Bitcoin is back! Even if the leading digital asset went through a rollercoaster for a couple of years, it looks like Bitcoin has regained momentum and can experience massive growth in 2024. From technological innovations to increased adoption, there are plenty of reasons why investing in Bitcoin can bring you many rewards in the next year.
According to data from Binance, 2024 can be the best year to take the plunge, especially if you have been interested in digital assets for some time already and have researched all the information you need to know. The stars are aligning so that Bitcoin’s price will continue ascending to new highs.
Here are the reasons why you should invest in Bitcoin in 2024.
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Bitcoin Halving
The Bitcoin halving is one of the most anticipated and important events in the crypto space. This event will happen sometime in 2024, and as a result of this, the blockchain protocol will reduce the mining rewards per block to 3.125 bitcoins from 6.25 bitcoins. This halving in the new supply happens once every four years, and in the past, it coincided with a massive bull run in Bitcoin’s price. This is because when fewer digital coins enter circulation, the reduced selling pressure can lead to a price increase.
Investors think the 2024 halving will catalyze a new advance in Bitcoin’s valuation. This happens because halving events impacts scarcity, and scarcity is a key feature that gives Bitcoin value. So, 2024 could set the stage for a supply-demand imbalance, which can catapult Bitcoin to new highs. If history repeats, 2024 can be the year that will ignite Bitcoin’s next climb and offer colossal returns for investors.
Bitcoin ETF approval
A Bitcoin ETF is a fund that keeps track of Bitcoin’s price and provides the possibility to investors to sell or buy shares on a regulated exchange. So, a Bitcoin ETF can make Bitcoin more transparent, accessible and efficient for investors. The SEC (Security and Exchange Commission) has already approved a Bitcoin ETH, which is a huge benefit, as with it, investors can gain Bitcoin exposure without needing to hold actual BTC directly.
This will offer a huge convenience and peace of mind. Moreover, launching a Bitcoin ETF would mean a global acknowledgment from regulatory authorities that digital coins are here to stay. Investors believe that the approval by the SEC can lead to massive institutional capital into the first digital coin, increasing the chances of mainstream adoption.
A Bitcoin ETF will allow investors to benefit from crypto returns without the challenges of buying real Bitcoin.
Better clarity from the regulatory authorities
Currently, Bitcoin is in a gray legal area, as most countries remain undefined in their stance. Because of this fact, investors are cautious about investing in Bitcoin, as they don’t know exactly what the future of digital assets will offer. But in 2024, several countries, including the United States, are expected to create better crypto legislation, offering greater rules, definitions and protections to those interested in Bitcoin.
Also, initiatives like a Bitcoin ETF approval can signal that official entities begin to see Bitcoin as a legitimate asset. A lower uncertainty regarding crypto legislation can make large institutions finally participate in the Bitcoin space. If new deep-pocketed investors join the crypto space, the exposure can lead to an increase in demand.
Additionally, a clear taxation framework can make all people become more interested in cryptocurrencies. Regulatory clarity can be the chief catalyst to propel Bitcoin into the financial mainstream.
Increased adoption by countries
The adoption by many countries can signal a better acknowledgment and belief in its staying power. In 2022, El Salvador and the Central African Republic were the first ones to accept Bitcoin as a legal tender. The progression is expected to increase in 2024, as more countries could become interested in Bitcoin as an alternative to fiat money.
Now, numerous countries are struggling with destabilized economies, weakening national currencies and the financial exclusion of citizens, and Bitcoin can solve all these issues. Because Bitcoin is decentralized, it is resistant to inflation. Also, it can offer financial services without relying on central authorities, and its borderless architecture provides the best environment for free global commerce.
If countries realize how Bitcoin can empower their population, the digital currency can reach new highs again.
Bitcoin is among the safest crypto options
Bitcoin is the original digital coin and has built a reputation as an established crypto for over a decade. This is why Bitcoin is one of the safest options for those interested in investing in digital assets in 2024 due to its resilience against attacks and a long track of proven security.
Bitcoin offers the reliability that other altcoins don’t have, which ensures greater trust. Moreover, Bitcoin still dominates the crypto market regarding trading liquidity and mainstream usage. BTH is the most actively traded digital asset and also the largest crypto by market cap.
Bitcoin offers an advantage in real-world utility and liquidity that provides confidence. This is also what keeps Bitcoin apart from the other altcoins that are present on the market. Unlike fiat money, Bitcoin has a capped supply, where the new units are released on a fixed timeline.
Its principles and longevity make Bitcoin a safe option over riskier cryptocurrencies. Based on its features and track record, Bitcoin is a relatively safe choice in a volatile and uncertain market.
The Bottom Line
The signs show that 2024 will be a pivotal year for many cryptocurrencies, including Bitcoin. From expanding global adoption to the scheduled halving event, several factors can increase the value of Bitcoin. Also, in the new year, there are expected more legislations, which can open accessibility. Bitcoin will probably stand the test of time in the year ahead and offer investors a vehicle for good returns.
2024 can be a critical milestone for Bitcoin, as it can reach mainstream adoption and be considered more by investors, countries and enterprises.