Is Bitcoin a safe long-term investment?
Bitcoin is more volatile, less liquid, and costlier to transact (in terms of time and fees) than other assets (including gold - the traditional safe haven) even in normal market conditions. Until the market matures, it is therefore unlikely to be worthwhile considering Bitcoin as a safe haven.
Risk Considerations Virtual Currency Products (Cryptocurrencies) - Buying, selling, and transacting in Bitcoin, Ethereum or other digital assets (“Digital Assets”), and related funds and products, is highly speculative and may result in a loss of the entire investment.
Unfortunately, it's also incredibly volatile. For that reason, while current market conditions are favorable for anyone considering buying Bitcoin, it is an asset you should purchase only at your own risk. Because while Bitcoin may have the potential for significant returns, you may also lose most of your investment.
Benefits of Holding Cryptocurrency Long-Term
Less Volatility: Holding cryptocurrency for the long term provides investors with the advantage of increased stability. Long-term trading is characterized by lower volatility, as it prioritizes gradual growth instead of capitalizing on short-term price fluctuations.
If this pattern continues into 2030, the price could peak around 2029 or 2030, potentially aligning with Wood's price prediction. If Wood is correct and Bitcoin reaches $3.8 million, a $100 investment in Bitcoin today would be worth $5,510 in 2030. This translates to a compounded annual growth rate (CAGR) of over 95%.
Fidelity Predicts: $1B per 1 BTC by 2038 — 2040
It claims the value of Bitcoin will grow steadily to about $1 million per full Bitcoin by 2030. A network like Bitcoin comprises a set of nodes that form connections with one another and follow a protocol, a group of rules.
| Year | Price |
|---|---|
| 2025 | $ 70,125.62 |
| 2026 | $ 73,631.90 |
| 2027 | $ 77,313.49 |
| 2030 | $ 89,500.03 |
A broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk.
A reasonable assumption that Bitcoin could hypothetically reach the null state of it's value is worth the thought. Even-though such an event is very less likely to take place, there are some factors that could theoretically lead to Bitcoin price crashing to zero.
Most financial experts recommend limiting crypto exposure to less than 5% of your total portfolio. Crypto is considered a high-risk asset class. Limiting allocation helps manage overall volatility and risk. Those new to crypto investing may start with 1% to 2% as an introduction.
Is it safe to leave money in Bitcoin?
If you are new to crypto investing, it's important to have someone experienced guide you through the process of putting crypto in your own wallet. Bottom line, says Fraser, is that crypto investing as a whole remains safe. But exchanges and brokerages continue to lack transparency.
- Coinbase.
- Crypto.com.
- Kraken.
- Binance.US.
While the immediate impact on bitcoin's price may not be significant, the halving is expected to have long-term effects on the supply and demand dynamics of the cryptocurrency. As the supply of new coins decreases, bitcoin's scarcity increases, which could potentially lead to price appreciation over time.
Because Bitcoin is so powerful and has so much potential, Bitcoin's projected value and estimated growth could be astronomical. Speculation from crypto analysts and industry experts suggests that Bitcoin's long term value could reach over $100,000 to as much as one million dollars per BTC in the future.
By getting investors excited about the future of Bitcoin, she could attract more inflows to her ETF. If Wood is correct and Bitcoin does reach $3.8 million by 2030, an investment of $1,000 would be worth over $60,000.
We predict that Bitcoin will hold an average price of $60,000 in 2024, thanks to the Halving event, and settle more in 2025 with an average of $65,000. In 2026, we see Bitcoin trading as high as $90,000 by the end of the year. By 2030, we predict that Bitcoin could reach a high of $160,000.
Ark's research suggests the cryptocurrency could soar 2,115% to almost $1.5 million by 2030 -- but Wood herself came out with an even more bullish estimate recently, saying Bitcoin could rocket 5,453% to $3.8 million.
Bitcoin halving occurs approximately every four years and reduces the rate at which new bitcoins are created by 50%. The halving reduces supply of new bitcoins entering the market, which could potentially lead to price appreciation if demand remains constant or increases.
You might want to sell your crypto under some specific circ*mstances. If there is a lack of blockchain development progress or a string of negative news, you might want to sell your cryptocurrency. If you've reached your investing goals or want to reallocate your holding, you might want to sell your cryptocurrency.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
What will Bitcoin be worth in 2050?
By 2050, our long-term Bitcoin price prediction estimates that the maximum price could reach up to $11,94,927.3. With continuous developments and advancements in technology, it's possible that the average price of BTC Coin to be around $11,60,786.52.
Cryptocurrencies are still largely unregulated
If a platform that exchanges or holds your crypto assets goes bankrupt, there's a risk you could lose all your capital. Similarly, your assets could be at risk if an exchange holding your crypto is hacked by criminals.
Bitcoin is a risky investment with high volatility, and generally should be considered only if you have a high risk tolerance, are in a strong financial position already and can afford to lose some or all of your investment.
If you're looking for an asset that you can quickly move in and out of without losing value in a short time (like Bitcoin can), gold might be a better option. However, stablecoins like Tether (USDT) maintain their value over short periods because fiat currency and other cash-like instruments are held in reserve.
Sarathy concurs that there are risks involved with investing in these cryptocurrencies, including price volatility, cybersecurity concerns and a lack of regulations compared to traditional currency. Ultimately, it's up to each individual user how much risk they want to take.
