Bitcoin projections for 2020 were ambitious, but no one could quite have predicted the stellar year the cryptocurrency had. Now experts aren’t in complete agreement whether the Bitcoin 2021 prediction should be even bolder in terms of price.
While the cryptocurrency projections, in general, can be confusing, there are still emerging trends to watch out for this year.
In this article, we’re going to examine the Bitcoin evolution and some of the Bitcoin future value predictions. Plus, we’ll talk about the top cryptocurrencies to consider investing in during 2021.
A Brief Overview of Cryptocurrency Trends in 2020
It’s impossible to talk about this year’s Bitcoin projections without looking back on everything that went on in the 2020 world of digital currency. Ever since launching in 2009, Bitcoin has remained the number one cryptocurrency globally.
But in 2020, it saw a hugely impressive rise in price. It also took complete control of the spotlight compared to other well-known cryptocurrencies.
The year 2020 started turbulently in many ways, and in economic terms, only got worse. It looked as if that would be the case for Bitcoin too. In early 2020, it was still considered somewhat of a fringe investment. However, by the end of the year, its value went up four times and closed with a record price of over £20,000. Suddenly, it was at the centre of every investor’s conversation.
Bitcoin 2021 Predictions
Making Bitcoin price predictions might be tough this year because the cryptocurrency is expected to continue to dominate.
On the other hand, the digital currency’s notorious volatility implies that no trend can last forever. Regardless, let’s take a look at which cryptocurrency predictions are most likely in 2021.
Cryptocurrency Is Going Mainstream
As mentioned, it’s a known fact that in certain financial circles cryptocurrency is still not taken seriously. Even some of the biggest billionaire investors dismiss Bitcoin as not having any real value.
Given the year Bitcoin and other digital currencies had in 2020, that’s about to change. In the past, the biggest issue was that people hesitated to invest in it. But the Bitcoin evolution has proved that there’s no reason to reject the use of cryptocurrency in 2021.
The mainstream embrace of cryptocurrency is likely to broaden, and major European and US banks might provide a system for Bitcoin purchases in the future.
Pending Competition With Big Tech
One of the things Bitcoin has accomplished is address the need for digital currency. Big Tech companies such as Google and Facebook are also aware of this potential.
But for either of them to offer an actual international cryptocurrency is going to be a massive undertaking. They do have one thing that Bitcoin doesn’t have, though: global reach to help to streamline the process. Whatever strides Big Tech makes in this regard, it’s sure to impact the growth of other digital currencies.
Possible Competition With Central Banks
It’s not just Big Tech that Bitcoin needs to worry about. The newest trends suggest that more than half of the world’s central banks are considering some form of cryptocurrency.
And while China has been particularly dismissive of Bitcoin, the country has been experimenting with a cryptocurrency of their own more any other nation.
Cryptocurrency predictions for Bitcoin are not going to be the same in every country, but the first central bank that develops digital currency will become a direct competitor.
More Regulation Is on the Horizon
The Bitcoin future value predictions seem to be very bright. But it’s also important to note that looming government regulation plans are likely to cause a decrease in Bitcoin price.
That doesn’t mean that it will lead to the end of cryptocurrency. More likely, it’s going to cause a continuous back and forth between the two entities.
In the coming years, Bitcoin is predicted to exceed its current value faster than initially projected. Still, there’s no way of knowing what type of concessions will be expected in return for less regulation.
Volatility Remains at the Core of Cryptocurrency
It’s easy to have high hopes for Bitcoin and other digital currencies given the market’s ongoing trends. However, it’s essential to point out that, by its nature, Bitcoin is not directly connected to any global monetary events or fiscal policy.
That’s what makes it so difficult to predict and follow most of the time. It’s also the main reason why it can be challenging to pitch cryptocurrency to anyone who wants to avoid any investment losses.
Bitcoin price 2021 predictions even indicate that it will go beyond £40,000, though some say that’s an extreme projection. Given the volatility of cryptocurrency, the price of Bitcoin in 2021 could just as easily go in the opposite direction.
The Top Cryptocurrencies to Invest in 2021
Bitcoin remains the leading cryptocurrency giant in 2021 – that much is certain. But if you’re looking to expand your digital currency investment portfolio, there are other options out there.
Etherum has long been in a somewhat distant second place to Bitcoin. Although Etherum has been more often associated with decentralised apps than a digital currency, it’s still a significant player in the market.
In 2021, it’s likely to continue with the momentum it’s been building. And perhaps compete even more closely with Bitcoin.
Litecoin is another option to consider. Their primary focus is on improving the speed of transactions and decreasing the fees. It’s also one of the digital currencies being accepted by online merchants.
Binance Coin has the highest volume of all the cryptocurrency exchanges. It’s the official coin of Binance exchange, which allows for easy, efficient trading.
You can even use their official card as a regular credit or debit card when making payments. You might want to look into other notable digital currencies are Bitcoin Cash, IOTA, Tezos, Tron, and Ripple.
The Highs and Lows of Cryptocurrency in 2021
As a rule, Bitcoin projections are difficult to make, even for financial experts. Nothing that happens in the real world impacts how digital currency will react.
It’s detached from that completely, and that’s what makes it both exciting and volatile at the same time. But 2021 is looking promising for cryptocurrency, even with the likely regulations and competition.
It’s here to stay and force the whole world to find a way to implement it widely. By the end of the year, we’ll see just how much has changed.