Will bitcoin crash?
The bitcoin has become one of the most popular topics of the decade. Whether it is tech savvy genius and financial analyst or a know-nothing guy, they will tell you to invest in bitcoin. I went into research into this topic and below I have mentioned that things I learned.
Bitcoin was launched in 2009 and it showed steady growth over some period. It became clear that it was the future of finance. But any progress should be steady and not a sudden exponential blast. If you aspire to become millionaire, you should work hard to steadily earn your way there. If you win a lottery to become a millionaire, I bet within 5 years you will again become broke. This has proved to be true in majority of the cases. Same was with bitcoin.
Bitcoin jumped exponentially in the December of 2017. Bitcoin which was worth merely 5000USD in the October of 2017 increased to almost to 20,000USD in the December of 2017. The value had quadrupled in just under 2 months. And thus started the downfall. The bitcoin value suddenly crashed to become 6000 USD in another 2 months and by the January of 2019, the value of bitcoin has decreased to almost 3000 USD. After that bitcoin showed steady growth till the pandemic.
After the March of 2020, more people were locked inside their houses. Then came the restlessness to become instant rich. The value of bitcoin was around 7000 USD in the April of 2020. In April of 2021, the value of bitcoin has skyrocketed to 60,000 USD. This shows the trend of December, 2017. Everything has as much value as people like it to be. Bitcoin experienced unprecedented demand. But the problem will be when those people who aspired to be instant rich start selling all the shares in bitcoins. The value can plunge down quickly. This points to another bitcoin crash. If it crashed like in 2017, it will continue decreasing in value till 2023 or 2024. That is why investment companies and crypto companies are putting ads everywhere encouraging people to buy bitcoin and not sell it. It is simply to prevent bitcoin from crashing. But my one last suggestion, this is the worst time to buy bitcoin.
My prediction is that bitcoin will crash hard in 2021 and 2022–2023 will be the best time to buy bitcoin. Because at that time, pandemic will end, people will be busy on jobs and less keen on becoming instant rich. Bitcoin will have found its appropriate value which I think should be around 10,000 USD.