Bitcoin rose more than 300% in the past 12 months, fueled by the shopping spree from small and large institutional investors and major banks such as Citibank and JPMorgan. On Wednesday morning, the rate even broke through the $ 35,000 limit.
The rate of the virtual currency has quadrupled since early 2020, according to Forbes. What awaits bitcoin investors in 2021?
Mark Newton, founder and chairman of Newton Advisors, says the bitcoin market is “ fairly bullish ” in the medium term. He expects that bitcoin is now just taking hold. Price prediction of Cryptocurrency is popular.
In December, bitcoin, which has recently become available for payment via the online payment system PayPal, was bombarded by an analyst in a Citibank report leaked to Twitter to the “gold of the 21st century”, which by the end of this year was currency.
Bitcoin has earned a reputation as ‘digital gold’ in 2020 among investors who fear large-scale monetary support from central banks will trigger an inflation wave.
More in the barrel
“Gold hit an all-time high in 2020 and bitcoin has also hit some highs,” said Russ Mold, head of investments at AJ Bell.
More is expected, partly because of the loose monetary policy of the central banks, the historically low interest rates and the scarcity of both bitcoin and gold. Bitcoin has a limited release of a total of 21 million coins, while the world’s gold supply is growing by 2% annually.
Yet there are still plenty of investors who don’t like gold or cryptocurrencies such as bitcoin, because both investments have no intrinsic value and do not generate money.
A number of investors even see bitcoin as a disguised pyramid scheme, where early participants can exit at a profit, as new money flows in at the bottom of the pyramid. According to Mold, 2021 could reveal which group of investors is right. The best website for Crypto is popular.
To the mainstream
Bitcoin may have been the center of attention in 2020, but the crypto community is divided over the future of much smaller virtual coins, which could be hit hard by tighter government oversight and regulation.
Nevertheless, the interest of institutional and private investors is undeniable, and may well be the decisive push for innovative initiatives in the world of digital currencies.