Bitcoin is a digital asset that utilizes blockchain technology, and continues to rise in popularity while gaining impressive success. While many people are still unconvinced about putting their money in the crypto market due to its high volatility, Bitcoin investing can be lucrative. Discussed below are four reasons to invest in Bitcoin in 2024.
1. The upcoming Bitcoin halving event
Bitcoin halving is when the Bitcoin reward is cut in half, and happens every four years. The primary objective of the halving event is to control the supply of Bitcoin to ensure it stays finite, with a maximum capping of 21 million coins. Halving, which is expected to occur in April 2024, influences Bitcoin by potentially raising its worth over time because of the low supply of new digital coins entering the crypto market. This makes Bitcoin scarce, enhancing Bitcoin’s appeal as a store of value.
In addition, the speculation and anticipation surrounding halving events usually power investor interest and market activity, further impacting price movements. Bitcoin halving affects its supply by lowering the rate at which new BTCs are produced, establishing a scarcity effect. Thanks to this scarcity, Bitcoin demand may rise if investor interest and the coin’s adoption keep growing.
The fact that past halving events have led to price increases makes Bitcoin a good crypto to invest in 2024. This digital coin is available in many popular crypto exchanges like Kraken, and there are various ways to purchase it. Click here to learn how to buy Bitcoin on Kraken or other preferred crypto exchanges.
2. Bitcoin’s price history
When Bitcoin was launched in 2009, its price was zero. Two years later, Bitcoin prices skyrocketed significantly, surpassing the $100 mark by April 2013 and $200 by October of the same year. At the close of 2020, Bitcoin’s price had reached just below $29,000. In November 2011, Bitcoin hit $68,879, an all-time high, then gradually declined to under $20,000 by the close of 2022.
The prices rose consistently all through 2023 to $34,154 by October. Although the crypto market is volatile, Bitcoin’s price history speaks for itself and signifies that the crypto is a great investment. Also, the upcoming halving event is likely to act as a catalyst for the performance of Bitcoin in 2024.
3. Steady interest rates
The Federal Reserve announced that interest rates will remain steady. When these rates fall or stay stable, cryptocurrencies like Bitcoin can provide an attractive area for investors to hold capital thanks to its perceived protection against conventional financial systems and rising scarcity, particularly as the halving nears.
4. Approval of spot Bitcoin EFTs
The approval of spot Bitcoin EFTs by the United States Security Exchange Commission (SEC) has made it simpler for individual investors to invest in the most known cryptocurrency. The new 11 EFTs are simple, easy-to-trade funds that will directly monitor BTC’s current price instead of futures contract prices. These EFTs provide more ways for investors to get more exposure to the cryptocurrency. Spot Bitcoin EFT’s approval means:
- Bitcoin may start being visible on mainstream portfolios for more retail investors to gain exposure
- Retirement planners can add it to employer-financed 401k plans
- Large organizational fund managers can incorporate it into their investment funds
This makes Bitcoin ownership easier because you don’t have to depend on vulnerable wallets for storage.
Endnote
Investing in Bitcoin can be a lucrative venture if you’re careful. Familiarize yourself with the above reasons to invest in Bitcoin in 2024.