Looking back in retrospect, we see that bitcoin hit the markets in 2017 by reaching an unforeseen and unexpected peak of more than $19,000. This milestone made amateurs and professionals start paying attention to bitcoin and taking cryptocurrencies seriously. The last year of 2020 has equally been a wild ride for anyone watching or invested in the bitcoin market. Anyone watching the markets knows that Bitcoin traded more than 2021 by going above and beyond $23,000.
These statistics come as a shocker for anyone who saw Bitcoin drop as low as $4,000 back in early March 2020 when the pandemic (COVID-19) was at the earliest stages. Despite the tremendous price fluctuation, Bitcoin has traveled in an upward direction, which is quite a success for a currency that has been launched in the markets for only one decade. With that said, there are some exciting predictions made by fintech experts about the future of this cryptocurrency in 2021. Read on to learn more.
It has been speculated that bitcoin will find its way into the mainstream this year, 2021, to gain more acceptance with the general public. The use of bitcoin in everyday life has always been linked to the chicken-egg problem. The thing is that very few accept and use it because of very few use and accept it. With that said, despite all odds, 2020 has witnessed massive evolution in the adaptation of bitcoin. If we analyze different markets and fintech companies, we see that even Paypal has granted its users permission to buy and sell with bitcoin.
With many fintech companies giving their users the stamp of approval, we ought to embrace the possibility that the mainstream will see bitcoin as a vital extension to buy and sell. At least one American or European bank is expected to establish a system where bitcoin purchases are enabled. Or if one of the banks allows clients to hold their digital assets in the form of bitcoins. Let us see how things turn out in the long run in 2021.
Bitcoin will stir massive Competition
For the year 2021, bitcoin is to expect quite a competition from big tech. Irrespective of whatever bitcoin achieved in a decade of its launch, it sure has compelled many global technological entities to think about offering their clients global digital currency. People around the globe realize the importance of bitcoin and how it has changed the financial structure.
Therefore, more people are stepping forward to invest in bitcoin. Every company that deals with the international payment space acknowledges that the market for digital payments is growing massively. And that said, they understand the most significant potential lies with the different categories of currency markets.
Bitcoin has successfully demonstrated that it can quickly and quite dramatically streamline the transaction process as a global digital currency. Therefore, the more prominent companies with massive international reach will implement digital currency plans to compete with bitcoin.
Competitive Stance of Central Banks
This might come off as a shocker to many, but more than 70% of the world’s central banks are reportedly working on launching their digital currency. If we look at the globe, we see that China has left behind all other nations with its digital currency stance. For instance, in 2020, a lottery was held in Suzhou’s Chinese city, where all 100,000 residents of the town received the win sum of $30 in their digital wallets.
With this competitive stance, the winners were encouraged to connect their digital wallets to their bank accounts. For intensifying the experiment, the winners were asked to spend their digital cash within a few weeks, or it would disappear. With that said, China is explicitly moving towards the adaptation of digital currency (digital yuan), and it is predicted to undercut the global demand for bitcoin and suitable cryptocurrencies. We can expect similar experiments on the effectiveness of digital currency to occur in other countries in 2021.
We know that bitcoin is not associated with a real-world fiscal policy. Therefore, continued volatility will exist in 2021. In simple words, we can expect to face losses or gain profits with bitcoin as they can appreciate and depreciate in unpredictable ways as it has in the last decade. The only thing sure for bitcoin is that its wild ride of 2017 and 2020 will continue and more likely be repeated, so buckle up and keep watching out.
Disclaimer: This is a paid article and must not be considered as news/advice.