{"id":1280,"date":"2021-02-07T06:00:03","date_gmt":"2021-02-07T06:00:03","guid":{"rendered":"http:\/\/tablutech.co.mz\/?p=1280"},"modified":"2021-09-27T05:57:17","modified_gmt":"2021-09-27T05:57:17","slug":"5-crucial-bitcoin-predictions-for-2021-from-a-fintech-expert","status":"publish","type":"post","link":"https:\/\/tablutech.co.mz\/pt\/2021\/02\/07\/5-crucial-bitcoin-predictions-for-2021-from-a-fintech-expert\/","title":{"rendered":"5 crucial bitcoin predictions for 2021, from a fintech expert"},"content":{"rendered":"
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

This year has been a wild ride for anyone invested in, or even just watching, the bitcoin market. The world\u2019s most valuable virtual currency in\u00a0December traded at more than $23,000.<\/p>

When the U.S. first began grappling with Covid-19 in early March, Bitcoin was below $4,000. For\u00a0owners or sellers, it\u2019s a gut-twisting source of gains and losses. For those (like me) on the sidelines, it\u2019s an entertaining market show, with tinges of jealousy and dizziness.<\/p>

Despite that tremendous bitcoin price fluctuation \u2014 in a generally upward direction \u2014 2020 was also a year of relative maturity for a currency that, after all, has only been trading for a decade. What we see as the crucial bitcoin trends in 2021:<\/p>

1. More mainstream acceptance<\/h2>

Bitcoin\u2019s use in everyday life has always had a chicken-egg problem: Very few use or accept it because \u2026 for one thing, very few use or accept it.<\/p>

But 2020 saw a striking evolution in bitcoin adaptation. Prominent fintech companies, from\u00a0Square\u2019s investment of $50 million in bitcoin\u00a0to\u00a0PayPal allowing its users to buy and sell bitcoin, gave it a stamp of approval.<\/p>

In 2021, we\u2019ll likely see an extension of this mainstream embrace. Look for at least one major U.S. or European bank to announce some kind of system where they either enable bitcoin purchases or agree to hold digital assets for their clients.<\/p>

2. Competition from Big Tech<\/h2>

Whatever bitcoin may or not have accomplished in its decade of existence, it has forced a lot of big, global entities to think about offering an international digital currency.<\/p>

Every company involved in the payment space understands not only that there is a market for digital payments still up for grabs, but that payments involving different currency markets have the most potential. That\u2019s because currently such transactions can take days to resolve, and often involve hefty fees.<\/p>

Bitcoin has demonstrated, if\u00a0embryonically, that a global digital currency can dramatically streamline that process. This year, both Facebook and Google \u2014 companies with a massive global reach that bitcoin can only dream of \u2014 moved forward with big digital currency plans.<\/p>

Tech offerings\u00a0like Facebook\u2019s Diem\u00a0aren\u2019t exactly the same as bitcoin, but if they start to catch on in 2021, they may eat a little into bitcoin\u2019s growth.<\/p>

3. Competition from central banks<\/h2>

This year, the\u00a0Bank for International Settlements issued a report and survey\u00a0indicating that 80% of the world\u2019s central banks are working on some form of digital currency.<\/p>

China has taken the digital currency experimentation much further than any other nation. Recently, in the eastern Chinese city Suzhou, just west of Shanghai, a lottery was held in which\u00a0100,000 residents each received 200 renminbi\u00a0(about $30) via a digital wallet. They were encouraged to link their digital cash to their bank accounts, and if they didn\u2019t spend their digital cash within a few weeks, it disappeared \u2014 both great techniques to advance the experiment.<\/p>

As China moves toward nationwide adaptation of the digital yuan, it is likely to undercut demand for bitcoin and other independent cryptocurrencies. Next year may see similar experiments in other countries.<\/p>

4. A new regulatory playing field<\/h2>

President-elect Joe\u00a0Biden\u2019s administration will have higher priorities in its first 90 days than regulating cryptocurrency, and of course Congress\u2019 mood and expertise on the subject is hard to read.<\/p>

The natural assumption is that a Democratic administration will regulate more stringently than a Republican administration, yet some have asserted that\u00a0Biden will be \u201cgood for cryptocurrency.\u201d<\/p>

Maybe, but bitcoin enthusiasts tend to overlook issues like anonymity and its potential use for fraud; for regulators, those are very serious concerns.<\/p>

Biden\u2019s team might well come up with a more comprehensive and rational way of regulating cryptocurrency, but I would not bet on any favoritism toward bitcoin in particular.<\/p>

5. Continued volatility<\/h2>

Because the value of bitcoin is not directly tied to any obvious real-world phenomenon (such as fiscal or monetary policy), it can appreciate or depreciate in ways that are hard to predict or even explain.<\/p>

As an investment, this makes it hard to recommend for anyone hoping to avoid big losses. Some say\u00a0bitcoin could reach as high as $50,000 next year, and although that seems extreme, it is not out of the question if investors move money from other assets into bitcoin.<\/p>

Of course, it is just as possible that the price will head in the opposite direction in 2021. The one thing that seems certain is that the wild ride of 2020 will be repeated \u2014 so buckle up.<\/p>

Source<\/a><\/p><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

This year has been a wild ride for anyone invested in, or even just watching, the bitcoin market. The world\u00e2\u20ac\u2122s most valuable virtual currency in\u00c2\u00a0December traded at more than $23,000. When the U.S. first began grappling with Covid-19 in early March, Bitcoin was below $4,000….<\/p>","protected":false},"author":1,"featured_media":1292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-1280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-weshare"],"_links":{"self":[{"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/posts\/1280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/comments?post=1280"}],"version-history":[{"count":11,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/posts\/1280\/revisions"}],"predecessor-version":[{"id":1301,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/posts\/1280\/revisions\/1301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/media\/1292"}],"wp:attachment":[{"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/media?parent=1280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/categories?post=1280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tablutech.co.mz\/pt\/wp-json\/wp\/v2\/tags?post=1280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}