Business

Will Bitcoin Continue to Grow in 2021? I look forward

Bitcoin

Over the past two years, we’ve seen Bitcoin enter a recovery phase that ended up reaching new highs a few weeks ago. Institutional and retail investors are buying Bitcoin as a hedge against inflation, and the world is once again entering the “obsessive” stage when it comes to acquiring the popular cryptocurrency. But is this growth sustainable? Many would argue that Bitcoin’s volatility and usability limit significantly.

In this article, we explore both the positive and the downside of Bitcoin for 2021 and discuss its ability to function as a better store of value than anything else that has been built up to this point. Let’s dig in!

Bitcoin has a bright future

Most investors have a positive outlook on Bitcoin’s future. Instability in the global economy has led many to believe the collapse of the US dollar is imminent, and those who manage to convert their value into safe-haven assets will win.

It is better than gold

Bitcoin is, in many ways, the best store of value. Not only is it not tied to any other financial market, but it is also more beneficial than using gold. More specifically, we see the following:

  • Bitcoin is easier to store and has no recurring fees, compared to gold
  • The cryptocurrency is digital, which means that it can be transferred or sent to other parties without any hassle or bureaucracy.
  • Bitcoin also has a limited supply and there cannot be more coins available. While we have a rough idea of ​​the value of gold, we can never be sure of its exact display and release.

It provides a way out from inflation

Uncontrolled money printing practices by the United States government have ballooned the supply of the US dollar by about 18% annually since the financial crisis of 2018. This is possible due to the removal of the currency from the gold standard in 1971, which is what governments allowed to control its issuance at will.

Naturally, this leads to a steady increase in prices over time. A house that cost $ 10,000 only 60 years ago is worth more than $ 100,000 today – and the numbers are constantly growing.This has a detrimental effect on anyone with savings in their bank account and leads to a steady decline in the value of the public.

Bitcoin offers a way out of this problem. Not only is it impossible to print more bitcoins than the total supply, but the coin also increases in value over time due to the ever-decreasing issuance (also known as halving bitcoin). As a result, instead of your savings being less valuable, they end up becoming more valuable over time, as we have seen over the past decade.

But there are some risks, too

There are also several risks that we should bear in mind when it comes to Bitcoin’s future price. While we may not see the impact of these factors on Bitcoin’s growth trajectory in 2021, they will play an increasingly important role in new investment decisions in the coming years.

Regulations are coming

The first and foremost risk is that governments are fighting Bitcoin head-on, and are regulating it around the world in order to limit its exposure to the public. This may be the most realistic attempt to “tame” the popular cryptocurrency as governments continue to impose lockdown measures and weaken the US dollar.

If this happens, it is likely only temporary. After all, Bitcoin is good money, and banning its use will only lead to price drops and eventual acquisitions by the same governments that banned it previously. We saw the same thing temporarily happen with gold in 1929.

Code error

Another potential risk to Bitcoin, albeit unlikely, is the token infecting a specific bug or malware. Although the chances of this are slim or nil, there is still a risk that you should keep in the back of your mind, as Bitcoin is digital and there is no physical representation of it that you can actually use. This is also one of the reasons why gold enthusiasts are reluctant to switch to “digital gold,” the way Bitcoin is often referred to.

Will Bitcoin continue to grow this year?

We assume this might be the best year for Bitcoin. Not only because of the frequent market cycles but also because we are now seeing institutions buying the currency en masse. This could also mean that this will be the first market cycle in which major investors will run the next, and we end up with> $ 500,000 Bitcoin.

Autobiography:

Being a fan of communications and human relations I found myself in journalism. My other passion is the world of cryptography and I believe in the future of cryptography. So I’ve spent the last eight years studying as much as possible and sharing my own experiences with people. I am writing now about new trends as a freelance employee and consultant on Paybis.com

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button