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For a while, it was in a slump, but from the middle of 2023 it became quite popular, so I think there are many people who want to learn more about Bitcoin. Bitcoin has a long history, being the world’s first virtual currency, created in 2009.
Of course, the reason for the buzz is due to investment factors. However, this is not only because it is said to be able to make monetary payments all over the world without restrictions, regardless of the currency issued by the country. I think there are many people who are interested in Bitcoin, but the price fluctuations are so dramatic that they can’t afford it…
In November 2021, it reached an all-time high of approximately 7.4 million yen. However, the price will be 1/3 of that, and it will drop to about 2 million yen in January 2023… I’m sure there are many people who cried over virtual currency. However, although it recovered to about 5 million yen in January 2024, there are many people who consider it speculation rather than investment because it is impossible to predict future developments. In this article, we will think about how to deal with Bitcoin.
The future of Bitcoin. Is it possible to exceed the maximum price?
There are many different opinions regarding the future of Bitcoin prices . Personally, I think it will rise, but when will it happen? Of course, I’m not even sure. Some Bitcoin experts predict that it will reach $100,000 (approximately 11 million yen) by 2024. The reason is below.
- Approval of Bitcoin Spot ETF
- Bitcoin halving
- Growth of the entire virtual currency market
Of course, there are also many negative elements. The reasons for the decline in the price of Bitcoin are as follows.
- Tightening regulations
- security issues
- Rise of competing currencies
Will there be an adjustment before the Bitcoin halving?
If you have ever bought or sold Bitcoin, you have probably heard about the Bitcoin halving. The period in which the amount issued is halved approximately every four years is called the “halving period.” The next halving is scheduled for April 19, 2024, when the current reward of 12.5 Bitcoin will be reduced to 6.25 Bitcoin.
Perhaps this increases the expectation that the price of Bitcoin will rise because the supply of Bitcoin will decrease. However, although I think the price will rise towards the halving, there is also the possibility that a “correction” will occur where the price will fall before the halving. This is probably due to the recent drop in the price of Bitcoin. The pattern of past halvings is that a few months before the halving, prices have reached a peak and then fallen sharply.
For example, during the 2016 halving, the price dropped from about 70,000 yen four months before the halving to about 30,000 yen one month before the halving. Based on this, if you want to buy Bitcoin this year, the best time to buy is around March 20th. If the price drops during this period, more people may start buying.
Why Bitcoin is said to be high risk and high return
There is no need to explain this, but it has become a hot topic on social media, such as Bitcoin billionaires and Bitcoin lottery winners. In 2017, the price of Bitcoin soared to approximately 2.2 million yen, and the world became a Bitcoin boom. However, the price of Bitcoin fell sharply after that, reaching about 400,000 yen in 2018…
You may be wondering, why does the price of Bitcoin fluctuate so much? The reasons why Bitcoin is said to be high risk and high return are as follows.
- balance of supply and demand
- Market maturity
- external factors
These causes combine to lead to high volatility. In particular, the price of Bitcoin is almost impossible to predict in the short term, so it is said to be more suitable for long-term investment.
Bitcoin FAQ
For those who want to start using Bitcoin, here are some frequently asked questions about Bitcoin.
- How do you store Bitcoin?
- Bitcoins are stored in a virtual wallet called a Bitcoin wallet.
- How do I use Bitcoin?
- It can be used as payment for goods and services to businesses and individuals who accept Bitcoin. Nowadays, you can use it at online casinos.
- Is Bitcoin legal?
- It is used legally in many countries and regions around the world. Of course, it’s also legal in Japan.
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