Source: Northeastern Global News
With Bitcoin having a new high record of surpassing $100,000 in December 2024, the experts are now exploring the field of blockchain and cryptocurrency with its pros and cons for their portfolios, concerning Bitcoin allocation. Have you ever considered what amount of Bitcoin is enough for you to invest?
In general, you need to invest a very low amount. According to a report by BlackRock, just 2% of Bitcoin is enough for any ordinary person to have or start with an investment.
A Brief History Of Bitcoin
Bitcoin, the first digital currency of the decentralized market powered by “blockchain and cryptocurrency” technology, was or is known to be the “digital gold” because it behaves like gold and is a scarce commodity with a limited supply of 21 million coins. There is no one (till yet) who owns the infrastructure of Bitcoin (Blockchain and Cryptocurrency technology). It has been 16 years since Bitcoin has been marketed in the global markets. It withstood quickly in the financial market over the years and has eventually given a CAGR of 167% in the last 10 years. The experts say that it is just a beginning with the growth of Bitcoin and also, it makes an interesting case for Bitcoin to be included in investment portfolios.
What Is Going To Be The Value Of One Bitcoin In 2025? Let’s Discuss Prediction By Experts….
Except for the fact that the investors might have a potential risk concerning the investment in Bitcoin, they also agree on its robust growth prospects. Edul Patel, CEO of Mudrex, predicts that Bitcoin could reach $150,000 by year-end in 2025 while others say that it could reach a great milestone.
Geoff Kendrick, Standard Chartered’s Head of Digital Assets Research, anticipates that Bitcoin can hit the maximum value of $200,000 by the end of 2025. He also states that just like 2024, the value of Bitcoin could reach its maximum peak in 2025 or at year-end. In addition, the institutional flows into Bitcoin will likely continue.
Seeing the recent scenarios, 2025 is going to be the defining year for Bitcoin. The technological breakthroughs, clearer regulations, and its combination– can see an increase in adoption of Bitcoin by the retail and institutional sectors in the transformative year for the cryptocurrency industry.
As per the suggestion by BlackRock, only 2% of Bitcoin investment is enough. It might sound low to any investor who has seen regular growth in the cryptocurrency industry or for any corporate company, the investors like Michael Saylor of MicroStrategy advocate that you go all-in on Bitcoin. The experts say that with a way to start investing in Bitcoin, how much risk are you willing to take on? And how many predictions do you have in your mind concerning Bitcoin's future growth prospects?
Michael Saylor also says that if you think that the U.S. Dollar is eventually getting lower in its value in comparison to the digital asset, Bitcoin, you can think of boosting your allocation. In other words, you can think of increasing your Bitcoin allocation if you think that Bitcoin can outperform tech stocks.
If, on the other hand, you think that Bitcoin is still too risky and volatile, then you can start by investing for only 1% of your share in the Bitcoin for blockchain and cryptocurrency stocks/market/cryptocurrency industry. You can go a bit lower than 1% or even 1%, 2%, and 4% and so on. In short, the amount of 2% Bitcoin allocation is not too small not too big. It essentially gives you the same amount of risk as being given to any other investor with greater rewards.
Impact Of The Trump’s Victory In 2024 Presidency Elections
United States To Be The Next Crypto Capital Of The Planet—By Donald Trump…(1)
Donald Trump Confirms Bitcoin Reserve Planning To Surpass 15 Trillion…. (2)
Donald Trump gave two statements (1) and (2). He gave the statement (1) before the US elections for the position of President. For the statement (1), the companies pointed out that the investors are keeping the potential impact of Trump’s presidency. It has given the chance for greater adoption and an increase in the support for cryptocurrency by investors. The statement (2) - he gave this statement after gaining the position of President which further held the trust of investors.
Keeping these two statements in mind, the promise of Donald Trump over the making of Bitcoin reserve; the rate of global Bitcoin adoption might skyrocket over the next four years. In addition, if this happens in future, the optimal Bitcoin allocation will have entirely a new evaluation of what Bitcoin allocation is there for investors in today’s date.
Bitcoin: Opportunities And Risks Going To Be Faced In 2025
Making predictions about the value of cryptocurrencies is a very risky exercise. “The future might look promising yet uncertain concerning the start of the new year–2025,” says John Plassard.
The performance of Bitcoin depends on macroeconomic factors. And if Trump's administration remains and the same market liquidity and regulatory policies remain in place, then Bitcoin can become a legitimate asset class.