Bitcoin needs no introduction. This is because this digital currency was the first to break down doors within the crypto market. The coin’s rise has been exponential over the last few years, paving the way for thousands of altcoins and crypto projects to carve out a niche. However, 2022 has seen a global crypto crash that harmed Bitcoin as well. But will Bitcoin rise again? How to Buy Bitcoin in the Czech Republic? Let’s find out!
Will Bitcoin Rise Again?
During September and October, Bitcoin traded in a narrow range between $18,500 and $20,000. However, following the spectacular collapse of the crypto exchange FTX, Bitcoin fell 26% at one point. BTC has underperformed other risk assets, falling 18% in the last month.
Many experts still say Bitcoin is on its way to passing the $100,000 mark, despite the volatility and recent slumping price. However, there are varying opinions on exactly when that will happen. In addition, according to a recent Deutsche Bank study, roughly a quarter of Bitcoin investors believe the price of Bitcoin will be more than $110,000 in five years.
The asset’s recent price movement has many investors concerned about the asset’s potential demise or the onset of a long bear market. Taking a step back and examining the factors that influence BTC’s price, on the other hand, sheds light on larger trends that affect not only Bitcoin but the entire crypto market and other markets as well.
Cryptocurrency prices are purely speculative, making it difficult to forecast what the future holds for this volatile asset. In other words, Bitcoin’s performance will be largely determined by how the rest of the cryptocurrency community feels. Bitcoin’s previous performance may have given some investors hope for a complete recovery. Bitcoin fell by 83% in 2018 before rebounding to new highs in 2020 and 2021. The price was propped up by people having built up some savings during the lockdown brought on by Covid-19.
The price of Bitcoin, and thus whether or not Bitcoin will rise again, is determined by a single simple variable — demand. Bitcoin’s supply is constantly changing, but it grows at a consistent and entirely predictable rate, unlike almost any other asset. This is in contrast to the USD, which the US Federal Government can print at will. Crypto assets move in the same way that stocks do: when there are more buyers than sellers, prices rise, and vice versa. Government laws and regulations frequently have an impact on this demand.
With BTC acceptance expected to reach epic proportions in 2030, Bitcoin is expected to rise above $1 million per coin to an all-time high of more than $150,000. The popular Stock-to-Flow model developed by Bitcoin expert Plan B uses the asset’s digital scarcity to forecast future price valuations. The model predicts that Bitcoin will reach as high as $288,000 in the next cycle peak, which should occur within the next couple of years.
Buying Bitcoin in the Czech Republic: All You Need to Know
The Czech Republic’s government is quite progressive in the field of cryptocurrencies, implying that their use may be promising. Digital money is treated as an asset and is subject to the standard income tax in most EU countries. Nonetheless, the number of Czech organizations accepting tokens for payment is steadily increasing, implying that a shift in Bitcoin’s status is possible. Purchasing Bitcoin and other cryptocurrencies in the Czech Republic is a straightforward process that usually takes less than 10 minutes to complete.
- The first step for buying Bitcoin in the Czech Republic is to create an account with a platform, app, or exchange dedicated to crypto trading.
- The next step of trading crypto in the Czech Republic is completing your KYC process. This is a mandatory legal requirement for almost all transactions in the Czech Republic. To complete the KYC step, you will need your photo ID available to take pictures of both the front and back sides and submit them.
- The final step for buying Bitcoin in the Czech Republic is funding your account. You are ready to purchase your first Bitcoin after this step.
Conclusion
There are still other concerns to be addressed regarding BTC price cycles. Some argue that the popular Bitcoin four-year cycle may no longer be applicable for a variety of reasons. One difference is that, unlike previous cycles, BTC is not the sole kid on the block anymore. Notably, the Czech Republic’s banking system is stable and dependable. The government guarantees investment safety and, in an emergency, returns 90% of deposits to all depositors, both residents and non-residents. The country’s financial institutions ensure the domestic economy’s high stability as a result of this approach.
Bitcoin competes with a slew of superior cryptocurrencies, as well as GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), Web3 startups, and a slew of far more lucrative investment mechanisms. Getting involved in web3 and DeFi necessitates the purchase of ETH rather than BTC. However, experts believe that, as the crypto market gains momentum, Bitcoin will show signs of retaining its crown.
In the meantime, do always remember to go for reputable crypto exchanges in the Czech Republic to buy any crypto and mitigate the risks related to the crypto market.