Bitcoin got the world hooked when it was released in 2009, following a disastrous global economic moment, the financial crisis that led to a recession. Bitcoin was a game-changer as it allowed individuals to handle their money and investments without government involvement. At the same time, handling all the taxes required less paperwork and stress.
But it’s been a while since Bitcoin was this easily manageable because it has developed into one of the most vital world assets, as it’s often compared to gold. Now, if you want to buy Bitcoin, you’ve got plenty of purchasing options and spending opportunities due to an expanded crypto market.
Bitcoin is the most volatile crypto asset, and it can trigger significant changes in the ecosystem due to its influence. Therefore, investors must always prepare for slight changes in price or demand because they can signify a bullish or bearish movement. Some of these factors can be easily spotted, while others take time to make an impact. Regardless, they can be the base of valuable predictions for investors, so let’s see what we should expect from Bitcoin this year.
Ethereum will remain second to Bitcoin
Despite their harsh competition, it’s less likely that Bitcoin will be overthrown by Ethereum, considering their histories. Bitcoin lasted for longer during rough market conditions and proved to be reliable in the long term. Hence, Bitcoin received more interest for a stable regulatory framework, so it’s steadily adopted by countries and companies that want to appeal to crypto users.
Ethereum has shown positive development over the last years since its ecosystem exploded with DeFi, dApps, NFTs and other developer tools. However, the blockchain’s scalability issues are prominent and hindering its progress. Indeed, Bitcoin is also challenged by difficult mining and massive volatility but has built better stability and trustless environments.
NFTs will return to all-time highs
NFTs peaked in 2021 when new assets boomed and more artists invested in monetizing their creations for crypto income. However, it all went down in the following two years, as the focus was shifted to the FTX problem and spot BTC ETFs. However, some experts believe NFTs will have an impressive comeback in 2024.
This might happen due to the demand for portfolio diversification for crypto games and similar offerings based on the Ethereum blockchain. The ecosystem has improved considerably recently due to continuous updates. Therefore, developers and investors might become interested in these projects again.
Blockchain gaming will become a thing
Gaming is one of the most profitable industries globally, as millions of users use their smartphones, computers or other devices to play games daily. On the other hand, blockchain gaming might not be that approachable due to the lack of proper customer experience and optimization, but this is about to change.
Modern video games have been affected by the industry, where publishers and programmers seek profit rather than creating something valuable. Hence, many players are unsatisfied with their purchases, especially with in-game ones. Considering these issues, it’s not unlikely they’ll turn to blockchain games that don’t cost a leg to play and are safer played on decentralized networks. Moreover, play-to-earn games are as exciting as regular ones.
Solana might become Ethereum’s greatest competitor
Ethereum is appreciated for its smart contract function and varied ecosystem but it triggered users with annoying issues linked with scalability. As the network wasn’t able to keep up with the increasing demand, gas fees increased considerably, and network congestion became frequent.
But when Solana launched in 2020, investors could access a more affordable and faster alternative to Ethereum without risking their portfolios. It provides features similar to Ethereum, such as smart contracts and decentralized applications. It is powered by the PoH consensus mechanism, the Turbine protocol that makes data analysis efficient, and the Cloudbreak horizontally-scaled database. All these elements make it the best Ethereum-like blockchain and ecosystem, which is why investors should eye it.
The Bitcoin halving will lack media attention
As the fourth Bitcoin halving is approaching, everyone’s wondering how the market will respond to the reward decrease for miners and how this will affect crypto prices. The last halving occurred in 2016 and affected the Bitcoin price in the same year, but its value increased significantly in 2017, with an approximate inflation rate of 4%.
Indeed, Bitcoin halving can cause waves in the crypto market due to newness in the reward. Miners might struggle to keep up with the same demand and have fewer incentives as the computational power requirements might increase. From this perspective, everyone’s curious about how the blockchain will survive and how transactions will benefit from this change. However, there are no big expectations regarding the media coverage of this event.
The US recession will affect spot BTC ETFs
Recession in the US has been waiting for some time now, and 2024 might be the year when it hits the country, though it’s not clear yet. This might happen at the same time as the approval of spot BTC ETFs, having the potential to affect their value and emergence on the market.
Spot BTC ETFs were one of the most exciting crypto projects in the past years as they provide minimal risks, high yields and significant diversification. Many invested in these projects depending on their potential. Now, they’re closer to owning a part of them without directly having Bitcoin, providing a superior level of security and value. However, spot BTC ETFs may be overshadowed by a possible financial crisis in the US, so they won’t be regulated anymore, and investors might focus on other crypto investments to sustain their safety net.
Bottom line
Crypto predictions are everywhere, and they’ll most likely influence investors’ next step in stabilizing their portfolios. Although not all are based on certainties, there’s always a tiny possibility for them to happen. For example, the continuous competition between Bitcoin and Ethereum will make a change at some point, so investors must be wary about its potential to shake the market. This applies to all other forecasts for 2024.
Rene Bennett is a graduate of New Jersey, where he played volleyball and annoyed a lot of professors. Now as Zobuz’s Editor, he enjoys writing about delicious BBQ, outrageous style trends and all things Buzz worthy.
