationship between this and the price of Bitcoin. If you take the sum of $1 million as the upper limit, there would have to be at least 28 million global users. Of course, it is possible that not all of them use BTC for investment purposes and the price could theoretically exceed that level if we take into account those who want to use it as a store of value.
Surely before arriving here you have read a review of Coinbase on the internet. I can tell you with certainty that this review is honest and unbiased. As always, my only goal with this post is to help you get started with Bitcoin. But let’s face it, in order for you to invest in Bitcoin, you have to have a place to store the coins.
With this in mind, I have always advised my own clients to use Coinbase when buying or selling bitcoin. Coinbase is a secure online platform for buying and selling bitcoin (BTC), ethereum (ETH) and litecoin (LTC).
What makes this platform different from any other? Transaction fees are only 1% if you pay with your bank account; however, credit card users will be charged 3.75%. Other platforms usually charge double: both a percentage and a transaction fee.
I highly recommend using this platform because it has never been hacked and has a simple and easy-to-understand interface. Plus, it offers 24/7 live support for any trade you want to do.
Coinbase is the easiest way to start investing in Bitcoin, if not the only one.
The lower limit of my estimate will be 1 BTC = $500k while the upper limit could reach over $10 million per coin, a far cry from the little less than $2000 when I first wrote about Bitcoin here on Medium back in 2013. What’s my point? Even the small investments made now could turn into millions in just four years.
If you want to play it safe, Coinbase offers a service that will store your coins in their cold storage vaults, where they are blocked with a private key whose access is known only to the owner. This means that no one can hack your account and steal your coins However, there is a limit on the amount you can store each month, as you have to pay 1% of the value for this service.
Bottom line: From my point of view as an investor and financial analyst – not as someone who has been deeply involved in every aspect of Bitcoin since its inception – I see Bitcoin being worth at least $500k USD in 2021. For this prediction to come true, we must first understand what drives the price of BTC.
Let’s start with the basic assumptions that currently limit our ability to predict prices accurately.
The total number of Bitcoins is limited. Once 21 million have been mined, no more bitcoins will be created. At the current price, almost 17 million bitcoins have already been minted. There are about 4 million left before the limit is reached.
What will happen when this limit is reached?
No one knows for sure, but there are three main possibilities:
1) Bitcoin is worth so much that it doesn’t matter if there are only 21 million coins available because a BTC can be divided into 100,000,000 parts
2) Miners leave the network because they stop receiving rewards
3) Transaction fees increase as more people compete to verify transactions on the blockchain.
From my point of view, what will happen is a combination between the first and the third possibility. Mining costs will be so high that it simply won’t make sense to keep mining, or transaction fees will go up because fewer bitcoins are mined every day, which will further limit the number of transactions per second.
4) Bitcoin’s value can be compared to that of gold in many ways, but there is one feature that really stands out: gold mining costs are much higher than its actual market price. As more people invest in gold mining, it becomes more difficult to find veins, which pushes up its price once again. The same could happen with BTC, since you have to indicate to the ASICs where the new blocks are constantly changing the level of difficulty.
As always, my only goal with this post is to help you get started with Bitcoin. But let’s face it, in order for you to invest in Bitcoin, you have to have a place to store the coins.
With this in mind, I have always advised my own clients to use Coinbase when buying or selling bitcoin.
Coinbase is a secure online platform for buying and selling bitcoin (BTC), ethereum (ETH) and litecoin (LTC).
What makes this platform different from any other? Transaction fees are only 1% if you pay with your bank account; however, credit card users will be charged 3.75%. Other platforms usually charge double: both the percentage and the transaction fee.
I highly recommend using this platform because it has never been hacked and has a simple and easy-to-understand interface. In addition, it offers live support 24 hours a day for any operation you want to perform.
With this in mind, I have always advised my own clients to use Coinbase when buying or selling bitcoin.
In addition, Coinbase offers live support for any trade you want to make at any time through a chat or a phone call.
