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Do you want to know what the future holds for Bitcoin? If yes, consider these vital Bitcoin predictions from Fintech experts.
Anyone watching the Bitcoin market or invested in this virtual currency knows that it has experienced a wild ride over recent years. As of December 2020, Bitcoin was trading at over $23,000. And this was a sharp rise from $4,000 when countries like the U.S started grappling with the Covid-19 pandemic back in March. Bitcoin is undoubtedly a gut-twisting source of losses and gains for sellers and owners. For people on the sidelines, Bitcoin presents an exciting market show full of dizziness and jealousy tinges.
But even with tremendous price fluctuations, Bitcoin is on an upward path. It’s also in 2020 that this virtual currency experienced a relative maturity after trading for over a decade. So, what’s next for Bitcoin? Here’s what Fintech experts predict.
Increased Mainstream Adoption
Many people have always been wary about using Bitcoin in their daily life. Only a few people accept or use Bitcoin because of its low adoption and acceptance. However, Bitcoin adoption experienced a striking evolution in 2020. Fintech companies like PayPal began accepting Bitcoin, giving it an approval stamp.
Subsequently, Bitcoin mainstream acceptance is likely to increase going forward. Some banks in the U.S and Europe have also announced their intentions to start allowing people to purchase and sell Bitcoin on their platforms. And this will increase the adoption and acceptance of this virtual currency.
Big Tech Competition
Regardless of what this virtual currency has accomplished over the last decade, it has prompted many global entities to consider introducing an international virtual currency. Every firm that process payments understand that the world has a large digital payments’ market up for grab. However, a payment system involving various currency markets will have the most significant potential. Currently, such transactions take days while attracting hefty fees.
Big tech companies have realized that Bitcoin can streamline the global transaction process dramatically. Google and Facebook, for instance, have signaled to have extensive plans for digital currencies. And these companies have significant global reach, meaning they could have a massive influence on Bitcoin and other virtual currencies.
Central Banks Competition
It’s no secret that many central banks the world over are working on digital currencies. For instance, China has developed the digital yuan. And this is a virtual currency issued by China’s central bank, and it’s likely to affect Bitcoin’s demand. Similar experiments could emerge in other countries as their central banks try to compete with Bitcoin and other electronic currencies.
New Regulations
Most countries have expressed their intentions to regulate Bitcoin and other digital currencies. However, Bitcoin enthusiasts have continuously overlooked issues like its use for fraud purposes and anonymity. On the other hand, regulators see these as serious concerns.
Consequently, most countries will most likely come up with regulations around Bitcoin usage. For instance, the U.S could develop reasonable and comprehensive measures for regulating cryptocurrencies. However, such steps are unlikely to favor Bitcoin.
Continued Volatility
Bitcoin’s value doesn’t directly tie or link to a real-world phenomenon like monetary or fiscal policy. Consequently, it can depreciate or appreciate in ways that people can’t explain or predict. Nevertheless, people take advantage of this fluctuation to make profits from Bitcoin trading. And platforms like BitIQ facilitates this trading using advanced AI algorithms. Perhaps, you can register and crypto-profit.io to learn more and start trading.
Being an investment, Bitcoin is not easy to recommend to anybody that doesn’t want to make a significant loss. Some people argue that Bitcoin’s value can hit up to $50,000 next year. While this may seem extreme, it’s impossible to ignore if you want to transfer funds from other investments to Bitcoin. This virtual currency’s value could head in the opposite direction. Nevertheless, Bitcoin’s price movement remains unpredictable in the future.
Final Thoughts
Many factors will affect Bitcoin’s future performance. Nevertheless, people continue to invest in this virtual currency, hoping to earn good returns. The wild fluctuations of this cryptocurrency’s value combined with potential government regulations hinder some people from investing. Nevertheless, careful market research and market trends’ analysis can help investors make their investment decisions.
