The growth of Bitcoin over the last decade has been nothing short of phenomenal. The value of this digital asset when it was first introduced in 2009 was effectively zero. Fast forward 12 years and the price of one Bitcoin now stands at a staggering £46,000.
Meanwhile, a new study suggests that Bitcoin is poised to become the fifth most valuable investment by 2024! Here is the low-down.
What does the future look like for Bitcoin?
According to analysis by Forex Suggest, Bitcoin is set to be the fifth strongest performing asset by 2024 with a projected market value of $5.2 trillion (£3.8 trillion). The digital asset is expected to reach this milestone thanks to an average annual rate of 103.5%.
In the recent past, Bitcoin has dipped in and out of the world’s top 10 highest value assets. It currently occupies eleventh position with a market cap of $814.5 billion (£597.6 billion). However, according to Forex Suggest, the digital currency is on track to consolidate its position over the next few years.
Hitting a $5.2 billion (£3.8 trillion) market cap, as projected, means that the digital asset will essentially have surpassed the value of titans such as Microsoft, Amazon and Google by more than a trillion dollars.
What other cryptocurrencies are expected to increase in value by 2024?
The future also looks bright for Ethereum, which is currently the second most valuable digital asset after Bitcoin. Ethereum is projected to hit a $5.1 trillion (£3.7 trillion) market cap by 2024. This will make it the sixth most valuable investment.
The coin with the third-highest projected market cap is Dai, which, according to Forex Suggest, could have a market value of $2.5 trillion (£1.8 trillion) by 2024. Dai, unlike Bitcoin and Ethereum, is a stable coin that is pegged 1:1 with the dollar, meaning that many might not see it as an investment.
The full projected list of the top 10 investments in 2024 can be found on the Forex Suggest website.
Are stocks a safer investment than Bitcoin?
Despite its impressive growth over the last couple of years, Bitcoin remains a highly volatile and speculative asset. Its price can rise or fall significantly in a short period of time. This was seen earlier this year when Bitcoin lost more than half of its value in a few months, just after reaching a new all-time high.
That’s precisely why experts recommend that you don’t invest more than you can afford to lose in Bitcoin or other crypto assets.
If you do your research and conclude that Bitcoin is too much of a risk for you, the good news is that there are numerous other ways to invest your money that are less risky.
One is investing in stocks and shares through a top-rated share dealing account or a stocks and shares ISA.
Although all investments carry some degree of risk, stocks are generally less risky than cryptocurrencies. Stocks have a long history of increasing in value over time (unlike Bitcoin which is still in uncharted territory) and have helped many investors build wealth.
Make sure to do your research first before you invest in stocks. If you don’t have the time to research and pick stocks yourself, you can sign up for a service like The Motley Fool’s Share Advisor for regular expert recommendations on some of the most promising opportunities in the market.
Investing in Cryptocurrency is extremely high risk and complex. The Motley Fool has provided this article for the sole purpose of education and not to help you decide whether or not to invest in Cryptocurrency. Should you decide to invest in Cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.
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About the author
Sean is a personal finance writer with a strong passion for helping others become more financially literate and make better financial decisions. He covers everything from credit cards to savings to investing.
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