Although the Bitcoin price can have aggressive price movements, historically the price movements have been in the upward direction and price declines have been followed by even larger rallies taking the price to new all-time highs. Bitcoin has gone up in value in 11 of the last 14 years. On average the price has increased by more than 500% per year since inception.
Bitcoins are as real as wi-fi and mobile phone signals. Although we can’t see or touch the technology, it continues to run in the background and allows for the safe and secure transfer of value across the internet. This is why a survey published by Fidelity has found that more than one-third of institutional investors globally are exposed to crypto assets.
Many people buy shares in technology companies like Google, without understanding how the technology and algorithms that underpin them work. Many Bitcoin owners buy a fraction of a Bitcoin to begin with, to understand the process and build up their knowledge, before buying more.
A bubble usually occurs when the number of buyers of an asset nears the maximum number of potential buyers. The bitcoin market is still in its infancy, with an estimated 100 million buyers worldwide currently owning bitcoin, which is far fewer than how many potential buyers are still out there, which is estimated to be more than a billion people.
Following on from the question above, many forecasters and professionals linked to high profile investment banks, believe that the Bitcoin price will go as high as €100,000 and may even reach €1 million per Bitcoin. The most expensive share price in the world today is that of Berkshire Hathaway, which is currently more than €500,000 per share.
Bitcoins are increasingly seen as an asset class that holds value, much like an expensive piece of artwork or a high-end property, and an asset class that produces capital growth, like a technology stock. Demand is rising because the number of first-time buyers is increasing. Rising demand coupled with a limited supply, usually leads to substantial price increases.
We provide our clients with an online account, similar to an online bank account or share dealing account, which they can log into at any time to view their current balance and the current value of their holdings. Clients can request to sell their Bitcoins through us at any time during business hours and the sale proceeds will be returned to your bank account, usually within 3 working days.
As with all new assets and technologies it takes time for them to be adopted by the general public. The London Stock Exchange was founded in 1801, but share buying by the public didn’t become widespread until after 1945. More recently, affordable mobile phones were available to the public in 1997 but they took around a decade to become widely used. As awareness of Bitcoin's benefits increases, more people are actively becoming owners.
Bitsmart Capital™ is a regulated Virtual Asset Service Provider (VASP), authorised to provide Cryptocurrency Exchange and Custodian Wallet Services. Registered in the European Union. VASPs are companies that provide cryptocurrency services, such as exchanging, transferring, and safeguarding cryptocurrencies. They are required to comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, and are subject to oversight by financial regulators. Please note, the value of cryptocurrencies can fall as well as rise. Past performance is not a guide to future performance.
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