Bitcoin’s future is being hotly debated by investment analysts around the country. Economists and commentators in the financial realm have stark opinions about this cryptocurrency and whether it’s future holds bright skies or dark horizons.
There are definite benefits that Bitcoin offers. Since all transactions made with the currency are anonymous, it provides levels of security and democracy to online transactions that are not possible with standard currency transactions. In that context, the cryptocurrency can help provide people with enhanced financial freedom as there is a significant reduction in interference with leveraging one’s wealth and applying that wealth in the global digital marketplace.
Despite the Bitcoin benefits and the media/investor excitement, Bitcoin experienced a significant value decline in December one year ago, resulting in a frenzy among the crypto investing community. Nevertheless, even though Bitcoin suffered a significant and sudden downturn, many investors are looking towards 2020 as a big and beautiful year for Bitcoin. There are price predictions that Bitcoin’s value could hit highs like never before. There are also predictions on the state of the mining rewards.
Let’s review four predictions for where Bitcoin will stand in 2020.
One Million Dollars?
John McAfee, probably most known for his computer anti-virus software of the same name, has become quite the predictor in the cryptocurrency investing realms. Two years ago, in 2017, he predicted that by 2020 Bitcoin would reach values as high as $500,000. His prediction was based on an analysis methodology that he developed. Later that year, he upped that prediction to one million dollars! Up until now, McAfee’s predictions have come to fruition so time will tell if this ambitious one will as well.
Mining Drop
Over the lifespan of Bitcoin, the reward of mining has dropped by half on several occasions. Osato Avan-Nomayo, a well known Bitcoin analyst, thinks that it is going to happen again. This drop would half the current reward of 12.5 BTC again to 6.25 BTC by 2020. Looking at the records of Bitcoin’s performance shows that whenever this drop happened; the market value of the cryptocurrency spiked the next year.
Less-Ambitious Values
Two other analysts have given their takes on where the Bitcoin values will rise to in the next two years. Tom Lee, the co-founder of a crypto research company called Fundstrat Global Advisors, believes that around 2020, it’s value will rise to about $91,000. He uses the history of Bitcoin’s valuation and chart analysis to come to this conclusion. Lastly, Fran Strajner, the CEO of Brave new Coin, thinks that the value of Bitcoin will rise to around $200,000. This prediction is based on the notion of usage demand – the more people who buy and use Bitcoin, the more it will cost.
Where Bitcoin will end up is clearly anybody’s guess. As mentioned above, well known analysts and technology figures have widely differing opinions. One thing for certain is that Bitcoin will remain in the headlines and the volatility will continue.