The crypto world is facing some turbulent moments, probably the most turbulent ones since the appearance of this wonderful invention. Many people believed cryptos would change the financial world completely. However, as we all know, something unpredictable happened in 2022, and many old and potential investors have questions.
Logically, the biggest doubt they have is whether it is the right moment to buy Bitcoin or any other currency at this moment. Without any doubt, prices are relatively low now, and investing in digital currencies seems like a good idea in theory. We all expect their price will grow in the future. The question is – will something like that really happen?
There is no precise answer to that question. However, to get an idea of what could happen this year with Bitcoin, we have to analyze the previous year in detail. In this article, we would like to talk about the biggest crypto challenges in 2022. After analyzing them, we could give an answer on what will happen in 2024 with Bitcoin and other altcoins. Let’s go!
Crypto Challenges in 2022: What Went Wrong?
As we said above, we must return to 2022, one of the most turbulent years in the crypto world (or the entire world?), to understand what exactly went wrong. The easiest thing to say is – crypto was only a scam. However, the financial experts that invested in crypto know that is not the answer. There are some obvious reasons why we have a very low price for almost every crypto today. Let’s highlight them!
Global Economic Problems and Inflation
There is probably no reason to spend the words on things that happened last year in terms or the economy, inflation, and wars. The world is facing some drastic changes, and everyone is looking for a model to keep the national economies safe during the crisis.
We know very well what you are thinking now. The idea of Bitcoin and the entire crypto world was to exclude middlemen and become completely independent from the global financial world which was initially pretty unstable. People liked the sense of freedom. They liked the idea of investing in crypto which is completely independent of the banks, governments, and laws.
Unfortunately, things in the world do not function that way. Without any doubt, Bitcoin has been completely decentralized from the first moment it appeared. The global situation can’t directly influence the newborn system that we all believed in. However, that doesn’t mean it can’t influence people’s thinking.
Fed had to do whatever it took to calm the inflation due to conflict in eastern Europe. They developed measures that made investors give up on the higher risk and new assets such as cryptos. Logically, that automatically lowered the price of BTC as well as other altcoins.
Crypto Frauds
Without any doubt, blockchain technology made BTC one of the safest assets in the world. People felt a sense of security that they didn’t have with typical money. Even today, people become victims of scams and lose their fiat money in different ways. However, it seems that we somehow got used to it.
On the other hand, one of the reasons why the price of BTC went down is the number of crypto scams. As the technology is upgraded, scam schemes are also upgrading over time. That’s why, based on our research, the value of scams related to cryptos (not just BTC) is around 14 billion dollars.
We do not want to say cryptos are unsafe. However, something that claimed to be unbreakable managed to reach 14 billion dollars in scams. People became suspicious and less interested in investing in BTC, which automatically influenced the price.
Regulations and Bans
We actually have to get back to 2021 for a second. All the crypto investors remember the day when China completely banned cryptos. Logically, that directly influenced the price instantly, but it also influenced the opinion of people. During 2022, there was always some sort of fear that other countries could follow the example of China and ban BTC and other digital currencies. So far, nothing similar has happened, but the uncertainty started to grow in 2022.
What Will Happen with Bitcoin in 2024?
Let’s look at the chart and analyze what exactly happened in 2024. The price of BTC at the beginning of this year was a bit lower than 23 thousand dollars. At the moment we are writing this article, its price is around 24.900 dollars. In percentages, the price of BTC jumped for around 9.3%.
Of course, this doesn’t mean anything, but it brings optimism. It seems that people are starting to believe in cryptocurrencies once again. However, based on the opinions of investors, Bitcoin won’t reach the same value it had before this year. Although there are certain insights that confirm the trend of growth will continue, that doesn’t mean the entire crypto will have the value it had before.
BUT, there is another very optimistic opinion given by another group of investors. Many experts in this industry believe that BTC reached its bottom line in 2022. They believe that BTC can’t get below the price it had. They see 2024 as a transition year where things could return to normal.
For many of them, the forced selling we had in 2022 will not happen again. Crypto is not the only market that collapsed, and people once again started looking for alternatives they could invest in. Based on experts, Bitcoin has its cycles (massive ups and downs), which often happen every four years. They believe 2022 was just a bad year (and costly for many individuals of course).
Conclusion: Should I Buy Bitcoin Now?
Based on everything we said, we are currently in some sort of transition period. 2024 is crazy for many reasons, but the macro economy has stabilized certain things. It is hard to say how high BTC will go. Some people claim it won’t go over 30k this year, while others believe it has the capacity to reach 100k dollars in three years.
Buying BTC these months may be good because the prices are relatively low. It seems that the value reached its bottom line last year, and the risk of losing money is low. What’s your opinion?
