Crypto in 2022: 1.st episode — BTC
The year 2021 has seen an exponential growth of certain crypto currencies and everyone around the world is wondering if it will be possible to repeat certain exploits in the coming months.
Given that no one owns a magic wand or crystal ball, if you also have a small nest egg to invest and are undecided on which crypto to bet, here are my personal choices for a diversified (but not too much) portfolio, a look at the past and attention to the evolution of this fascinating market.
LAST UPDATE 9 JANUARY 2022
I doubt that those who are reading need to know what we are talking about but, for those who do not know, cryptocurrencies are virtual currencies, visible and usable only by knowing a certain computer code, the so-called public and private access keys. Therefore, they do not exist in physical form, but are generated and exchanged exclusively online.
Potential cryptocurrency investors are attracted by the fact that they are faced with high volatility and incredible volumes of money characterized by strong instability. The short-term price movement helps generate profits in digital wallets.
Now let’s see the first of the cryptocurrencies in this series of articles, we couldn’t help but start from the one with the largest marketcup, here are the forecasts for 2022 on Bitcoin.
It is the most popular and best known, who hasn’t heard of it at least? It has been on the market for many years, in short, an old lady, and as such she certainly has some problems with old age, slowness and high transaction costs. But it is considered “digital gold” and speculations will continue on it that will characterize its high volatility, high volume and price instability.
Michael Saylor, CEO of MicroStrategy, is one of the largest investors in the world in Bitcoin, in fact personally owns a total of almost 18,000 BTC. In a recent interview, the CEO revealed that he has never sold even one of his Bitcoins, but has only bought currency until now.
Precisely because for him Bitcoin represents a long-term investment, like gold, and because he believes that the market value of the currency will continue to rise relentlessly in the coming years.
Also according to Saylor, Bitcoin is only at the dawn of its history, with 2022 which will have to represent an important stage, in which the price of BTC will touch, according to this upward forecast, a minimum of $ 600,000 up to a maximum of $ 6 million. dollars per coin.
Another major investor, Michael Novogratz, the CEO of Galaxy Investment Partners, is also a staunch supporter of the bullish trend, basically both Bitcoin Bulls are convinced that 2022 will be the year of institutional investors’ entry into the cryptocurrency market, the real element capable of making spiking the price to market peaks never seen before.
To cool the easy enthusiasm, obviously, there is no shortage of analysts who believe that in the coming years the value of BTC will be downwards, this is because the dynamics of the market value of Bitcoin, with a look at the logarithmic scale of the price, shows a cyclical trend, where the next descent should begin in the following years.
The cyclical dynamics of BTC and the bearish forecast
If we look at market trends, Bitcoin has a unit value at the moment that fluctuates around $ 50,000 and always seems to be on the verge of an upward or downward peak.
Some analysts are convinced that Bitcoins follow a cyclical trend in the markets, where the critical point that will mark the beginning of the bearish trend is approaching, the principle of the so-called “cryptocurrency winter”.
The theory of cycles, takes into account the analysis of market trends and the logarithmic scale of the Bitcoin price, since its introduction in 2009.
According to this scale, the next halving, i.e. the principle of the decline in market value, will begin in 2022, assuming that all the previous highs followed this cycle: 2011, 2014 and 2018.
Despite the different forecasts, I think that any crypto portfolio cannot do without a substantial share of BTC, which remains one of the best for making short-term profits efficiently.
However, we must be careful, sometimes it reaches the record of the highest price of all time, but other times it collapses for weeks and in this case we must not give in to the temptation to sell, because, history has shown us, after a sudden fall. Bitcoin goes back and forth more than before.
Where to buy and trade Bitcoins
Buy BTC and trade on Nexo.io
Buy BTC and trade on Binance
Read our guide (soon)
Buy BTC and trade on Coinbase
Read our guide (soon)
Buy BTC and trade on BlockFi
Where to earn BTC for free
earn easily BTC on Freebitco
earn easily BTC on Cointiply
The next episodes of this series: