Their own bitcoins in 2021 is the only thing that could prevent the loss of the cryptocurrency bubble that has been inflating to unprecedented highs in recent years.
The popularity of virtual currencies has been growing drastically, with some economists predicting a very strong price rally.
Since the value of a single bitcoin has gone from $1,000 at the beginning of 2013 to almost $11,000 today, the cryptocurrency market is booming. The price of bitcoin itself has also reached new highs of over $10,000, taking its market capitalization above $150 billion.
But there is one thing that keeps bitcoin from gaining much more traction among investors: the tremendous volatility in the currency’s value.
The booming demand for cryptocurrencies has led to a market in which investors have been taking chances with bitcoin, creating wild swings in its value.
Investors who bought bitcoin at the beginning of 2013 are now only up a little more than 1% on the investment, whereas those who bought it at the beginning of 2014 are currently up nearly 600%.
This is a drastic difference when compared to the staggering gains investors have made in the stock market over the last eight years. This is largely due to the low interest rate environment investors have experienced in recent years.
But now that interest rates are rising, it has become much more tempting for people to move into the risky cryptocurrency market.
It is already looking like a bubble is forming in the market, given the tremendous price gains of cryptocurrencies so far.
Even if this bubble bursts, bitcoin will still be a great investment for many investors in 2021.
Even if the cryptocurrency market explodes in the next few years, investing in bitcoin in 2021 would still provide investors with the possibility of quadrupling their investment in less than five years.
All investors need to know about bitcoin and other cryptocurrencies is that a bubble forming in the cryptocurrency market could send the price of a single bitcoin soaring to as much as $100,000 before it completely bursts.
However, in 2021, bitcoin will only have achieved the market capitalization of $125 billion, compared to $160 billion today. This suggests that investors in 2021 would only be getting a third of the profits they can get today.
So there is still a good chance to turn a $10,000 investment in bitcoin in 2021 into a $40,000 investment in less than six years.
But this investment will only result in a tiny profit of $2,500.
With the enormous gains that have been seen in the cryptocurrency market so far, it is hard to see how investors could ever turn a $10,000 investment into more than $40,000 at the peak of the next bubble.
But these extreme price swings seem unlikely to last much longer, given the substantial growth of cryptocurrencies that are happening right now and for businesses forming part of a digital empire, the likes of MPC crypto help you manage your digital assets beyond just speculation and trading.
There is a chance that the cryptocurrencies bubble that has been inflating to record highs in recent years will burst.