Predicting the evolution of a cryptocurrency like Bitcoin is a little less than impossible. Just a few hours ago we saw how the currency created by Satoshi Nakamoto has gone from being worth 250 euros in 2015 to almost 8,000 euros in 2020. The current value of the currency stands at 7,844.04 Euros at this very moment, and the predictions are entirely positive if we resort to expert voices. The general trend even goes so far as to say that 2020 is the best year to invest not only in Bitcoin but in crypto monies in general. Here are the reasons
2019: Bitcoin Reawakens
The last year started with one of the worst scenes in the world of cryptocurrencies: Bitcoin started its value at 3,000 euros after a year where the value reached over 9,000 euros at its maximum.
Evolution of Bitcoin during 2019 The rise during the last quarter will mark the evolution of the currency in 2020.
From May of the same year, the currency begins to climb exponentially to reach 9,700 euros in August 2019. In November, this same value was close to 8,300 euros, and December ended with 6,500 euros of market capitalization.
The current value of the currency is 7,844.04 euros, which represents a capital increase of almost 1,500 compared to the beginning of the same month. Since then, the value of the currency has not stopped rising, and everything points to the fact that it will continue to do so until the end of 2020. It is the best start to the year since 2012 in purely percentage terms. The reasons for this are outlined below.
The Reasons why Bitcoin is Going Up in 2020
There are four reasons that Thomas Lee alludes to. The co-founder of the famous internet portal Fundstrat.com claims that Bitcoin could break the $20,000 barrier this year from mid-2020.
Countdown to Bitcoin-Halving
The main reason is based precisely on what is known as halving or Bitcoin halving. This is a reward system that assigns each cryptominer a Bitcoin reward for solving a blockchain, also known as a Blockchain.
This reward is re-established at the resolution of 210,000 blocks: each time this figure is reached, a reward value is re-established, which is usually half (currently the average is 12.5 BTC). The next Bitcoin halving will take place on May 23rd of this year. But what does this mean and how does it influence the final value of the virtual currency?
To summarize, we can conclude that Bitcoin production through block resolution will be less and less profitable, which has a positive impact on the coin’s sales value. It’s a fact: the value of Bitcoin is getting higher and higher. Since 2017, Bitcoin has not decreased in value below 2,800 Euros.
U.S. Presidential Election
The second reason why the value of Bitcoin could increase this 2020 is precisely because of the U.S. Presidential Election, which will take place next November. Since the announcement of Libra, the cryptocurrency launched by Facebook during 2019, there have been quite a few attacks by the Administration on cryptocurrencies as an asset for speculation.
In July 2019, Trump went so far as to say that the use of unregulated currencies could facilitate “illegal behavior” such as “drug trafficking and other illegal activities. The entry of progressive parties into the U.S. government could give Bitcoin a break from politics, and even encourage its use.
The entry of Andrew Yang into the Democratic Party is a good example of this. The candidate, head of the first Political Action Committee, accepts donations through Bitcoin. Special mention to the candidacy of John McAfee, creator of the popular antivirus, through the Libertarian Party.
The company’s CEO has shown his support for cryptocurrencies and digital currency operations on many occasions, even stating that he would eat his genitals if Bitcoin does not exceed one million dollars by 2020.
End of Chinese-American Trade War
At this very moment, the Trump administration is laying the groundwork for a truce, after one year, in the China-US trade war.
Depending on the concessions that each country makes in economic matters, the economic stability of two of the most important powers of today could bring economic stability within the cryptomoney market. Currently, both governments have declared themselves against crypto-currencies. The entry of a progressive candidate into the Casablanca could even turn the tide, although this is highly unlikely.
The Acceptance of Cryptocurrencies as a Virtual Currencies Among the General Public
It’s a fact that the value of cryptocurrencies follows a speculative trend. Generally speaking, the fluctuation of currencies depends on the number of sales and purchase operations carried out within a certain period: the higher the number of sales of a cryptocurrency, the lower the final value of the currency. The same applies to purchases: the more assets you buy, the more the currency has a final value.
The trading volume could be positively influenced by the arrival of Libra from Facebook. Standardizing trading between digital assets will encourage a significant number of investors to enter the cryptocurrency market, which will eventually legitimize Bitcoin and other assets as secure payment methods.