Experts predict five trends of bitcoin in 2021! After soaring to a new high in 2020, it is expected to continue a crazy journey in the future

2020 will be a thrilling year for anyone investing in bitcoin, or even just focusing on it. In December, as the world’s most valuable virtual currency, bitcoin’s price once exceeded $24000, a record high. On December 22, James Ledbetter, a market analyst, predicted that bitcoin may be more acceptable to the mainstream in 2021, but it may continue to be volatile in 2021 in the face of competition from large technology companies and the digital currency of the central bank, as well as stricter supervision by the Biden government. Experts predict the five major trends of bitcoin in 2021 as early as March 2020, when the United States first began to respond to the epidemic, the price of bitcoin was less than $4000. With the rise of bitcoin, related investors have made huge profits. For the onlookers, it was a market show with a bit of jealousy and vertigo. Although bitcoin’s price is volatile – generally upward – 2020 is also a relatively mature year for a currency that has only a 10-year history of trading. James Ledbetter, a market analyst, said that from the perspective of his position as editor of fintech communications, he believes that the five key trends of bitcoin in 2021 are as follows: ① more acceptable to the mainstream. In daily use, bitcoin has always had a chicken or egg problem: few people use or accept bitcoin. But in 2020, bitcoin’s adaptability has changed dramatically. From square’s $50 million investment in bitcoin to PayPal, which allows users to buy and sell bitcoin, well-known financial technology companies have approved of bitcoin. In 2021, we may see that the mainstream is more receptive to bitcoin. At least one major bank in the United States or Europe will announce some kind of bitcoin purchase system or agree to hold bitcoin for customers. ② Competition from large technology companies has forced many large global entities to consider offering an international digital currency, regardless of what bitcoin has achieved in its decade of existence. Every company involved in the payment field knows that there is still room for development in the digital payment market and that payments involving different money markets have the greatest potential. This is because at present, such transactions take several days to resolve and usually involve high fees. Bitcoin has proved that a global digital currency can greatly simplify this process, although it is still in its infancy. In 2020, Facebook and Google, two companies with the huge global influence bitcoin can only dream of, have launched massive digital currency plans. Facebook’s Diem and other technology products are not exactly the same as bitcoin, but if they become popular in 2021, they may have an impact on bitcoin. ③ Competition for digital currency from central banks in 2020, a report and survey released by the bank for International Settlements shows that 80% of the world’s central banks are studying some form of digital currency. There are already Asian countries trying to push digital currencies forward, which could weaken demand for bitcoin and other independent cryptocurrencies. In 2021, other countries may have to try to promote digital currency, which is not good news compared with the special currency. ④ In a new regulatory arena, the Biden administration will have more important priorities than cryptocurrencies in its first 90 days in office. Of course, it is difficult to interpret the attitude and expertise of the U.S. Congress on this issue. It is natural to think that the democratic government will be more closely regulated than the Republican government, but some assert that Biden’s coming to power will “be conducive to cryptocurrency.”. This may be true, but bitcoin enthusiasts tend to overlook issues such as anonymity and its potential fraudulent use. These are very serious problems for regulators. Biden’s team is likely to come up with a more comprehensive and rational way to regulate cryptocurrency, but James Ledbetter doesn’t think they’ll be particularly biased towards bitcoin. ⑤ Bitcoin prices will continue to fluctuate, as the value of bitcoin is not directly linked to any obvious real-world phenomenon (such as fiscal or monetary policy), and it can appreciate or depreciate in ways that are difficult to predict or even explain. As an investment, it’s hard to recommend it to anyone who wants to avoid huge losses. It has been said that bitcoin could be as high as $50000 in 2021, although this may seem extreme, it is not impossible for investors to transfer money from other assets to bitcoin. Of course, bitcoin prices are likely to move in the opposite direction in 2021. One thing that seems certain is that bitcoin’s crazy journey in 2020 will be repeated – so please fasten your seat belt. (source: Huitong)

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