BitDAO price prediction: What is BitDAO (BIT)?
Can BitDAO live up to expectations?
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It promises to be one of the biggest examples of a decentralised autonomous organisation, but what is BitDAO (BIT)? Let’s take a look and see what we can find out, and examine some of the BitDAO price predictions out there, too.
BitDAO explained
One of the biggest positives when it comes to blockchain technology as a whole and cryptocurrency in particular, according to some people at least, is the potential for decentralisation. Rather than have things based around a singular authority with an established hierarchy, the idea is that the blockchain allows for an organisation of sorts to be set up that is democratic and consensual.
One of the ways in which this idea can come to fruition is in the form of decentralised autonomous organisations (DAOs). These are networks based on an organisational structure that uses governance based on crypto tokens and coins, as well as smart contracts, computer programs that automatically execute as soon as certain conditions are met to execute business decisions in a theoretically non-hierarchical manner.
Supporters of DAOs argue that the set-up of DAOs, with no leaders and a more democratic structure, has the potential to eliminate human error and greed in the decision-making process, all the while increasing transparency of what is going on, especially in the world of crypto where money is involved.
DAOs have been part of the world of crypto for some time now. However, they were initially controversial after the first DAO turned out to have some key flaws.
The original DAO was set up in 2016 and was a platform that allowed people to promote and, crucially, raise money for their start-up apps on the Ethereum blockchain. Users had to buy DAO tokens with Ether to enter, votes would be had on whether or not to fund something, and apps which had 20% or more support got a share of the investment. The Split Function allowed people to withdraw their support in return for getting their Ether back after a 28-day waiting period.
Unfortunately, there was a flaw in the Split Functions code. This meant the network kept refunding the same tokens without anything popping up on the public register. While the problem was fixed, it required Ethereum to go through a hard fork – a process whereby a blockchain’s code is altered, making previously valid transactions invalid and vise versa. Incidentally, this was the hard fork that gave us the Ethereum Classic blockchain and cryptocurrency.
Anyway, despite this, the concept of a DAO was popular enough that it really took off. According to stats compiled by data firm Snapshot Labs in June 2022, there were more than 6,000 across the world of the blockchain and the crypto space.
One of the more notable DAOs is BitDAO. This organisation, which claims to have “billions in existing assets and billions in forecasted contributions”, is designed to support people who want to get involved in the world of blockchain technology, cryptocurrency and decentralised finance (DeFi).
As a DAO, BitDAO is run by its members although those members can be divided into three separate groups. There are people who hold the BIT token (more on that later), there are community members who get involved in social media and forums but do not hold the BIT token and there are contributors and partners (organisations, such as crypto exchanges, which are willing to work with BitDAO).
Features within the BitDAO platform include a token swap, research and development opportunities, scaling solutions and liquidity and funding access for programmes.
Every blockchain-based platform needs to have its own native cryptocurrency and BitDAO, which came onto the scene in 2021, is no exception. The native BitDAO token is also known by its ticker handle, BIT. As we have already mentioned, holding BIT enables someone to be part of the BitDAO community. As a token holder, people have the right to vote on changes to the way the system is run, as well as being able to give their approval to new developments and the way the network funds things.
It is worth noting at this point that, since BitDAO is based on the Ethereum blockchain, BIT is a token, rather than a coin. You might see references to such things as a BIT coin price prediction or BitDAO coin price prediction, but those are, strictly speaking, inaccurate.
The other thing to mention is that, in keeping with the ethos of DAOs, there are no named founders or points of authority for BitDAO. While this is commonplace with DAOs, it may be worth keeping in mind if you want to be able to hold someone responsible for what BitDAO does.
BitDAO price history
Anyway, let’s now cast our eyes over the BIT price history. While it would be a mistake to see past performance as an indicator of future results, understanding what a token has done during its time on the market can help offer us some context if we either want to interpret a BitDAO price prediction or else make one of our own.
BitDAO first came onto the open market in August 2021, a time when things were looking up for crypto as a whole. While the market had suffered a sluggish few months, a growing interest in non-fungible tokens (NFTs) had caused prices to recover.
BitDAO looked to be a beneficiary as, following an opening price of $1.50 on 17 August on CoinMarketCap, it reached a daily high of $1.77 two days after. But there was a downturn and it sank to $1.20 on 8 September, before rallying to reach a periodic high of $1.90 on 16 September.
For another month and a half or so, the token slumped but, with the market boosted by Bitcoin reaching fresh highs, BIT hit its all-time high of $3.64 on 16 November. After that, though, the market went down as fears of the Omicron variant of Covid-19 caused a contraction and it closed the year at $1.94.
BitDAO seems to have allowed its decline to continue into 2022 so far. While the token initially rallied to $2.18 on 3 January, it fell back over the following months, with Russia’s invasion of Ukraine on 24 February and China’s crypto ban in early April both having unwanted effects.
On 9 May, BIT fell below the dollar for the first time and a few days later things got worse. The depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency put the market in turmoil and BIT fell to a low of $0.829 on 12 May. Things deteriorated further and it closed the month at $0.7487.
In June, the cancellation of withdrawals on the Celsius crypto lending platform confirmed that cryptocurrency was in a bear market and, on 18 June 2022, BIT sank to an all-time low of $0.4049.
After that, though, there was some recovery and, on 11 August 2022, BIT stood at around $0.74. At that time, there were 2.03 billion BIT in circulation out of a total supply of 10 billion. This gave BitDAO a market cap of about $1.5bn, making it the 208th largest crypto.
BitDAO price prediction
Now let’s take a look at some of the BitDAO price predictions that are out there. Keep in mind that price forecasts, especially when it comes to something as volatile as cryptocurrency, are very often wrong. Also, remember that long-term crypto price predictions are often made using an algorithm, which means that at a moment’s notice, they can change.
First, CaptainAltCoin makes a BitDAO price prediction that suggests things will go downhill initially, with the token at a low of $0.4662 in October. By August 2023, however, things should have improved and BIT may have risen to $0.7951. The site goes on to make a BitDAO price prediction for 2025 that suggested BIT would trade at around $1.42. While that might seem like good news for investors, the site foresaw things will crash and burn with the forecasted BIT token price in August 2027 coming in at $0, making it a de facto dead coin, with no recovery from its predicted status by either 2030 or 2040.
Next, CoinArbitrageBot is rather more optimistic when it comes to making a BitDAO price prediction for 2022. The site suggested that the token could have grown over the course of the rest of the year, to have reached $1.03 at some point. In 2023, the token could have got to somewhere between $1.83 and $1.84, while the following year it could have been valued at a fraction of a cent under $2.97. By 2025, the site outlined BIT could be valued at a pretty impressive $4.80.
Meanwhile, PricePrediction.net has a BIT price prediction that had the token tradding at $0.86 in 2022, $1.25 in 2023 and $1.80 in 2024. By 2025, the token may have been priced at $2.70 before it continued to rise and achieved $3.92 in 2026, $5.92 in 2027 and $8.77 in 2028. By the end of the decade, the site said, the token could well have broken past the $10 barrier to trade at $12.38, while it went on and made a BitDAO price prediction for 2030 of $17.14, before the crypto climbed to $24.42 in 2031.
Finally, WalletInvestor is rather more bearish when it comes to making a BitDAO crypto price prediction. The site said that the token could drop considerably over the next year and was thought to have been trading at $0.167 in August 2023.
Final thoughts
Before we finish, some final points. First, as we have seen, BitDAO is not run by one particular individual or group. This is in keeping with the idea of decentralisation that is key to DAOs, but, as we have said, it is also something that might, potentially, put some investors off.
Second, while BitDAO does seem to do a lot of things, there is no one particular thing that it specialises in. This, coupled with some of the more over the top language, such as references to how “DeFi will fundamentally disrupt traditional finance and is likely to become a trillion dollar sector”, might come across as being a bit too much for the reasonable investor, who might want such enthusiasm to be tempered. As always with cryptocurrency, it is worth acting with due care and caution if you are considering investing in BIT.
FAQs
How many BitDAO are there?
As of 11 August 2022, there were 2.03 billion BIT in circulation out of a total supply of 10 billion.
Is BitDAO a good investment?
It can be argued, at least by proponents of buying during dips, that now might be a good time to invest in BIT. That said, some caution is needed. We have seen the price of the crypto go down quite a bit since it came out in August 2021. Remember, cryptocurrencies can be highly volatile and prices can go down as well as up. You will need to do your own research and never invest more than you can afford to lose.
Will BitDAO go up?
Supporters of buying during the dip might well tell you that cryptos like BIT, which has lost value over the last 12 months or so, are worth looking into. On the other hand, the token, like the rest of the crypto market, has been in a bearish place for some time now. Regardless, you will need to remember that cryptocurrencies can be highly volatile and while prices can go up, they are just as likely as to go down as well. Remember, conduct your own research and only invest what are you are prepared to lose.
Should I invest in BitDAO?
This is a question that you will have to answer yourself because we are not able to give investment advice. Before you do so, you should carry out your own research, remember that prices can go down as well as up, and never invest more money than you can afford to lose.
