5 Things You Can Expect From Bitcoins In 2021
There is a common uncertainty in the global financial matters during the Coronavirus pandemic. With the World Health Organization painting a grim picture with every press conference, the world is clamouring to find its first clinically tested and proven vaccine.
The World Bank and the International Monetary Fund, along with ratings agencies like Moodys and Fitch has already stated that we are looking at a bleak future. Apart from the GDP figure of China, almost every other major world economy has seen its economy contract sharply.
In this article, we are going to discuss the performance of Bitcoin during the pandemic. We will also look at five things you can expect from Bitcoin in 2021.
How did Bitcoin perform during the Pandemic?
Share markets, Oil, Gold, Government Bonds, all crashed and collapsed when the pandemic began. Bitcoin too saw its worst slump, crashing to 49% of its total value and seeing one hundred dollars being wiped out in a few days.
However, when all major publications and expert pointed to Bitcoin’s imminent downfall and published long articles on its demise, the world saw something unexpected.
Bitcoin rose from the ashes like a phoenix and shattered growth records. The growth in valuation was seen greater than the downfall. With a few months, five to be exact, Bitcoin rose from three thousand dollars to crossing twelve thousand dollars in valuation.
In the process it made millionaires out of normal people who had invested small sums of money in record periods. Data and statistics show how Bitcoin outperformed every other asset class during the pandemic.
List of 5 Things you can expect from Bitcoins in 2020
1. The Influx of Wall Street Investors-
The pandemic saw major firms on Wall Street get into investing in Bitcoins and other crypto in a major way. They looked upon diversifying their client portfolios by picking up substantial Bitcoins and altcoins from the exchanges. 2021 will see a massive rise in institutional investors dominating the investing and trading landscape.
2. Increased Stability and Maturity-
When it comes to Bitcoin Digital, all major experts suggest that 2021 is going to see Bitcoin’s biggest negative erase. We are talking about something Bitcoin was notoriously infamous for- price volatility and fluctuations. This is something, which will be the fallout of institutional investors who will invest for longer periods and avoid short selling.
3. Breaching the $50K Mark-
While there is speculation on the price of Bitcoin and how much it is going to cross, there are many numbers, which are being thrown around. While some suggest that a rally to $100K is possible, the realistic assessment stands more at $50K. This means that there will be a lot of stability and price hike when the demand outstrips the supply through mining.
4. Increasing Regulations and Taxations-
While investors might welcome regulations as a form of formalization, it is important to remember that the same will start attracting taxes. Different countries are evolving their own take on what they consider Bitcoins to be- currency, commodity or precious metals like gold. This is something, which is definitely going to increase in the next few days.
5. Growth of National Digital Currencies-
While Bitcoin continues to grow, nations are experimenting with their own forms of digital currencies and Blockchain technology. China’s Digital Yuan, and America’s Digital Dollar is nearing a face-off in the year 2021. With China spreading its wings in the world’s global economy, the new form of dominance is likely to emerge in this field.
The Final Word
It is important to acknowledge the fact that Bitcoin, like other cryptocurrencies is very much in its infancy. People who are investing or trading in crypto are like founding members of the new financial system. 2021 is a year, which is being watched by almost everyone with great anticipation.