Bitcoin is a revolutionary new digital currency that has recently gained immense popularity. Unlike traditional currencies, which are issued and controlled by central banks, Bitcoin is embedded in a decentralized peer-to-peer network that allows users to transfer funds securely and quickly without intermediaries. The transactions on this network are verified through cryptography, ensuring that each transaction is valid and secure. These transactions are also recorded in a public ledger, which anyone on the network can access.
But even with its growing popularity, it remains as volatile as any other cryptocurrency. As such, it is pretty natural to wonder, is Bitcoin a good investment in 2023?
If you have wondered whether Bitcoin is a good investment, you have come to the right place. In this article, we take an in-depth look at Bitcoin’s price performance over the years and also give insights on the best exchange to buy it.
Is Bitcoin a Good Buy? An Overview
To decide whether Bitcoin is a smart investment and whether to buy Bitcoin, you need to look at its price history over time.
Bitcoin, at its core, is a peer-to-peer cryptocurrency that prides itself as the most decentralized of all cryptocurrencies in the market today. Bitcoin is also gaining traction as Bitcoin gold. This is all thanks to its immutable nature and the fact that it has a fixed supply.
In other words, governments do not have any say in how Bitcoin operates or how it can be used. This also makes Bitcoin remarkably resilient against manipulation, and fraud, since its value does not depend on any individual or organization.
Also, with a total supply of only 21 million Bitcoins to be in circulation, compared to fiat currencies which can easily be inflated at will by central banks and governments, it’s clear that Bitcoin truly represents a distinctive form of monetary freedom. It is the closest thing that society has come to digital Gold.
But even with these strong fundamentals, is Bitcoin really a smart cryptocurrency investment?
Besides its usability as a currency and the potential to become a store of value, it is noteworthy that Bitcoin is one of the few cryptocurrencies that are gaining adoption by institutional investors. This means Bitcoin is one of the top cryptocurrencies that could go truly mainstream, which means long-term value growth.
Virtual currencies are highly volatile. Your capital is at risk
Bitcoin’s performance from Inception to Today
Before you buy a cryptocurrency, it is essential to have a good idea of its past price action. This can give you an idea of where it could go in the future.
Bitcoin was conceptualized in 2008 but launched officially in 2009. It traded at zero for most of 2009 until July 2010, when it hit a value of $0.0008. By August 2010, it had risen to $0.08. Things then slowed down until April 2013, when it hit $250 for the first time ever.
However, Bitcoin only made global headlines in December 2017 when it hit an all-time high of $20,000. While a correction followed in 2018, Bitcoin regained upside momentum again in 2020 and made a record when in November 2021, it hit an all-time high of $69,000.
While Bitcoin entered another bear market in 2022, anyone who bought in the early 2010s is still in profit, to the tune of hundreds of percentages. Those who invested just $1000 in Bitcoin back in 2010 are multi-millionaires today.
Bitcoin Price
Up to this point, you have a good idea of whether Bitcoin is a promising cryptocurrency to invest in 2023. From 2009 to 2022, Bitcoin has been on an uptrend, the ups, and downs in-between notwithstanding.
For most of 2022, Bitcoin has been affected by the same issues that have affected the rest of the financial markets, including the war in Ukraine and the surging inflation that has slowed down the global economy.
As of October 2022, Bitcoin is trading at a low $19,000 and is yet to show any signs of a major pullback in the very short term.
Bitcoin highs and lows
Up to this point, we have looked at Bitcoin’s price action from when it entered the market to date.
Nonetheless, let’s summarize Bitcoin’s price history to make things clearer for you.
- Bitcoin launches in 2009 – $0
- July 2010 – Bitcoin gets value for the first time at $0.0008
- April 2013 – Bitcoin rallies to $250 for the first time
- December 2017 – Bitcoin makes history after hitting a high of $20,000
- January 2018 – Bitcoin enters a bear market dropping to $3000 by the end of year
- November 2021 – Bitcoin makes an all-time high of $69,000
- October 2022 – After a sustained bear run throughout the year, Bitcoin drops to $19000
From Bitcoin’s price history, you should be able to decide whether Bitcoin is a good cryptocurrency to buy in 2023. However, you should know that cryptocurrencies carry risks, and as such, you should only invest what you can afford to lose.
Bitcoin Price Prediction
Before you decide whether Bitcoin is a good investment or not, you should know that all Bitcoin price predictions are speculative. That said, these predictions are educated guesses because they are based on a mix of fundamental and technical analysis.
Most cryptocurrency market analysts believe that Bitcoin could go up in 2023. The average Bitcoin price prediction for 2023 is $30,000. However, it is more long-term that analysts expect Bitcoin to do well. For instance, analysts expect Bitcoin to trade at $200k or more in 2025.
Virtual currencies are highly volatile. Your capital is at risk
So Is Bitcoin a good investment?
Bitcoin being the first-ever successful cryptocurrency, gained traction faster than the rest. This has seen it gain traction, especially at institutional levels. This means it could gain value over time.
At its core, the value of bitcoin is determined by its inherent scarcity. Like Gold, it is a limited resource: only a finite supply of bitcoin can be mined and traded on the market, which means that its price will likely continue to rise as demand grows. This has made it extremely attractive to investors eager to get in on the increasingly lucrative cryptocurrency market.
Bitcoin’s unique combination of scarcity and utility will keep investors coming back for more. And as long as that demand continues to grow, so will the profits generated by trading this increasingly valuable commodity.
Below are some of its core use cases to give you a better idea of how good Bitcoin is as an investment.
- Bitcoin can be used for everyday payments. This is done peer-to-peer, so the payment cannot be controlled by any government.
- Thanks to its scarcity, Bitcoin could become a store of value, just like Gold.
- Bitcoin’s decentralized nature makes it perfect as a store-of-value cryptocurrency.
Bitcoin’s decentralization has already seen it start getting adopted as a currency by countries led by El Salvador. This is a factor that makes the future of Bitcoin quite bright.
Virtual currencies are highly volatile. Your capital is at risk
Where to Buy Bitcoin
Even if you choose to invest in Bitcoin in 2023, buy it from a reputable cryptocurrency exchange. It would help if you also stored your Bitcoin in a safe cryptocurrency wallet to save you from cybercriminals.
eToro – Top Broker to Invest in Bitcoin in 2023
eToro is one of the largest cryptocurrency brokers in the world today. It serves more than 20 million users globally, a sign that people truly trust eToro. One thing that makes eToro a reliable cryptocurrency broker is that it is regulated. As such you can be sure that your money is always safe. eToro is regulated in the U.S, the U.K, Cyprus, and Australia.
eToro also gives users the convenience of being able to deposit and withdraw through multiple options. For instance, you have the luxury to choose between wire transfers, debit cards, and even the plethora of online payments that exist today that range from PayPal, Skrill, and Neteller, among many others.
You will also love the fact that eToro allows you to deposit pretty small amounts. With eToro, you can deposit as low as $50, and open trades for as low as $10. Essentially with only $50, you can build a portfolio of 5 cryptocurrencies.
It is also noteworthy that with eToro, you can safely store your cryptocurrency. That’s because, with the eToro wallet, you have secure storage where you can always be sure that your Bitcoin and other cryptocurrencies are safe.
Virtual currencies are highly volatile. Your capital is at risk
Should I Buy Bitcoin?
Despite its growing popularity, Bitcoin still remains a highly volatile cryptocurrency. As such, you might still wonder, is Bitcoin a good investment in 2023?
To help you make an informed decision, let’s look at some of the main advantages of Bitcoin.
- Bitcoin is scarce, so the price will likely go up as demand grows.
- Bitcoin adoption is on the rise, and from highly strategic quarters such as governments and large corporations.
- Bitcoin can be used to create smart contracts, and due to its high level of security, it could gain a share of the smart contracts market.
Essentially, Bitcoin is a good investment, but as its price has shown, it has a high volatility risk. The volatility is a blessing in disguise though, as it means that the potential for returns is also exponential. Besides, since eToro allows you to invest in cryptocurrencies for as low as $10, the risk is worth it.
Virtual currencies are highly volatile. Your capital is at risk
Conclusion
In this article, we have comprehensively answered the question, “Is Bitcoin a good cryptocurrency investment in 2023?” We have highlighted the key reasons why Bitcoin is a worthwhile investment, including its low coin supply and the fact that adoption is on the rise.
That said, if you want to invest in Bitcoin alongside other altcoins, there are a ton of them that you can buy. To increase the potential rate of return, go for low-cap altcoins with strong use cases. In bull markets, when FOMO is at its highest, such altcoins tend to outperform Bitcoin by a huge margin.
FAQs
Should I buy Bitcoin in 2023?
Bitcoin is a scarce cryptocurrency, and its demand is rising, especially among institutional players. This means it has good prospects for growth in 2023. So, yes, it makes sense to invest in Bitcoin in 2023.
What will be Bitcoin’s price in 2023?
While no one can tell what Bitcoin’s price will be in the future, most analysts expect Bitcoin to test $30k in 2023.
Is Bitcoin a safe investment?
Bitcoin is one of the most decentralized cryptocurrencies in the market today. This makes it one of the low-risk cryptocurrencies to buy now that regulators are turning their focus on the cryptocurrency market.
Virtual currencies are highly volatile. Your capital is at risk
