Bitcoin Predictions for 2021
January 20, 2021 (Investorideas.com Newswire) The gold, stock, and Bitcoin markets dropped by around 30% when the pandemic began. Bitcoin, unlike the other two, somehow managed to return to its annual maximum very quickly. Bitcoin outperformed other markets’ growth within a couple of months.
2020 was a time of panic for most investors. People started selling out most of their assets, including cryptocurrencies like Bitcoin. This also shows that many investors already had Bitcoin in their investment portfolios by that time and were using it along with other traditional investment opportunities. We shall now look at how the year 2021 can prove to be for Bitcoin and other cryptocurrencies, including where the price could go, why more people want to invest and how to get started.
Bitcoin could be acknowledged as a payment method internationally.
PayPal, the biggest debit payment system, has entered the crypto world. PayPal is going to allow its users to buy, sell and hold digital currencies like Bitcoin in their online wallets. It was also stated in the press release that in 2021, PayPal users should be able to use their cryptocurrencies in order to pay the merchants or businesses that accept PayPal.
It is worth noting that PayPal provides their platform to more than 300 million merchants and consumers worldwide. This will allow users to pay with Bitcoin without any incremental fees. Bitcoin will join and thrive in the global economy with the help of PayPal. To deal with crypto market's high volatility, many users will immediately want to convert their crypto to fiat money. Keeping in mind PayPal's huge amount of users, it wouldn't be wrong to say that mass adoption of cryptocurrencies is finally here.
Bitcoin could serve as a hedge against inflation and might take up the gold's market share.
Many people already refer to Bitcoin as the future of money. However, a lot of institutional investors think that Bitcoin is a digital alternative to gold. Gold has been a traditional hedge asset for very long now. This can also be seen by a huge increase in investments in the Bitcoin market. On the other hand, investments in gold have remained almost unchanged.
A lot of people have entered the crypto market as a trader or an investor. Bitcoin's market provides us with these opportunities to trade and invest as well. Profitable trading can be made even easier with the help of an automated trading platform, like the Bitcoin Prime app. Such trading platforms use a trading robot that can automatically execute trades for the user and capitalize on market movements. These people have entered the crypto world to make money.
We also now see a massive inflow into crypto and out of gold. According to JPMorgan Chase & Co's prediction, this trend will most likely continue. They are of the opinion that the rise of the cryptocurrency or the Bitcoin market will come at the expense of gold. It also makes sense, because of the fact that Bitcoin is a more technologically advanced inflation hedge. Fiat currencies will most likely continue to suffer from the pandemic's consequences.
Central banks could start issuing their own digital currencies.
Most of us have heard the phrase "if you can't beat them, join them". That is exactly what the governments might try and do. In 2021, central banks around the world could issue digital tokens or a cryptocurrency of their own to enter the speedy development of crypto assets. China's digital yuan is already leading this parade.
Worldwide adoption of digital tokens like China's yuan, will allow a country's government to keep track of money flows across the economy. It can also be used to prevent illegal activities like money laundering. However, the most important benefit of China's digital yuan is easier internationalization of the currency. In simple words, national digital currencies will allow instant payments anywhere in the world.
These are some of the trends that we can expect and should be ready for. 2020 had a huge impact on the crypto world, helping it thrive in times of uncertainty. Experts and investors think that 2021 might consolidate these results.
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