What's the price of Bitcoin going to be in 2020? Experts weigh in
Cryptocurrency’s volatility is exactly what makes it appealing to most traders because of investors and growing portfolios. According to top crypto exchanges, Bitcoin, in particular, has grabbed the attention of many investors with a growth rate of 115% this year alone. However, its long-term growth often comes as a concern because of its volatility.
Experts have predicted a fall in the short-term future. However, an increase is expected in the long term. John McAfee, a cybersecurity expert who has also become an authority in cryptocurrency trade, predicts that Bitcoin will see exponential growth in 2019 and 2020.
Based on its patterns, it is quite difficult to pinpoint the reasons for its rise and fall, particularly its recent demise. Despite its drop, most crypto traders remain optimistic and its very volatility opens up avenues for extreme growth within short periods of time.
A Brief History of Bitcoin
Bitcoin is the world’s first digital currency invented by a mysterious character known as Satoshi Nakamoto. Its rise was unexpected, and its strictly digital feature and security systems like blockchain made it attractive to investors.
Like any currency, Bitcoin can be used for purchases and payments; the difference with Bitcoin is that it is peer-to-peer currency meaning that banks are not in the equation. Since its establishment in 2009, it has since grown to allow online purchases and has ATMs to convert Bitcoin into your local currency.
Unlike normal currency, which is often unlimited in production, there can only be 21 million bitcoins created. Bitcoin works on a decentralized system known as the blockchain where all transactions are verified.
The blockchain networks operate from a network of nodes, which creates a mathematical equation of all transactions that take place. Bitcoin is operated by different people who are rewarded for calculating the equations and this is known as mining.
The decentralized nature of Bitcoin prevents hacking and keeps its owner anonymous. Bitcoin’s most notable period was the 2017 Bitcoin Rush, where it grew from being valued at a few hundred dollars to a staggering $19,498.63. This created a lot of hype around the rush and a crash followed with prices dropping down to less than $10,000.
That was not the first crash, though. In 2011, the cryptocurrency crashed by 93% within a period of 5 months. The question always remains: when will Bitcoin crash? Some of the factors that have to lead to crashes are questions around the regulation of Bitcoin.
Investors became worried about new laws and regulations which could affect their investments. Since most governments see the anonymity as a problem, this posed a risk to investors. This made the investors sell their stock.
How the Future Looks for Bitcoin
The future of any currency is usually determined by national circumstances such as the socio-political climate. Cryptocurrency operates on a different playing field because it is global and it is limited in its distribution. This might scare certain governments as many citizens might cease to rely on the local economy.
The mystery of Bitcoin’s future means that experts are analyzing it immensely to measure whether it will rise or fall. With new regulations being demanded by countries like South Korea, Japan, China, the United States, and France, it is hard to determine Bitcoin’s real future. However, it is important to note that putting regulations into place can take years.
This creates a lot of room for Bitcoin continues to grow. The answer to whether Bitcoin will rise or fall is not determined by one single factor and this makes its growth unpredictable. Bitcoin operates in different markets for goods and services. On some platforms, you can even pay for professional essay writing services and major retailers like Starbucks, Nike and Target.
Its high level of accessibility makes it accessible to traders at any level. However, Bitcoin has redefined technology in immense years as a new form of currency, blockchain is the future of online security, and this factor may influence growth in the cryptocurrency.
Most predictions are simply guessed with volatility at the core of the currency, and this is exhilarating for any trader. Cryptocurrency may seem like a craze or another economic bubble that will soon pop (aka crash) and people who purchased the currency at high rates may lose a lot of money.
Thus, it is advisable to invest in Bitcoin from the point of affordability without putting a lot of money (you don’t have) at risk. However, crypto experts like John McAfee are highly optimistic about Bitcoin’s future, predicting the growth by up to 1000% by 2020.
Interesting Opinions from Experts
Given its complicated nature, many experts have chipped in to predict what they feel is next for Bitcoin. From a different perspective, the narrative becomes more fascinating and the mystery more intriguing. Some experts are optimistic, while some predict the currency falling to $0 in value, a far cry from McAfee’s prediction.
Joe Davis: As the head of Vanguard’s investment strategy group, Davis’s opinion is that Bitcoin’s price will decrease to zero. He believes that Bitcoin is a poor store of value and he would rather see people investing in more tangible and stable assets.
Saxo Bank: This institution has also weighed in on the possibilities for Bitcoin, stating that they foresee Bitcoin rises above $60 000 in 2019. Bitcoin will keep rising during most of 2019, but Russia and China will together be doctoring a crash.
Kenneth Rogoff: Rogoff is a Harvard University Professor with a background in the financial industry – he believes that the cryptocurrency will be worth a fraction of it is currently valued. He believes that the Bitcoin value chain is very little due to the fact it functions as a mechanism for money laundering and tax evasion.
Thomas Lee: Thomas Lee is the founder of a research company known as FundStart Global. In a CNBC interview, he said that he feels Bitcoin could rise to $25 000 due to the success of Bitcoin Mining and its demand. He feels that this value will be reached by the end of 2019.
Tim Draper: Tim Draper is the founder of Draper Associates and DFJ; Draper is also considered a prominent figure in internet marketing. He reckons that price drops are the ideal time to get into cryptocurrency markets. He predicts that Bitcoin will be valued at $250 000 by the end of 2022.
Good News and Bad News
Expert writers in the cryptocurrency have been delving into this topic over the past few months and the different opinions only make Bitcoin more fascinating. Very few predictions are similar, or the same, and this is natural and completely normal for a currency as volatile as Bitcoin.
With guesses ranging from zero to one million, it is important to bear in mind that an investment is a personal choice and relying on your instincts might be their best option. If you are well-versed in playing around the crypto market, then this is already an adventure for you, but if you are new, it all becomes confusing along the way.
Often experts advise keeping a close eye on the price and investing when it’s at its lowest. As a beginner, you can also start off with smaller cryptocurrencies to get the hang of crypto markets, learn regulations and understand how you can make profits. An investment in Bitcoin can go in any direction.
The amount of progress it has made in a short space of time has fascinated many financial experts. If you have been observing Bitcoin for the past three years, you will notice that its volatility has dramatically fluctuated.
Many people believe that Bitcoin operates like the lottery with a mentality of investing a little bit and gaining large sums of cash in the future. However, this outlook is flawed because Bitcoin has grown since its inception and slowly matured with more stringent regulations.
The cryptocurrency market is also filled scammers who claim to be able to invest for you. If you choose to go the route of using a professional, you need to ensure that the relevant institutions accredit them.
The bottom line
It is always best to learn as much as you can before making any investment or making a decision to buy certain stocks. There are a lot of books and articles available on Bitcoin, and if you are looking into long term gains in trading, then be sure to expand on your knowledge.
Furthermore, when we speak about investing or trading, nowadays doing it manually is not the only option. If you have difficulties at the beginning, there are trading computer programs known as “bots” that could help you. They automatically identify and execute a trade. Bitcoin Revolution Platform, 3commas, Cryptotrader are just some of them you could use.
With varying case studies and opinions, it is safe to conclude that Bitcoin could go either way in terms of value. Thus, it is not wise to keep your eggs in one basket. Rather than a single avenue of investment, it is wise to consider an investment in Bitcoin as diversifying one’s portfolio.
Risk is at the core of any investment. With its high-risk element, Bitcoin is likely to rise because humans love the sense of thrill and an adventure, especially if it’s related to money. Cryptocurrencies are growing in popularity and gaining recognition and legitimacy.
Sign in or become a BestTechie member to join the conversation.
Just enter your email below to get a log in link.