How Profitable Is Bitcoin in 2021?
By Space Coast Daily // May 4, 2021
Bitcoin has become the greatest cryptocurrency worldwide and has been making headlines in the mainstream press due to its bull cycle.
The cryptocurrency has broken several records and achieved amazing success. During this period, a lot of new investors flooded the crypto market, which imposes the question, how profitable Bitcoin is in 2021? In this article, we provide an overview of the factors that drive the profitability of Bitcoin and the predictions of its value beyond 2021.
Factors that Impacts Bitcoin’s Value
All things considered, despite Bitcoin’s volatility over the years with its plunges and leaps, it counited to perform over the last decade, making it one of the most profitable crypto assets. When it comes to the profitability of Bitcoin, the main factor that impacts its value is the relationship between supply and demand.
The supply of Bitcoin is capped at 21 million, which ensures its long-term success because it makes between a scarce asset, and this means that in the long run, it’s very likely that the demand will almost always outperform the supply of BTC.
Also, the supply of Bitcoin is influenced by different protocols like Bitcoin halving, which is an event that is automatically facilitated by the blockchain network whenever 210,000 blocks are added to the network.
After this event, the block reward is cut in half. As the main output of the mining processes is a Bitcoin as well as validated blocks of transactions due to the halving, the influx of new BTC in circulation is reduced, which further minimizes the supply of BTC.
On the other hand, the demand for BTC is obviously affected by the number of investors and also companies that support the digital currency. For example, one of the first companies that supported BTC, Overstock, decided to accept Bitcoin payments in 2014; the price of Bitcoin peaked at $1,200 that year.
Automated Trading Platforms
Another factor that definitely impacted the demand for BTC is the accessibility provided by online trading platforms, especially great automated trading sites like Bitcoin Profit. Bitcoin Profit is a cutting-edge automated trading system powered by AI technology.
More specifically, the system conducts in-depth technical and fundamental analysis and instantly to executes trades based on that information. Actually, you can make a daily profit of up to $800 with a minimal deposit of $250. Another advantage is that the trading platform is mobile-optimized to Apple and Android mobile devices.
Bitcoin Price Projections
So, it’s safe to say that the profitability of BTC is affected by the interaction of the supply and the demand, as well as the scope of the crypto market. One of the best examples of the impact of the record-breaking interest of investors in BTC is the large investment made by Elon Musk from Tesla in $1.5 billion that triggered a price increase from approximately $50,000 to over $60,000 in March 2021.
When it comes to the price projections, it’s estimated that Bitcoin will rose to $325,000 by the end of 2021. Others assume that a value of $100,000 is more likely to happen in December 2021. By 2023, the price is expected to hit $145,000, while others predicted a much higher price of $283,047.
The incredible milestone of $1,000,000 is predicted to happen after the next halving in 2024. In terms of the market cap of Bitcoin, it is currently set at $1.1 trillion, and it’s estimated that it will reach a market cap of $8 trillion by 2030.
Either way, it seems to say at this rate, Bitcoin will remain a highly profitable and rare safe-haven asset which means there would be an increased interest by institutional investors in BTC in the following years.