Author: changehero
November 25, 2021

Bitcoin is the best known cryptocurrency out there for a reason, being both the first and the most adopted one. Still, for newcomers the questions of how it works or why it is blowing up now can be shrouded in mystery. In this Bitcoin beginner’s guide, you will find all the essentials of Bitcoin explained, […]

What Is Bitcoin? A Beginner’s Guide

Bitcoin is the best known cryptocurrency out there for a reason, being both the first and the most adopted one. Still, for newcomers the questions of how it works or why it is blowing up now can be shrouded in mystery. In this Bitcoin beginner’s guide, you will find all the essentials of Bitcoin explained, tips on buying Bitcoin safely and how to put it to use.

Key Takeaways

  • Bitcoin is a decentralized digital currency on the blockchain, which enables peer-to-peer value transfers;
  • Unlike national currencies, BTC is maintained by miners worldwide with the help of cryptographic software;
  • Bitcoin is used for online purchases with thousands of online and offline merchants worldwide. It also can be viewed as “digital gold” thanks to its scarcity.

What is Bitcoin? How does it work?

Bitcoin on a motherboard
Photo by Dmitry Demidko on Unsplash

By definition, Bitcoin (BTC) is both a decentralized digital currency and a distributed ledger secured cryptographically, called blockchain, which it runs on.
In traditional financial systems, an intermediary or a central authority maintains the integrity of the records, and we need to trust them. On blockchain, it is done with the help of cryptography and computing, so it is trustless and immutable.
What does Bitcoin being decentralized mean? The copies of Bitcoin’s blockchain are stored in nodes that run its software.
Since there are thousands of independent nodes that have a copy of the blockchain, rewriting the transaction history is unfeasible. This is further secured because blockchain requires cryptographic work to make records in it.
Bitcoin is also pseudonymous. The information about transactions and public addresses can be seen by everyone, so there is a very high degree of transparency about funds accumulation and movement. 
Public addresses are visible but not linked to any person in real life by default. Instead of accounts, Bitcoin uses the entire history of transfers to track funds, from the moment of being “minted”.

What is Bitcoin mining?

Mining is both a mechanism for BTC emission and security. Bitcoin is designed to be a scarce asset, meaning that there is a hard-coded limit of 21 million coins to ever be mined. 
Bitcoin uses a Proof-of-Work consensus algorithm, and miners are a crucial part of this process. By running calculations on processors, they decipher the hash function of the next block which will include all the new transactions. 
Once included in a block, the transaction is on a chain, and a few blocks (the generally accepted number is 6) later it is soundly recorded in it. This is why miners receive block rewards with newly issued BTC and all the transaction fees from the transaction included in a block they discovered.
To gradually decrease the issuance rate, every four years the miner reward is slashed in half in a process called “halving”. In May 2020, the rewards were reduced to 6.25 BTC per block. 
The result of the last mining event can be observed in 2021: the reduced supply of BTC caused its price to soar.

Important features

From the moment of its inception, Bitcoin has received a plethora of updates that serve to improve its scalability and security. All of them went through a process of reviewing and voting by the community.

Multi-Signature

MultiSig, as it is often called, is a feature which is only possible in cryptocurrencies thanks to the cryptographic signatures. On a basic level, addresses that support MultiSig group several network participants and require the majority or all the signatures to approve a transaction. This is a quite useful feature when extra security is needed.

SegWit

An update marked SegWit [Segregated Witness] rolled out in August, 2017, not long after Bitcoin Cash forked off. This was Bitcoin Core’s alternative solution to the scalability problem: instead of making blocks larger, they decided to make transactions take less space. 
This was achieved by separating the data about the transaction from the cryptographic signature which accompanies each transaction and putting it at the end of the data string. This enabled off-chain solutions to work on the Bitcoin blockchain.

Lightning Network (LN)

Essentially, it is a peer-to-peer side channel that lets participants exchange Bitcoin without dragging the entire transaction history with the coins or paying a large fee every time. 
When needed, the Lightning Network channel gets closed and the history of transfers that occurred on it gets recorded on to the main chain. It went live in March 2018 but the iterations of it continue to be released and tested to this day.

Taproot

The most recent update to Bitcoin Core’s client included several improvements to scalability and privacy. It also made BTC transactions more programmable.
For example, it made multi-sig and Lightning addresses look the same as regular ones. This reduces the ability of outsiders to link addresses to persons in the real world, thus increasing privacy, as well as makes transactions take less data space.

What is Bitcoin’s History?

Writing a Bitcoin beginner’s guide is impossible without starting from the very beginning. And that was a long time ago.
The cryptography works that Bitcoin was based on date back to the 90s and it has roots in the cypherpunk community. Many of the developers like Hal Finney, Nick Szabo and Wei Dai who  were attempting to create digital currencies before Bitcoin, became its earliest adopters.
Bitcoin’s history begins in 2008 amidst the global financial crisis. In August 2008, the domain bitcoin.org was registered and later, in October, a developer under the pseudonym Satoshi Nakamoto published the whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System”. The genesis, or the very first, block was mined on January 3, 2009. At its coinbase it included a message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”.
About a year later, Nakamoto gave up any involvement in the project and Gavin Andressen essentially took over as the man behind the project. In the first few years, the community consisted mostly of developers and enthusiasts, and there was barely any market activity. 
The Bitcoin Foundation, the closest thing to a public group behind the project, came to be in 2012. Slowly but surely, Bitcoin received attention from more and more investors, and by 2013 substantially gained in price and market capitalization enough to receive attention from the mainstream and regulators. 
From there on, albeit not without incidents like the Mt.Gox and Bitstamp hacks or regulatory struggles, Bitcoin was becoming more widespread as a means of online payment and storage of value.

Bitcoin Forks

In 2017, at the peak of popularity of Bitcoin, a long-lasting dispute in the community about the scalability issue resulted in a hard fork (chain split). The new branch would become Bitcoin Cash
The point of contempt was a limited size of the block in the original Bitcoin, which led to network congestion and high network fees. The part of the community that formed the Bitcoin Cash community decided to solve this issue by increasing the limit of data that can be included in a block from 1 MB to 8.
Later on, in 2018 the Bitcoin Cash community split further into the supporters of this design and those who insisted on removing the block size cap. This fork is now known as Bitcoin Satoshi Vision, or Bitcoin SV (BSV).

How does Bitcoin differ from fiat currencies?

A comparison between Bitcoin and fiat currencies.
Photo by Bermix Studio on Unsplash

What is Bitcoin used for, instead of fiat? Originally, Bitcoin was designed to become “digital cash” and be used for peer-to-peer payments. It is still used in this fashion with thousands of merchants that would accept it.
Over the years, another use case for Bitcoin emerged: since it is disinflationary, some started to use it as a hedge against inflation. There is a fixed supply of 21 million coins that will fully enter circulation only by 2140.
Crypto sceptics often dismiss cryptocurrencies as something that is not backed by anything of value. However, most of the world’s fiat currencies are divorced from a source of hard value like gold, too.
Cryptocurrencies like Bitcoin are backed by the work put into securing and propagating the network (hence, proof of work). The more electricity is used to maintain the network, the higher the costs miners would seek for the newly minted coins.
Decentralized cryptocurrencies like Bitcoin are borderless and accessible by anyone. There is no need to be authorized by any entity to transfer or transact with Bitcoin and it can be done easily across jurisdictions. 
For the time being, though, the on-chain economy relies heavily on the existing financial system. The value attributed to it is still calculated depending on the price buyers are willing to pay to buy Bitcoin or sell it, usually expressed in fiat currencies.

What is Bitcoin Criticized For?

Environmental Impact

Proof-of-work blockchains are infamous for their high, and growing, energy consumption. At the moment of writing, Bitcoin’s hashrate easily exceeds 160 Exahash/second on a daily basis. 
It means that the machines working on mining Bitcoin consume about 8 Gigawatts a year. A single transaction releases an estimated 480 kg (1,060 lbs) of CO2 into the atmosphere.
It is not only about energy: the wear and tear caused to processors by intensive calculations result in hardware waste. In comparison with gold mining, the carbon footprint of Bitcoin is already 15 times higher.
Of course, sustainability concerns are not unheard of in the crypto community. To offset and reduce the impact, efforts to use more renewable energy are made.

Criminal Use

Due to some fundamental design features like immutability of transactions, dealing with fraudulent activity like in traditional financial systems is not possible. In addition, the pseudonymous nature of Bitcoin led to its alleged adoption in criminal activity. 
Investigations show that prior to 2013 a lot of activity could be connected to the darknet economy. But since the regulatory frameworks started to be introduced, it became significantly harder to use Bitcoin unauthorized. 
Chain analysis improved significantly since then and the overwhelming majority of Bitcoin transactions have been happening in a more or less regulated space.
Another cause of concern here is the rise of ransomware attacks in which the data is encrypted unless a ransom, usually in cryptocurrency, is paid. Despite BTC not being anonymous, it is still used by attackers.

Fraud

Connected with the previous criticism is the continued proliferation of scams in crypto. The reason is the same: the area is not properly regulated yet, and users are less protected.
An infamous example of a crypto fraud that made news was the 2020 Twitter hack. A number of high-profile Twitter accounts were hacked and messages promoting a fraudulent scheme were posted on their behalf.
This is not to say that there is no chance to be reimbursed for losses if one fell victim to a scam. Law enforcement and cyber security agents these days treat cases of cryptocurrency scamming the same as with fiat money.

Adoption and Regulations

Bitcoin and cryptocurrencies in general are miles away from where they started in early days. Once it was more widespread and institutions started buying in, Bitcoin in particular has become more regulated.
Most famously, Bitcoin is adopted as legal tender in El Salvador. This means that de jure it has an equal status to the US dollar in the nation: it is universally accepted for all kinds of transactions.
Being regulated sometimes means being taxed, either as property, commodity or a capital asset, depending on the country. For example, in the US Internal Revenue Service (IRS) would consider Bitcoin a capital asset, while in the UK it is taxed as property.
Since Bitcoin is not issued by any nation, the international regulation for it is defined by the Financial Action Task Force (FATF). They do not issue laws per se but define guidelines for national anti-money laundering and counter-terrorism financing measures.

Upcoming Technical Updates

Bitcoin is entirely open source and is developed with the help of contributions of developers worldwide.
Despite being the most active development team, the developers of Bitcoin are not famous for having a long-term roadmap. Features that are considered for inclusion in a release are called Bitcoin Improvement Proposals.

Blind Merged Mining

One of the features put up for consideration is Blind Merged Mining, a specification of merged mining. This iteration would let Bitcoin miners maintain other networks and side chains without compromising their node resources or payouts.
Side chains to a block could support arbitrary rules that would otherwise be impossible on the main chain. It can be used to improve the security of Lightning Network channels, for example.

Hashed Time-Locked Contract (HTLC)

Also known as HTLC, it is a script that allows programmable transactions. HTLCs on the main chain would allow for refunds to be made, and can be used to let open LN channels transfer BTC across each other.

PayJoin protocol

Another proposal is worked on jointly with the developers of wallets. PayJoin will let users pay someone while including their outputs in the transaction, thus enhancing privacy and allowing to group up transactions under the same signature.

Bitcoin on Social Media


What is Bitcoin’s nearest future? User Secrets tried to predict how this one will unfold. If it does take longer, the bull run can extend well into 2022.


Bitcoin is first and foremost a political statement. With numbers going up, some users seem to forget that the very reason it is happening is what led Nakamoto to create Bitcoin.


Crypto influencer Anthony Pompliano shared a fragment of Squawk Box in which Cathie Wood of Ark Invest talked about uses of Bitcoin. Not only is it used as a hedge against inflation, it can be a trustless money for those in nations with corrupt governments.


Euronews reported that Sweden is sounding the alarm on the environmental impact of Bitcoin. However, Crypto Twitter is not impressed with the claims, knowing the strides made to make mining cleaner.

Which Bitcoin wallet is the best?

Before diving into Bitcoin after reading our Bitcoin beginner’s guide, make sure you have a proper cryptocurrency wallet to store it! Finding a wallet for Bitcoin is not a tough task, but choosing an optimal application or device is more important. 
Here is a list of top recommendations from ChangeHero’s team:

  1. Exodus (desktop and mobile). Its most prominent features include portfolio tracker, Trezor integration and in-app exchange. You can swap currencies with ChangeHero right in the Exodus wallet;
  2. Atomic Wallet (desktop and mobile). This product embodies the idea of functionality and is packed to the brim with features;
  3. Trezor (hardware). If you own a Trezor, you can swap your currencies right in the app with ChangeHero;
  4. CoolWallet (hardware for mobile). It has all the software wallet essentials like history and balance tracker, with extra features like exchange (powered by ChangeHero) built in;
  5. Coinomi (desktop and mobile). A reliable and convenient option for any platform.

How can you get Bitcoin?

How to buy Bitcoin instantly?

Getting Bitcoin on an exchange is something that can be recommended to users who already have some experience in trading. You should be ready to dedicate your time to verifying an account or deposit the funds into the exchange’s custody.
A more approachable alternative to a trading platform would be an instant exchange platform. On ChangeHero you can buy Bitcoin with a credit or debit card and sell it in just 15 minutes at the best prices after a simple verification procedure.

  1. Choose the country of residence, amount to buy and currencies. Proceed to the next step;
  2. Check the currency of purchase and amounts. Provide a BTC address;
  3. In the next steps, verify your phone address and card info. Pass 3D-secure verification;
  4. Finally, to make a purchase pass the identity verification with a state-issued ID and a selfie.

What Bitcoin exchange to choose?

Why scour the market yourself when ChangeHero can do it for you? We monitor several exchanges and adapt to the differences between them to provide our customers with the best possible rates. 
ChangeHero is the go-to place for buying Bitcoin safely because we do not have the custody of your assets at any point: as soon as they are received, the exchange is processed and the result is sent to your wallet address — as easy as that.

  1. Choose the currencies on the home page, amounts and the type of exchange. Provide your BTC wallet address in the next step and check the amounts;
  2. Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
  3. Send in a single transaction the sum of crypto currency you will be exchanging. For a Fixed Rate transactions you have 15 minutes before it expires;
  4. Sit back and relax. At this step we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives;
  5. As soon as the exchange has been processed, your BTC is on the way to your wallet. 

If you ever run into any issues during your swap, our support specialists are always available to help you out in the chat or through the email: [email protected].

A Bottom Line

Back in 2008, Bitcoin became a breakthrough invention: a decentralized digital currency that works trustlessly without third parties. For the mainstream and the economy now, Bitcoin is the face of the cryptocurrency market. Thanks to this current bull run, it became more popular with larger investors and ordinary people alike and even gained legal tender status.
Check out our blog for further reading after this Bitcoin beginner’s guide. If you prefer social media, find us on Twitter, Facebook, Reddit and in Telegram.

Frequently Asked Questions

[sc_fs_multi_faq headline-0=”h4″ question-0=”What is bitcoin and how does it work?” answer-0=”Bitcoin is a decentralized digital currency secured cryptographically, or a cryptocurrency for short. It is not issued by any government and does not require a trusted third party to make peer-to-peer transactions.” image-0=”” headline-1=”h4″ question-1=”What is bitcoin actually used for?” answer-1=”Bitcoin has been adopted as a digital currency by vendors and as a novel asset class by investors.” image-1=”” headline-2=”h4″ question-2=”How do I buy Bitcoin?” answer-2=”You can buy Bitcoin on ChangeHero with a bank card or crypto. If you opt for the first way, you will need to pass verification after choosing a currency and providing payment information. If you choose the second option, you can pick the Best or Fixed rate, provide and double check the details with the terms and conditions, and simply send the crypto to exchange to a generated address.” image-2=”” headline-3=”h4″ question-3=”Can bitcoin be used as real money?” answer-3=”From a legal point of view, Bitcoin is equal to real money only in El Salvador. However, most other countries either recognize it as an asset with value or do not prohibit merchants from accepting it.” image-3=”” headline-4=”h4″ question-4=”Why is Bitcoin valuable?” answer-4=”Bitcoin’s value comes from the cryptographic “work”: particularly, the electricity used to create new blocks by deciphering hashes.” image-4=”” count=”5″ html=”true” css_class=””]


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Author: changehero
October 28, 2021

There’s only a couple of months left in 2021, and the crypto market is going crazy again. It is high time to ask yourself, “What is the next big cryptocurrency to invest in 2022?” Our new list of top cryptocurrencies to hold in 2022 is here to help you in your research! Key Takeaways There […]

Best Cryptocurrencies to Hold in 2022

There’s only a couple of months left in 2021, and the crypto market is going crazy again. It is high time to ask yourself, “What is the next big cryptocurrency to invest in 2022?Our new list of top cryptocurrencies to hold in 2022 is here to help you in your research!

Key Takeaways

  • There is no single best crypto to buy or hold in 2022, as you could expect. It’s unlikely Bitcoin will give up its leadership yet so holding it goes without saying;
  • Nonetheless, Ethereum as well as its alternatives: Binance Smart Chain, Solana, Avalanche — will see a lot of use next year as well;
  • Other categories you could be looking at are Ethereum scaling solutions (Polygon), enterprise solutions (Stellar), privacy coins (Monero) and content platforms (Audius, Verasity).

Best Cryptocurrencies to Hold in 2022

Bitcoin (BTC)

Bitcoin price chart
Source: CoinMarketCap

Bitcoin needs no introduction: this is the first cryptocurrency protocol for decentralized peer-to-peer value transfers. Even if you are not deep into crypto, holding BTC is the most reliable call.
2021 started on a high note, at $29 thousand, and over the course of the year it more than doubled up to 115% at the moment of writing. On October 20, it reached a new ATH of $66,930.39, and many believe it is only the start to the second leg up of the bull run.
Holding Bitcoin goes without saying — but what about maximizing profits and diversifying portfolio? Check out our ideas on what altcoins could become the next cryptocurrency to explode in 2022!

Ethereum (ETH)

ETH price chart
Source: CoinMarketCap

Ethereum at this point barely needs an introduction: it is a cryptocurrency platform second only to Bitcoin. Smart contracts, which make it programmable, enable a massive network of use cases: tokens, stablecoins, DeFi, non-fungible tokens.
In 2021 so far Ethereum has beaten its all-time highs several times, most recently on October, 21, reaching $4,366.09. Its valuation increased by 470.71% in comparison to the opening prices on January 1, 2021.
What makes Ethereum one of the best cryptocurrencies to buy in 2022? Aside from the organic growth that can fuel the long-term appreciation, there is the merger with Ethereum 2.0 coming that year.
The merger will, most importantly, switch the network from Proof-of-Work to Proof-of-Stake algorithm. This will change the economics of the network, transferring governance from miners to stakers, as well as help make Ethereum more scalable and sustainable.

Binance Coin (BNB)

BNB price chart
Source: CoinMarketCap

Prior to 2021, it was hard to imagine Binance Coin will become one of the main competitors to Ethereum. Binance Smart Chain (BSC) changed everything, providing an alternative to Ethereum which did not have exorbitant network fees.
The success of DeFi on BSC was reflected in the BNB’s price: in comparison to the opening of 2021, BNB is 1200% up. It even broke its previous ATH on May 10 at $690.93.
But if Binance is now in a shaky regulatory position, why is BNB in the top cryptocurrencies to hold in 2022? The developments in Binance’s team make it clear that BNB is in for the long haul: they are hiring top-class specialists in AML and compliance.
We will have to wait at least until December and yearly address to learn more about what to expect from the Binance ecosystem in 2022. But even now it is clear that it will keep growing, giving BNB more use cases.

Solana (SOL)

SOL price chart
Source: CoinMarketCap

Another hit from 2021, Solana, has all chances to keep rolling and be one of the best cryptocurrencies to buy in 2022. Solana, like Ethereum and Binance Smart Chain, hosts decentralized applications and smart contracts, but has even lower fees and greater speeds.
If you were impressed with the gains of previous coins, wait until you see how much Solana grew in 2021: 13,662%! It would take a miracle for such a pump in 2022 to be repeated but expecting a continuation of the uptrend is reasonable.
Like Ethereum, Solana renewed its record price on October 25: $218.73. The trends in these cryptocurrencies are similar but not always, so to multiply gains it’s advised to diversify.
There have been no announcements for major upgrades to Solana yet. The team now seems to be focusing on onboarding users and products and with the breakneck speed at which it is happening right now, the next stage may come as soon as in 2022.

Shiba Inu Coin (SHIB)

SHIB price chart
Source: CoinMarketCap

Okay, hear us out: meme coins showed their potential in 2021, so why not hold some for 2022? But then you might ask, why did the Shiba Inu coin make it into our top cryptocurrencies to hold in 2022?
The Shiba Inu community is even more populous than most crypto communities, and it is the main driving force of SHIB.
In 2021 SHIB gained an impossible 481,000%. Will Shiba Inu reach 1 cent if it keeps growing like this? Not to bring your hopes down but it would require an amount 2,7 times greater than the entire world economy in 2021.
The latest version of the project’s WOOFpaper teases more updates to the NFT incubator and DEX. If all goes well, 2022 might as well be the year these major updates ship.

Avalanche (AVAX)

AVAX price chart
Source: CoinMarketCap

Avalanche is another programmable network which stands out thanks to its one-layer, three-chain architecture. Separating exchange, contracts and subnets to dedicated chains makes Avalanche fast and scalable.
In 2021, Avalanche integrated SushiSwap and TrueUSD but the true breakthrough was not thanks to DeFi. In August, NFTs on Avalanche became even more popular, bringing in Jason M Peterson and Major Baseball League.
Throughout the year, AVAX grew by 2,005% from $3.3 at the start to $69.43 at the time of writing.
The concrete plans for 2022 are under wraps but at the same rate, AVAX will continue to be one of the top cryptocurrencies to hold in 2022.

Polygon (MATIC)

MATIC price chart
Source: CoinMarketCap

In 2021, Matic Network, a Plasma Ethereum scaling solution, expanded its scope and became Polygon. Polygon SDK lets developers use Optimistic rollups and ZK chains, which are various types of scaling solutions for different applications.
With the help of rebranding, Polygon token which kept the MATIC ticker, grew by 10,011% in 2021 so far. What about next year and why Polygon is one of the best cryptocurrencies to buy in 2022?
Until the Proof-of-Stake shift, scaling solutions such as Polygon are the only way to use Ethereum at better transaction speeds and fees. The shift is a major undertaking and may not even arrive in 2022.
But what if it does? Then either Polygon will present an opportunity for bear traders to make money or adapt and continue providing value for holders. Either way, a win-win.

Stellar Lumens (XLM)

XLM price chart
Source: CoinMarketCap

Stellar Lumens is a fork which further improved and decentralized XRP’s model, and like the original it can be used in financial applications. Unlike with XRP, serving as a currency-agnostic intermediary between different fiat currencies is only one of possible uses of XLM.
Lumens did not have absurd gains as some previous picks of the best cryptocurrencies to hold in 2022: it rose by 190% from the start of the year to date. However, there is a solid reason to keep an eye on this coin in 2022.
Stellar Development Foundation (SDF), which is helping with the development and adoption of the Stellar protocol, is helping the Ukrainian government with the CBDC. The SDF also struck a few important partnerships, with Moneygram and Flutterwave, to offer instant money transfers and onboarding thousands of clients to Stellar.
Securing a large user base will ensure longevity of the project, and news like this will surely keep influencing the XLM price in 2022.

Monero (XMR)

XMR price chart
Source: CoinMarketCap

Do not overlook privacy coins when picking cryptocurrencies to buy in 2022. With CBDCs rolling out everywhere and governments demanding regulation, privacy is more important than ever.
Monero is one of the oldest and most reputable privacy coins on the market. This is because it is not backed by any corporation and has all privacy features enabled by default.
Monero’s price in 2021 has not multiplied by thousands, either, gaining 81% so far. Its privacy features make it difficult to list it on exchanges, so speculation affects its price less.
Monero does not have a defined roadmap for 2022 but its privacy-preserving properties make it a valuable asset for the world in which surveillance is encroaching on more and more facets of life.

Audius (AUDIO)

AUDIO price chart
Source: CoinMarketCap

You might have heard about Audius from the news about integration in social and entertainment platform TikTok. Audius is a blockchain-based music streaming service that really blew up in 2021.
Blew up how much exactly? By a whopping 1,406%! Having started the year at $0.15 it is now trading for $2.27.
NFTs and blockchain are changing the music distribution industry. It is never a bad idea to join in on the paradigm shift early, so AUDIO can as well be in our top cryptocurrencies to hold in 2022.

Verasity (VRA)

VRA price chart
Source: CoinMarketCap

What Audius and other blockchain platforms are doing to the music industry, Verasity is doing to video streaming. As you could already guess, Verasity is a blockchain-based video streaming platform with particular focus on esports.
The development of Verasity in 2021 accelerated the growth of the VRA token by 18,134%. In that time, Verasity delivered viewing rewards, CS:GO and Riot Games partnerships and, of course, NFTs.
The reasoning behind VRA being in this top list of cryptocurrencies to hold in 2022 is the same as with Audius. Verasity rewards work with YouTube and Twitch but the main platform offering more and more with each update can cause its popularity to skyrocket.

How to Buy Them on ChangeHero?

You do not need to seek out the top cryptocurrencies to hold in 2022 all over the crypto exchanges and go through KYC on each of them. If you already have crypto, use it to buy them on ChangeHero, it’s a walk in the park:

  1. Choose the currencies on the home page, amounts and the type of exchange. Provide your wallet address in the next step and check the amounts;
  2. Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
  3. Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
  4. All done? Now we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives. 
    • The Best Rate transactions will use the rate current to the time when your funds arrive.
    • The Fixed Rate will use the rate at the time of step 1;
  5. As soon as the exchange has been processed, your coins are on the way to your wallet. 

ChangeHero’s customer support is available 24/7 in the chat on our website or through the email: [email protected].

Conclusion

There is no definitive answer to what is the best cryptocurrency to invest in 2022, because diversity is key. Anyway, we hope our list helped you understand what currencies you want to hold in 2022; we’d love to hear your ideas, too!
Even more crypto projects are covered in detail in our blog. Feel free to follow our pages on social media: Twitter, Facebook, Reddit and in Telegram.

Disclaimer

This article does not constitute financial or investing advice. No price prediction or forecast is guaranteed to provide exact information on the future price. Past performance is not indicative of future results.
When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investitions in cryptocurrencies only after careful consideration and analysis and at your own risk.

Author: changehero
September 9, 2021

Happy belated Bitcoin Day, the day when BTC finally became legal tender. Is El Salvador the beginning of hyperbitcoinization? Our team reviewed news and opinions to deliver an answer to that. What is Hyperbitcoinization? Hyperbitcoinization is indeed a complicated sounding term, in addition to being quite a mouthful. So what is hyperbitcoinization? As it was […]

Hyperbitcoinization: Is El Salvador the Beginning?

Happy belated Bitcoin Day, the day when BTC finally became legal tender. Is El Salvador the beginning of hyperbitcoinization? Our team reviewed news and opinions to deliver an answer to that.

What is Hyperbitcoinization?

Hyperbitcoinization is indeed a complicated sounding term, in addition to being quite a mouthful. So what is hyperbitcoinization?
As it was originally defined in the Daniel Krawisz article with the same title, hyperbitcoinization is “Bitcoin-induced demonetization”. The idea is that fiat currencies are going to be losing value not only due to hyperinflation but also losing competition to Bitcoin.
When people have the choice between a government-issued currency, which is by default uncontrollably inflationary, and Bitcoin, the assumption is that they will choose the latter. After all, Bitcoin is disinflationary, has hard-coded limited supply and is well suited for digital payments.
As a result, in a post-hyperbitcoinization world, Bitcoin is conventionally adopted as a means of payment everywhere. Cross-border payments are also done using Bitcoin as a vehicle, and most importantly, it does not rely on any fiat currency to denominate its value.
Can, or will hyperbitcoinization happen? For that to become reality, plenty of criteria have to be met first: most critical of all, Bitcoin adoption has to reach mass level.
Thankfully for all proponents of Bitcoin, we can already see what could as well be the beginning of the process.

Bitcoin and El Salvador

A vendor accepting Bitcoin in El Salvador
Source: The Guardian

In El Salvador Bitcoin has a legal tender status on a par with the US dollar since September 7, 2021. It will not be an understatement to say that this nation has become an unprecedented case that the sceptics and believers are watching with equal attention.
The decision was not made out of the blue. It all started in 2018 with El Zonte, a coastal town which attracted investors who thought adding Bitcoin infrastructure will help the community.
And help it did: according to the Vice documentary, locals received access to digital payments for retail and utilities. Fast forward three years, and the experiment continues on the national scale.

How Did the Government Prepare?

What is Nayib Bukele’s government doing for things to go smoothly? After all, they are still onboarding millions of people into a structure notoriously challenging even for the technically savvy.

  • Launching an official digital wallet Chivo with both USD and BTC (via Lightning Network) and instant conversions;
  • Providing one-time bonus payments of $30 in BTC for all users of the wallet. These $30 will not be convertible to USD;
  • Supplying 200 Bitcoin ATMs to as many locations as possible;
  • Purchasing BTC to the treasury (560 BTC at the time of writing);
  • Exempting Bitcoin transactions from capital gains tax;
  • Granting residency to foreign investors who put 3 BTC in the national economy;
  • And finally, building geothermally powered Bitcoin mining facilities.

From the government’s point of view, this move should lessen the reliance on the other legal tender, USD. But what do the people of El Salvador think?

What do the people of El Salvador think?

Apparently, the Bitcoin law is largely unpopular with the masses. 
Out of 1,281 respondents in the Central American University survey, only 32% expressed satisfaction with the passing of the law. 9 out of 10 respondents clearly stated a lack of understanding of Bitcoin, and 8 out of 10 people do not have plans to use it.
The widespread scepticism is understandable, as the law was passed only in five days since submission. The Salvadorans have not had enough time to accommodate yet and now they might be exposed to BTC’s volatility.
The opinions expressed in the survey are similar to what the International Monetary Fund has been warning El Salvador against. Volatility of cryptocurrencies can be harmful to national economies and households alike, and anti-money laundering laws are not enforced well enough, they claim.

Tweets about hyperbitcoinization and El Salvador


Of course, the go-to account to learn about the progress of Bitcoin adoption in El Salvador would be the President Nayib Bukele. During the flash crash on September 7, they stacked their supply of Bitcoin on the national balance sheet.
He even tagged the International Money Fund in the post. The IMF has been one of the most vocal critics of the Bitcoin law outside of the nation.


What is hyperbitcoinization looking like in practice? Even large and global businesses such as Starbucks and McDonalds will have to start accepting Bitcoin to continue working in the country.


Not everyone is in favor of the means with which the Bitcoin revolution is made. Originally, Bitcoin is an anarchist statement, and seeing it adopted at the hand of the state rubbed people the wrong way.
Regarding the story in the tweet, Mario Gomez was released hours after without any charges.

Other countries looking towards Bitcoin

Inspired by El Salvador’s example, other countries are starting to look into legalizing existing digital currencies.
Which country uses Bitcoin? They usually do not go as far as making Bitcoin legal tender (yet) but recognizing digital payments and including them into the legal framework.

Cuba

In late August, Cuba passed a law that would include payments in Bitcoin and other cryptocurrencies into the financial system. This law still elaborates that the only legal tender on Cuban soil is the Cuban peso.
Unlike El Salvador, Cuba has a national currency, which incidentally is much weaker than the US dollar. If we were to understand hyperbitcoinization puristically, it can already be happening, not in El Salvador but in Cuba instead.

Panama

In Panama, congressman Gabriel Silva submitted a bill to regulate cryptocurrency payments, similarly to Cuba. There is no enforced currency in Panama, and the most commonly used one is the US dollar.
Therefore, in the purest sense of the word, Panama may be a more fertile soil for hyperbitcoinization than El Salvador. The use of all currencies there is regulated by common practices, and the shift towards Bitcoin that Krawisz envisioned can happen more naturally.

Ukraine

Most recently, it became known that the law regulating cryptocurrencies in Ukraine that was drafted back in 2020, got passed. Ukraine joined the ranks of countries legally recognizing payments in cryptocurrencies on Sep 8, 2021.
Yet again, it did not recognize Bitcoin as legal tender nor introduced a requirement for businesses to accept digital currencies. But it definitely was a step in the right direction for crypto businesses to operate safely and in a regulated manner.

Conclusion

What is hyperbitcoinization and is it already happening? We leave the answer up to you but hopefully the article provided you with enough proof. Obviously, it cannot happen in a day, but Bitcoin Day in El Salvador seems to already be inspiring more nations. However, the more widespread Bitcoin gets, the more it and monetary systems get tested against each other.
If you want more of your crypto-related questions answered, do not sleep on our blog! Sign up for daily updates on our Twitter, Facebook, Reddit and Telegram.


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Author: changehero
July 27, 2021

Bitcoin is on a roll, and right now it is gaining steam for a second run. Don’t want to miss out on that one? We prepared a detailed instruction on how to buy Bitcoin instantly on ChangeHero exactly for this case! What is Bitcoin and why buy it? You probably know by now that Bitcoin […]

How to buy Bitcoin instantly on ChangeHero?

Bitcoin is on a roll, and right now it is gaining steam for a second run. Don’t want to miss out on that one? We prepared a detailed instruction on how to buy Bitcoin instantly on ChangeHero exactly for this case!

What is Bitcoin and why buy it?

You probably know by now that Bitcoin is a cryptocurrency: a virtual currency that is maintained in a decentralized way. Instead of a government, there’s a network of nodes and miners that ensure the network is governed through consensus.
However, Bitcoin broke into the mainstream not only thanks to the blockchain technology. The way it accumulates value and is one of the best performing assets as of late attracts investments, but why?
Bitcoin was made to have a limited supply and a predictable issue curve — this is why it is now touted as “digital gold”. And of course, if need be, it can act as a means of payment and savings.
If you would like to know more about what Bitcoin is, read our Beginner’s guide! In this one, we will tell you more about how to buy Bitcoin instantly.

How to buy Bitcoin instantly: Step-by-step Instructions

ChangeHero exchange widget
To go to the dedicated page, you can click the “Buy or sell crypto” shortcut in the calculator on the home page. Alternatively, at the bottom of the page, there is a direct link to the Buy Bitcoin page.
Choose a country of residence and the fiat currency in the calculator. Depending on these, you will be redirected to one of the two partners’ widgets after clicking “Buy”.

How to buy Bitcoin instantly in the Mercuryo Widget

Buy and sell crypto Mercuryo widget

  • Check the fiat currency and its amount, cryptocurrency and the rates again (the rates present in the screenshot are as of May 2021). We are buying BTC with GBP. Provide a BTC address in the relevant field, carefully read the Terms of Service before proceeding;

Phone number verification Mercuryo widget

  • Input and verify your phone number. If you did not receive a code after waiting, you can resend it after 20 seconds;

Input credit card details in Mercuryo widget

  • Provide the information of your debit/credit Visa/Mastercard bank card. The partner will check if your account is valid by holding and unholding a small sum on your balance;

Confirmation screen Mercuryo widget

  • Your bank will initiate a 3D-Secure Authorization next. Some countries require additional security code checks;

KYC procedure to buy Bitcoin

  • Next up is one more step: the KYC procedure. You will be asked to provide a government-issued ID (passport, ID card, driving license) and a selfie with the document.

This is it! Now the provider will process the transaction in less than 30 minutes. If you have provided an email, you will receive a summary of the transaction.

How to buy Bitcoin instantly in the Coinify Widget

  • Log in or create a new Coinify account. To create a new account, input and verify your email;

Verify identity to buy Bitcoin

  • Fill in basic information and verify your identity by providing a government-issued ID and a selfie;

Choose the payment method to buy Bitcoin

  • Choose a payment method. Since you’re here to know how to buy Bitcoin instantly, we are going to choose the bank card;

Coinify buy crypto widget

  • Input your address by pasting it in the field or scanning the QR code;

Transaction details

  • Review the transaction details and fees (the rates present in the screenshot are as of May 2021), read and accept the Terms of Service;
  • Input the card details and complete 3D Secure verification.

It is done! Now it is up to the partner to process the transaction within 15 to 30 minutes.

Conclusion

Now that you know how to buy Bitcoin instantly, what are you waiting for? It is easy and nearly instantaneous unlike any other way.
Of course, you can and should read more about Bitcoin in our blog. ChangeHero is also on Twitter, Facebook, Reddit and Telegram, so do follow and subscribe.

FAQs

How can I get Bitcoins instantly?

You can buy Bitcoin with a debit card instantly on ChangeHero. The whole process with verification and payment is streamlined to take a couple dozen minutes.

Can I buy less than 1 Bitcoin?

It is possible to buy and own less than one Bitcoin! Bitcoin is divisible up to 10^-8 units called satoshi.

What is the lowest amount of Bitcoin I can buy?

ChangeHero widget will help you see minimal amounts for each currency. The lowest possible amount you can buy is approximately 0.00175 BTC.

How long does it take to buy Bitcoin with a credit card?

When you buy Bitcoin with a credit card, the procedure takes about 30 minutes from start to finish.

What are the fees to buy Bitcoin with a credit card?

Fiat-to-crypto services take a handling fee of 3% for a purchase. It is displayed before you initiate the transaction.


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Author: changehero
July 21, 2021

The debate of which of the two crypto giants deserves the crown seems to only be heating up with each passing year. In this article, we’ll compare Bitcoin vs Ethereum point by point and explain what’s the difference between Bitcoin and Ethereum. Key Takeaways Bitcoin vs Ethereum debate stems from the fact that both currencies […]

Bitcoin vs Ethereum

The debate of which of the two crypto giants deserves the crown seems to only be heating up with each passing year. In this article, we’ll compare Bitcoin vs Ethereum point by point and explain what’s the difference between Bitcoin and Ethereum.

Key Takeaways

  • Bitcoin vs Ethereum debate stems from the fact that both currencies serve as cornerstones of the current crypto market;
  • Bitcoin is seeing more retail use and is even recognised as legal tender. Ethereum is more popular with institutional adopters;
  • Will Ethereum overtake Bitcoin? The proponents of the flippening say so but the opponents of this idea stick to Bitcoin rightfully being at the first place.

What is Bitcoin?

To compare Bitcoin vs Ethereum, a general overview of both is in order.
Bitcoin is a decentralized and distributed open-source peer-to-peer ledger. It’s maintained by a network of nodes and miners, who add blocks to the blockchain and produce new bitcoins in a process called “mining”.
To make it work, it uses a network of independent nodes which keep a copy of the ledger.
Bitcoin was designed by a pseudonymous cypherpunk known as Satoshi Nakamoto. In late 2008 they published a whitepaper in the community’s newsletter, and in early 2009 the Bitcoin’s blockchain was launched.
Bitcoin was developed as a solution to the debasement of national fiat currencies and an alternative to a centralized permissioned financial system.

What is Ethereum?

Bitcoin served as a basis for many altcoins but they all had their limitations. For example, it was challenging to transfer data or execute conditional transactions on Bitcoin as it was.
In 2014, several members of the crypto community came together to develop the concept of a blockchain that would solve this. The people who were contributing to the novel “decentralized computer” were Vitalik Buterin, Gavin Wood, Anthony Di Iorio, Charles Hoskinson, Joseph Lubin and others.
So how does Ethereum work? In addition to being able to execute transactions on the blockchain like Bitcoin does, it supports smart contracts.
Smart contracts can be thought of as programs that utilize the Ethereum virtual machine (EVM) for computing. Instead of centralized servers, there are independent nodes across the world which perform these computations.

Bitcoin vs Ethereum

Bitcoin vs Ethereum
Source: Jaap Arriens | NurPhoto | Getty Images

Use Cases

What is the difference between Bitcoin and Ethereum? The first thing to come to mind would be their use cases.
Bitcoin originally was meant to become a digital currency for daily use, and definitely is used as such even today. The reason that this use case went to the background is because in the current state the Bitcoin throughput is just 7 transactions per second.
Ethereum can also be used as a means of payment and is arguably better than BTC for that purpose. Its TPS is around 15, which is definitely higher than in Bitcoin, but unlike BTC, ETH was not designed for daily transactions.
Instead, the primary use for ETH is so called gas, transaction and call fees for using the EVM. It acts as an incentive for node operators and miners to keep the network secured, while means of payment is delegated to tokens.
Tokens are only a single example of utilizing smart contracts. These days there are a plethora of protocols built for lending and borrowing, exchanging and market-making — in other words, decentralized finance (DeFi).

Scaling

When it comes to scaling the network, Bitcoin vs Ethereum are not that different. Since both networks have a relatively low throughput by default, there have been many attempts to solve this problem.
Bitcoin Core opted for a layer-two solution, Lightning Network (LN) for quick transactions.
In Lightning Network, transactions are performed almost instantaneously, and the record on the main blockchain is made only when the channel is closed. The main downsides to LN is it requires a degree of trust in the LN node operator and requires liquidity to work.
Ethereum faces a similar problem with layer-one throughput but it is even more acute, given that hundreds of apps use the main chain. Solutions like sharding or optimistic rollups exist today in the form of layer-two protocols and are only planned for Ethereum 2.0.
Ethereum 2.0 will take years of development, testing and implementation. Until then, layer-two solutions are the best way to bypass congestion and high fees.

Security

As they are today, both Ethereum and Bitcoin use Proof-of-Work consensus algorithm. It means miners, who solve cryptographic hashes to propagate the chain, secure the network.
Why is Bitcoin better than Ethereum? There is one case that is often used to illustrate the immutability and decentralization of the Bitcoin blockchain.
If there is a consensus among miners, there can be changes made to the network. When the DAO was drained of funds, the Ethereum community decided to roll the network back to the state before the hack.
This action was widely regarded as controversial because it showed how the code can be overwritten on a whim of a part of the community. It even led to a contentious fork in Ethereum, called Ethereum Classic.

Narratives

A very important facet of adoption is building a narrative around the currency, which outlines the use cases and the future. Since there is no common knowledge about these currencies on a mass scale, narrative acts as its substitute and an introduction.
The dominant narrative surrounding Bitcoin these days is “digital gold”: it is an asset with only 21 million units in existence. This immutable scarcity is what makes it attractive for storing value long-term, especially when the fiat currency emission can change.
Ethereum today is an inflationary currency but this can change: in August, the London hardfork will introduce new fee mechanics. Instead of going to the miner, the extra fee which pushes the priority of a transaction higher, will be burned.
Since Bitcoin was also described as “sound money” due to predictable emission, Ethereum pushed for an “ultra-sound money” narrative. While the name came about as a half-joke, the deflation itself is taken very seriously by the proponents.
Even Goldman Sachs seems to be backing Ethereum in this matter: “Given the importance of real uses in determining store of value, ether has a high chance of overtaking bitcoin as the dominant digital store of value”.
Finally, there is a “flippening” narrative driving the Bitcoin vs Ethereum debate. It refers to the possibility of Ethereum taking over Bitcoin’s position as the #1 cryptocurrency.

Adoption

When it comes to adoption, Bitcoin is definitely in the lead in comparison to Ethereum. It has historically dominated the peer-to-peer market, and even became legal tender in El Salvador this year.
According to UsefulTulips.org, peer-to-peer markets are seeing more than $60 million trading volumes weekly worldwide. As for merchants, the Cryptwerk registry has more than 6,800 points of purchase that accept Bitcoin worldwide.
Ethereum has an edge in being adopted with users of the DeFi sector. Right now they are mostly retail investors but institutions are reportedly increasingly interested in DeFi, too.
For example, European Investment Bank uses Ethereum blockchain to issue two-year digital bonds. Bank of America, JPMorgan Chase and St.Louis Fed have all been on record stating they are researching DeFi instruments.

Future

No matter which side of the Bitcoin vs Ethereum debate you are taking, everyone is equally concerned about future-proofing the tech. One of the topics of debate is the environmental impact of these currencies.
Proof-of-Work requires real electricity so the mining machines can compute hashes, and the hash rate directly corresponds to the amount of miners online. The higher it is, the more electricity is required to mine the next block, so when it grows, it’s exponential.
Bitcoin miners are moving to renewable and sustainable energy sources. In America, there is the Bitcoin Mining Council which provides public reports on the process of transition.
Ethereum is aiming to resolve this issue more fundamentally, by changing the consensus algorithm to Proof-of-Stake. The Beacon chain is already online, and the groundwork for PoW ETH and ETH 2.0 merger is being laid out.
Proof-of-Stake is often criticized for defeating the point of decentralization: the minimal amount to stake is 32 ETH ($56,509.44 at the time of writing). The rewards will be distributed on the basis of the stake size, accelerating the centralization of wealth.

Should I buy Bitcoin or Ethereum?

To compare the price dynamics of both currencies, let’s refer to the Bitcoin vs Ethereum price chart.

Bitcoin vs Ethereum price chart
Source: TradingView

When it comes to volatility, Ethereum outperformed Bitcoin in both bull runs. It is understandable, given that its market capitalization is lower than Bitcoin’s, which makes it easier to move.
Higher volatility means both higher returns and losses, so proceed with this understanding if you are going to trade BTC or ETH. As for the long term, fundamental metrics which we described before have more weight than price difference between Bitcoin and Ethereum.
[table id=33 /]

Conclusion

At the end of the day, both of the top currencies have their advantages and prospects, so allocation to both is the best option. No matter which you choose, don’t forget both Bitcoin and Ethereum can be bought and exchanged on ChangeHero!
We hope you enjoyed the article, find more in our blog! You can follow ChangHero on Twitter, Facebook, Reddit and Telegram for more frequent updates and useful content.


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Author: changehero
July 1, 2021

A month ago, Bitcoin was recognized as a legal tender for the first time in history in El Salvador. It seems to be only a matter of time until other nations make their own move. Who can we expect it from and what stops the states from doing so? The ChangeHero team answers in this […]

Bitcoin Adoption: Who’s next after El Salvador?

A month ago, Bitcoin was recognized as a legal tender for the first time in history in El Salvador. It seems to be only a matter of time until other nations make their own move. Who can we expect it from and what stops the states from doing so? The ChangeHero team answers in this article.

Key Takeaways

  • Bitcoin adoption is an emergent trend with investors and users worldwide thanks to its borderless and inflation resistant nature;
  • The first to adopt Bitcoin El Salvador is likely to be followed by Paraguay, Panama, Venezuela, Mexico and Malta;
  • Larger countries in other regions, namely, China, the US and EU, remain sceptical as they have CBDCs on their own agenda.

Why Should We Adopt Bitcoin?

  • Bitcoin is resistant to inflation due to a hard cap on emission. Users and even central banks can use it as a reserve asset for store of value;
  • Communities worldwide are already using Bitcoin as a means of payment or instead of a bank account;
  • BTC is free from centralized control of any nation and can be used for borderless payments in the digital era.

Where is Bitcoin Adoption Happening?

El Salvador

Lago Coatepeque, El Salvador.
Source: L’odyssée Belle on Unsplash

El Salvador is in the centre of attention thanks to being the first nation to recognize Bitcoin as legal tender. Now Salvadorans can pay in BTC for any good or service, if the vendor accepts it, and the relationship is regulated.
It should not come as a surprise that this change did not happen on a whim. The community of El Zonte, also known as the Bitcoin Beach, has been using BTC in their daily lives since 2019.

The President of El Salvador, Nayib Bukele submitted the draft on the day of Bitcoin Miami conference. On June 9, this bill was passed and made law: now USD and BTC are both accepted on equal terms in the country.

Paraguay

Asunción
Source: David Ress on Unsplash

Following El Salvador, Paraguayan Congressman Carlos Rejala expressed the need for Bitcoin adoption. He made an announcement that he will also submit a similar bill to the Congress to attract cryptocurrency companies to the country:


Making BTC legal tender and establishing favorable conditions for cryptocurrency businesses can tremendously help entrepreneurs and the country’s economy. He also appeals to clean energy, which is now crucial for Bitcoin as ever.
However, in the best case scenario, the bill won’t be approved as fast, and can meet opposition from other parliament members.

Panama

Panama City
Source: Yosi Bitran on Unsplash

Panama officials are also pondering the possibility of following El Salvador, namely Congressman Gabriel Silva:


“Good news from El Salvador that is showing the Government of Panama an example in entrepreneurship and technology. We have to think beyond the Canal and free trade areas and bet on the knowledge economy, quality education for all and facilitate new businesses.”
The country has a strong stance on the world arena thanks to it being a link between the Americas. That alone, though, cannot guarantee the country’s progress, he claims, so the nation has to look into innovating.
If Panama moves to accept Bitcoin as El Salvador did, due to its place on the political arena, the decision will be significant.

Venezuela

Tenerife Las Mercedes
Source: Matthias Mullie on Unsplash

Venezuela is definitely one of the nations which is not a stranger to cryptocurrencies. After all, it was the nation that launched the first national cryptocurrency, petromoneda.
However, Petro is somewhat struggling to find adoption, while Venezuelans favor Bitcoin more. 
It came to be due to hyperinflation and sanctions imposed by the US. Even President Nicolás Maduro was on record saying that they will use any currency for internal and external trade.
With El Salvador taking definitive action towards Bitcoin, Venezuela can be one of the first nations to follow suit. 

Mexico

Flag of Mexico
Source: Jorge Aguilar on Unsplash

Mexico has been discussing the national cryptocurrency project for a while now. Reportedly, the alternative of using Bitcoin has already been considered, and it is now up to El Salvador to prove if it’s viable.


Congressman Eduardo Murat Hinojosa supported the push for cryptocurrencies. Nonetheless, his efforts got shut down for now.

Malta

Grand Harbour in Malta
Source: Benjamin Bindewald on Unsplash

All of the countries mentioned above have one thing in common: they represent Central and South America. Malta is the only country outside of that region likely to move into Bitcoin adoption anytime soon.
In 2018, it became a crypto hub of Europe, thanks to its tax haven status and conducive crypto policing. Tech companies moved to it and have been operating from there since.
In addition to the importance of crypto businesses for the country, Malta and the European Union have been at odds at times at least since 2008. 
Malta’s President Joseph Muscat has always had a positive outlook toward cryptocurrencies. These factors can contribute to Malta making the decision to adopt BTC as a legal tender, though that is still a realm of speculation.

Are Global Powers Lagging?

What about larger, developed countries? Why is Bitcoin adoption on legal level not expected from them?
China is making news with its crackdown on Bitcoin and crypto trading. As they are getting ready to launch their own central bank digital currency, they don’t want competition.
The United States, on the other hand, has a more complicated stance on Bitcoin. While some politicians urge reclaiming BTC mining from China, others are concerned about the ecological implications of it.
It is still not likely that the US will accept competition to USD as a reserve currency, either.
European Union is reportedly working on the digital euro at the moment. There is no way that any member state of the EU will embrace a privately issued currency with no centralized control.

Retail Bitcoin Adoption

But that is what politicians and governments think. What about the population, though?
Cryptwerk alone has a registry of more than 6,700 businesses that accept Bitcoin worldwide. Most of them are concentrated in the USA and Europe but it’s very likely vendors from other regions are not listed.
It is challenging to estimate the actual number of Bitcoin users even from the blockchain data: many addresses are used only once or empty.

Number of active Bitcoin addresses
Source: Glassnode

As of June 21, 2021, there are 4 million active BTC addresses, both sending and receiving coins.
When rounding up several surveys from most populated countries, BuyBitcoinWorldwide came to the conclusion that at least 2 billion people know about Bitcoin. However, only about 100 million actually own Bitcoin.

Conclusion

2021 has already become a historic year for Bitcoin adoption, and the future will only get more exciting. 
Developing countries especially in the Americas see Bitcoin as a solution to the inflation and digital payment infrastructure problems. Meanwhile, the first world is more concerned with keeping the influence of their fiat currencies in the digital era. 
Are you curious about it? You can follow the news in our blog or social media: we’re on Twitter, Facebook, Reddit and Telegram.

FAQs

Is paying with Bitcoin safe?

You can pay in Bitcoin in most places that accept it safely. There are at least 6,700 vendors worldwide which accept Bitcoin online and in physical locations.

Who adopted Bitcoin?

As of June 2021, the only nation to adopt Bitcoin as a legal tender is El Salvador. Communities worldwide do it in an unofficial capacity.

Is Bitcoin safe and legal?

Bitcoin is a peer-to-peer value transfer protocol, in and of itself it is legal and safe. Users will need to do their own research to determine if the Bitcoin exchange/wallet/vendor they are going to use is legal and safe.

How do I buy bitcoins?

You can buy Bitcoin on an exchange, P2P marketplace or on ChangeHero with a credit card!
You can buy BTC in a few simple steps:

  • Choose your country, check the currency of purchase and rate;
  • Proceed and provide the BTC address for purchase. Check the Terms of service before finalizing the transaction;
  • Verify your phone number, email address and ID details. Next, provide the information of the bank card;
  • Go through the KYC procedure to finalize verification;
  • And from here on, our partner processes the purchase. On average, it takes about 15 minutes for funds to be sent.

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Author: changehero
June 24, 2021

Bitcoin is more and more frequently touted as a hedge against inflation, and in 2021 it is even getting recognition as a legal tender. Does it mean that Bitcoin as digital gold could become the basis of a new standard for money? Our team takes a deep dive into the narrative to find out! Gold […]

Bitcoin is more and more frequently touted as a hedge against inflation, and in 2021 it is even getting recognition as a legal tender. Does it mean that Bitcoin as digital gold could become the basis of a new standard for money? Our team takes a deep dive into the narrative to find out!

Gold and Properties of Money

When we are thinking about the history of money, most likely, we will remember the role of gold. It is a valuable metal which was used for luxury goods and money for a long time.
This is easily understandable. Gold fulfills all properties of ideal money:

  • Fungibility (ability to be interchangeable);
  • Durability;
  • Divisibility;
  • Portability;
  • Cognizability;
  • Scarcity.

Of course, even gold does have some limitations. It is hard to transfer large quantities of it and it is one of the easiest metals to wear down.
This is why gold used to be widely adopted as a standard for national currencies around the world. Does Bitcoin as digital gold imply that it could be a basis for digital currencies?
Before answering that, let’s review what else makes gold valuable.

Why is Gold Valuable?

Gold used to be a basis for monetary systems for its scarcity and applications. It was adopted for its scarcity, resistance to corrosion and cognizability.
Aside from being used primarily as money, gold was used in production of goods. Gold can be used in jewelry, and in modern times in electronics, chemistry and medicine.
Paper money at first served as checks that could be redeemed for gold, especially in gold standard economies. As production of gold depleted and money lost redeeming quality to inflation, gold standard was retired for fiat.

History of Bitcoin

Before Bitcoin and cryptocurrencies, digital currencies were going the path of legacy monetary systems: first electronic money were representations of fiat currencies.
The cypherpunk movement in the 1990s was figuring out how to create a monetary system which did not need a central authority. They used cryptography to digitally replicate properties of money, and that is how pseudonymous Satoshi Nakamoto designed Bitcoin in 2008.
In the first years it was used and mined by fellow cryptography enthusiasts. First transactions and trading activity started in 2010.
Bitcoin price started accumulating, opening at $0.30 in 2011 and closing 2013 at $770. 2014 was the first bull run of BTC, and first Bitcoin news appeared in the mainstream media.

BTCUSD chart
Source: TradingView

BTC in 2014 peaked at $1,175 but sharply corrected afterwards and was trading sideways for three years. Similar cycle repeated in 2017, and that time BTC reached a peak of $19,891.
By then, even despite the best efforts of developers to make BTC better suited for daily transacting, “Internet money” narrative died out. Instead, focusing on provable scarcity, a new narrative formed: Bitcoin as digital gold and safe haven asset.
Has Bitcoin reached a peak in 2021? It is still hard to say, as models suggest it can still reach $100k this year but not everyone agrees.
What is certain, though, is that the amount of fiat money parked in BTC overall grows through these cycles.

Bitcoin vs Gold

As Grayscale analytics put it, Bitcoin cannot be valued in the same way as stocks because it does not generate cash flow. Instead, to estimate its value, it is reasonable to use supply/demand and relative valuation — as it is done for gold.
What arguments are made in favor of Bitcoin vs gold?

  • Bitcoin is scarce: the protocol has a rule that there can only be 21 million units;
  • Bitcoin is resistant to inflation: its emission slows down roughly every 4 years, making it disinflationary;
  • Like gold can be used in electronics and chemistry, Bitcoin itself has value as the first real application of blockchain technology, for example, for peer-to-peer value transfers.

Bitcoin also fulfills most properties of money like gold does:

  • Durability: BTC doesn’t have physical representation, it exists as data, and is resistant to attacks on the network thanks to mining;
  • Divisibility: 1 BTC can be split into 1,000,000,000,000 satoshis;
  • Portability: BTC can be accessed from any location;
  • Scarcity: there is a limited amount of BTC in existence.

Cognizability and fungibility of Bitcoin are the only more or less contentious points. Arguments can be made for “tainted” coins with history of being involved in illicit activity, which are not accepted by some operators. 
As for cognizability, as of 2021 Bitcoin is recognized as legal tender only in El Salvador. Thousands of vendors and retailers accept Bitcoin for goods and services.

Bitcoin vs Gold Correlation

Bitcoin vs Gold Correlation
Source: Longtermtrends

On this chart, the price of Bitcoin is weighed against how many ounces of gold it can purchase with 1 BTC. When it increases, Bitcoin outperforms gold, and vice versa.
Bitcoin vs Gold price change
Source: Longtermtrends

The linear chart makes it even more obvious how Bitcoin outperforms gold. A counterargument is made that Bitcoin’s volatility disqualifies it as a reliable store of value.
Returning to the previous chart, however, a conclusion that BTC appreciates long-term can easily be drawn. At the same time, gold has been trading in the $1,000–1,600 range for a decade without such drastic rises.

Tweets about Bitcoin as Digital Gold


Some investors take the volatility counterargument and turn it to further prove the point of Bitcoin as digital gold. Alistair Milne, for example, said that Bitcoin deserves the title not in spite of but thanks to persevering through turbulent markets.


An author of a stock-to-flow model application to Bitcoin, blogger PlanB made the Bitcoin/gold ratio chart and projected where to next. In that model by 2025, one BTC should buy you 1,000 ounces of gold, driven by demand.


Of course, there is also an opposite point of view: one of the most known sceptics of Bitcoin vs gold is Peter Schiff. He argues that Bitcoin does not have a real world use unlike gold, but that is what the point of it being digital.

Conclusion

The Bitcoin community is now closely watching whether more countries adopt BTC as legal tender. In that case, Bitcoin as digital gold will finally be recognized worldwide.
Interested in more context around the latest news and Bitcoin updates? Keep an eye on our blog and subscribe to ChangeHero on social media: Twitter, Facebook, Reddit and Telegram.

FAQs

Is Bitcoin digital gold?

Bitcoin proponents are comparing Bitcoin to gold because of the scarcity and value of both assets. Due to its purely digital nature, Bitcoin is dubbed digital gold.

Will bitcoin become digital gold?

Bitcoin as digital gold is arguably already valid, but it could be further validated by making Bitcoin more fungible and cognizable. Protocol updates and legal adoption respectively could help with that.

Which is better: Bitcoin or gold?

Both assets fulfil their own purpose, so comparing them requires specification. Bitcoin wins in portability and accessibility but gold is more cognizable and fungible.

Does Bitcoin kill gold?

Since Bitcoin and gold can exist as separate safe haven assets, Bitcoin cannot kill gold. Instead, investors and governments can adopt Bitcoin as digital gold.


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Author: changehero
June 3, 2021

Last month, news came in that China banned Bitcoin again, and panic shifted the market into fear. But can governments ban Bitcoin for real? In this article, the ChangeHero team explains why fears of Bitcoin ban are blown out of the water. Key Takeaways Is a total Bitcoin ban possible at all? No, because as […]

Can Governments Ban Bitcoin?

Last month, news came in that China banned Bitcoin again, and panic shifted the market into fear. But can governments ban Bitcoin for real? In this article, the ChangeHero team explains why fears of Bitcoin ban are blown out of the water.

Key Takeaways

  • Is a total Bitcoin ban possible at all? No, because as long as there is Internet access, users can download Bitcoin software and access its network;
  • This is a result of Bitcoin being decentralized, meaning that it is supported by a worldwide network of nodes and miners, and immutable, meaning transactions can’t get reversed;
  • There is a partial Bitcoin ban in some countries of the world: China, Iran, Turkey. It usually implies prohibition on banking or trading services.

How does Bitcoin work?

Can governments shut down Bitcoin? It was intentionally designed for it to be impossible.

How does Bitcoin work?
Source: Bitcoin Maximalist

It was developed by cypherpunks and libertarians, who stand up against government control and surveillance.
To understand why Bitcoin is uncensorable and immutable, we have to go down to its basics. By the way, we have a Beginner’s guide to Bitcoin, if you’d prefer to dive into details.
To make Bitcoin decentralized, it was made to be able to be supported on any device. They become nodes and keep the entire history of BTC transactions and synchronize with each other.
Bitcoin is based on the blockchain technology. In its case, to rewrite transaction history, a consensus of the majority of miners is needed (which would be very expensive!), and it would only create a second parallel chain.

Can Governments Ban Bitcoin?

Since Bitcoin is immutable and decentralized, it’s impossible to amend the blockchain history, only create an alternative, or ban it. Bitcoin itself cannot be banned due to its design.
If you’re asking yourself, “if there is a Bitcoin ban in my country, will Bitcoin die?”, do not worry. To effectively prevent access to BTC, a government would have to essentially shut the Internet down.
As long as there is access to the Internet, one can download Bitcoin software and perform transactions with it.
However, governments still see the need for Bitcoin regulations, and some choose to start with an outright ban. Obviously, telling people to stop using it won’t be very effective, so they come up with other ways to restrict its usage.

How Can the Government Restrict Bitcoin?

What countries ban Bitcoins? The list of such countries in 2021 is thinning out but not zero.
It’s also important to understand what constitutes a ban and what is only perceived as such in Bitcoin news. But let’s clarify that in concrete examples.

China

The age-old question that’s caused many a pullback by now: is China banning Bitcoin? This time around, there is no explicit ban on Bitcoin in China but it is indeed restricted and officially not endorsed.
The latter is hardly any news, since China has taken the “yes to blockchain, no to cryptocurrencies” approach long ago. The former needs clarification: restrictions include prohibition of crypto-related service provision and crackdown on mining.
For miners, it means that they no longer can use local energy. Crypto-related businesses such as exchanges will have to involve roundabout ways to bypass jurisdictions.
But since this is far from the first time Bitcoin has been allegedly banned in China, this is just another inconvenience. As for retail users, the situation does not concern them at all, and they get to keep using BTC as always.

India

Another country with dubious legal status of Bitcoin is India. Luckily, now even the considerations of ban are out of the question. Nevertheless, for some time it was thought that the second most-populated country in the world was going to ban Bitcoin.
The way the government chose to go about it is the same as in China: prohibit banks from offering cryptocurrency-related services. This would not have impacted retail users but definitely would have made Bitcoin an officially not endorsed thing.
Luckily for Indians and foreigners, due to backlash, the proceedings on ban were reviewed and rejected.

Iran

Another country that has been circulating the news about governments regulating Bitcoin is  Iran. Recently, they prohibited licensed miners from operating until September due to a nation-wide energy crisis.
Iran has one of the most complicated cryptocurrency regulations. They require miners to receive mandatory licensing, and the BTC that can be legally used on the territory of the state has to be domestic.
Technically, this means that for the time being, there is a partial ban on cryptocurrency in Iran. People and businesses can still use BTC, though it might get less attractive to use it for imported goods now.

Turkey

Finally, not long ago, Turkey became more clear about a partial ban on cryptocurrencies. Trading and holding is legal but using it as payment is not.
Turkey has been one of the adoption hotspots for years now, all the while Turkish lira tumbles down. Peer-to-peer exchanges and local exchanges amassed volumes significant by both European and Middle East standards.

Opinions from Twitter


A couple of weeks ago, the US SEC commissioner Hester Peirce went on record to say that banning Bitcoin would be impossible. The fact is not news, but coming from an official source, it means that at least the USA will consider alternatives to Bitcoin ban.


A long-awaited chapter in India’s Bitcoin ban debacle — the Reserve Bank issued clarification that they will not use old restrictions. The replies though do point out that RBI urges banks to stick to other existing cryptocurrency regulations.


Documenting Bitcoin shared the interview with Alex Gladstein, CSO of Human Rights Foundation. He’s arguably the most prominent figure making the case for Bitcoin being a lifeline for dissidents and marginalized communities all over the world.

What is Bitcoin Ban Achieving?

Can governments ban Bitcoin? Maybe they can. But should they do it? It’s a tricky question. Bitcoin is already helping where the government doesn’t.
One of the best known examples is Venezuela, where residents use BTC instead of the rapidly inflating bolivar. Venezuelan expats also rely on cryptocurrencies when they need to send money home.
2020 saw a rise in adoption of Bitcoin as an uncensorable, unstoppable asset that can help dissidents around the world: anti-police brutality movement in Nigeria, Belarus opposition, Hong Kong journalists, independent media and opposition in Russia. The government can freeze their bank accounts but cannot influence Bitcoin transactions.

Conclusion

All in all, if you’re wondering, can governments ban Bitcoin, this should not be of your concern, really. Bitcoin is independent from any third party, including the government, always has been and always will be.
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Author: changehero
December 23, 2020

ChangeHero continues the series of the 2020 crypto recap! Last week we looked at what was happening with altcoins and altcoin performance in 2020. Before that, we wrote an article about Ethereum and DeFi, the stars of 2020. However, now is finally the time to take a look at what happened to Bitcoin in 2020. […]

Bitcoin recap 2020

ChangeHero continues the series of the 2020 crypto recap! Last week we looked at what was happening with altcoins and altcoin performance in 2020. Before that, we wrote an article about Ethereum and DeFi, the stars of 2020. However, now is finally the time to take a look at what happened to Bitcoin in 2020. Starting with Bitcoin performance, we will also look at the most resounding news and stories of this year.

Bitcoin Performance in 2020

Of course, the 2020 Bitcoin recap should start with a deep dive into the Bitcoin performance this year.

Bitcoin price chart for 2020
Source: CoinMarketCap

Q1: the Spring after Crypto Winter

Bitcoin started the year 2020 in a bullish market. The opening price of BTC on January 1 was $7,198.64. By February 16, it had reached $10k. At that time, bears overtook the initiative and the price entered a slow downtrend again. However, in a month the change took a sharper turn, when WHO declared the global COVID-19 outbreak a pandemic. Stock markets crashed, and so did the crypto market. On March 13, later dubbed “Bloody Friday”, Bitcoin sank to its yearly low of $4,106.98.

Q2: the Halving Recovery

The climb back up was not fast but steady. In April and May, a positive sentiment surrounded Bitcoin in anticipation of halving. Why? There is a section further in the article explaining it. The price even got extremely close to $10k, but was rejected.

This mark was reached in June, although for only a day. This was the first time in a long time that the community saw a “Bart head” pattern (quick surge, brief sideways trading, correction to the level before the surge) on the BTC charts, but certainly not the last. For the most part, June and July did not see much action, and Bitcoin was trading around $9k.

Q3: the Warm-Up

Another bullish phase finally started in late July and August. On July 27, Bitcoin suddenly jumped above $11k. For the entire month of August and early September, BTC consistently stayed this mark and even tested $12k. After the rejection the price came back to slightly above $10 thousand. From there on it was trading mostly sideways in a slight uptrend for a couple of months.

Q4: the Bull Run

The $12 thousand resistance was crushed in October, and from there on things got exciting. $13 thousand was taken in a couple of days, $14 thousand smashed and passed straight to $16 k in early November. A couple of weeks later? Bitcoin is already over $18 thousand. Rejection at $19k in late November? The dip to $16 thousand lasted only for a few days. On November 30th, Bitcoin beat its ATH on several exchanges at $19,749.26.

The first half of December was looking a lot like either the start of the correction or a sideways trend. Bitcoin seemed to be stuck between $19k and $18k until December 16. That day, it shot up right through the psychological barrier of $20 thousand and beat its ATH officially on all exchanges. The current ATH was observed a couple of days later, on December 20, 2020: $24,209.66. At the moment of writing the article, Bitcoin price is $22,789.06. In comparison with the 2020 opening price, Bitcoin performance is positive at 216.57%.

Bitcoin Market Capitalization in 2020

On the same chart we can see that the price correlates with the changes in market capitalization. At the start of 2020, BTC’s market cap was $130,634,632,078 USD, and at the time of writing it is $439,984,211,210 (+236.80%) USD.

Bitcoin Dominance in 2020

Bitcoin market dominance in 2020
Source: CoinMarketCap

Bitcoin’s market dominance (the percentage of BTC’s market cap vs. the total market cap of all cryptocurrencies) has been staying between 56% and 68% for all 2020. It was at its highest in the winter bullish market and its lowest throughout September, when BTC was trading sideways.

2020 Bitcoin Halving

On May 11, 2020, Bitcoin mining rewards were halved for the third time. For adding a block to the blockchain, a miner now gets 6.25 BTC as a reward. The event could have contributed to the ongoing rally of BTC.

Halvings are seen as bullish because these events slow down the issuance of Bitcoin. Previous halvings have also had a similar effect on Bitcoin performance. When the supply is decreasing but the demand stays at the same level, the price of a good or commodity will also increase in the long term.

If you would like to learn more, ChangeHero team made articles about Bitcoin post-halving and a more in-depth analysis of the 2020 Bitcoin halving.

Technical updates

Bitcoin Core 0.20.1

The Bitcoin Core client was updated three times this year. In March and August, there were maintenance releases with minor fixes. The latest major upgrade, Bitcoin Core 0.20.0, was rolled out in July. Among notable changes the developers highlight the removal of reject network messages (to make the network more trustless), remote procedure call (RPCs) and setting updates. In fact, most of the changes made in the release concern builders rather than users and did not make the Bitcoin news.

What users can look forward to is Schnorr signatures (BIP-340) that can enable blind signatures or partially blind atomic swaps. Another large improvement is Taproot, a modification of a multi-sig function that can be used to create sidechains and tokens in the Bitcoin network. It is yet unclear, though, whether these proposals will be finalized next year. However, even the news of progress in that direction will have a positive impact on Bitcoin performance in 2021.

Liquid Sidechain

In May, Blockstream presented a solution to making Bitcoin more mobile in a form of a sidechain — Liquid. As the developers put it, the sidechain can make settlements on the Bitcoin blockchain faster and more private. As a tradeoff, the security model of the sidechain is different: Liquid tokens use federated peg. It is a trusted solution that partially relies on cryptography and consensus.

In Liquid, transaction amounts are confidential, as the unspent outputs instead of exact amounts use cryptographic functions.

Despite all the differences, Liquid is not a fork of Bitcoin but a sidechain, as validation relies on the same ledger. However, the concessions made to the security model and the fact that it is a corporate initiative made Liquid controversial in the community. Right now it is used as a solution by a few exchanges and platforms, but was not yet embraced by the community as a whole.

BTC Adoption in 2020

Bitcoin adoption in 2020 has made huge strides to facilitate entry into crypto. Of course, most notably, PayPal introducing cryptocurrency led the way. This could even drive the 2020 Bitcoin performance, as it was reported that PayPal and Square (the company behind CashApp) were buying all the newly minted BTC in Q4.

Institutional adoption is accelerated by hedge funds and crypto derivatives. Open interest in Bitcoin futures on CME consistently showed record highs. As for the funds, this year, Guggenheim Fund and Renaissance Technologies expressed interest in the crypto market, and famous hedge fund managers expressed their interest in BTC as a store of value.

Mass adoption was not only visible in America. On the markets, such as Nigeria, Vietnam and India, P2P trading volumes were growing all year. This growth was driven by remittances and inflation of local currencies. In the 2020 crypto adoption report, Russia, Ukraine and Venezuela showed the highest degree of crypto adoption by multiple metrics (P2P volumes, on-chain value transfers).

By the end of 2020, cryptocurrencies were the only option left for the largest adult content platform on the Internet, PornHub. This was a consequence of Visa and MasterCard cutting ties with the platform in the light of its negligence in combating sexual abuse, including minors, on the platform. However, thousands of models and sex workers were also impacted by this, especially in the pandemic. Crypto is right now the only way to donate to them and support the platform.

Crypto Regulations in 2020

FATF Travel Rule

The recommendations by the Financial Act Task Force (FATF) now include a ruling that virtual asset service providers (VASPs) should share information with the concerned authorities. The name comes from the analogy with the US bank regulations. According to the recommendation, a VASP in addition to doing due diligence in KYC, should share the information on request from the country of registration’s authorities. The Travel Rule mostly concerns businesses, which is why it went mostly unnoticed by the users. However, it was a step towards making member countries collaborate with VASPs to combat money laundering and terrorism financing.

ChangeHero Articles on Regulations

Earlier this year, our team wrote an article about different local regulations of cryptocurrencies in the world. Half a year later, we researched pro-Bitcoin nations and those who oppose it in an article about regulated cryptocurrency exchanges.

As far as Bitcoin is concerned, the laws have stayed mostly the same as we described in these articles, with the exception of India, which warrants an update for December.

One of the largest markets for crypto, India was a source of conflicting news stories all year round. Early in 2020, the community celebrated Indian Supreme Court lifting what was essentially a ban on cryptocurrencies. There still were some uncertainties about the provision of banking services and the mining industry. Only in December it finally became clear that neither are illegal. India is only a single case, but it shows how the relationship between the government and the nation can affect the local crypto economy.

What to Expect in 2021?

What will happen to bitcoin in 2021? Of course, no one knows for certain, but there are a few educated guesses about Bitcoin price prediction for 2021.

Mike McGlone of Bloomberg expects that if history repeats itself, the rally will see Bitcoin fall to a hard resistance level like in 2018. He estimates this hard resistance to be more solid than back then, and the lower level to which BTC may fall is $10 thousand USD. The highest border of the range lies at $50 thousand. The analyst’s Bitcoin forecast is that the asset may go as high as $40 thousand.

Nigel Green, founder of deVere Group, doesn’t think this rally is a repetition of 2017. Primarily, back then there just weren’t as many institutional investors as there are now. Of course, there are going to be pullbacks at highs, as some investors will seek to sell for profit. However, the current momentum has all the chances to take Bitcoin to $30,000–40,000 in 2021, he claims.

Kraken Investor Survey in Q4 collected opinions of the exchange’s VIP clients. At the moment of surveying, the average expectation for Bitcoin’s price target in 2021 was $36,000.

Other opinions and predictions which didn’t make it to this Bitcoin recap can be found in the Bitcoin price prediction article by ChangeHero.

Key Takeaways

  • Bitcoin performance in 2020 is extremely positive, especially in comparison to traditional assets: it is now worth almost three times as at the beginning of the year. From $7,198.64 on January 1, it appreciated up to $22,789.06 at the time of writing;
  • Bitcoin has beaten its previous ATH on December 20, 2020. The current record is $24,209.66;
  • Authorities are grasping the unique nature of blockchain-based currencies, such as Bitcoin, and depart from the conservative approach to outright ban it or use the existing framework. More laws around the world define what digital currencies and assets are and attempt to regulate them;
  • Bitcoin was seeing unprecedented adoption at the institutional level and kept spreading among retail investors. Large services like PayPal drove the demand for Bitcoin and made it more accessible in 2020;
  • In 2021, considering the current Bitcoin performance, even moderate price targets go as high as to $36 thousand dollars.

Conclusion

Bitcoin in 2020 has had a curious journey of downs and mostly ups, and is drawing close to a spectacular year close. BTC is still the king of cryptocurrencies, and it does not seem this is going to change anytime soon.

The 2020 Bitcoin recap, which is the third part of 2020 crypto recap is over, but the series will continue! Read more articles in our blog and check the updates in any social media: Twitter, Facebook, Reddit and Telegram.


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Author: changehero
December 21, 2020

The once popular price target of $100K for 1 BTC in 2021 is yet to be reached. Despite that, in 2021 Bitcoin managed to appreciate by 166% with some Bitcoin news-induced volatility every now and then. Now, it is time to look into the Bitcoin price prediction 2022 and for the years ahead. Bitcoin Price […]

Bitcoin Price Prediction 2022, 2025 and 2030

The once popular price target of $100K for 1 BTC in 2021 is yet to be reached. Despite that, in 2021 Bitcoin managed to appreciate by 166% with some Bitcoin news-induced volatility every now and then. Now, it is time to look into the Bitcoin price prediction 2022 and for the years ahead.

Bitcoin Price Prediction 2022–2030

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  • Bitcoin price prediction 2022 carries a lot over the forecasts for 2021. The bull run is not over, bulls claim, and the top is projected to be anywhere between $84,000 and $400,000;
  • Some of the forecasts predict that Bitcoin will reach $1 million in a few years but differ in the time estimate when it will happen, in 2024 or 2025;
  • The predictions for 2030 are the least certain, giving a wide range from $500K to all the way up to $12 million.

What is Bitcoin?

Bitcoin logo
Source: bitcoin.org

Bitcoin has been the largest cryptocurrency on the market from the very start, and arguably served as its cornerstone.
The whitepaper for Bitcoin was published in 2008, though it had been in works for quite some time by then. In this document, it is described as a peer-to-peer digital currency and envisioned as an alternative to cash fiat money. 
Genesis (#0) block was mined by the Bitcoin creator(s?), Satoshi Nakamoto, on January 3, 2009. Since then, it has grown into a massive movement, diverse community and inspired the many altcoins that now form the crypto market.
For more information, check out our Beginner’s Guide to Bitcoin.

Bitcoin Price History

Bitcoin’s worth is determined by the market, not by any central authority, by design. In its earliest days, for example, when there was no market, its users determined its worth. 
At one point it was around 0.00005 in Papa John’s pizzas. (This is, of course, in reference to the post on bitcointalk.com, published on May 18, 2010. User laszlo has offered 10,000 BTC to a stranger kind enough to buy him a couple of pizzas.) May 18 is now known as Bitcoin Pizza Day, and Bitcoin Pizzas are sometimes used to illustrate the growth in Bitcoin’s price.

2009–2013

Until 2010, when BitcoinMarket.com was created, there was no market to trade cryptocurrencies and all trades were peer-to-peer. Since then, slowly but surely, Bitcoin was setting a framework for the crypto market.
The first miner reward halving happened on November 28, 2012. At that time, Bitcoin was traded at $12.22 USD. 
The event itself had no immediate effect, neither on the price or the network. However, a year later at the highest point of the bull market, Bitcoin cost $1,178. That is an almost 10,000% growth!
Its value was increasing, and by 2013 BTC was already being accepted by some real-world merchants. The interest in Internet technologies, such as digital payments was on the rise. Cypriot financial and Greek government-debt crises have also been connected with rising interest in Bitcoin.

2013–2014

In perspective, throughout 2013 Bitcoin seems relatively stable. That is, until late 2013: in October an unprecedented rally began, taking it to parity with gold at $1,250 USD. The market was still extremely volatile and, obviously, the corrections followed suit.

The downtrend was exacerbated by Mt. Gox shutdown and false reports of ban of BTC in China. It reversed only in mid-2014. The year closed with the Bitcoin price sitting at $300 USD.

2015–2016

But this was only the beginning of Bitcoin’s rise. During the following two years it was steadily gaining value, with a few spikes in November 2015 or June 2016. The late 2016 rally was connected with Chinese Renminbi depreciating against USD.
However, it’s even more likely that the rally in 2016 was not under the influence of external economic factors. As the market matured, internal factors like the July reward halving for BTC started having more effect. 
During these two years, Bitcoin price has almost tripled, from $315 USD in January, 2015 to $973.99 in December, 2016.

2017–2019

In August, 2017, Bitcoin Cash fork occurred. It was a result of a long-standing scaling debacle. The part of the community which was in favor of increasing the block size to help scale the network decided to split off.
However, this was little in comparison with what happened next. The rally gained the attention of more investors, and over the following six months it only accelerated. 
There were setbacks, like a crackdown on ICOs and exchanges in China in September 2017. This caused a sharp dip to $2,900. 
Regardless, the trend persisted, and on December 17, 2017, Bitcoin reached $20,089. The correction, expectedly, followed suit, fuelled by the network congestion and rising fees, exchanges being overloaded and investors terrified by a bubble burst. 
This brought regulators in, and fears of intervention and manipulation accelerated the onset of the bear market. Some have called 2018 the worst year so far for Bitcoin: it lost 70% of its value, closing at $3,747, in comparison to opening $13,062 USD.

2019–2021

But obviously, “crypto winter” (the depression of 2018 and bear market of 2019) was not the end. The entire market entered a stage of recovery, and the once lost interest of the public was returning. 
News on digital national currencies, most notably, digital yuan, launch plans for TON and Libra created price fluctuations. In the long term, returning interest has contributed to the bullish trend.
In 2020, other outside factors stepped in the game. The COVID-19 global pandemic caused a stock market crash, which culminated on March 12. Bitcoin’s price dropped by almost half (open: $7,913.62 vs. close: $4,970.79). After that, on May 11, mining rewards halved yet again.
Investors were getting ready for the history to repeat, and even institutional investors came in with the capital. This is said to be one of the driving factors of the current Bitcoin rally.
After reaching the $60,000 milestone in May, Bitcoin price took a nosedive but over the course of summer recovered and consolidated. The current ATH was reached on Nov 10, 2021: $68,789.63.
At the moment of writing, the total market cap of Bitcoin is $918,936,298,516.99. With 18,902,431 BTC in circulation, that makes the price of it equal to $48,776.26 (data from CoinMarketCap).

What influences the Bitcoin price?

Miner reward halving

In brief, “halving” is a preprogrammed event that reduces the block rewards in half, hence the name. It does not affect the existing supply but slows down the rate at which the new Bitcoin are minted.
Historical price analysis claims that there are observable market cycles tied to the procedure of Bitcoin halving. The supply rate slowing down made the demand and price skyrocket. 
Previous two halvings have triggered a long-term bull-run for BTC and the entire cryptocurrency market. More can be read in our article on Bitcoin halving.
There are a couple of contradicting theories on the bullish nature of halvings. 
On the one hand, halvings significantly reduce issuance and inflation rate. Miners actively sell off freshly minted Bitcoins, so when the supply is cut down, the price rises. 
On the other hand, halvings don’t have a lasting effect on the network, meaning these events are priced in.

Legal regulations

Before the retail boom, Bitcoin was mostly owned by those who would come into the game knowing the rules. Once the hype kicked in, retail investors flooded in but unprepared to the shakiness of the market, suffered losses.
That was before any comprehensive regulation was in place. Setting rules for the game and making sure the participants respect them is the key to adoption. 
In 2021, Bitcoin received a legal tender currency status in El Salvador, massively boosting its scope of real world adoption.
But in reality, as history shows, it’s not always this fine and dandy. Despite the claims that Bitcoin does not need a trusted authority to work, prohibitive regulations can damage its standing.
For example, in May 2021, China finalized a complete ban on cryptocurrency trading and completed the crackdown on miners. As a result, Bitcoin price sank from $60,000 to below $34,000 but as the miners moved out, the hash rate and the price recovered.

Environmental Impact

The May crash was caused by another reason: a little earlier, the CEO of Tesla Elon Musk announced on Twitter that the car manufacturer will not accept BTC for payments citing mining impact on the environment.
Since then, efforts to bring awareness to the use of sustainable energy in Bitcoin mining are made. El Salvador is building facilities that will utilize geothermal energy. 
American miners, who now account for the majority of hash rate in the network, run the Bitcoin Mining Council. Their goal is to provide transparency to the operations and educate responsible regulators on the nature of Bitcoin and crypto.

Technical Updates

The Bitcoin protocol has changed significantly since its inception. New features that widen the scope of uses of Bitcoin are usually bullish for the price of Bitcoin.
One of the most impactful features introduced to Bitcoin was Lightning Network: an add-on to the protocol for fast peer-to-peer settlements. Not only it caused a stir in the community, but it keeps influencing Bitcoin adoption even now.
Lightning Network makes day-to-day payments with BTC in El Salvador possible: it is integrated into the Chivo wallet, which was developed as a national project.

Bitcoin on Twitter


Crypto analyst Matthew Hyland claims that the bull run will take BTC up to $250K as soon as in January 2022. As the evidence, he cites the Stock-to-Flow cross asset model, a modified stock-to-flow Bitcoin price prediction model.


The best thing about Bitcoin? It is developed globally and while some countries struggle to acknowledge its impact, progress is made elsewhere.


With each day, Bitcoin is becoming a scarcer asset. Not only is the mining rate slowing down, but there are also lost coins, which are out of circulation forever.

Bitcoin Price Prediction 2022

Ryan Matta Bitcoin Price Prediction 2022: $84,504

What will the opening price of 2022 for Bitcoin be? The target that this YouTuber aims for is at the 1.618 Fibonacci level – the highest possible leg up – which is at $84,504 USD.
But why the confidence that the move will be to the upside? Ryan Matta thinks that the inflationary pressure will keep holders that are currently in loss with BTC in the game, so they will not sell if BTC goes up.

FXStreet Bitcoin Price Prediction 2022: $100,000+

An even more bullish target is provided by FXStreet’s Filip L. In the post-vaccine world, COVID-19 will no longer have significant influence on the markets.
Bitcoin in particular is getting more widely embraced by institutions and investors, outpacing any attempts to outlaw it. By the end of 2022, the highest target BTC has the potential to reach is at $110K.

Bloomberg BTC price prediction 2022: $400,000

Applying historical analysis, Bloomberg crypto analyst Mike McGlone comes to the conclusion that the bull run is not finished. If Bitcoin repeats 2013 and 2017, in 2022 it has all the chances to reach $400,000.

Bitcoin Price Predictions for 2023–2024

BTC price prediction 2024 by Julien Timmer: $100,000

Fidelity Investments macro global director, Julien Timmer, in an interview to CNBC voiced a bit more conservative time estimate for BTC reaching $100K. In his opinion, BTC is on a sustainable track to the upside and can definitely reach six figures by 2023.

Raoul Pal: $1 million USD by 2024

This is one of the better known claims, firstly, for its sheer boldness and secondly, for the author behind it. Raoul Pal predicted the ‘08 financial crisis back in the day. Most likely, he used it to drive the point about Bitcoin being a safe haven home more effectively.

Bitcoin Price Prediction 2025

Plan B: $1 million past 2025

In this prediction YouTuber Aimstone, citing Dr. Saifedean Ammous and Plan B, makes the same claim. Plan B’s correlation between stock-to-flow and market value proved to be true for other commodities.
Applying it to Bitcoin shows a prospect of its price moving over $1 million USD after five years from now.

CoinMarketCap: $249,578

The panel of 50 experts that CoinMarketCap’s education branch Alexandria rounded up gave their predictions, the average of which came up to $249,578. One of them, CoinFlip founder Daniel Polotsky explained the estimate: by then, Bitcoin will be seen less like a growth stock and more like a store of value.

Chamath Palihapitiya: $200,000 in five years

According to a more conservative prediction by millionaire investor Chamath Palihapitiya, in any time within the next five or ten years, Bitcoin is going to hit $200,000. He did not give a certain time frame, though. 
Bitcoin is a trustless asset, which will attract investors disillusioned with their governments.

Bitcoin Price Prediction 2030

BTC price prediction 2030 by Robert Breedlove: $12 million

It may seem outrageous even in comparison to the most bullish claims but Parallax Digital CEO Robert Breedlove is sure that before 2031 Bitcoin can hit $12 million. He sees BTC in the future as the ultimate counterparty to central banks.

Tyler Winklevoss: $500,000

It’s no wonder Winklevoss twins are bullish on Bitcoin: after all, it has made them millions. Seeing the decline in the purchasing power of the dollar, they tout BTC as an alternative to gold. Should it reach the same capitalization, Bitcoin’s scarce supply will make each whole unit worth about half a million dollars.

ChangeHero’s Bitcoin price prediction

In the years to come Bitcoin might finally reach a global audience, with all the ongoing regulation proceedings. We have to keep in mind, though, that all the predictions showing to-the-moon projections exist mostly in theory. Some older Bitcoin price predictions happened to come true, and some missed.
The global pandemic last year has shown that we cannot retract real-world economic influences. It can be a stock crash or an influx of users disillusioned with government-run finance.

How to Exchange Bitcoin on ChangeHero?

On ChangeHero you can buy Bitcoin with a credit or debit card or swap altcoins for the first cryptocurrency.
To exchange crypto for Bitcoin:

  1. Choose the currencies on the home page, amounts and the type of exchange. Provide your BTC wallet address in the next step and check the amounts;
  2. Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
  3. Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15 minute limit;
  4. From here on, you won’t need to do anything. At this step we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives;
  5. As soon as the exchange has been processed, your BTC is on the way to your wallet. Congratulations! We’ll be happy to hear your feedback.

If you want to buy Bitcoin with a bank card, you can also do it on our website.

  1. Choose the country of residence, amount to buy and currencies. Proceed to the next step;
  2. Check the currency of purchase and amounts. Provide a BTC address;
  3. In the next steps, verify your phone address and card info. Pass 3D-secure verification;
  4. Finally, to make a purchase pass the identity verification with a state-issued ID and a selfie.

For the full instructions on how to buy Bitcoin, check out the guide How to Buy Bitcoin.

Conclusion

Many predictions that expected BTC to reach $100K by the end of 2021 turned out to be too optimistic. However, the target is still in play, and many experts think that this is not the top of the future cycles.
If you read the article until the end, we’re sure you liked it! Maybe you have an opinion on these predictions or even a prediction of your own? Share them in the comments! 
Stay tuned for the updates to Bitcoin price prediction 2021 in our blog and on our social media: Twitter, Facebook, Reddit and Telegram!

Frequently Asked Questions

[sc_fs_multi_faq headline-0=”h4″ question-0=”What is Bitcoin?” answer-0=”Bitcoin is a peer-to-peer cryptocurrency protocol that was designed in 2008. It enables borderless, permissionless, trustless value transfers between users directly.” image-0=”” headline-1=”h4″ question-1=”What will BItcoin be worth in 2022?” answer-1=”According to different analysts, in 2022 Bitcoin price can grow to $400,000.” image-1=”” headline-2=”h4″ question-2=”What will BItcoin be worth in 2023?” answer-2=”While not certain, analysts predict that in 2023 BTC will be changing hands for up to $100 thousand.” image-2=”” headline-3=”h4″ question-3=”What will BItcoin be worth in 2025?” answer-3=”Depending on the source, BTC is expected to grow up to $1 million in 2025.” image-3=”” headline-4=”h4″ question-4=”What will BItcoin be worth in 2030?” answer-4=”By 2030, Bitcoin will be estimated to be worth up to $12 million.” image-4=”” headline-5=”h4″ question-5=”Is Bitcoin a good investment?” answer-5=”Most experts unanimously agree that it is worth investing in Bitcoin.” image-5=”” count=”6″ html=”true” css_class=””]


Disclaimer

This article is not a piece of financial advice. No price prediction is guaranteed to provide exact information on the future price. 

When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investitions in cryptocurrencies only after careful consideration and analysis and at your own risk.

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