Is Bitcoin A Good Investment In 2023?
With Bitcoin and the wider crypto market having a slow year generally in 2023, I look at whether Bitcoin is a good investment in 2023 and beyond.
But the short and quick answer is...yes, Bitcoin is a good investment in 2023 and beyond for a whole variety of reasons that you'll discover in this post.
If you don't know, Bitcoin is the most valuable and well known crypto coin in the crypto market.
Bitcoin was the first crypto coin to be released and it was created by a computer programmer called Satoshi Nakamoto and was first released in January 2009.
Bitcoin was built to be a decentralized transactional digital currency that no government or central bank controls that can be used to make payments.
If you hold Bitcoin, you are like your own bank and you can send Bitcoin to anyone free of charge as long as they have a Bitcoin wallet.
And many people believe that Bitcoin is like liquid gold and will be one of the most valuable assets you can own in the years ahead.
But in order to answer the question of whether Bitcoin is a good investment, we need to look at it's past performance.
Key Takeaway's
1) Bitcoin is the largest and most valuable crypto coin by market cap
2) Bitcoin is a transactional crypto meaning that it's main role is a currency that can be used for making payments.
3) Bitcoin's current price is $26,278.
4) Bitcoin's all time high was $68,789 on 10th November 2021.
3) Bitcoin's price has risen 4,830% in the past decade.
4) Many crypto experts think that Bitcoin can reach $100,000 in the next 18 to 24 months during the up-coming crypto bull run.
5) Bitcoin is a highly volatile asset where its price can swing wildly in a short period of time.
6) Bitcoin is becoming considered to be a great store of value and wealth.
7) I believe that Bitcoin is a good investment especially for medium to long term investors.
Important - Nothing in this article should be considered as financial advice. Bitcoin and crypto is a very volatile asset so you should never invest more than you can afford to lose.
Prepare for the crypto bull run and navigate the crypto roller coaster by joining Teeka Tiwari's Palm Beach Letter service here.
Bitcoin Price Over The Years
Bitcoin has historically been a volatile investment with wide swings in its price. This has caused many people to say that Bitcoin is a risky investment or even a scam.
But lets look at the facts and data to see how well Bitcoin has performed during its lifetime.
Bitcoin Price 2009 to 2015
When Bitcoin was first released, it's price was zero in 2009. Bitcoin's price on April 13th, 2011, was $1 and by June 7th, 2011, it was $29.60 which is a gain of 2,960% in only 3 months.
2012, was largely an uneventful year for Bitcoin but 2013 saw some strong gains.
Bitcoin started the year trading at $13.28 and by April 8th, it had reached $230. A rapid fall in Bitcoin's price followed, bringing it down to $68.50 by July 4th.
By December 2013, Bitcoin had spiked to $1,237.55 and then fallen to $687.02 three days later.
2014 saw falls for Bitcoin's price and by the start of 2015, touched $315.21.
Bitcoin Price 2016 to 2020
Bitcoin's price slowly climbed through 2016 to over $900 by the end of the year however, 2017 saw a significant year for Bitcoin.
Bitcoin hoevered around $1,000 until it rose past $2,000 by mid-May and then sky rocketed to $19,345.49 by December 15th.
Bitcoin's price generally moved sideways during 2018 and 2019 however it fell to $6,635.84 by mid-December 2019.
In 2020. the global economy shut down due to the Covid-19 pandemic however, Bitcoin's price burst into action once again.
The cryptocurrency started the year at $6,965.72. The pandemic shutdown and subsequent government policies fed investors' fears about the global economy and accelerated Bitcoin's rise.
At the close on Nov. 23, Bitcoin was trading for $19,157.16. Bitcoin's price reached just under $29,000 in December 2020, increasing 416% from the start of that year.
Bitcoin Price 2021 To Present
At the start of 2021, it took Bitcoin less than a month to smash its 2020 record, surpassing $40,000 by Jan 7th, 2021.
By mid-April, Bitcoin had reached new all time high's of $60,000 pushed by surging demand to invest in Bitcoin.
Institutional interest pushed Bitcoin to a peak of $63,558 on April 12, 2021.
By the summer of 2021, prices were down by 50%, hitting $29,796 on July 19th. September saw another bull run, with prices reaching $52,693 but prices fell to $40,710 around two weeks later.
On November 10th 2021, Bitcoin reached its all time high of $68,789 before closing at $64,995.
In mid-December 2021, Bitcoin fell to $46,164. The price started fluctuating more as uncertainty about inflation and the emergence of a new variant of COVID-19, Omicron, continued to spook investors.
Between January and May 2022, Bitcoin's price continued to gradually decline, with closing prices only reaching $47,445 by the end of March before falling further to $28,305 on May 11. This was the first time since July 2021 that Bitcoin closed under $30,000. On June 13, crypto prices plunged. Bitcoin dropped below $23,000 for the first time since December 2020.Bitcoin finished 2022 trading at $16,547.91.
Through 2023, Bitcoin's price has recovered to a peak of $30,409.56 on 14th April 2023, and as of writing this post on 12th september 2023, Bitcoin is now trading at $25,840.60 after a generally uneventful summer.
Sources of data, Investopedia
Is Bitcoin A Good Investment For 2023 And Beyond?
This is the million dollar question but before I give my thoughts on Bitcoins future potential, we need to look at how Bitcoin's price has performed over the past 10 years.
Over the past decade, the S&P 500 and the Nasdaq Composite index has risen 166% and 270% respectively.
Bitcoin's price on the other hand has risen 4,830% in the past decade far outperforming the S&P 500 and the Nasdaq Composite index.
Whilst Bitcoin has seen a meteoric rise in it's price over the past decade, it's price has historically been very volatile which puts a lot of investors off from investing in Bitcoin.
Bitcoin and crypto's volatility is just the nature of crypto and the fact that it is a very new technology and asset class much like the internet was back in the late nineties.
However, as crypto becomes more mainstream where the general public and institutional investors buy into the idea of Bitcoin and crypto, I believe much of Bitcoin's volatility will end as the market becomes a lot more stable.
So with everything taken into consideration, is Bitcoin a sound investment for the future?
Firstly, if you like Bitcoin, understand it and fully believe that it has a strong future, then it would be wise investment.
I personally believe Bitcoin has a very strong future and will be one of the worlds most valuable assets.
Bitcoin is like digital gold and will be a great store of value for the future as Bitcoin becomes more and more mainstream.
I also think that Bitcoin will solve a very real and dangerous threat from our governments who want to take and control our money through Central Bank Digital Currencies.
Anyone can own Bitcoin and anyone can send or receive it. Not one person or entity controls or issues Bitcoin and no one can take it from you once you hold it.
Bitcoin can also be used to protect wealth from greedy and ever controlling governments. So not only is Bitcoin a great investment, it is also a protector of wealth and more importantly democracy and freedom.
And once the masses understand this, I believe people and institutions will be flooding to store their wealth in Bitcoin.
Now before you rush out to buy Bitcoin, NOTHING in this post should be taken as financial advice and hence you must do your research before you invest and never invest more than you can afford to lose.
But when all is said and done, I don't think Bitcoin is going anywhere and I believe that it will become the worlds largest decentralized bank in the future that will protect and grow the wealth of billions of people.
So yes, I personally believe that Bitcoin is a great investment and it has a very bright future and with the crypto bull market due in 2023 where billions or dollars flood into crypto, it is only a matter of time before Bitcoin smashes past it's previous high price.
Prepare for the crypto bull run and navigate the crypto roller coaster by joining Teeka Tiwari's Palm Beach Letter service here.
Key Bitcoin Events To Look Out For
Here are some very imprortant Bitcoin events to look out for over the coming six to 12 months
1) The approval of Blackrock's Bitcoin spot ETF fund by the SEC. Should this fund get approved in October, Billions of dollars will flow into Bitcoin overnight and Bitcoin's price could 2X or more just on the news alone.
2) Bitcoin's halvening is happening in April or May 2023. Typically after Bitcoins halvening where the amount of Bitcoin issued to Bitcoin miners is reduced, Bitcoins price soars.
3) It is widely expected that the crypto bull market is due in 2023 where money flows into crypto and the bullish mentality about crypto returns. Teeka Tiwari who is one of the worlds leading crypto experts believes that Bitcoin could hit $100,000 to $150,000 by the end of 2023.
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