There are many people who are wondering if 2020 will be the right year to finally start investing in bitcoin. There were quite a few investors who were scared away by the big price drops that were experienced by bitcoin last year. However, it would seem that bitcoin’s fortunes could be quite different in the new year. There are a variety of factors that investors use in an attempt to predict which way the value of bitcoin is going to go. Based on the data they typically utilize, this could be the right year to buy your first bitcoin.
The experts at dailyhodl.com think that the limited supply of bitcoin will definitely play a huge role in it going up in value. It is the basic economics rule of supply and demand. The supply has gone down for a couple of reasons. The price drop caused fewer bitcoins to be mined last year. Also, fewer people are trading the bitcoins they already have. These people are waiting for prices to go up again instead of dumping their stash in an attempt to cut all of their losses. All of these factors mean that there are not as many bitcoins out there as there normally would be.
The increased use of bitcoin is yet another thing that financial experts are pointing to as a sign that 2020 will be a solid year for the overall value of the cryptocurrency. More people using bitcoin in various transactions helps to stimulate the market. This will most likely cause prices to rise over time. The amount that the price will go up is impossible to predict. However, financial experts say that there is not a great chance of a big price drop as long as people continue to use bitcoin at the rate they are now. A decreased use of bitcoin could cause the market to stagnate. If that happens, it is only a matter of time until the bitcoin price will begin to fall.
It is still very early in 2020. Therefore, many things can happen in regards to bitcoin. That having been said, the future of bitcoin investing looks very promising at the moment. All signs indicate that healthy increases in bitcoin value will be on the horizon. As with any investment, you should never invest more than you can afford to lose. Always remember that rule. Only time will tell how high bitcoin goes in 2020.
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