How Much Will Bitcoin Be Worth In 2025?
Frequent spikes and falls of Bitcoin (BTC) seem to affect experts’ opinions about its future price. We have already sensed that instability through this last year and yet, we are still excited to see how its price - and with it, its place in the world - will grow.
In fact, the cryptocurrency industry has begun to play such an important role in the global economy, that one thing’s for certain: blockchain-based investments won’t just fade away. Let’s gather what we already know about Bitcoin’s behaviour so far and combine it with some relevant predictions to venture an educated guess as to what price we can expect in 2025.
The History of Bitcoin’s Price
It’s been over a decade since the pseudonymous Satoshi Nakamoto presented the idea of a digital currency that’s beyond the scope of any central banking authorities. In January 2009, the developer(s) by that name posted a link to a white paper under the name of Bitcoin: A Peer-to-Peer Electronic Cash System, which described these new trading principles to the world. Ten months later, for the first time, BTC denominational price was determined based on the electricity cost needed to generate a single coin, with the rate of 1 US Dollar = 1,309.03 BTC
The first positive price movement was recognized the next year when BTC reached a value of $0.08. In 2010, Bitcoin’s “teething troubles” popped up. The first Bitcoin traders were heading a disturbingly volatile road on an unregulated market, scared by numerous forms of cyber frauds. In 2011, the first critical roller coaster was noted when Bitcoin reached $32, only to drop to $2 only six months later.
Over the following years, Bitcoin seemed to survive the “dark ages” and started gaining traction among both corporate investors and average enthusiasts. However, it didn’t bring any market stabilization, as Bitcoin’s price drastically shifted from $4 to $1,200 between 2012 and 2017. The industry was still vulnerable and exposed to millions worth of cyberattacks.
Surprisingly, by the end of 2017, Bitcoin hit a new all-time high of 20,000 USD. However, it seemed that the mass media wasn’t prepared to support such a risky financial concept and Bitcoin’s price hit a new sharp bottom of $7,000 very soon. Luckily, there were clear signals of public acceptance in the years to follow. The covid-19 crisis of 2020 may have ruined the global economy, but it made non-tech savvy people orient towards the digital space, thus transforming Bitcoin into a global sensation.
What Has 2021 Brought So Far?
The year started with the worth of a single Bitcoin being $30,000, but the huge demand could be felt in the air, so to speak. Bitcoin's rise was breaking news around the globe, usually referred as to the greatest discovery since the Internet. There were still sharp yet short-lasting fluctuations and the peak was reached when Elon Musk himself invested in Bitcoin and announced that people can buy a Tesla car using their Bitcoin. In April 2021, a single Bitcoin hit an unbelievable price of $63,000.
However, the middle of May brought another dramatic pullback in Bitcoin resulting from negative headlines, including a change of heart from Tesla’s CEO Elon Musk, as well as new adjustments of the governmental regulations by China banning financial institutions from cryptocurrency business. Basically, the crypto industry noted the most extreme volatility in its brief history. Will the blockchain realm burst as fast as it conquered the world, or is this a surpassable crisis similar to what we witnessed in 2017? How far can Bitcoin go?
Bitcoin in 2025
Despite the recent shrinkage, predictions for Bitcoin’s future are generally positive. Even the greatest skeptics can’t oppose how powerful Bitcoin has become. Most professional opinions go in the direction that Bitcoin will range between $75,000- $400,000 by the year 2025, and once it breaks the psychological barrier of $100,000, its estimated value will continue to grow at a stable pace.
The bright predictions go even further and according to Josh Fraser, the co-founder of Origin Protocol, (a decentralized protocol that uses IPFS and the Ethereum blockchain to create a shared economy marketplace), Bitcoin’s price is expected to hit $1 million by the end of 2025. He claims that nothing is overstating in such a prediction but simple math of supply and demand. As Bitcoin is becoming part of long-term institutional investments, the increasing demand has been a proven pattern, whereas the supply is gradually but inevitably diminishing.
Over the past decade, the Bitcoin community has come across diametrically opposed predictions from total failure to millions of dollars. Admittedly, the majority of these predictions have been emotionally driven by experts’ guesses at a particular point. A great deal, however, turned out to be pretty accurate. But what do research analyses say about 2025? What about the rumours about Bitcoin halving and the question of whether the stock-to-flow ratio can predict the Bitcoin price?
You’ve probably heard that the original source of acquiring Bitcoin is through mining. Every time a Bitcoin is mined, i.e a solution to a complex math puzzle is solved, the miner gets a reward consisting of a particular amount of Bitcoin called a subsidy. Currently, the subsidy is 6.25 BTC. Back in 2016, it was 12.5 and four years prior, the block subsidy was 25 BTC. Accordingly, the Bitcoin subsidy halves every four years. This means that the subsidy-created supply of Bitcoin is consistently reducing. Statistically, each halving round was unmistakably followed by a parabolic price rise. They prove the demand vs supply factoring into determining the Bitcoin Price.
The stock-to-flow ratio has been a widely used mechanism for indicating the price of commodities for a long time. The same was applied to the Bitcoin price flow in 2019. It measures how much Bitcoin is currently circulating against the resource flow, i.e the production in relation to the supply-demand mechanism of the halving ratio. We can see that the halving effect determines the price of Bitcoin to a great extent. At this point, the Bitcoin stock-to-flow ratio shows that this asset should reach a price of $100,000 by the beginning of 2025. Taking into account the previous go-arounds, it’s reasonable to estimate that Bitcoin’s price could possibly reach $150,000 at this time.
To what extent should you rely on these optimistic Bitcoin price predictions? Well, it all depends on your individual goals and personal expectations as a potential investor. In any case, there are lots of factors at play: global economy and politics, inter-business interests, and other single events that nobody can predict. You needn’t go further than Musk’s tweet on not accepting Bitcoin payments for Tesla cars anymore to see how easily Bitcoin’s price can be swayed in one direction or the other.
If you have a conservative approach toward digital investments but you can feel that cryptocurrencies are an inevitable course of sequence in the financial ecosystem, then buy a few crypto assets and keep them safe in a Bitcoin wallet.
If you’re courageous enough to grasp this relatively new investing notion, you can go for a short-term profit with day trading. The Bitcoin marketplaces nowadays offer great opportunities for tracking and observing market insights.
Regardless of your personal attitude toward the new investment wave, you must admit that Bitcoin by its very nature is incredibly tempting and you shouldn't miss the opportunity. So stay tuned and regularly read the latest crypto news. After all, you can always count on MyBTC.ca as a starting point for a well-planned and positive Bitcoin experience.