This theory is based on Bitcoin's ability to extend, and stay extended, beyond fair value for years at a time. Every four years, Bitcoin's block reward is halved, causing miners to receive less and less BTC as time goes on. Investors who want to use their bitcoins to earn interest, obtain loans, or provide liquidity on decentralized exchanges (DEX) 'wrap' their Bitcoin in the Ethereum network. These unique properties are said to make Bitcoin not only a borderless transactional currency, but also a store of value and even a safe haven asset in times of economic crisis.
This reward is what encourages miners to continue confirming transactions and keep the Bitcoin network growing. After the market's bullish peak finally sets, the next two years in Bitcoin could be a bear market once again. Like most cryptocurrencies, bitcoin is backed by a technology known as blockchain, a decentralized and distributed ledger that records the provenance of a digital asset. No matter what experts predict for the price of bitcoin, stay focused on building your overall portfolio, including passive index funds, emergency savings, and your retirement account (s).
Until recently, Bitcoin was considered a store of value that was somewhat immune to fluctuations in the value of risky assets. Other factors that could help Bitcoin recover include continued increases in non-zero crypto wallets, which describe the number of new wallets that have a Bitcoin balance greater than zero. Bitcoin's purpose was to bypass intermediaries in financial transactions, reduce costs, improve efficiency, and increase financial accessibility. We've compiled some of the best technical analysis from the best analysts in the industry to help better understand how high Bitcoin can go.
In addition, Bitcoin has a unique network effect as the first cryptocurrency created of its kind, making it less susceptible to easy replacement and the first point of contact newbies have with the cryptocurrency industry. Other major companies such as Robinhood, Webull and Cashapp have given it greater legitimacy by offering Bitcoin trading on their platforms. Bitcoin is the first cryptocurrency ever created, which led to the birth of an entire industry and thousands and thousands of altcoins to be created in its image.