Best Cryptocurrency Exchange Fees

Can Bitcoin Reach $100,000 in 2022? • Benzinga Crypto

Where to Buy Bitcoin 2022
Written by publisher team

Decided that you want to work? You can buy Bitcoin on Webull and Gemini!

From its inception starting an entire industry from decentralization to its current valuation of over $2 trillion, Bitcoin is the first peer-to-peer decentralized cryptocurrency that introduced the world with blockchain technology.

Due to the fluctuating price of bitcoin, many people are wondering – will bitcoin reach $100,000 in 2022? To find the answer, Benzinga breaks through some of the previous Bitcoin price cycles.

Is Bitcoin at $100,000 Possible or Impossible?

Bitcoin is one of the most volatile assets to trade, which makes it very difficult to predict its price in the future. One way to check if Bitcoin could reach $100,000 is to look at the price movements of past market cycles.

At the time of its launch in 2009, bitcoin was trading at less than a penny. About a year later, Bitcoin saw its first rally, with its value rising to more than $30 per BTC. A few months later, Bitcoin entered its first bear market, hitting a floor around $2.

Fast forward to 2013 when Bitcoin entered another rally and reached all-time highs of more than $1,200 – resulting in a ROI of 40,000% for investors who bought into the previous all-time high. Over the next year, the value of bitcoin fell below $200.

In 2017, Bitcoin entered another bull market, with its value soaring to around $20,000 – an 800% return from the previous high of $1,200. The following years would develop into a bear market for Bitcoin, hitting a local low of around $3,200.

The post-COVID rally hit an all-time high for bitcoin at under $65,000 per coin — within the next few months, the price of bitcoin has consolidated, with a drop as low as $29,000.

In November 2021, Bitcoin gained significant momentum which led to an all-time high of around $69,000. Over the following months, the price dropped to $42,000.

If Bitcoin bullish cycles continue to grow modestly as previous cycles have shown, Bitcoin could reach $100,000. That would put Bitcoin’s market cap at around $2 trillion, not far from Microsoft’s $2.4 trillion market cap.

Analysis and forecasting of the value of Bitcoin

Block rewards and market sentiment are two factors that play a role in determining the value of Bitcoin. Every 4 years, the amount of bitcoin rewarded to miners halves, slowly changing the circulating supply, affecting the price.

The current market sentiment around Bitcoin has started to decline as the price has fallen over the past few months. Although many investors believe that this drop may be the start of a bear market, it is probably too early to make such a claim. Until Bitcoin breaks below the current support level and forms lower bottoms, the price could still gain upward momentum over the following months.

Will Bitcoin be unstable at $100,000?

Historically, when Bitcoin reached an all-time high and its price climbed to a top, the price went down in a short period of time. After this price drop, consolidation occurs before it enters the next uptrend, causing prices to fluctuate dramatically. If these historical Bitcoin price cycles continue, Bitcoin probably won’t be a stable asset anytime soon.

Benefits of investing in Bitcoin

Investors gain many benefits by investing in Bitcoin. One of the most attractive aspects will be the limited supply – there will only be 21,000,000 bitcoins ever minted.

The main value of bitcoin is the code it is built on, which has inspired the rapidly growing decentralized finance (DeFi) industry. Blockchain mechanisms and consensus enabled the future of smart contracts and peer-to-peer transactions, essentially creating an entire industry of decentralization.

Another benefit of investing in BTC is that the market never closes, allowing traders to buy or sell Bitcoin at any time of the day. This feature makes it very easy for traders to take profits as they do not have to wait for the markets to open to liquidate their positions.

Cons of investing in Bitcoin

A major disadvantage of investing in Bitcoin is that it is difficult to value, which leads to its volatility. It is important to keep in mind that the value of speculative assets such as cryptocurrencies, art and gold comes from what people are willing to pay for them.

Another drawback of Bitcoin is its limited use case. Bitcoin is best used as a store of value while other cryptocurrencies such as Ethereum have more diverse use cases. Bitcoin fees are relatively high, which makes it difficult to complete transactions for small payments or even everyday transactions. Altcoins provide various features for small transactions like this.

Mining and Proof of Work

Bitcoin relies on an arguably outdated Proof of Work consensus mechanism, where computers validate transaction blocks by solving math puzzles every 10 minutes. This process is known as cryptocurrency mining.

The first computer that solves the puzzle and clears the transaction is rewarded with a small portion of BTC. Every 4 years, the block reward for Bitcoin is cut in half, otherwise known as the “halving.” Historically, Bitcoin entered bull markets around the halving. Rewards have a direct impact on the supply of BTC in circulation, which affects the price.

Best Online Exchanges to Buy Bitcoin

Traders can choose from many different cryptocurrency exchanges, and a few of them are Coinbase Global Inc. (NASDAQ: COIN), Webull, eToro, Gemini, and Voyager. Central exchange is a great way for individuals to start buying cryptocurrencies. Make sure to take a look at what each exchange has to offer, as they offer different features to investors.

1 minute review

Coinbase is one of the largest cryptocurrency trading platforms on the internet. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it incredibly easy to buy and sell major cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and improved functionality.

Although Coinbase does not offer the most affordable rates or the lowest fees, its simple platform is easy enough for complete beginners to master in just one transaction.

best for

  • New Cryptocurrency Traders
  • Cryptocurrency traders are interested in major pairs
  • Cryptocurrency traders are interested in a simple platform
Positives

  • Simple platform easy to operate
  • The comprehensive mobile application reflects desktop functionality
  • The Coinbase Earn feature rewards you with cryptocurrency for finding available coins
Negatives

  • Higher fees than competitors

start

securely through the eToro website

disclosure: eToro USA LLC; Investments are subject to market risk, including the possibility of losing capital.

1 minute review

Headquartered in Cyprus, England and Israel, eToro has been offering forex products and other CFD derivatives to retail clients since 2007. One of the main eToro plus social trading operations, including OpenBook, allows new clients to copy the trading of the best performance for the platform. Its social trading features are top notch, but eToro is losing points for its lack of tradable currency pairs, disappointing research, and customer service features.

best for

  • Cryptocurrency traders in the United States
  • Social Traders and Transcripts
  • Simple user interface
  • Community participation and follow other traders
Positives

  • 25 cryptocurrency
  • Wide network of social trading features
  • Large customer base for new traders to imitate
Negatives

  • US Traders Can Only Buy Cryptocurrencies

1 minute review

Gemini is a cryptocurrency exchange and custodian that gives investors access to 26 coins and tokens. Founded in the United States, Gemini is expanding globally, particularly in Europe and Asia. Offers include both major cryptocurrency projects such as Bitcoin and Ethereum, and smaller altcoins such as Orchid and 0x.

Gemini is one of the only brokers with multiple platform options based on skill level. New investors will love the simplified interface of Gemini’s mobile and web applications, while advanced investors may appreciate all the tools that come with ActiveTrader.

In addition to a host of platform options, Gemini users can also access secure hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

best for

  • New investors looking for a simple mobile and web application
  • Seasoned investors who need a more advanced platform with more tools
  • Users who are looking for a one-stop shop to buy, sell and store all their coins
Positives

  • Quick and easy registrations – can be started in less than a few minutes
  • Several platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect you from theft and hacking attempts
Negatives

  • It charges convenient commission and fees for users who buy and sell through desktop or mobile app

Bitcoin as an investment

As an investment, Bitcoin is completely speculative. Many followers believe that the DeFi space is a bubble waiting to burst. Others feel that DeFI is the most revolutionary technology ever built by humans, and it will completely restructure society.

If you are looking to invest in a long-term crypto venture, Bitcoin could be a great investment for you. Remember – do not invest more than you can afford to lose as Bitcoin will likely remain a volatile asset.

Benzinga has developed a specific methodology for classifying cryptocurrency exchange instruments. We prioritize platforms based on offers, pricing, promotions, customer service, mobile applications, user experience, benefits and security. For a comprehensive analysis of our methodology, please visit our cryptocurrency methodology page.

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