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Bitcoin Price Prediction 2020 – Realistic Bitcoin Predictions
Bitcoin’s price fell steeply as the market is bearish. But the BitMex CEO, Arthur Hayes showed optimism as he said Bitcoin will fall quite low before bouncing back to $20,000. As the Bitcoin halving event is nearing, the crypto space is getting pumped up with enthusiasm. Very recently, Bitcoin hit the $10,000 mark, which filled the crypto space with frenzy. There are crypto analysts and enthusiasts who have been giving optimistic predictions since then. Fundstrat’s Tom Lee said that Bitcoin might reach $40,000 by the end of 2020. Tom Lee has been very vocal about his interest in Bitcoin always. He states that Bitcoin might give enormous returns post the halving event that is scheduled to be in May 2020.
Furthermore, Bitcoin is the only crypto that has received worldwide attention, awareness, and adoption. It has been accepted by organizations and payment gateways all across the world. Even new milestones are being achieved like Bitcoin hash rate reaching an all-time high of 62 quintillions per second.
Currently, Bitcoin (BTC) is trading at $7,302.12 USD with a BTC price of 0.29% down today. The market cap of Bitcoin is USD 133,728,458,284 with 18,313,650 BTC circulating currently. The 24-hour price movement chart indicates that $69,796,473,163 worth of BTC was trading. (Bitcoin price prediction today USD). You can check the Bitcoin hourly price prediction or Bitcoin price live on any of the sites.
About Bitcoin Price Prediction
Bitcoin Price Prediction is about how Bitcoin might perform in the near future. Bitcoin’s future value predictions are done on the basis of thorough research. Realistic Bitcoin predictions can be determined after determining the past trends, given the volatility nature of the crypto market. In this article, you can check out every aspect of Bitcoin’s future forecast.
Bitcoin Price Prediction for 2020 and Next Five Years
Let’s understand what is the Bitcoin price prediction for 2020 and the next 5 years. As the market is experiencing volatile conditions, we should back up the prediction with the market experts, who have been the mind and heart of the cryptocurrency market.
Let’s take a look at the famous Bitcoin predictions:
#1 Tom Lee Bitcoin Price Prediction
Tom Lee, ex-Chief Equity Strategist JP Morgan, and Co-founder and head of research of Fundstrat, believes that after the Bitcoin halving event, which is expected to happen in May 2020, Bitcoin can deliver 100% returns to its investors in 2020. He recently predicted Bitcoin’s short-term potential while speaking to Yahoo Finance, where he believes BTC might hit an all-time high of $27,000 by summer, 2020.
#2 Fran Strajnar Bitcoin Price Prediction
Fran Strajnar comes up with a very optimistic prediction where he believes that BTC might reach $200,000 by January 2020. He believes that the rate of adoption is directly proportional to the price increase. The more the adoption rate, the more the increase in value.
#3 Bobby Lee Bitcoin Price Prediction
Bobby Lee, CEO of China’s first exchange- BTCC said before that it would take 20 years for BTC to reach $1 million. Now his prediction totally changed. Bobby Lee, the co-founder of BTCC (Hong Kong-based Bitcoin exchange) and the brother of Charlie Lee, Litecoin creator gave an extremely bullish prediction but started with bearish though. He claims that Bitcoin might pick up from late 2020 and could reach $333,000 in 2021 and then fall down to $41,000 in 2023. He iterated that the market capital might reach $7 trillion, that might surpass the market cap of gold. He even mentioned that Bitcoin would lead to price stability and global liquidity in the coming years.
#4 John McAfee Bitcoin Price Prediction
John McAfee has been one of the stagnant Bitcoin enthusiasts, who now and then comes up with his prediction. He recently became more optimistic than ever and said that Bitcoin might reach 1 million USD by 2020. Other altcoins like Apollo and MTC might rise 10X more, as said by this BTC enthusiast. He recently stated that his past Bitcoin prediction of 1 million USD was just a ruse.
In an interview with Cointelegraph, McAfee predicted that 10 years from now, “there’ll be no fiat anywhere in the world [. ] everything will be cryptocurrency.”
#5 Tim Draper Bitcoin Price Prediction
Tim Draper, one of the renowned Venture Capitalist predicted that Bitcoin could occupy 5% of the currency market by 2023. He is optimistic that Bitcoin price might grow as much as $250,000 by 2023.
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Our Verdict On Bitcoin Price Prediction
Even though Bitcoin has been experiencing frequent fluctuations, we believe that Bitcoin will soar up as per the predictions stated above. There are several reasons which led to Bitcoin’s price fall like Bitcoins being used for illicit purposes and so many past mishaps like hacking and thefts. Pros outperformed the cons, hence Bitcoin is still the market leader, bagging the number one position and maintaining its position. Bitcoin might reach the $23,500 mark supposedly by the end of 2020 as the year holds good prospect and development for BTC like NASDAQ launching BTC future, that too in the very beginning of 2020.
Bitcoin Price Prediction 2020: Will Bitcoin Go Up?
Bitcoin has been performing quite well and recently it has started with its bull run. This has taken the market by amazement. Now the traders and investors are in a state where they are trying to make optimum utilization of the bull run. The more the trading, the more the price. Moreover, as we know, Bitcoins are scarce in circulation, i.e. there can be only 21 million Bitcoins mined, out of which 17 million has been mined already, which means only 4 million to be mined, which will make its value more. Additionally, several countries like the U.S., Japan, and South Korea have shown extreme willingness to integrate Bitcoin and other cryptocurrencies into their financial systems by setting up regulated markets that might function freely and securely. By the end of the year 2020, the Bitcoin price will reach $23,499.
Bitcoin Price Prediction 2022
Bitcoin might experience unexpected growth by 2022, with the adoption rate getting tripled. Bitcoin might be accepted by the masses worldwide as the most feasible payment system, which is hassle-free. Bitcoin anyway is not far off before it takes the sweet spot for fiat currencies, and most of the developed world might see the change coming in faster than the rest. By 2022, Bitcoin might reach $32,000, given the advancements are stable.
Bitcoin Price Prediction 2025
Bitcoin price prediction suggests that the Bitcoin price is up for a long-term 385.450281% in the BTC price value with a 5-year investment. This means that in 2025, the Bitcoin price is forecasted to stand at $ 50044.6. (Bitcoin Future Prediction)
Bitcoin might touch the $50k mark in the year 2025, which can take the crypto market to a whole different height altogether. As per the predictions and analysis, Bitcoin stays securely to number one position, without any close contender. Gradually, Bitcoin might be seen more as a store of value, along with it being an alternative currency. There are certain Bitcoin price prediction tools which help the experts come up with data. The fiat currencies might be replaced by Bitcoin, as predicted by crypto enthusiasts like John McAfee.
By 2025, Bitcoin might be used more often by more people, i.e, the real-time use case will be increased, which will make it even more powerful.
What Is Bitcoin (BTC)?
Bitcoin is the most popular cryptocurrency, dominating the crypto space with its blockchain technology and its scarcity. Bitcoin was created in 2009 by the pseudonym Satoshi Nakamoto, who might be an individual or a group of people. It works on a peer to peer network, where no intermediaries are involved. It is the digital currency, which aims to exclude the intervention of any third parties, while you are transacting.
It is gaining adoption and some people have started using BTCs in real-time, like buying a Lamborghini or buying a mansion. It’s easy as well as advanced. Once you understand the technology behind it, you will definitely embrace the beauty of this digital currency.
FAQs On Bitcoin Price Prediction
1. Will Bitcoin go up in value?
As per the experts and crypto enthusiasts, a huge chunk of people are optimistic about Bitcoin going up in value in the years to come.
2. Is it smart to invest in Bitcoin?
It depends on you and your goal, as in if you are looking for long term investment or short term investment. Moreover, it is highly recommended for you to do thorough research before making any investment decisions.
3. Can Bitcoin hit a million?
As per the most expressive Bitcoin enthusiast, John McAfee, Bitcoin might reach 1 million in 2020. He is pretty optimistic and confident in his statement. But that might be a little way too optimistic bullish figure.
4. Can Bitcoin be exchanged for real money?
You can get Bitcoin with fiats like USD or Euro. But Bitcoin is a virtual electronic currency with an efficient built-in transfer system. You need to put it in an exchange and convert it into fiat to exchange it for real money.
5. What will be the Bitcoin price prediction in 2020?
Bitcoin might reach $23,500 by 2020 end.
6. What was Bitcoin’s lowest price?
The lowest price was in October 2020, when Bitcoin was worth less than a dollar and cost $0.125, and in 2020February to April, it was trading at $1.00.
7. What will be Bitcoin price prediction in 2030?
Bitcoin might surge way above $50,000 by 2030. It might even reach $75,000.
8. Can Bitcoin be converted into cash?
You just need to convert Bitcoin into fiat currency and send it across to your account. Sometimes, Bitcoin ATMs can also be helpful.
9. Is Bitcoin safe and legal?
Bitcoin enables transparency and decentralization, and different countries have specific rules and regulations.
10. How do I start buying Bitcoins?
You can go here directly to start buying Bitcoins. You can easily buy Bitcoin with the help of a Credit or Debit card, with fiat currencies. You can even convert more than 300 cryptocurrencies to Bitcoin instantly.
11. How much does it cost to buy 1 Bitcoin?
1 Bitcoin is equivalent to $9,165.12 as of February 26, 2020.
Bitcoin Price Predictions (2020 Update)
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Bitcoin was created in early 2009. Since then, we’ve seen its price increase from Bitcoins to the cent (circa March 2020), all the way up to $19,000+ per Bitcoin. One of the stories that illustrate this growth best is that of two pizzas, which were bought for 10,000 Bitcoins, on May 22, 2020, by a Florida developer by the name of Laszlo Hanyecz. Those 10,000 Bitcoins (at $4,000 per bitcoin) would be worth over $40 million today, pitted against the $40 or so they were worth then.
Is there any limit to this growth, and if so, where is it? While nobody knows for sure, there are plenty of anti-Bitcoiners who see the market as a bubble, ready to pop and have Bitcoin’s price fizzle back to mere cents, and plenty of pro-Bitcoiners, or Bitcoin evangelists, who see little hinderance in Bitcoin growing up to 200 times its current price. Here what those evangelists think Bitcoin will go on to be worth.
Standing Bitcoin Price Predictions
There are a handful of Bitcoin price predictions made for the mid to long term, or with no time scale at all, that are still standing today. Here are some of the most exciting predictions from Bitcoin’s most legendary evangelists.
Chamath Palihapitiya – $1,000,000 (by 2037)
Chamath Palihapitiya is the Founder of Social Capital and Co-Owner of the Golden State Warriors. His Bitcoin journey started with an investment back in 2020, and by 2020 he had included Bitcoin in his hedge fund, general fund, private account. At one point, he owned 5% of all Bitcoin in circulation.
Palihapitiya has predicted Bitcoin price will reach $100,000 in the next 3-4 years, adding that it will reach a price of $1 million by 2037. He said, “This thing has the potential to be comparable to the value of gold…This is a fantastic hedge and store of value against autocratic regimes and banking infrastructure that we know is corrosive to how the world needs to work properly”
Wences Casares – $1,000,000 (by 2027)
Wences Casares is the Founder and CEO of Xapo, a Bitcoin wallet startup, and a board member at PayPal, among various other roles. Casares first found interest in Bitcoin due to high financial volatility in his home country Argentina’s native currency, the Peso. The tech giant bought his first Bitcoins in 2020.
Casares believes that Bitcoin will hit $1 million sometime before 2027, he said at the Consensus 2020 conference in New York. Even better, he believes that Bitcoin could hit one million dollars in as few as 5 years, saying on May 23, 2020, that the milestone will be reached “in 5-10 years”.
John Pfeffer – $700,000 (no date)
John Pfeffer is a partner at London-based family office Pfeffer Capital. He’s set a bold price target for Bitcoin of $700,000—about 175 times the current Bitcoin price of nearly $4,000. Pfeffer said that Bitcoin is the world’s first viable replacement for gold.
The math for his target works like this: firstly, he assumes that Bitcoin can replace all of the gold currently held by private investors — in other words, the gold bars that people keep in safe-deposit boxes or bury in their backyard (simply as a way to park their money in something more dependable than paper). He says that “Bitcoin is vastly easier to store and secure.”
Next up, the current value of all privately held gold bullion is about $1.6 trillion. Assuming there will be 18 million Bitcoins in circulation by the time the cryptocurrency fully replaces gold bullion, the implied value of a Bitcoin would then be $90,000. This is Pfeffer’s most conservative scenario, which he gives 8% odds of coming to fruition.
Jeremy Liew – $500,000 (by 2030)
Jeremy Liew is a partner at Lightspeed Venture Partners, famed as the first investor in the social media app Snapchat. Liew’s other investments include the multimedia company Beme, the listing service VarageSale, and the hardware wallet LedgerX. His net worth is estimated at north of $2 billion.
In an exchange with Business Insider in May 2020, Liew said that the Bitcoin price can “realistically” reach $500,000 by 2030. Liew’s prediction was backed by Peter Smith, the CEO, and co-founder of Blockchain — the world’s most popular Bitcoin wallet.
Mark Yusko – $400,000 (no date)
Mark Yusko is the billionaire investor and Founder of Morgan Creek Capital. His prediction for Bitcoin is that it’ll be worth over $400,000 in the long term, a statement that made headlines because for its grandiose scale.
“It’s just math. It is gold equivalent…there are about 20 million Bitcoin available today. Gold today is about $8 trillion. That gives you $400,000. And that doesn’t include use cases that relate to currency,” Yusko said.
He also pointed out that the asset is striking fear into the hearts of bankers, precisely because Bitcoin eliminates the need for banks. When transactions are verified on a Blockchain, banks become obsolete.
Roger Ver – $250,000 (no date)
Roger Ver is an early investor in Bitcoin and related blockchain startups. Born in the US and now with citizenship in Saint Kitts and Nevis, Ver started his business career with a computer parts business, MemoryDealers.com. By early 2020, Ver had begun investing in Bitcoin, now with a portfolio including startups like Bitinstant, Ripple, Blockchain, Bitpay, and Kraken.
In an interview with Jeff Berwick, for The Dollar Vigilante blog, Roger Ver said in October 2020 that Bitcoin “could very easily be worth $2,500, or $25,000 per Bitcoin, or even $250,000 per Bitcoin”. Ver’s estimate is based on the principles of supply and demand, which he believes creates great potential for Bitcoin as a store of value.
Anthony Pompliano – $100,000 (by 2021)
Anthony Pompliano is a well-known Bitcoin personality. He’s a founder and partner at Morgan Creek Digital, a crypto-friendly asset management firm for institutional investors. He has previously claimed that he holds more than 50% of his net worth in Bitcoin, showing his belief in the cryptocurrency.
Pompliano has predicted that Bitcoin will hit $100,000 by the end of December 2021. At the time of the prediction (February 2020), Bitcoin had just reached the $10,000 mark, meaning the currency would need a 1,000% increase — within just two years — to reach his target. His prediction would put the market cap of Bitcoin at more than $2 trillion.
Kay Van-Petersen – $100,000 (by 2027)
Kay Van-Petersen is an analyst at Saxo Bank, a Danish investment bank which specializes in online trading and investment. Based out of Singapore with an MSc in Applied Economics & Finance from Copenhagen Business School, Van-Petersen is an active Twitter user with no fear of speculating on tough topics like the prices of cryptocurrencies.
Van-Petersen believes that Bitcoin will rise to $100,000 per unit by 2027, according to a feature by CNBC news published in May 2020. As the man who successfully predicted Bitcoin’s flow up to $2,000 by 2020, Kay Van-Petersen’s most recent estimate, perhaps a little optimistic, suggests that Bitcoin would then account for 10% of the volume in the foreign exchange market.
Tom Lee – $91,000 (by 2020)
Tom Lee is Co-Founder of the market strategy firm Fundstrat Global Advisors, and a well-known bitcoin bull. Lee initially set a Bitcoin price target for $11,500 for mid-2020, and then increased it to $20,000 as the cryptocurrency’s intrinsic value increased. These targets were instead achieved by the end of 2020.
He recently upped his prediction again, stating that Bitcoin’s price will reach $91,000 by March 2020, on the basis of a chart that shows Bitcoin’s (BTC) performances after past market dips. Lee and Fundstrat used an average of the percentage gained in price after each dip to arrive at the 2020 figure.
Tai Lopez – $60,000 (mid-term)
Tai Lopez is a renowned investor and internet marketing expert, famed for a viral video he had filmed in his garage. He believes that if a small portion (1%) of the assets of millionaires globally is invested into Bitcoin in the upcoming months, the price of Bitcoin could justifiably grow to around $60,000.
Given that the adoption of Bitcoin as a store of value and a medium of exchange within the global finance market is increasing exponentially, $60,000 remains a viable mid-term price target even for conservative investors. Only time will tell when/if this prediction is reached, though.
Ronnie Moas – $50,000 (2020)
Ronnie Moas is the founder and director of research at Standpoint Research, an equity research firm accounting for both traditional investments and new-time ones. Moas is an avid Twitter user and Wall Street analyst who has been featured on dozens of TV and radio interviews and holds an MBA in finance.
Moas projects that Bitcoin will reach a price of $50,000 by late 2020. He also believes that the market cap of all cryptocurrencies will burst up to a whopping $2 trillion (from the current $150 billion) within the next 10 years. Moas has also compared the wealth proposition of cryptocurrencies to that of the dot-com boom.
Andy Edstrom – $8 trillion market cap (2030)
Andy Edstrom is a wealth manager for a California-based investment advisory firm called WESCAP. He’s an investor himself, and an avid Twitter user. More importantly, he’s a definite fan of Bitcoin, constantly tweeting about the topic, and even having written a book by the title of “Why Buy Bitcoin”.
In February 2020, Edstrom made a prediction that Bitcoin would reach an $8 trillion market cap by 2030. Although he didn’t mention it, this is considered to be the approximate size of the gold market. In any case, this would put the price of a single coin at around $400,000. Interestingly, Edstrom believes Bitcoin could become the world’s default currency.
Mike Novogratz – $7.5 trillion market cap (2029)
Mike Novogratz is a former hedge fund manager who’s been investing in Bitcoin and blockchain technology for a long time. He’s made several price predictions in the past — which have been both correct and incorrect.
In March 2020, Novogratz indirectly made yet another prediction, saying Bitcoin would “easily” surpass gold’s then market cap of $7.5 trillion within 10 years. This puts his prediction very close to Edstrom’s, both in terms of timeline and magnitude.
Winklevoss Twins – $5 trillion market cap (by 2028 – 2038)
Winklevoss twins – the famous Bitcoin billionaires has said Bitcoin has the potential to of thirty to forty times its current value. That would put the Winklevoss’ estimation of Bitcoin’s future market cap at over $5 trillion. This number comes from a comparison to the $7 trillion global gold market.
Cameron Winklevoss said, “We’ve always felt that Bitcoin, given its properties, is gold 2.0 — it disrupts gold. Gold is scarce, Bitcoin is actually fixed. Bitcoin is way more portable and way more divisible. At a $300 bln market cap, it’s certainly seen a lot of price appreciation, but gold is at $6 tln and if Bitcoin disrupting gold is true and it plays out … then you can see 10 to 20 times appreciation because there is a significant delta still.”
Past Bitcoin Price Predictions (2020 Update)
We’ve just started 2020, so a number of Bitcoin price predictions have already seen their completion dates, but just how accurate were these evangelists? Here are past price predictions for Bitcoin.
Correct: Tim Draper – $10,000 (by 2020)
Tim Draper, a billionaire venture capitalist, had envisioned Bitcoin to hit $10,000 USD by 2020. Draper scored big as an early backer of Skype and Baidu. He is also an early supporter of Bitcoin and its underlying technology blockchain.
In July 2020, Draper purchased nearly 30,000 bitcoins (worth around $19 million at the time) which had been seized by the US Marshals service from the Silk Road (a marketplace website).
Correct: Mike Novogratz – $10,000 (by April 2020)
Mike Novogratz is the Bitcoin investor whose standing prediction for a $7.5 trillion market cap was covered above. Previously, Mike had correctly predicted Bitcoin’s price could rise up to $10,000 by April 2020.
By that time, Novogratz had already invested $150 million in the cryptocurrency space, having collected more funds from outside sources, mainly wealthy individuals/families and fellow hedge fund managers.
Incorrect: John McAfee – $500,000 (by 2020)
John McAfee is the Founder of McAfee Associates, which launched the first commercial antivirus software back in the late 1980s. He got involved with Bitcoin because according to him it will eventually become “the [monetary] standard for the world.”
McAfee made waves in the cryptocurrency world by claiming that each Bitcoin would be worth half a million dollars by 2020. He went on to predict that Bitcoin could even reach as much as $2.6 million in the same time frame.
Incorrect: Ran Neuner – $50,000 (by 2020)
Ran Neuner, the host of CNBC’s show Cryptotrader and the 28th most influential Blockchain insider according to Richtopia, had claimed that Bitcoin will end 2020 at the price point of $50,000.
Interestingly, The CNBC channel had been increasingly involved in cryptocurrency reporting over the past few months. On Jan. 8, the cable network aired a step-by-step tutorial on how to buy Ripple using the Poloniex exchange as a platform for the purchase.
Incorrect: Trace Mayer – $27,395 (by Feb 2020)
Trace Mayer, who according to his website, is an entrepreneur, investor, journalist, monetary scientist and ardent defender, had predicted the Bitcoin price to hit $27,000 by February 2020. Mayer has been involved with Bitcoin since its early days, initially investing in the cryptocurrency when it was worth $0.25. The host of The Bitcoin Knowledge Podcast had based his prediction on a 200-day moving average. He expected the 200-day moving average to grow rapidly up until $5,767. At which point, he believed that each Bitcoin would be worth over $27,000, increasing its relative price by 4.75 times.
Incorrect: Masterluc – $40,000 to $110,000 (by 2020)
Masterluc is an anonymous Bitcoin trader, known for his impressive predictions in the price of Bitcoin. Most notable was his prediction of the end of the 2020 Bitcoin bubble, which was then followed by a bearish market for multiple years.
Masterluc had expected Bitcoin to reach a price of between 40,000 and 110,000 US dollars by the end of the 2020 bull run, sharing his thoughts publicly on the TradingView platform. In his May 26th, 2020 post, the legendary trader said he expects the price to be reached sometime before 2020.
Incorrect: Mike Novogratz – $40,000 (by 2020)
After correctly predicting the $10,000 milestone, hedge fund manager Michael Novogratz threw out another prediction: that Bitcoin price could go four times by the end of 2020 and cross $40,000. According to him, high demand from Asia and a limited supply of the cryptocurrency had lead to cryptocurrency’s exuberant growth.
Incorrect: Thomas Glucksmann – $50,000 (by 2020)
Thomas Glucksmann, head of APAC business at Gatecoin, had seen regulation, the introduction of institutional capital, and technological advances like the Lightning Network as the main factors in rising cryptocurrency prices.
“There is no reason why we couldn’t see Bitcoin pushing $50,000 by December” he said. Glucksmann also wrote that a possible element in market growth going forward could be the release of a cryptocurrency-based ETF, similar to when BTC’s price shot up to $16,800 in Dec. 2020 after the CBOE’s futures launch.
Are we missing any important bitcoin predictions? Let us know and we will add them to the page.
Bitcoin price prediction 2020: how high will BTC go?
The summer is over, but Bitcoin (BTC) could become increasingly hot. Some experts believe that its current record high – $19,783 in December 2020 – could have been a drop in the bucket and predict Bitcoin will go up to $50,000 by 2021. The year 2020 will be of utmost importance for Bitcoin. A lot is bound to happen, starting with a long-awaited Bitcoin block halving.
Bitcoin expectations: Indian Summer 2020
According to the latest Bitcoin price news, October 2020 may turn out to become really favourable time for the crypto, as two ETF applications are reviewed by SEC. Moreover, the Bitcoin community is enthused by the official launch for Bakkt – a Bitcoin futures platform – which finally happened on September 23rd 2020.
The Bakkt Warehouse launch was postponed several times this year the year. Within 48 hours of its official announcement Bitcoin, nicknamed the ‘king coin’, surged by more than 10%, resulting in a $400 price increase. However, after the launch, a new platform for institutional investors saw lower than expected volumes, which sparked the Bitcoin’s most recent sell-off.
Still, people expect that Bakkt will become a catalyst to propel BTC back to its glory days. There are several reasons to believe that Bakkt will bring wonders to Bitcoin. In fact, it’s the first futures platform, which may drive liquidity for Bitcoin market.
Offering futures contracts physically delivered with Bitcoin, the service will contribute greatly to further adoption of Bitcoin inside the traditional financial system. Bakkt is backed by the Intercontinental Exchange (the ICE) and thus stands a good chance at becoming the go-to trustworthy crypto futures platform.
Bitcoin forecast 2020: big institutional investors entering the cryptomarket
The unregulated nature of cryptomarket may be a significant reason why its growth is still suppressed. Although Bitcoin offers outstanding Return on Investment (ROI) rates, many institutional investors are still worried about the reliability of stepping into the unregulated territory.
With the official launch of the federally approved regulated platform, it’s more than likely that big movers will join the crypto market, driving Bitcoin adoption and good sentiment.
It looks like Bitcoin is still at the early adoption phase, with only a small portion of investors deeply involved in the market. The major goal now is to attract larger mainstream audience. The creation of a regulatory framework to protect users and provide confidence in financial instruments, such as crypto-assets ETFs, could prove useful.
Regulation might help to eliminate the risk of bad practice in the industry and could eventually bring more institutional investors to the market.
Bitcoin prediction 2020: Technological advancements
Bitcoin’s further success could also be aided by technological advancements. For now, it is still considered too expensive and slow to use Bitcoin as an effective alternative to traditional payment systems like Visa.
Under the new system, Bitcoin transactions are supposed to take seconds at low fees. It will make Bitcoin attractive for both consumers and retailers, particularly in e-commerce. In this way it could become similar to PayPal as a favoured payment method on eBay or Amazon.
BTC prediction 2020: Bitcoin block halving
A Bitcoin block halving is anticipated for May 2020. This event may also have a significant effect on the Bitcoin price, strengthening the common view that 2020 might be a record-breaking year.
Coronavirus affects markets
We are all aware of the fact that Bitcoin is not created endlessly – there may be only 21 million Bitcoin mined in aggregate. The reward for Bitcoin mining is halved every 210,000 blocks. At the very start, miners earned 50 Bitcoin per block mined, four years later the reward was halved to 25 Bitcoin. Today, they get 12.5 Bitcoin for one block.
In May 2020, the reward will halve again to 6,25 BTC. Therefore, the number of new Bitcoin entering the market will decrease. The demand for Bitcoin is forecasted to increase, but the supply can’t surge in line with it. When the demand exceeds the supply, the Bitcoin value will increase.
Some traders share a view that Bitcoin halving directly influences its price. For example, the first Bitcoin halving occurred in 2020. One year later, Bitcoin climbed its peak. In 2020 the situation repeated, just a year after the second halving in 2020.
How to explain it? The majority of the 1,800 Bitcoin mined every day are sold by miners directly, as they try to cover the energy costs. After the reward is halved, Bitcoin offering decreases, which may positively influence the BTC price.
Bitcoin price prediction: how much will bitcoin be worth in 2020?
2020 has been a relatively great year for Bitcoin and its major peers. However, by the end of September the cryptomarket has made a U-turn within a 24-hour period. Bitcoin (BTC) has collapsed under $9,000, losing more than 15% in an hour during a mysterious rapid market crash.
Things have been tough enough for Bitcoin, but the altcoins from the list of top 20 cryptocurrencies suffered even worse. Altcoins were bleeding heavily with top-traded cryptocurrencies, including Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), EOS and others experiencing double-digit losses. The total cryptomarket capitalisation has dropped by $10 billion to around $250 billion.
The sudden crash was presumably caused by a number of technical issues, but analysts still believe that the BTC value will continue to grow. Despite the fact that now Bitcoin is traded below $8,000 it could become an attractive investment opportunity for those who want to buy the dip. At the time of writing Bitcoin was priced at $7,822.
Regulation of Bitcoin: 2020
by Ankur Gupta · January 14, 2020
2020 almost certainly promises to be the year of bitcoin regulation – something that crypto enthusiasts are none too happy about. While the concept of bitcoin goes back to the early days of the 2000s, regulators are just now starting to take note of the infamous cryptocurrency and what it could mean to their financial infrastructures.
Bitcoin was the first peer-to-peer payment system that was fully decentralized when it debuted. Meaning that it exists outside of government regulation, or rather it did. With the dawn of a new decade upon us, governments across the globe are starting to wise up to the potential problems that bitcoin could cause. Because of this, governments around the world are starting to crack down on how bitcoin trading platforms, like a top platform for all newcomers to the market https://bitvavo.com/en/, and bitcoin finance works.
With no central authority or middleman, governments are figuring out just how difficult bitcoin can be to regulate. Especially if it’s freely traded. Fearing that the currency could be used to circumvent tax payments or mandatory income reporting laws. Or perhaps even more terrifying- it could be used to destabilize or undermine the authority of central banks.
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The Real Fears of Bitcoin Adoption
While many regulatory bodies love to spin cautionary tales about how the online currency could be used for illegal activities like money laundering, human trafficking, or terrorist funding- the reality is that should bitcoin become widely adopted and used, it could completely circumvent the known fiat universe.
The problems this could pose to economies as we know them are virtually boundless. Governments use fiat systems to create or destroy money as necessary to keep an economy thriving. They artificially inflate and deflate the price of goods and services when the need should arise. This monetary policy is conducted through central banks in order to influence the economy. Without centralized banking, this tight grip on control is completely lost.
New Regulations for 2020
For many countries, striking a comfortable balance between loss and gain in bitcoin markets is a shaky slope. On one hand, governments can poise to profit from the acceptance of bitcoin, encouraging economic competitiveness and benefiting from fringe technologies and markets. One the other- too much freedom and people may begin to further lose faith in fiat.
Because of this burly juxtaposition, countries have come into 2020 with widely varying reactions to bitcoin and it’s proposed regulation. In countries like the US, federal regulation of the crypto coin has been fairly laid back, leaving individual states to choose how they handle bitcoin and only strictly outlining mandatory reporting and tax schemes. Requiring that bitcoin holdings be reported as capital gains to the IRS and that holdings be taxed as property.
Europe has taken to bitcoin and its associated technologies quite amorously, as the coin seems almost purpose-built to coincide with recent transparency laws concerning information and shared technology. Blockchain dovetails brilliantly into centralized banking schemes, to the point where the European Parliament is building its own decentralized ledger to monitor ongoing events. The European Union seems to spend more time and money on the adoption of bitcoin than on the condemnation of it, leaving individual countries to decide how best to regulate it which in their borders.
Asia, however, is a bit of a hornet’s nest when it comes to new bitcoin regulation. With reactions and regulation ranging from favorable and flourishing to utterly illegal with harsh consequences. Following a carefree adoption and intense trading and mining, Chinese government officials have come down hard of bitcoin this year after concerns over how much revenue was leaving the country via cryptocurrencies. Imposing harsh and sudden regulations that still have investors reeling.
What This Means for Bitcoin Investors
For investors, the safest way to trade bitcoin while still staying firmly on the ground of legality is by using a reliable bitcoin trading platform. These platforms, like Bitvavo, allow traders to only create wallets and transact bitcoin in accordance with the laws that govern their country. Such as integrated identification verification when setting up an account in the US, that automatically gives reporting agencies, like the IRS the knowledge that you indeed own bitcoin.
These platforms will also disallow any traders from creating an account who hail from countries in which bitcoin is now illegal. With each platform tailoring their services to remain in the legal framework of each country the site is accessed from. Meaning that they make it simple for you to stay in the good graces of your government while still enjoying the thrill of a trade well done.
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