Volatility. It’s a word that many people still associate with bitcoin, and rightly so. Since its launch in 2009, the cryptocurrency has gone from being an experiment for enthusiasts to one of the most talked-about financial instruments in the world. Now we are in 2024, and whether to buy bitcoin is even more relevant. What to expect from the course and what will the prospects be? This is what we are going to find out.
What Bitcoin is and why it has become popular
Bitcoin in 2024 is not just a digital currency, but a symbol of change in the global financial system. It was created in 2009 by a developer known by the pseudonym Satoshi Nakamoto. Bitcoin’s goal was to create a decentralised currency outside the control of banks and states. The main characteristic of Bitcoin remains its limited issuance: only 21 million coins.
Investing in cryptocurrencies has gained popularity due to several key factors. First, Bitcoin has shown impressive value growth. For example, in 2017, the price per coin rose to $20,000, and in 2021, it surpassed the $60,000 mark. This growth has led to strong interest from private and institutional investors. Second, the periodic halving (reduction of the reward for mining every four years) helped reduce supply in the market, which also supported price growth.
Bitcoin exchange rate and forecast for 2024
The bitcoin exchange rate is one of the main indicators attracting investors’ attention. Another halving is expected in 2024, which could have a positive impact on the exchange rate. Historically, each halving has been followed by a subsequent appreciation, as the supply of bitcoins decreases and demand remains stable or increases.
Bitcoin forecasts for 2024 look optimistic. Many analysts believe that the price could reach new heights, especially with the possibility of a bitcoin-ETF (exchange-traded fund) being approved. This decision will open access to cryptocurrency to a wide range of investors, including pension funds and other financial institutions. Economic instability also plays in bitcoin’s favour: with the loss of confidence in traditional currencies, many are turning to cryptocurrencies as an alternative.
It is worth remembering the volatility of the market. In 2021, bitcoin hit record highs, only to be followed by a fall. In 2024, the situation may repeat itself, so it is important to carefully assess the risks and not invest everything in cryptocurrencies.
Whether Bitcoin is worth investing in 2024
It all depends on your objectives and your appetite for risk. Bitcoin could become attractive to investors in 2024, given the upcoming halving and growing interest from large funds. These factors could increase the value of the cryptocurrency, making it a favourable option for those seeking long-term investments.
Remember: investing in cryptocurrencies always involves risk. Rate volatility and potential regulatory changes can cause significant price fluctuations. It is important to bear in mind that cryptocurrency is a high-risk asset, and investing in bitcoin requires being prepared for potential losses.
For those willing to take risks in exchange for potentially high returns, buying bitcoin in 2024 could be a great decision. And those who prefer a stable investment should consider less volatile instruments.
Bitcoin or other cryptocurrencies?
The question worries many potential investors. Unlike projects such as Ethereum or Solana, bitcoin remains primarily a means of preserving value. Its role is often compared to digital gold, while other cryptocurrencies serve as platforms for creating decentralised applications and smart contracts.
Bitcoin in 2024 appeals to conservative investors because of its simplicity and reliability. Ethereum, for example, is actively developing a smart contract ecosystem, making it a more innovative but also riskier asset. Solana has high transaction speeds, but faces decentralisation and sustainability issues.
Bitcoin’s main advantages are
- A time-tested network;
- limited supply;
- digital gold status.
In 2024, bitcoin remains the preferred choice for those looking for a safe asset to invest in for the long term.
How to make money with bitcoin and how it is taxed in Russia
In 2024, cryptocurrency is back in the news. One of the ways to make money is trading. Speculative trading on cryptocurrency exchanges makes money from exchange rate fluctuations, but it requires knowledge and skills. Another method is holding, which involves buying bitcoin and holding it for the long term in anticipation of a price rise. This method proved profitable for many investors who bought bitcoin in 2017-2018.
Another option is mining. Although mining is becoming less and less accessible due to the increasing complexity of the network, many enthusiasts continue to mine cryptocurrencies, especially in countries with cheap energy resources.
Cryptocurrency taxation in Russia
An important point that cannot be ignored. According to the legislation, all income from cryptocurrency transactions must be declared. Taxation includes the payment of income tax at the rate of 13%. Failure to comply with tax obligations can result in fines and penalties, so it is important to keep up to date with current regulations and consult with lawyers.
Bitcoin wallets for beginners
It is important for beginners to understand what a bitcoin wallet is and how to choose the best option.
There are three main types of bitcoin wallets:
- Software-based. These are applications for smartphones or computers that allow you to easily manage your funds;
- Hardware wallets such as Ledger and Trezor. They provide a high level of security, as keys are stored offline, minimising the risk of hacker attacks;
- Online. Convenient for quick access, but less secure.
For beginners, it is important to choose the type of wallet that meets your needs: if security comes first – hardware wallet, if convenience – software or online.
Future prospects and forecasts for Bitcoin
Bitcoin’s prospects in the coming years look promising. The forecast for 2024 shows that the cryptocurrency is likely to continue to grow thanks to another halving and increased institutional interest. Keep in mind that volatility and regulatory changes can disrupt the market at any time.
Investing in bitcoin 2024 remains a risky but attractive option for those looking to diversify their portfolio and are willing to accept volatility. It may be a good time to start studying the cryptocurrency market in more detail and be prepared for new opportunities.
Every time a cryptoasset surpasses its peak, a new market participant emerges: an institutional investor. In 2024, the number of these investors will continue to grow, and this is no coincidence. Blockchain, as well as Bitcoin itself, are becoming a universal hedge against inflation. Large companies like Tesla, MicroStrategy, and even some pension funds are increasing their cryptocurrency positions. Demand for Bitcoin is growing, and this is reflected in its price.
Bitcoin has shown unprecedented growth in 2024. What will happen next? Forecasts point to even greater growth, barring major economic or regulatory shocks. This trend will not slow down in the coming years. Of course, there are still serious risks: the possible introduction of strict regulations or even bans in some countries.
History shows high volatility and significant fluctuations in the currency’s value.
The history of Bitcoin: the path from secret creation to a global financial revolution. The asset has proven that digital money can change the world, providing new opportunities and challenges. Understanding Bitcoin’s history helps you consciously assess its role in the modern economy and predict the future of cryptocurrency technologies. Explore, learn, and participate in the cryptocurrency community to stay at the forefront of financial innovation.