The best cryptocurrency to buy right now

Down more than 65% in 2022, Bitcoin, tradable through platforms such as Bitcoin Pro, has become an increasingly polarized cryptocurrency. On the one hand, Bitcoin bears predict that Bitcoin could fall as much as 50% in 2023 before reaching the market bottom. On the other hand, Bitcoin bulls think that we have already hit the bottom of the market and that Bitcoin could even double in price in 2023.

At the moment I am on the bulls side of Bitcoin. Bitcoin simply has the best risk-reward profile of the major cryptocurrencies. Here's a more in-depth look at my reasoning.

Historical budget

In terms of risk management, a major factor in Bitcoin's favor is that it has a historical track record of bouncing back from tough years. In 2014, for example, Bitcoin fell 58% before rebounding the following year. The same pattern played out in 2018, with Bitcoin falling 73% before rebounding the following year. So while acknowledging that past performance is no guarantee of future performance, there is at least one historical precedent for Bitcoin to recover in 2023.

The next halving

Is it a historical coincidence that three of the worst years of Bitcoin's existence (2014, 2018 and 2022) occurred almost exactly four years apart? Many market analysts think that there is a pattern in the performance of the Bitcoin crypto market that is intrinsically linked to the algorithm that controls the circulating supply of Bitcoin.

When Satoshi Nakamoto originally created Bitcoin, he implemented a mechanism known as halving, which takes place on a regular basis. In a halving event, the reward for mining each new block of Bitcoin decreases by exactly half every four years. Currently, the reward for mining Bitcoin is 6,25 BTC. But in 2024, this reward will be reduced by half, to 3,125 BTC.

In theory, Bitcoin should increase in value with each new halving. Traders predict this before the halving and start bidding higher on the price of Bitcoin about 15 months in advance. With the next halving scheduled for early 2024, this means that the price revaluation process should start in 2023. 

Cryptocurrency hedge fund Pantera Capital has modeled this phenomenon extensively and concluded that Bitcoin will rally throughout 2023 and early 2024 to a $36.000 level before exploding in price to $149.000. If that is indeed the case, the time to jump on the Bitcoin bandwagon is now.

Bitcoin as a global phenomenon

Finally, one of the main reasons I'm optimistic about Bitcoin in 2023 is its growing acceptance as a global medium of exchange. With each passing year, Bitcoin becomes more and more popular as an online payment option. Furthermore, new countries continue to embrace Bitcoin as a means to initiate economic growth or improve the economic conditions of their citizens. 

In December, for example, Brazil promulgated the so-called “Bitcoin law” which will put in place a comprehensive regulatory framework for the use of Bitcoin as a means of payment and as an investment activity within the country. If other countries follow Brazil's lead, this will only increase the value of Bitcoin. It's all about simple supply and demand.

Bitcoin rally for 2023

Putting all these factors together, Bitcoin is the best cryptocurrency to buy right now. He has a long track record of rebounding after tough years and market crashes. It has a strong catalyst in place to drive the price up in 2023 and 2024. And it benefits from the growing global acceptance of Bitcoin as a medium of exchange and a form of payment.

Given that Bitcoin has traditionally always led the market up or down, if you believe that the cryptocurrency is set to soar in 2023, you need to think about adding Bitcoin to your portfolio now.