Bitcoin is once again getting a lot of attention. That is no coincidence, because the crypto coin breaks one record after another. But will bitcoin be able to sustain that upward movement in 2021? An expert makes some predictions.
At the time of this writing, 1 bitcoin is worth nearly $ 24,000. There does not seem to be an end to the rise of the crypto currency. Critics say a bubble is in the making, while believers believe the crypto coin could be worth $ 50,000 next year.
According to James Ledbetter, an author who specializes in crypto coins, it is difficult to predict which direction the currency will take in 2021. Nevertheless, he is venturing into a prediction about the future of the crypto currency.
The currency will remain highly volatile
According to Ledbetter, there is no doubt that the currency will also make a lot of leaps and bounds in 2021. The crypto coin is completely separate from a central policy. For example, a decision by the European Central Bank or Federal Reserve will have no direct impact on the price of the cryptocurrency. The price of the crypto currency is therefore very unpredictable.
Ledbetter emphasizes that an investment in crypto coins is not for investors looking for a safe alternative to their savings.
Ledbetter expects that there will be broader support for bitcoin in 2021. After all, more and more companies seem to have an eye for the crypto currency. For example, Visa will launch a credit card next year with which you can save bitcoins. Crypto in Netherlands is popular.
Several companies have already preceded credit card companies. For example, American PayPal users have recently been able to buy and sell bitcoins.
The expert expects that the banks will also show interest in the crypto currency. He assumes that at least one major US or European bank will announce next year that it will offer a platform on which crypto coins can be traded or stored.
Competition from big tech
Digital banking has been on the rise for several years now. Fintechs are taking the lead in this. Several fintechs have also set foot in our country. Consider, for example, the credit cards from Revolut and N26. Fintechs generally offer competitive rates for transactions that are associated with a hefty price tag at traditional banks. Low exchange rates, for example, are one of the strengths of the Revolut and N26 credit cards.
Bitcoin therefore fits perfectly within the strategy of various fintechs. Thanks to crypto coins it is much easier and cheaper to pay internationally. Even Facebook sees a profit in a crypto coin. The social media giant is currently working on its own digital currency, called Diem. Previously, that coin was called Libra. “It is not a pure crypto currency, but it can still take a share of the bitcoin market,” said Ledbetter.
Competition from central banks
Central banks can also put bitcoin to the test. According to a report by the Bank for International Settlements, 80 percent of central banks are working on a digital currency, including the European Central Bank (ECB). Cryptocurrency in Portugal is popular.
China has even gone a step further and has started a pilot project with crypto coins in several major cities.
Regulation of crypto coins
Ledbetter does not rule out that certain countries, including the United States, would regulate crypto coins.
“After all, many investors forget that crypto coins are mainly popular with criminals and fraudsters. Such malpractices have not escaped the legislative powers, “it sounds.