The future of bitcoin & cryptocurrency: 2024 and beyond

Bitcoin has been making waves throughout 2024, and its valuation has pushed to levels never seen before, with projections expecting it to reach a peak price of up to $88,000 this year - according to speculations based on the current market sentiment.

In this article, we look at the future of bitcoin and what you can expect in 2024 and beyond.  

If you’re not quite sure about bitcoin 2024 and the cryptocurrency space in general, it’s important to know some essential details about these digital currencies.

While they can seem appealing to potential investors, they have complexities that are crucial to be able to navigate in order to maximise the value of your purchases.

What is bitcoin? 

Bitcoin is the largest and most popular cryptocurrency. This digital currency doesn’t have any physical kind of exchange.

We’ve already covered many of the basics of bitcoin and whether or not you should buy it, but with 2024 proving to be such a bumper year for bitcoin, it’s important to stay on top of the changing environment that bitcoin currently operates in.  

So, if you’re new to cryptocurrencies, bitcoin is a payment method that is entirely digital and requires no physical exchange. While many people buy bitcoins as a broadly safe and decentralised payment method, many other people buy and sell bitcoin as a way of making money.  

Is bitcoin a good investment? 

There are a few ways to answer this question, but when assessing bitcoin as an investment, it’s essential to remain aware that this cryptocurrency is traditionally a very volatile asset to purchase. This is always something to keep in mind when considering investing in bitcoin for the future.

While some people have experienced substantial value depreciation of their bitcoin assets over the past few years, owners of bitcoin in 2023 and 2024 have enjoyed considerable growth in the value of their assets.

Short-term future projections look positive, but fluctuations and potential decreases in value are to be expected due to the inherent volatility of bitcoin.

Overall, bitcoin and other digital currencies are risky investments. Whether you’re buying bitcoin to purchase goods or simply are hoping to hold this asset until you sell it for more money, there is no guarantee you will get any of your money back.

If you’re thinking about buying bitcoin, there are some important safety steps you should bear in mind:  

• Where will you store your bitcoin? Is it secure?
• How much risk are you willing to take on? If you lost your money, how seriously would you be affected?

How has bitcoin performed in 2024

Price wise, bitcoin has had a bumper 2023/24 and has reached new highs. Bitcoin started 2023 at a value of roughly £13,500, quickly gaining value throughout the year and trading consistently at around the £20,000 to £25,000 mark. 

The currency’s price continued to rise due to renewed interest from investors, experiencing a large surge towards the end of 2023 and reaching £33,500 by the close of the year. By March 2024, the currency’s bitcoin 2024 price had soared to a record high of £57,658. 

Predictions from CoinCodex estimate that a bitcoin will be worth $78,468 by 8 October 2024 - a stunning 44.17% increase over its price of $54,367 as of 8 September 2024. As with most years, the valuation of bitcoin has varied dramatically, making price volatility a constant feature of bitcoin.  

This being said, there is no doubt that 2024 has been the year that bitcoin has pushed beyond its traditional pricing limits, inevitably making many more people interested in digital currencies as a whole. Partly because of this, bitcoin is also increasingly being adopted by many big banking institutions and even countries as legal tender.

Growing interest amongst the public means that many of the rules, regulations, and guidance around bitcoin are changing, so if you’re considering buying bitcoin now or in the future, it’s vitally important you take on the best advice from a dedicated personal finance adviser. Preferably, one who is familiar with digital currencies and knows how to maximise the benefit of these investments.  

How is bitcoin regulated in the UK? 

Bitcoin is by and large unregulated in the UK. Digital currencies are classified as property and any website or exchange selling them is regulated by the Financial Conduct Authority (FCA), while both the FCA and the Bank of England have issued various pieces of guidance, advice and warnings. 

Moreover, if you were to invest in bitcoin and were to fall victim to a scam, or unfairly lose your money, you will not be able to take your case to the Financial Ombudsman Service (FOS).  

Due to growing popularity of bitcoin however, it’s entirely likely that the regulations around bitcoin could change further in the not so distant future, which will almost certainly have an effect on the price of bitcoin.

For example, when China decided to crack down on digital currencies, bitcoin lost thousands of pounds of value in a matter of weeks.

With the regulatory environment changing all the time, it’s important to continually keep a close eye on the changing picture in order to protect your money as best as you can.  

What will the future of bitcoin look like in 2025? 

With bitcoin 2024 currently at record highs, the chances of a price crash seem greater than ever as some investors decide to take the profits they have made.

Cryptocurrencies are an unpredictable asset class and nobody really knows just how high the price of bitcoin could go. But with the prices so high and governments looking at how best to go about regulating these coins, the risk of investing in bitcoin is  very high.  

As always with investing, it is impossible to really tell how 2025 will look for bitcoin, and indeed for other digital currencies. However, with certain trends occurring repeatedly throughout the history of bitcoin, there are some reasonable predictions.

Bitcoin Future Predictions

Firstly, price volatility will likely remain, resulting in drops and surges in price. Secondly, changes to how cryptocurrencies are regulated should be expected, considering many changes are already occurring on a fairly regular basis. 

Thirdly, the mainstream adoption of cryptocurrencies will continue. Many big companies currently allow customers to pay with bitcoin, with more joining all the time.

More and more people are becoming interested in bitcoin, resulting in banks and companies integrating cryptocurrency services into their operations.  

Some ambitious bitcoin traders, including experts like Peter Brandt, are predicting the currency’s price to exceed $90,000 to $100,000 by the start of 2025 - or even to reach $150,000 due to 2024 being the year of bitcoin’s fourth halving, according to Forbes. However, only time will tell whether the cryptocurrency will continue its surge in value or face more of its usual price dips in 2025. 

What is the safest way to invest in bitcoin? 

If you’re looking to invest in bitcoin, it’s more important than ever to exercise safe investing. 

You’ll need to go to a cryptocurrency exchange that allows you to buy bitcoin. And when you are buying, remember to: 

• Only invest what you can afford to lose.
• Spread your investments between different asset classes with different levels of risk. With bitcoin being a risky investment, consider putting some of the rest of your money into a less risky ISA, for example.
• Have a reliable place to store your bitcoin, such as a digital wallet, and ensure your password is safe and cannot be stolen or forgotten.

With all investments, particularly ones as risky as bitcoin, it’s vitally important to have the right financial advice.

If you found this article helpful, you might also find our cryptocurrency tax guide and non-fungible tokens article informative, too!

Get expert financial advice

Bitcoin has experienced a turbulent year so far in 2024, shedding around 65% of its value in just a few months, yet expected to reach a value of nearly $88,000 this year. Fluctuations are to be expected for this cryptocurrency, given its history, making it a risky investment but also one which has the potential to generate impressive returns if invested in strategically.

Unbiased can match you with a financial adviser who can provide guidance on the safest and most effective ways to invest in bitcoin, enabling you to grow your money while protecting your assets from the signature volatility of crypto.