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How will the world of crypto change in 2024?

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2023 has been a tough but rewarding year for the field of cryptocurrencies and because of this many people interested in this field are wondering how 2024 will go. In this article, you can find an overview of this matter and a prediction of how things will go for cryptocurrencies and their followers. From the halving of Bitcoin people are waiting for to the possible rate cuts and other matters, this article covers it all.

The current situation in crypto

Amongst all the different types of crypto that exist today, Bitcoin is not only one of the most influential ones; it is also the one that people speak about the most. It was a good year for Bitcoin, as this asset skyrocketed by not less than 163% as of December 7th. The current market cap for Bitcoin is $847 billion dollars. This is all very promising for Bitcoins, and the situation, many researchers state, could not be any better.

The reasons behind this statement are various and complex and could not be covered in such a short article, but you can still get an overview of this matter. First of all, in April 2024, Bitcoin will undergo the famous halving people are talking about. This event happens every four years, and what it does is cut the rate at which new Bitcoin supplies enter the market.

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Despite the concerning name, past halving events have been extremely beneficial for this crypto, both before and after their happening. To double-check this information, it is enough to know that the current price of Bitcoin went up by 25% in the last month alone. This intense and positive price fluctuation can be dependent on a number of factors, but one of them definitely is the optimism that is building up in the field of crypto due to the Bitcoin spot exchange-traded fund. In the market, many influential companies such as BlackRock and Fidelity, among others, have filed applications to back the introduction of this product on the crypto market.

EFTs and the long term plan

There is a lot of buzz about ETFs, and for good reason. Spot ETFs would legitimize Bitcoin in the financial services industry, and they would also open up fresh capital for those people who are seeking Bitcoin exposure with an approved and easy-to-trade product. Aside from this, people interested in knowing what the crypto-future holds should also consider inflation. As inflation started decreasing in recent months, this could be seen as a definitive signal that the method of hiking interest rates is finally working. This could end up in the central bank cutting rates during 2024, and this could have a big impact on the field of Bitcoin, so be advised.

Due to the volatility of this currency, many people get caught up in the moment and fail to consider long-term plans. To counteract this, a great rule of thumb would be to buy Bitcoin only if you are planning to hold it for the next five to ten years. Bitcoin is rather commercialized, but it still remains a long-term investment.

This works with the assumption that the value of Bitcoins depends on their scarcity. In the world there can only be 21 million coins at all times. This is dependent on a fixed supply cap, which is set in Bitcoin’s software. Interestingly enough, this number could still change, but only in the remote instance where the majority of nodes (devices participating in a blockchain network) were to accept it. There is a base of consensus between experts that this scenario is extremely unlikely to happen.

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In conclusion

The world of cryptocurrencies is developing and changing with each passing day. As the majority of news seems to revolve around Bitcoin, that’s where the focus of this article was. It is important to consider Bitcoin as a store of value but still consider its volatility. The most famous store of value in history is gold and even though crypto is rare to find, they are not as physically present as gold itself.

The current value cap is set at a $1 trillion dollar market and that is extremely likely to happen sometime in 2024. But in fairness, Bitcoin’s value could surpass that value and become even more valuable with the passing of time. But before you impulsively invest in this field, be advised: this market is extremely volatile, as you know and because of this, a good ground knowledge of this matter should be implemented and nurtured.

This article provided an overview of the direction that the field of cryptocurrency and Bitcoin is taking and the main interesting points were discussed in it. To conclude, 2023 has been a great (even if tough) year for this field and in 2024 things might be progressing in a similar direction.

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