Crucial Bitcoin Predictions for 2021
in Bitcoin (BTC)
In the world of cryptocurrency it’s easy to make BTC price predictions. YouTubers and day traders all over the internet are busy predicting what the future price of Bitcoin will be. There can be no doubt that we are in a bullish phase of the crypto market, and that 2021 looks good for the rise of Bitcoin and alt coins, but at the same time, investors should be careful and make sure they do some research before jumping onto the Bitcoin train. With that said, in this article we’ll give 6 Crucial Bitcoin predictions for 2021.
Bitcoin prediction 1: BTC price to pass $100,000
To many crypto Moon Bois, this may seem like a no-brainer. A 100,000 dollar future Bitcoin price requires just a 2x increase from where we are at the time of writing. But the bigger the market capitalization of Bitcoin gets (the amount of coins available multiplied by the price of the asset) the more incoming money it takes to significantly shift the price of BTC.
Still, if we were to use ‘moon math’ by taking the 2017 bull run as a model, Bitcoin came into January of that year at around 1000 dollars, and after a bullish 12 months, fetched a price of 13,000 dollars by Dec 31.
If a similar 13x increase were to happen this year, we’d be looking at a price of 377,702 dollars per Bitcoin from Jan to Dec... matching some of the more rose-tinted predictions made by Bitcoin bulls such as venture capitalist Tim Draper and Vinny Lingham, co-founder of the Civic digital identity platform. Investors should still proceed carefully however, because past performance is not always a reliable indicator of future Bitcoin price, and there can be many ups and downs on the way.
Bitcoin prediction 2: Smart contracts and DApps coming to the Bitcoin blockchain
Everybody knows that Bitcoin can be used for payments, and Ethereum for smart contracts, but did you know that Bitcoin has smart contract technology as well?
RSK is a third layer solution created to run smart contracts using the Bitcoin blockchain. As well as adding functionality by introducing smart contracts to the Bitcoin ecosystem, RSK (with its native token RIF) can scale to up to 100 transactions per second and provide a wide range of solutions to better the network, such as payments, storage, and domains.
And what better place to build your decentralized applications than the world’s most secure blockchain? Stacks (formerly Blockstack) is doing just that. DApps that are built on Stacks will truly have the best of both worlds, benefiting from smart contract capability, Bitcoin’s robust security and immutability, and also from rewards in Bitcoin for holders of the platform’s native STX token. STX was also the first token granted permission by the SEC (US Securities and Exchange Commission) to launch a token sale in the United States, which bodes well for the project’s chances of staying on the right side of legislators in the future.
Bitcoin prediction 3: Lightning Network to strike
With the prospect of new infrastructure being built on top of Bitcoin, it’s more important than ever that the network is capable of managing many transactions. The Lightning Network, which seeks to scale up the speed of the Bitcoin blockchain by routing payments over a peer-to-peer network that is similar to that of TOR, allows for instant pay settlement in BTC with 0 fees, and even micropayments of less than a cent, opening up a whole host of use cases (imagine paying to watch Netflix by the second). Whilst it has been slowly rolling out over the past few years, 2021 has seen a spike in the amount of nodes that have connected to the Lightning Network, as the more advanced Bitcoin users seek a way to escape rising fees. If this movement continues, 2021 could be the year that the Lightning Network finally goes mainstream, helping to launch Bitcoin into the stratosphere.
Bitcoin Prediction 4: More institutional money to enter Bitcoin
Elon Musk’s Tesla Inc. recently caused a storm by purchasing 1.5 billion dollars worth of Bitcoin. Rather than being a one-off event, this will likely be the catalyst that causes the floodgates to open, and more institutional money is expected to pour into crypto. The investment arm of banking multinational Morgan Stanley is apparently considering a similar investment, while German financial powerhouses Deutsche Bank have since December 2020 been working on a custodial crypto service for institutional clients. Reports are also circulating that Apple may be the next large company to make a big bet on Bitcoin.
Bitcoin Prediction 5: More celebrity endorsements of cryptocurrency
In the early days of the crypto community you were either an uber-nerd or a Unipol-wanted international drug smuggler, and nothing in between. The first few attention-hungry celebrities who have jumped onto the crypto bus also tend to be outsiders, such as Steven Seagal, who got into trouble from the SEC for promoting a scam coin, and Kanye West, who used the Bitcoin community as a way to try and become the President of the United States. The Senegalese-American R&B singer Akon, famous for hits such as ‘Smack That’, is not content with having built his own cryptocurrency, Akoin, and intends also to roll out a 6 billion dollar smart city in the Senegalese desert, which will be powered by the coin, and called Akon City (yes, really).
But 2021 may also be the year that somewhat-less-egomaniacal celebs begin endorsing crypto. The fame game is a constant race to stay relevant, and as the world begins to talk about Bitcoin, celebrities will want to be a part of the conversation too, creating even more buzz around crypto for people who wouldn’t otherwise have heard of it.
Bitcoin Prediction 6: Bitcoin ‘Halvening’ to continue pushing up price
As we reported in our recent article, the 5 best things that happened to Bitcoin in 2020, Bitcoin is currently experiencing a supply shock. The scheduled halving of the block reward happens every 210,000 blocks, and causes miners to stop selling their Bitcoin until it becomes more profitable to do so. This in turn causes a rising price, which increases consumer interest and demand. It has been suggested that the Chinese New Year (which fell on Feb 12) caused a small increase in BTC selling pressure, as miners (many of whom operate from China) gathered money for the traditional purpose of redistributing to their needy relatives. As of today however, miners will likely resume their HODLing. Add to that the emergence of new use cases for Bitcoin, and large-scale demand from institutions, and 2021 shapes up to be not just the Year of the Ox, but the Year of the Bull.
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