2020 was an unforgettable year for Bitcoin. There will be a lot of changes in the price, community growth, technological development, and similar things about this currency.
The year 2020 bought with it a completely unexpected pandemic. This led to major changes in the global economy, and it almost came to a halt, and many people faced a major financial crisis. Many central banks started printing money to a high extent. But there was one currency that did pretty well, even in this scenario. That is Bitcoin. Its growth rate was higher even as compared to Gold and other assets.
This currency is predictable, resilient, and has an algorithmic monetary policy. This made it easy to guess that 2020 was the year for third halving. There was a low supply of this coin, and so the price surged higher. Before May 2020, the rate of BTC was less than $10,000. But even till the end of 2002, the halving was not priced in.
How to know that there is no price for bitcoin Halving?
First, you should take the price of BTC at the time of the third halving and then apply the growth trajectory during the first halving. Then you need to apply the growth trajectory that happened during the second halving.
The cycle of the Third Halving looks similar to the first two. This will give you a clear idea about the growth trajectories that are possible. Currently, the coin has its price at the start of a new growth phase which is exponential, which means that the cycle has 15-times returns that are left in it. It is early to take on the bet of Bitcoin.
How to make a bet for bitcoin?
There are two simple components of Bitcoin. You need to understand that this coin is a store of a particular value. The currency is an asymmetric bet. The component of store-of-value type is by design, and it is here to stay. BTC will be predictable, safe, and a debasement-proof way to preserve your wealth till the Bitcoin network would be running.
When all the central banks are relying on a strategy of debt monetization to keep the financial system legacy running, there is no need to pass on a quality store of value. It is a valid value now and will remain so in further ten years too. On the contrary, the asymmetric bet has a timing associated with it.
The market of this decentralized currency is small. This asset is like digital Gold, and so this type of bet is too small. Facts that support this as per the bitcoin code website are:
- The coin’s market with a value of 1BTC equal to $20K would be similar to the total market valuation of JP Morgan.
- Its market value with 1BTC having a value of $50K would be as large as the total valuation of Google in the market.
- The market value of 1 BTC when valued at $100K would be comparable to the total market value of Apple.
- If 1BTC holds the value of $300K, then it will be still smaller as compared to the total market valuation of Gold.
Till recently, the Bitcoin market is still very small. Currently, according to its use case, it is in the early stages of its adoption curve. It needs to grow by almost 30 times to reach the size of the gold market. This is the right time to invest in this market to get the benefits of the store of value, and there is potential to get 30 times to return. The earlier that you enter this market, there are higher the chances of getting better rewards.
This cryptocurrency is gradually climbing on its adoption curve. With many deep-pocket investors buying this coin, the supply is now becoming a lot more scarce. There is no need to be a math expert to understand the growth of this coin. In coming years, everyone, including asset managers and large mutual fund investors, would love to have this asset. The time it will take to reach the value of the gold market is not in our hands. But it will surely happen in the coming years. It is a rare type of asymmetric bet that any person can make.