HomeTECHNOLOGYIs It Profitable to Invest in Bitcoin for the Long Term?

Is It Profitable to Invest in Bitcoin for the Long Term?

Since its release in 2008, BTC has been seen as a scam, a currency for criminals, or just a get-rich-quick scheme. Many tried to discredit it over the years, but none succeeded. Of course, this is mostly because the previous statements are all false, and today, even mainstream investors are starting to understand its value and benefits. They now use the most advantageous ZEC to BTC exchange rate to stack up more Bitcoin. 

But what about its long-term performance? Does Bitcoin still have a future in the current blockchain landscape? After all, there are so many other cryptocurrencies out there. So, why should you invest in the oldest one? 

Well, there are many factors that make BTC a blue-chip crypto and hence, an incredible long-term play for any portfolio. In this article, we take a look at the BTC fundamentals and why you might want to consider buying BTC during the current bear market. 

BTC: Does It Have a Future? 

Let’s have a brief overview of Bitcoin, as it doesn’t really need an introduction. It’s the first cryptocurrency to see the light of day that introduced a new way of creating value through a decentralized protocol. To achieve this, BTC relies on a distributed ledger technology, where transactions are immutably recorded and verified by a network of nodes (miners). 

New bitcoins are created through mining, and there will only be 21 million coins ever released. This limited supply creates scarcity over time, which is one of the main factors that affect its price positively. As more people are interested to own BTC, the fewer BTC are available for purchase. Following the laws of supply and demand inevitably leads to the BTC price increasing over time, especially in the long term. 

Another advantage of Bitcoin is that it’s the most trusted blockchain network. Mining is entirely decentralized, and no one controls the supply of coins. This has allowed institutional investors like Microstrategy and Tesla to heavily invest in this asset as a store-of-value hedge against inflation. 

Expert Forecasts

Currently, Bitcoin stands firmly at a price level of $30,000 per coin. Considering that around 19 million BTC have already been mined, this put the market cap of the original cryptocurrency at around $580 billion. 

At this valuation, Bitcoin dominates the rest of the market at 44.5%. If we take into account that there are more than 19,000 different cryptocurrencies, this domination is quite considerable. In a nutshell, all of this makes Bitcoin the uncontested market leader in crypto. 

Bitcoin experienced a huge bull market in 2021 when its price reached an all-time high of $69,000. That said, 2022 has been quite painful for investors, as the price went into a downwards momentum and has now reached $30,000. That said, many believe that this is a great price to buy Bitcoin as they see a lot of upside potential for the king of cryptos. 

Priceprediction.net, for instance, expects BTC to reach $64,700 in 2023, which is more than double its current value. For 2027, 5 years from now, the website provides a 6-figure forecast, north of the $300,000 mark. 

Digitalcoinprice.com is a bit more conservative, with a price target of $48,000 for 2023. By 2027, they expect it to reach just south of $80,000. 

Finally, Walletinvestor predicts a price of $50,000 for 2023, whereas they also provide 6 figures, or $125,000, for 2027. 

How Much Can You Earn if You Invest in BTC Now?

If we take the most conservative prediction from above, you can expect BTC to reach $80,000 in 5 years. So, if you invest $30,000 now, this capital will grow to $80,000 in 5 years, or, in other words, a 166% increase. 

Is It Safe to Invest in BTC?

Investing in cryptocurrencies is never 100% safe. Bitcoin’s price history suggests that if you are in for the long run, you don’t have a lot to worry about. Price drops have always been only temporary, allowing long-term holders to significantly increase their portfolio value when the price goes up. You can always convert your BTC to TRX and swap them back at a more appropriate time.

Summary

Bitcoin has set a new paradigm regarding finances and the value of money. The original cryptocurrency has dramatically increased in price over the years, showing that it can be a great investment in the long term. If you disregard the temporary price drops, you will notice that Bitcoin’s price has only one general direction — up.

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