2021 could be the best year for the Bitcoin: Cryptocurrency prices were in the doldrums in 2018. After the recent dip, however, many investors have actually returned to the cryptocurrency market. This is the reason why analysts and experts think that 2021 this year can be the best for Bitcoin in spite of the shaky start and it seems that they are right about Bitcoin bulls.
The price surge is the latest in a nine month rally for the cryptocurrency, which has seen it rise by more than $31,000 since last March.
Other major cryptocurrencies, including ethereum (ether), litecoin and bitcoin cash have also experienced massive gains in recent months, with some analysts predicting that this may be still only the early stages of a major bull run.
The last major bull run in 2017 saw bitcoin’s price rise from a few thousand dollars to around $20,000, however it was followed by a painful correction.
Market analysts, including strategists at Wall Street giants JPMorgan and Citibank, suggest the latest price surge could continue past $100,000 before retreating severely.
Sergey Nazarov, co-founder of blockchain firm Chainlink said that, “With the asset at $40,000 a coin, I believe we’re reaching an inflection point where bitcoin is essentially becoming the reserve currency of the internet, a shift in thinking about currencies that economist Milton Friedman predicted could happen as far back in the 90s, when the internet and the concepts of digital currencies first appeared.
“As both retail and institutional investors alike continue to realize that Bitcoin can serve as a hedge against inflation, as well as a yield-bearing asset through the use of decentralized finance applications, it’s entirely possible that bitcoin eventually breaks $100,000 per coin.”
Many of the experts are positive view on Bitcoin. Also, Segwit development is bringing in a lot of hope for investors as well as experts. With the improvement in code, Bitcoin will be able to process transactions faster. Moreover, the fees of Bitcoin transactions will be on the lower side. This is the reason why many investors believe that once this code has been implemented, Bitcoin will start rising again. Moreover, the lightning that of Bitcoin will surely help increase its value. With the help of the lightning it up, the transaction times would also come down. The problem is that there is no word yet on the launch of the lightning network.
Bitcoin is just a part of the cryptocurrency market. There are various other cryptocurrencies which are finding interest among investors. Many experts believe that while most of the countries and authorities concentrate on Bitcoin, the other cryptocurrencies will also flourish. This is the reason why investors are hoarding up Ripple as well as Ethereum in this downturn.
Many investors also believe that the entry of institutional investors will make a significant impact on cryptocurrency prices. Already, quite a few platforms are offering Bitcoin futures trading. While this might bring in more investors to the table but the volatility can also increase.
Moreover, the ICO industry is also expanding at a rapid pace. With ICOs like telegram raising about $ 700 million, it is a niche of the cryptocurrency market which can no longer be ignored.
Keeping all of these factors in mind, experts believe that this can well be the year of Bitcoin and it will be able to recover the losses. Moreover, many experts believe that it will be able to make new highs due to which it can be the best year for Bitcoin.
Bitcoin Price Predictions 2021: How high can Bitcoin price go in 2021? Up to $1 million or down to $1000? (In-Depth Analysis)
Bitcoin prices in 2018 have been marked by volatility which has made bitcoin price prediction in short-term a bit of a challenge, even for the experienced analysts. So far, 2018 had presented its own surprises though not a dramatic as the rollercoaster we say in 2017.
History generally has a way of repeating itself but bitcoin has a lot of history which makes it an equal challenge predicting which history will be repeated. It takes more than a study of past trends to get predictions spot-on this time and so we ended this article by highlighting certain area expert analysts were looking at.
Analysts, enthusiast, and industry figures have very diverging opinions and bitcoin price predictions for both long and short-term. Optimism is still high in many quarters—reports of a new survey among British financials suggest a wide majority will buy more coins in hope of price resurgence later this year.
As we delve into who’s saying what and why, here’s a heads-up. Expect a lot more price fluctuations in the interim. It’s going to be a bumpy ride getting to wherever Bitcoin is headed by the year’s end.
Expect stability only after 10 years – Kristjan Dekleva (Hedge)
The Swiss-based financial expert will have us brace up for a decade of turbulence before any hope for a stable bitcoin. This he suggests will coincide with a general acceptance of Bitcoin even in hard-stance China. This though, not as a fiat replacement but a viable alternative.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“In my opinion, it will be at least 10 years before we see stability”. – Kristjan Dekleva (Hedge)[/perfectpullquote]
The finance expert at cryptocurrency project Hedge sees Bitcoin investments as all-too-similar to the DotCom bubble of the 90s.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“In the short-term, falls have been driven by emotion and in many cases disinformation – a small rumor can have a big impact…Demand is driven by market speculation, but the absence of institutional investors means the market is unstable.[/perfectpullquote]
Instability it is. Next stop is the prestigious Harvard.
Bitcoin to shrink to $100 – Kenneth Rogoff (Harvard Prof & ex IMF chief)
Known for his disparaging remarks against Bitcoin, a former chief economist at the International Monetary Fund’s (IMF) Kenneth Rogoff has poured icy water on hopes of Bitcoin making it to the moon.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“I think Bitcoin will be worth a tiny fraction of what it is now if we’re headed out 10 years from now…I would see $100 as being a lot more likely than $100,000.” – Kenneth Rogoff[/perfectpullquote]
Rogoff’s prediction is based on his long-held belief that governments will rise against anonymous virtual currencies like Bitcoin. Government regulations, according to Rogoff, will pop the Bitcoin bubble but a Bitcoin pioneer on Wall Street thinks along very different lines.
Bitcoin is the future; Fiat is Past – (Tim Draper, Venture Capitalist)
In 2014 with bitcoin at only $413, popular VC, Tim Draper predicted bitcoin to reach $10,000 in three years. This was fulfilled a month earlier than he predicated earning him a reputation among crypto fans. Though he didn’t categorically, predict a $100k Bitcoin in 2018, He said he expected the Bitcoin to continue its growth in an interview with Bloomberg last year. Tim Draper has made successful bets with Tesla, Skype, and Twitter in the past.
Assuming this growth happens at the same pace as the 3-year journey to $10k then we’re in for six digits. Maniacal right? That’s exactly how Draper feels about Bitcoin prospects. Now onto someone who understands a lot about bitcoin’s foundation.
Bitcoin will hit $ 40,000 – Llew Claasen (Executive Director, Bitcoin Foundation)
Last month, Llew Classen made a bold statement to reassure Bitcoin believers that the cryptocurrency is on the right track –specifically, on track to reach the $40,000 mark. Though his outlook for some altcoin holders was not very encouraging, he made it clear that as something new, cryptocurrency will be as risky as it is exciting.
Bitcoin Will hit $320,000 someday – Cameron Winklevoss (co-founder, Gemini)
One of the popular Winkelvoss twins, Cameron Winklevoss recently said that he could easily see the price of BTC go up 40% someday. This year maybe? Not likely. The twin said he and his brother were taking longer outlook, 10 to 20 years.
“Bitcoin is actually fixed in supply so it’s better than scarce … it sort of equals a better gold across the board. We think regardless of the price moves in the last few weeks, it’s still a very underappreciated asset.” – Winklevoss
The fourth wealthiest cryptocurrency investor weighed bitcoin’s prospect against gold and came up with a resounding verdict. “We believe bitcoin disrupts gold,” He said.
Bitcoin will reach $1million – Bobby Lee (CEO BTCC Exchange)
Bobby Lee, CEO of China’s first Bitcoin exchange speaking at the London Blockchain Week went overboard with his prediction. Lee said bitcoin will surpass $1 million but unlike McAfee, he could see this happen in 20 years’ time.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“Bitcoin, I think will get to $1 million per bitcoin…Right now it’s 10,000, it will go 100,000 and then 200,000, 500,000.” – Bobby Lee[/perfectpullquote]
A good number of analysts have also had their say though very few would be drawn into actual predictions. We observed a general trend in their assessments.
Expect Price Fluctuations:
At this stage, bitcoin and cryptocurrencies will be greatly affected by speculations. Even small developments in governments, traditional will likely affect prices. Most say the fluctuations are normal and wouldn’t affect the longer term outlook.
Experts would prefer to make predictions over a longer period. It is more common to have bitcoin price predictions for 2020 or a 10 to 20-year outlook. While the current reality may suggest some gloom, it’s worth remembering that the heights achieved last year came amidst similar corrections along the way. It’s only the 1st quarter of the year.
Bitcoin will be the standard for virtual currencies.
Though bitcoin may have a limited use case, it has been tipped to remain the king of all cryptocurrencies. It’s not going to be a case of “which altcoin will overtake bitcoin” rather how they will impress with their special use cases. It is a fact that the technology behind bitcoin is less sophisticated when compared to many other projects like ethereum.
Bitcoin as a store of value
Gradually, bitcoin is being seen more as a store of value that an actual currency being compared to gold and other assets. Bitcoin was originally designed as an alternative currency to bank the unbanked. Most decision making bodies and financial experts, however, see Bitcoin more as a store of value, an asset rather than a medium of transaction.
Many Altcoins will suffer
Part of the process that will lead to general acceptance of cryptocurrencies will include a clean-up of “useless” cryptocurrencies. A good number of the 2000 coins will naturally go away as their value become worthless—some, only a fraction of cent. Brad Garlinghouse, the CEO of Ripple and Llew Claasen of Bitcoin Foundation are among those raising this alarm.
Economics of Scarcity
The limited supply of bitcoin—a fixed supply 21 million BTCs—will play a role in its price; if not now, in the future.
Outside factors will play a significant role
Many observers believe that outside factors which affect the adoption of bitcoin will ultimately dictate the price in the short-term. The creation and performance of futures markets, for instance, is expected to tilt the price either way.
There are still concerns about bitcoins used for illicit purposes
Due to the anonymity of Bitcoin transactions, it has been used to conduct illegal activities giving Bitcoin a general bad image. This image, analysts believe will affect its adoption and ultimately its prospects in the future.
Finally, Caution against risking your life savings
Crypto investments are new and super-risky. Remember ethereum founder saying that cryptos are so risky the prizes might actually drop to zero. Well, that doesn’t seem practical but the message was clear. Do not invest your life savings in bitcoin or cryptocurrencies generally. Just like John Draper noted, you still need to buy stuff in fiat. So while bitcoin will likely worth a lot more in the future, it’s advisable to invest just as much as one can afford to lose.
Andreas Kaplan is a freelance cryptocurrency and blockchain writer.