What do Experts Say on Bitcoin’s Future?
Bitcoin is often cited as one of the greatest and most revolutionizing inventions in the global financial sector. It is by far the most popular and most valuable cryptocurrency on the market. What started as a concept by Satoshi Nakamoto, is now a payment method used by millions of people around the world.
Bitcoin is used for trading, purchasing and selling goods, as well as a way to make a huge profit. The reason as to why so many people around the world are so fond of it is because it has numerous advantages over the FIAT currencies. User anonymity, lower general fees, efficiency and effectiveness, no hidden/added fees from banks, and peer-to-peer focus are just a few that deserve a mention.
These advantages are what led so many people to turn to this cryptocurrency and use it as a source of profit. We all know the events that took place in late-2017 after Bitcoin miners overflowed the system. A few days before New Year’s Eve, the price for 1 Bitcoin spiked and went over $19,000. Thanks to the sudden spike in interest, the price also managed to plunge in a matter of days.
After these events, Bitcoin spent most of 2018 and 2019 trying to stabilize and reach a utilized value. As 2020 is about to end, a lot of fuss has been creating around Bitcoin and many experts believe that Bitcoin could spike in value once again. We are going to look into all of those details – explain the current state, see what the end of 2020 holds for this cryptocurrency, and what are the distant future projections.
Like we mentioned above, Bitcoin spent most of 2018 and 2019 in a process of stabilization. Well, it is good to know that the years of waiting have finally paid off. The current state of Bitcoin is extremely good as the currency is as stable as it can be.
The current stability is what motivated many people to get back into the business and invest in this cryptocurrency. To make things even better, traders can now use many reputable sites which have AI-generated algorithms to help them determine the price for 1 Bitcoin in the near future. Sites like Bitcoin Prime are trustworthy and gained a massive reputation for their good work.
As of November 2020, Bitcoin is in a state of stability and has a value of around $10,000. But, some indicators have popped up recently and they led many experts to believe that Bitcoin could spike again. That is why we wanted to discuss its near and distant future; we figured that it may help the traders know valuable information which can make them a profit.
The indicators that we just mentioned are the rise in institutional interest, the hash rate, Bitcoin’s volatility, and the growing infrastructure. As far as the growing infrastructure and institutional interest, these factors are connected.
In the beginning, Bitcoin was illegal and used on the black market, but now, this cryptocurrency has been declared legal in many countries around the world. Since the status of Bitcoin is better than a few years ago, the infrastructure is growing and becoming more stable.
The volatility rate shows how much Bitcoin’s price fluctuates. Naturally, Bitcoin has a high volatility rate since its value changes often. But, recently, statistics showed that Bitcoin reached its second-lowest volatility in history. The first one was in 2017 when Bitcoin's value went over $19,000.
Finally, the hash rate measures the computing power that Bitcoin has. After the hash rate had a rough time, it is finally back to normal. The current stability, good hash rate and low volatility are the 3 factors that were in play in 2017 when Bitcoin spiked, and now it is happening again. That is why experts believe that Bitcoin could spike and reach a value of over $20,000 in December this year, with some actually believing that it can go as high as $50,000.
When it comes to the distant future, it is hard to determine what it holds for this cryptocurrency. Many experts believe that Bitcoin has the potential to become the universal currency and payment method in the world.
After all, governments may oppose it, but the fact is that Bitcoin is user-orientated, which is why more and more people are using it each day. The wide acceptance by the people gives Bitcoin power and potential to take over the world.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes