2020 was the good year for the cryptocurrencies. Particularly, it was the best year for Bitcoin. The price of the Bitcoin started at $7,000 and it was ended at $30,000. It means that there was an increase of almost 400% in the price of the Bitcoin. Now, 2021 has started. Most of the people are trying to know that either the market will maintain momentum or not. Its reason is that there was a dramatic decline in the price of the Bitcoin during the years 2017-18. At the beginning of 2017, its price was $20,000 but at the end of 2018, its price was $4,000. That’s why people have lots of concerns before investing. Here, we will discuss the best Bitcoin predictions for 2021.
- Bitcoin will add zeros
As we know that Mike McGlone is the best analyst in Bloomberg Intelligence. He has given his predictions about the Bitcoin’s prospects. According to him, Bitcoin will reach up to $50,000 in the year 2021. Moreover, its market will also cover a milestone of $1 trillion in 2021. Based on his predictions, there are also some chances of the market crash. In the support of his prediction, he has argued that $10,000 is the critical support for the Bitcoin now. That’s why he is expecting a remarkable achievement in the cryptocurrency.
- It will get taxing
Nowadays, if you own Bitcoin, you will not have to face tax affairs. It is a prediction that if you own Bitcoins and you are living in the US or UK, you will have to face the tax affairs. Its reason is that Internal Revenue Service and Customs are starting a setup against those people who have failed to declare their crypto holdings. If you buy BTC, you may not need to pay tax. Anyhow, if you will sell them, you will have to pay the tax. It means that you will have to pay because you will be liable for the capital gains.
- More mainstream acceptance
The use of the Bitcoin is a chicken-egg problem in the real life. Its reason is that only a few people use or accept it. Anyhow, in 2020, we have seen a striking evaluation in the use and acceptance of the Bitcoin. Most of the prominent tech companies have invested in the BTC. PayPal has also allowed its users to sell and buy BTC. It means that they have provided a stamp of approval to the BTC. In 2021, we will see an extension in the acceptance of the Bitcoin. There is a possibility that the US and European banks will allow their clients to hold digital assets.
- Competition from central banks
Bank for International Settlement has conducted a survey. The results of their survey are showing that almost 80% of banks are working on creating their digital currencies. For this reason, China has made experiments of the digital currencies. They have held a lottery. The winners of this lottery have got some digital money from the digital wallet. They have provided a chance to the winners to transfer this money in their bank accounts. They have also asked them that if they don’t spend this money in a few days, this money will disappear from their wallets. This thing is showing that China has started to increase the demand for digital Yuan. As a result, we can expect that there will be independent cryptocurrencies along with bitcoin. In 2021, lots of other countries will also make the same experiments.
- Stock-to-flow forecast
Some experts have also provided Plan B regarding the BTC market. They have desired that there should be the condition of stock-to-flow forecast in the BTC market. They have provided this plan because they have believed that the BTC market is on the track. It will easily cross $100,000 till December of 2021. According to them, if it will continue its flow at the same rate, it will easily cross the six figures till December.
- BTC will double again
If you have some knowledge about the digital market, you will be aware of the name of Galaxy Digital’s Mike Novogratz. He had made lots of inaccurate predictions about the BTC price. After falling into the trap of the inaccurate predictions about BTC price, they have provided an accurate prediction about its price. According to him, if the BTC market will fail to hit $20,000, he will hang his spurs. As we know that his prediction has proved true in 2020. After giving this successful prediction about BTC price, he has also given his prediction for 2021. According to him, the BTC price will hit $65,000 in 2021.
- BTC will carry on threatening gold
In 2020, a debate had started about the market share of the Bitcoin and gold. Some people had provided arguments that BTC will steal market share from the gold. According to analysts, the days of the precious metal stores have gone. Its reason is that most of the millionaires are giving preference to BTC to store their money. For this reason, Cameron and Tyler have also provided arguments in the favor of the BTC. They have given predictions that BTC will hit $50,000 in 2021. They have also made predictions that if millionaires will not hit this figure, they will achieve this milestone one day.
- A big pullback is also possible
No doubt, most of the people are giving predictions that its value will increase in 2021. Anyhow, along with these good predictions about the value of the BTC, there are also some bad predictions about its value. For this reason, Finder.com has conducted a survey. Lots of people have taken part in this survey. Almost 52% of the respondents have warned the people that they should not invest in the BTC. Its reason is that it will lose half of the value in a short period. They have quoted the happenings of these facts from 2011, 2013 and 2017. In these years, its value was fallen up to half.
Robert Fawl is a professional Content writer & Content Marketer. Based in London, Robert is an author and blogger with experience in encounter composing on various topics including but not limited to Essay Writing, Dissertation Writing, Assignment Writing etc.