One year ago, on January 10, 2020, Bitcoin was priced at $7,808. And it was recently as October that Bitcoin was trending in price in the vicinity of $11,000. But to the surprise of observers and completely out of nowhere, the value of Bitcoin took off above the $41,000 level to hit a new all-time high of $41,660 within the past day.
The second half of 2020 was noteworthy for the flood of institutional money flooding into the cryptocurrency market.
Bitcoin is powers on.
Meanwhile, bitcoin’s fame as “digital gold” has risen in recent months as governments around the world flood markets with unprecedented levels of freshly printed cash – bringing about a surge of big-name investors naming bitcoin as a possible hedge against inflation.
These days, as Bitcoin and cryptocurrency investors strive to call just how far this already-huge rally will run, Ethereum cofounder Vitalik Buterin has discovered what he thinks is an “underrated” bull case for crypto. “One of the more underrated bull cases for cryptocurrency that I have always believed is basically the basic fact that gold is lame, the younger generations understand that it’s lame, and that $9 trillion has to go somewhere,” Buterin wrote in a recent 2020 summary blog post.
It’s not just one analyst of digital currencies who is exuberant about the potential for 2021 and providing a otherworldly bitcon price prediction after a colossal year that saw spiking Bitcoin take the spotlight.
What may perhaps basically help make this time different, nevertheless, isn’t that Bitcoin prices hit new highs in 2020 and finished the year with a head of steam. It’s that the cryptocurrency succeeded in its first trial by fire.
What The Heck Is A Bitcoin?
Back to the kickoff:
The initial mention of a product called bitcoin was in August 2008 when two programmers with the help of the names Satoshi Nakamoto and Martti Malmi registered a new domain, bitcoin.org. In October of the same year, Nakamoto released a document, called a white paper, entitled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
It was the birth of an entirely new financial paradigm.
Bitcoin has had some rough periods since its creation in 2009, but analysts are no longer claiming the “death of Bitcoin.”
Bitcoin Skyrockets In 2020
Bitcoin values fell steadily after sharp rallies in 2013 and 2017, but these declines weren’t precipitated by any serious event spanning multiple asset classes. The digital coin was purely cut by the other edge of speculation’s blade; worries about hacking risks, for instance, hampered cryptocurrencies in 2018.
So the bear market of 2020, brief as it was, marked the first time Bitcoin as well as other digital currencies faced a truly global crisis that threatened numerous sorts of investments.
Those lows were short-lived, however. Digital currencies bounced hardest off the bottom, along with Bitcoin turned positive by April.
In a recent note published by JPMorgan, the investment bank predicted Bitcoin’s price rise could be as high as $146,000 in long term to compete with gold as an ‘alternative’ currency. “A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term,” strategists at JPMorgan wrote, as reported by Bloomberg.
Meanwhile, repeated surveys (as well as endless and oftentimes hilarious anecdotes) have seen younger folks are a lot more inclined to invest in bitcoin, ethereum and other cryptocurrencies than older groups.
2021: Another Fantastic 12 Months for Bitcoin Values?
It’s been said that nothing succeeds like success. The higher the selling price of Bitcoin climbs, the more attention it attracts.
Enthusiasm for cryptocurrencies continues to build, with most analysts forecasting much higher prices coming in 2021.
The Always Present Regulatory Roulette
Worldwide, financial regulators are placing cryptocurrencies under greater scrutiny.
The most noteworthy of late: In late December, the Securities and Exchange Commission SEC filed a lawsuit against the “altcoin” Ripple. (Altcoins are any digital coin that’s a way to Bitcoin. ) The issue at concern is whether its digital currency is genuinely a digital currency, or perhaps if it’s an unregistered securities offering. The info was enough to cut Ripple prices by more than half in just a small number of days, and many cryptocurrency exchanges stopped trading in the altcoin until the subject is resolved.
Certainly it’s out of the question to determine exactly where the value of Bitcoin will land at the end of 2021, it certainly appears it’s going to be an exhilarating ride.