On February 12th, Bitcoin is worth $10,300. It’s the second-highest value reached in the last twelve months.
Of course, the value will keep changing. For investors, one number isn’t practical enough to make decisions. Anytime soon, the biggest cryptocurrency could either crash or surge.
Bitcoin may have crossed five figures today. The offer and demand have set this price. However, that doesn’t show the actual value of the currency.
How much is Bitcoin worth as a whole? What explains this consistent value increase? Have we reached its real price, or it’s inflated? Is it a bubble?
How Much Is Bitcoin Worth?
It doesn’t matter how prices change. The market changes are only activity trying to “perceive” how much Bitcoin is worth. Most of the time, it will either be underpriced or inflated. It’s the investor’s psychology.
But the perception has nothing to do with reality. Once you know the real value of Bitcoin, you can predict how much it will grow and prepare accordingly.
What makes something “valuable”? Why does Bitcoin even exist? And why is it different from other altcoins?
Why Bitcoin Is Worth Over $10K Today
For years, we’ve heard stories of successful investors who got the right timing. The problem is, you lose more often than you win.
But do we need to predict the market to make profits?
You’re in luck. Passive investors make the most with Bitcoin. You don’t need to watch the news every day, study graphs, and think fifty steps ahead of everyone else. All you need to do is understanding what moves the needle.
Bitcoin has grown since 2011 because it’s valuable and nothing else:
-Protection against inflation
-Exchange-rate risk protection
-Ease of use
Not only it solves problems, but it’s also different from other altcoins. Bitcoin has expanded exponentially as technology made transactions more reliable.
Because of it, Bitcoin is the less volatile crypto-currency in the market. Although new coins come up every day, not many have a decade of history. From 2011 to 2020, we’ve already seen most of the Bitcoin price patterns, so we know better what to expect.
Bitcoin Price VS Value
When it comes to value, Bitcoin has gone up consistently. The biggest price changes happened because of market expansion.
If you see a steep price increase, it could mean many people joined the market recently. After they heard of this crypto-world, they bought some bitcoins and increased the demand.
But what if the price goes down very quickly? Remember, people want to buy low and sell high, also to stay in the market as little time as possible. After all, you’re risking your money.
If the majority bought when the price was low, they would sell right when Bitcoin surges. It’s ironic how the crypto volatility makes investors impatient, causing spikes like in 2018.
Overall, Bitcoin has a splendid future. There are many reasons why it can still go in value: security, government regulations, and popularity.
No matter how prices change, you can make money if you know how to approach this market.
You should diversify your investments, so you capture more opportunities while reducing risk. Depending on your personality and goals, you can make your asset allocation more aggressive or defensive.
For bigger amounts, always work with a professional. The right investor will guide you to make better decisions.