Making predictions about Bitcoin is not an easy task. Under any reason should you consider these forecasts as an investment recommendation.
However, there have been several situations that have allowed the traders and investor community to speculate in the long term, especially now, close to the halving that will occur in May 2020.
We have investigated and studied the most important cases related to Bitcoin to give you a list of predictions that could take place between 2020-2025.
The cryptocurrency “Libra” from Facebook is cancelled.
Since its presentation in June 2019, was created much speculation about the impact of the “Libra” cryptocurrency on Bitcoin.
However, the cryptocurrency developed by Facebook has had many problems in its development.
Mainly, the US government is unlikely to use its monetary policy to support the development of Libra, as this cryptocurrency is within the private sector.
This is the problem of developing centralized cryptocurrencies.
Most likely, Libra, in the future, could be a payment processor such as PayPal or Stripe and does not present an “access ramp to Bitcoin,” as many people thought.
Therefore, it is possible that the Facebook project does not affect the price of Bitcoin.
Increased admission of Bitcoin during 2020
Although the monetary transactions of Bitcoin during the year 2019 were low(less than one billion dollars) compared to conventional payment processors(Visa, MasterCard), a project is being developed which can increase the use of Bitcoin drastically.
Starbucks is promoting and financing a cryptocurrency adoption program, which will be carried out using the Bakkt application.
The goal is that by July 2020 all 30,000 Starbucks stores can accept Bitcoin directly through this application. Also, Bakkt has the support of Microsoft.
Finally, it is worth mentioning that during 2019 many retail chains such as Subway and KFC began accepting payment in Bitcoin.
It is believed that this new project will be able to drastically increase the use of Bitcoin, and, in the future, start using it as a daily currency.
The Third Bitcoin Halving
During the second halving in 2016, the price of the queen cryptocurrency was propelled. On May 20, 2020, we will witness the third Bitcoin halving.
In the first halving, we traveled from $11 to $1,100. In the second, the price rose from $600-700 to $20,000.
Some people think that the same pattern will follow and that Bitcoin will multiply its x10 value, again, resulting in $ 90,000-100,000.
Jesse Powell, CEO of Kraken, has a very high expectation for this third halving, aiming at 100K or a million dollars.
Anthony “Pomp” Pompliano, the co-founder of Morgan Creek Digital Assets, also believes that Bitcoin could reach $100,000 by 2021.
“Supply-Demand economics remain valid,” said Pomp. “They are a great way to determine the market price. So, if the demand for a fixed-supply asset increases, we continue to see price appreciation.”
Red Lightning Network
This project was presented in 2018, which is a payment protocol that implements improvements to conventional Bitcoin transactions.
“Lightning-fast blockchain payments without worrying about block confirmation times. Security is enforced by blockchain smart-contracts without creating an on-blockchain transaction for individual payments. Payment speed measured in milliseconds to seconds.”
Many speculators have their bets on this “Thunder Network” as it can take transactions to an even more complex level than bank transactions.
It is believed that with the implementation of this technology many altcoins will also be eliminated. However, it is a project that, if it works, will take place in 2021-2023.
The SEC will approve a Bitcoin ETF
It is rare that the US government has put complications to the Facebook currency, but has agreed to approve a Bitcoin ETF.
They are investment funds that have the particularity that they are publicly traded- like an action- being able to buy and sell during a session at the price existing at any time, without having to wait for the closing of the market to know the liquidated value to which the subscription is reimbursed.
ETFs are characterized because the main objective of their investment policy is to reproduce a specific stock or fixed income index, and their shares are admitted to trading on stock exchanges.
Approval is likely to lead to others and this law will open flood doors for institutional investment in the future, and although it may not take long, it is unlikely that it will be in 2020.
With fact that people can diversify the risks when investing in this cryptocurrency, you can incentivize people and rely more on it and normalize its use.
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