Why bitcoin will go up in 2021

The aftermath of the Covid outbreak has dented the economic outlook of virtually all nations. In response, many governments are increasing money supply, which in turn is debasing the traditional fiat currencies and triggering waves of inflation. Such bailouts will keep adding inflationary pressures and debts will continue to mount. Bond-yield manipulations and low borrowing rates cannot offset the burden. Under the circumstances, investors often turn to gold to store value.

However, cryptocurrencies are providing the same opportunities, with added benefits. Given renewed mobility restrictions and lockdowns in some nations, the ease with which digital currencies can be traded online is another positive, especially with Blockchain offering transparency and immutable records. Multi-faceted tailwinds.

In , retail constituted the primary demand side for cryptocurrencies. This year, along with increased retail interest and digital tokenisation, crypto-linked assets could cater to old-school investors and leading consortiums. Digital payments giant Paypal is now allowing Bitcoin and crypto transactions on its platform.

This begs the question: Is such valuation possible? Yes, according to Tyler Winklevoss, a celebrated American cryptocurrency and Bitcoin investor. Disrupting gold; reaching half a million mark.

[Spring edition] Bitcoin price predictions: up to $60, and beyond

According to Winklevoss , in time, Bitcoin could be the most viable replacement for bullion. Bitcoin - or any other cryptocurrency for that matter - mirrors the characteristics of gold: Portable, scarce and divisible, among other things. But Bitcoin offers more — it is not only scarce, but also fixed in volume. So I think if we have a correction in stocks then bitcoin is going to fall," Lee explained. His firm now sees 'very odd and speculative things' going on again - and warns large US stocks could see negative returns over the next 7 years.

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Bitcoin could quadruple in as the digital currency sees a rally similar to , Fundstrat's Tom Lee says. Matthew Fox. In an interview with CNBC on Wednesday, Lee said bitcoin could quadruple in as the crypto asset experiences a similar parabolic setup that occurred in Visit Business Insider's homepage for more stories. That's just a sliver of the announcements from Q4, which also included moves from a number of nations advancing digital currency or blockchain initiatives, including the U.

And in October, Coinbase launched a cryptocurrency debit card under the Visa V banner. Cryptocurrencies such as Bitcoin are drawing comparisons to gold, as they're a relatively fixed asset at a time when fiat money printing is growing out of control.

Bitcoin (BTC) price history from 2013 to March 29, 2021

BCA Research strategists see a similar advantage, saying that "in addition to benefitting from ample global liquidity and the cyclical US dollar bear market, Bitcoin will be an attractive hedge against rising inflation in the second half of the decade. Time will tell whether that's the case. Inflation fears after the financial crisis led to a spike in gold prices in , but when higher rates of inflation failed to materialize, investors exited the gold trade quickly. King says there's another interesting twist to the cryptocurrency narrative this time around. Obviously, all types of currencies are used for illegal activities.

That question seems to have disappeared. To me, that's an indicator of growing acceptance and understanding. It's possible cryptocurrency is following the playbook laid out in by union leader Nicholas Klein: "First they ignore you. Then they ridicule you. And then they attack you and want to burn you.

And then they build monuments to you. Bitcoin is attracting a growing number of analysts, and as a result, Bitcoin price targets are becoming more commonplace. Some have been downright bombastic.

Others are more restrained. Ross, without making a specific prediction, sees the cryptocurrency space further growing in value to the global financial system:. Some more FOMO fear of missing out from retail investors, and what you'll also see is that at some point you'll see a massive RIA announce that they have a meaningful amount of their business in BTC. If you look at the previous patterns of prices versus adoption, it tends to consolidate and then have a multiple move higher.

Bitcoin staged an epic rally in February. Here's a look back at its record-setting month.

This is starting to look pretty decisively higher. This combination of increased investment interest in Bitcoin as an investment, as well as increased adaptation of Bitcoin, cryptocurrency and blockchain technologies by companies, points to a perfect storm for prices. One of the biggest risks to any bullish calls, sky-high or not, is the potential for regulatory agencies to suddenly erect a brick wall. While fewer people might be asking about using Bitcoin to buy illicit substances anymore, regulators are again taking a close look at digital currencies, this time with a focus on how these coins act as securities.

Altcoins are any digital coin that's an alternative to Bitcoin. The issue at question is whether its digital currency is really a digital currency, or if it's an unregistered securities offering. The news was enough to cut Ripple prices by more than half in just a few days, and several cryptocurrency exchanges stopped trading in the altcoin until the issue is resolved.

Even then, some Bitcoin bulls see a silver lining. Ripple has a different mechanism relative to Bitcoin's decentralized model, so some believe a crackdown on altcoins points to Bitcoin as the first and maybe only stop for people interested in cryptocurrencies.

But no investor should spend a cent without brushing up on what is still a very nascent technology and asset class.