The Bitcoin rate varies from day to day. Stay informed about the current Bitcoin rate. Find explanations about the Bitcoin rate development, increases in the rate and the expected Bitcoin rate.
Despite the fact that we Dutch people probably want to see the Bitcoin rate in euros, the usual way to look at the Bitcoin rate is in dollars. All over the world, the rate is looked at this way and many different media outlets talk about all-time highs in relation to the dollar.
The value of Bitcoin fluctuates and is subject to market dynamics. In the graph below you can see the value of Bitcoin. Of course, the price is subject to fluctuations. The value reached an all-time high of over $63,000 dollars after which the Bitcoin price fell again. If we look at a longer period, Bitcoin may well be the best performing asset in terms of return.
Why is the price of Bitcoin rising? The simple answer to this is that this is due to supply and demand. More and more often, large investors want to invest part of their money in Bitcoin. But that is not the only reason. To explain this properly, it is important to understand that there is not an infinite supply of Bitcoin available.
There are a maximum of 21 million available. Of these, about 18 million are currently on the market. The last 3 million become available through Bitcoin mining. This mining is where the challenge lies. The reward for mining decreases. This is what is called “halving”.
Due to the maximum number of Bitcoins that can become available and the effort with which the last 3 million Bitcoins are mined, there is extra pressure on the price. More people who want Bitcoins? That results in more transactions, but those transactions become “more expensive”, which causes the Bitcoin price to rise; due to the demand, but also on the supply side.
That is not the only reason. There are also reasons why demand is increasing.
increasing demand Have your friends also made a lot of money with Bitcoin? Maybe you are doing research to make sure you don’t miss the boat? This “Fear Of Missing Out” is an important psychological concept. It is completely logical that you feel this way. We don’t want to feel like we are missing out or are missing out. More people are getting in because of FOMO. The impact of this? Demand is increasing. People who already have Bitcoin see the price rise. They are therefore less likely to sell Bitcoin. Due to the increasing demand that results from FOMO, the value of Bitcoin is increasing.
increasing demand More and more people are starting with Bitcoin. In recent years, more and more companies have made it easy to start with Bitcoin. Is it getting easier to get started? Then people are more likely to do so.
Don’t you know how easy it is? Check out the best prices in the comparator and compare Bitcoin providers on price and reliability.
increasing demand In addition to the fact that it is becoming easier to get into Bitcoin. You also see an increasing adoption among institutional investors. These, mainly, traditional parties also see opportunities for Bitcoin. Because these investment giants have a lot of money to spend, this drives up the price of Bitcoin enormously.
At the same time, they have so much capital outstanding that they can realize price fluctuations. We cannot say it often enough. But be aware of the risks associated with investing in Bitcoin.
The value of Bitcoin has increased enormously over the past few years. Since its launch in 2009, the price has made huge leaps. These Bitcoin price jumps were usually accompanied by the Bitcoin halving. This is how it works. During a halving, it actually becomes less attractive to approve transactions on the blockchain. The reward that a miner receives for doing this halves – hence the name halving.
A lot has been said and written about Bitcoin price predictions. One of the best-known models is the popular Stock-to-Flow (S2F) model by the Dutchman “Plan B”. This model calculates how much of a mineable product is in circulation. Think of gold – or Bitcoin, for example. By assuming the time it takes to mine that same amount, you can say something about the value. You can calculate how valuable it is over the estimated time.
According to this model, Bitcoin is expected to continue to increase in value in the coming years. With a price expectation of over $100,000 before the end of 2021 and with even more ambitious price expectations (over $250,000) after the next Bitcoin halving. Which is expected in March 2024.
