The crypto market is consolidating as Bitcoin struggles to surpass 22K. BTC’s dominance in the crypto market remains around 40%, hence why altcoins are moving with Bitcoin. The Bitcoin forecasts are showing positive numbers till the end of October. How will Bitcoin end the month of October 2022? Will Bitcoin recover? Let’s analyze in this Bitcoin price prediction article.
What is a Bitcoin?
Bitcoin is the very first cryptocurrency invented. As early as 2008, Satoshi Nakamoto, who goes by a pseudonym, outlined how it works in a whitepaper. The launch of the Bitcoin blockchain happened sometime around the beginning of 2009. There are only 21 million bitcoins available. This is accomplished by reducing inflation, which is roughly half every four years. This phenomenon is known as Bitcoin Halving. Many analysts base their long-term Bitcoin price prediction on this periodic halving. Bitcoin today is still the biggest cryptocurrency by market value, and has a market dominance of 40%.
What can you Buy with Bitcoin?
You can basically buy anything with Bitcoins as long as the merchant accepts them. Accepting Bitcoin is fairly easy. Most merchants who are crypto-friendly already accept Bitcoin and other selected cryptocurrencies. The challenge however is to increase the number of merchants who are willing to accept Bitcoin and other cryptocurrencies.
What are the risks of Accepting Bitcoin?
There are many factors that come into play when accepting Bitcoins for your business. Below are a few points that affect negatively Bitcoin’s adoption by the mainstream:
- Bitcoin prices are volatile: Imaging getting paid 10$ for your sale. Then suddenly it drops to 9$. Afterwards, it becomes 11$. Usually, sellers don’t want to speculate on prices, but rather record their transactions successfully in order to know by the end of each month how much they made in profits.
- Bitcoin transactions are slow: When someone sends you Bitcoins, you’d need about 1 to 1.5 hours to successfully complete. This makes it inefficient for customers to wait at the store, or for vendors to take the risk of accomplishing all 6 confirmations on the blockchain.
- Bitcoin transaction costs vary: Businesses need to understand their costs when running their operations. Bitcoin transaction fees today are around 0.7$. However, transaction costs for Bitcoin can increase when the network is congested, as they did during the 2017 cryptocurrency bubble when they almost surpassed $60 USD.
What is Bitcoin Mining?
Bitcoin mining is a process where arithmetic tasks are solved by different public computers. These computing tasks are extremely complex and, as a result, have a high power consumption. This is how transactions are processed on the Bitcoin blockchain.
Mining cryptocurrencies became famous back in 2017, when it was still relatively easy to enter this market. However, it is extremely hard to be profitable mining Bitcoin with a small investment. This is because there is a lot of competition from big mining firms that spend millions of dollars in equipment, infrastructure, and locations in cold countries next to fast internet providers.
How long does it take to mine 1 Bitcoin?
Well, it depends on who is mining. If it’s your ol’ friend Karl who is super into cryptocurrencies and bought a nice HP with 8Gbs of RAMS, it’ll probably take him months or even years to mine 1 Bitcoin. However, most high-speed and big mining firms who spend millions of dollars on mining rigs can mine 1 Bitcoin within 20 mins.
Big Companies are Jumping Back on the Crypto Bandwagon
The crypto market is currently in consolidation mode. However, we can see many big companies jumping back into the crypto bandwagon. Here’s a list of those companies endorsing crypto:
Despite this, the market is still down. This might be the perfect opportunity to buy low and sell high. There is no fundamental reason for Bitcoin’s consolidation around 20K. That’s why most people are saying that Bitcoin is in the “silence before the storm”, hopefully upwards.
Bitcoin Price Prediction – Will Bitcoin recover in October 2022?
October is known to be a green month for cryptocurrencies. Historically, Bitcoin prices increased by an average of around 26%. Taking into account the current price of Bitcoin and its previous returns, we can estimate the following scenarios while removing the outliers:
- Best case: increasing by 48%
- Normal case: increasing by 26% (average)
- Worst case: decreasing by -36%
Next, we can go to our awesome GoCharting tool and plot where Bitcoin might reach by the end of October 2022. The results show the following:
- Best case: $29,600
- Normal case: $25,200
- Worst case: $12,800 (highly unlikely as currently, technical prices don’t confirm such a price drop in 3 weeks)
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