2023 has been a tough but rewarding year for the cryptocurrency field and that is why many people interested in this field are wondering what 2024 will be like. In this article you can find an overview of this topic and a prediction of how the cryptocurrencies will fare. cryptocurrencies and their followers. From the Bitcoin halving that people are expecting to possible rate cuts and other issues, this article covers it all.
The current situation in crypto
Among all the different types of cryptocurrencies that exist today, Bitcoin is not only one of the most influential; It's also the one people talk about the most. It was a good year for Bitcoin, as this asset skyrocketed by no less than 163% through December 7. Bitcoin's current market capitalization is $847 billion. All this is very promising for Bitcoins and the situation, many researchers say, could not be better.
The reasons behind this claim are diverse and complex and could not be covered in such a short article, but you can still get an overview of this matter. First of all, in April 2024, Bitcoin will undergo the famous halving that people talk about. This event occurs every four years and what it does is reduce the rate at which new supplies of Bitcoin enter the market.
Despite the worrying name, previous halving events have been extremely beneficial for this crypto, both before and after they occurred. To verify this information, it is enough to know that the current bitcoin price increased 25% in the last month alone. This intense and positive price fluctuation may depend on several factors, but one of them is definitely the optimism that is building in the cryptocurrency space due to the Bitcoin spot exchange-traded fund. In the market, many influential companies such as BlackRock and Fidelity, among others, have filed applications to support the introduction of this product in the crypto market.
EFT and the long term plan
There are a lot of rumors about ETFs, and rightly so. Spot ETFs would legitimize Bitcoin in the financial services industry and also open up fresh capital for those seeking exposure to Bitcoin with an approved, easy-to-trade product. Aside from this, people interested in knowing what the crypto future holds should also consider inflation. Since inflation has started to decline in recent months, this could be seen as a definitive sign that the method of raising interest rates is finally working. This could end up with the central bank cutting rates during 2024, and this could have a big impact on the Bitcoin fieldso keep in mind.
Due to the volatility of this currency, many people get caught up in the moment and do not consider long-term plans. To counteract this, a good rule of thumb would be to only buy Bitcoin if you plan to hold it for the next five to ten years. Bitcoin is quite commercialized, but it is still a long-term investment.
This works on the assumption that the value of Bitcoins depends on their scarcity. There can only be 21 million coins in the world at any given time. This depends on a fixed supply limit, which is set in the Bitcoin software. Interestingly, this number could still change, but only in the remote case where the majority of nodes (devices participating in a blockchain network) would accept it. There is a consensus among experts that this scenario is extremely unlikely to happen.
In conclusion
The world of cryptocurrencies develops and changes with each passing day. Since most of the news seems to revolve around Bitcoin, that is where this article focuses. It is important to consider Bitcoin as a store of value, but still consider its volatility. The most famous store of value in history is gold, and although cryptocurrencies are rare to find, they are not as physically present as gold itself.
The current value cap is set at a $1 trillion market and that's very likely to happen sometime in 2024. But to be fair, Bitcoin's value could exceed that value and become even more valuable as it passes. weather. But before impulsively investing in this field, keep in mind: this market is extremely volatile, as you know, and because of this, a good basic knowledge of this topic should be implemented and encouraged.
This article provided an overview of the direction the cryptocurrency and Bitcoin field is taking and discussed the main interesting points. To conclude, 2023 has been a great (albeit difficult) year for this field and in 2024 things could be progressing in a similar direction.
