Massive price fluctuations, incomprehensible technology, barely regulated – and yet: Time and again, investors place their trust in the world’s largest cryptocurrency and buy it. Bitcoin fans now include not only nerds and IT people, but also normal people like your own neighbor or colleague. And they can currently open a champagne.
Since the beginning of 2023, the price of Bitcoin has more than quadrupled. On January 1, 2023, it stood at around $15,400, and this weekend it broke the $70,000 mark. That’s around 66,000 euros. Anyone reading these numbers may now ask themselves the question: Should I quickly get in with 100 euros? The answer: It depends.*
Bitcoin (BTC) has been around since 2011 and at that time it cost $1. The cryptocurrency became known in 2018, when it broke the $20,000 mark for the first time. After that, he was repeatedly declared dead until the rally started again in 2020. At that time, a BTC temporarily cost $5,000, then at the end of 2021 it cost $69,000. The next crash to around $20,000 followed in 2022.
Some analysts expect Bitcoin to break the magic barrier of $100,000 this time. But: No expert can look into the future. Especially not with an investment as wild as Bitcoin.
It is impossible to predict how the price of Bitcoin will develop in the next few weeks and months. As with other investment classes, it’s all about how the investor himself assesses how the price of the cryptocurrency could develop. Unlike stocks, for example, the probability of very strong price fluctuations is higher for Bitcoin. This means that the loss of the money invested is also more likely.
Past price developments have shown that Bitcoin loses value again after a phase of hype and can fall to a level that is well below the current high. Recently, the cryptocurrency has benefited primarily from increasing acceptance in the financial world. Some fund companies have launched investment products that are based on the development of Bitcoin. This may have triggered the new rally. Anyone who still wants to invest now must be aware of the risk of a rapid price loss.
Bitcoin is a type of digital money used online. You can think of it as regular money, but instead of coins and bills, there are just numbers on a computer. These numbers are stored in a special type of computer file called a blockchain. The blockchain works like a public ledger where all Bitcoin transactions are recorded.
Bitcoin is not controlled by a government or bank, but by a network of computers around the world. People can buy, sell, or use Bitcoins as payment for goods and services, just like with traditional money.
*Neither the star nor the author make an investment recommendation. No liability is accepted for exchange rate losses or other damages.