The Bitcoin market – is it as big as we think it is?
When we think about the value of a single Bitcoin, we think it is really high, which suggests that the Bitcoin market is huge. However, compared to other markets, we can say that it is not that big.
The Bitcoin market still has many opportunities to grow
The Bitcoin market is relatively small compared to other markets and, in theory, its value is almost equal to that of Warren Buffet’s assets.
Compared to the gold market, the value of the cryptocurrency market is not very high, which leaves many opportunities for development. Will the cryptocurrencies manage to get their chance?
Large increase in Bitcoin value over the years
Bitcoin has increased its value since its appearance on the market. BTC is having some ups and downs about its price but has consistently climbed up in the charts of its value. Despite this, compared to other, traditional markets that have been formed for many, many years Bitcoin market is relatively small and there are many opportunities for it to enhance its position in global markets.
And if you're wondering just how early we are to #Bitcoin – take a look at its relative market size.
— Rafael Schultze-Kraft (@n3ocortex) May 2, 2020
Bitcoin has a low inflation rate
Bitcoin is really popular in countries with high inflation – such as Venezuela. The people of this country should spend their earnings on the same day they get it, because the next day they may not be enough to buy food. Investing in Bitcoin offers the possibility of some kind of stability for those people. Who knows how global financial markets will develop in the face of a pandemic?
COVID-19 and Bitcoin
COVID-19 pandemic is affecting in our everyday lives. It has brought many aspects into the Internet. As a result, and in combination with some fears about the growing inflation, cryptocurrencies are gaining in popularity. You can read more about this in our article about COVID-19.
Bitcoin is the most popular cryptomarket in the world and is the biggest player of the crypto market. Its value at 07.05.20 is almost 9300 dollars.
We can easily check how high is the trading popularity of a cryptocurrency, by looking at its 24-hour volume. In the case of Bitcoin, it is $47,873,504,697 on the day of writing the article. This means that the interest in it is huge and creates incredible opportunities for growth.
Volume does not always go hand in hand with the cryptio price and its popularity
The assumption that the largest market volume is exactly the same as value and popularity at any given time is wrong. Although Bitcoin is unquestionably the largest player on the cryptocurrency market, the first place in the ranking of 24-hour trading volume currently is owned by Tether and it’s a $59,771,620,201. This is impressive, considering that a single Tether is worth about a dollar.
How big can the Bitcoin market be?
There is a lot of speculation about the future of Bitcoin and the growth of its value in the market. Many people are trying to predict Bitcoin’s future. One of the attempts trying to calculate its changing value is the BTC S2F model.
This model speculate that the value of Bitcoin at the end of 2020 will be about $100,000. However, there are many opponents to this theory, and PlanB recently twitted update its chart considering the latest data about Bitcoin.
— PlanB (@100trillionUSD) April 27, 2020
As you can see, predicting the value of Bitcoin over the years is very difficult and it is a huge problem for experts. They can only speculate and predict by constantly refreshing their knowledge.