There was a time when seasoned investors and financial analysts did not wish to talk about cryptocurrencies like Bitcoins in the public domain. One major reason for them showing the cold shoulder to Bitcoin was its volatile nature.
Being a financial asset, which wanted itself to be taken seriously, Bitcoin and other crypto were too unstable in nature. This was a concern not only for investors, but also for merchants and businesses, who wanted to start accepting them.
This level of uncertainty was preventing Bitcoin from going mainstream. It was also earning a notorious reputation of being flimsy and non-serious. In this article, we are going to discuss why the year 2020 is going to see Bitcoin in an entirely new light.
We are going to talk about why 2020 is finally going to be the year, where Bitcoin discards its volatility and emerges as a stable, mature and credible financial asset.
5 Reasons why Bitcoin is going to shed its unstable nature in 2020: The List
1. Bitcoin has already bottomed out in March 2020-
Most experts and analysts who follow the crypto ecosystem point to the fact that Bitcoin has already bottomed out during March 2020. The crypto fell to $3K because of the Coronavirus pandemic scare, but bounced back to cross the $10K mark within a few months.
The strong ‘Bull Run’, has shown that investors are reposing faith in Bitcoins as a stable offering in the financial market at a time when most stocks and shares are dying. Most of them predict Bitcoin to climb steadily and reach the $100,000 mark by end 2021.
2. Mainstream Investors and Hedge Fund Managers are showing a lot of interest-
The more interest people start showing, the lesser is the chance of a financial asset showing volatility. Wall Street has in recent years woken up to the possibility of an alternative investment opportunity and is diversifying portfolios in cryptocurrencies.
In addition, many national banks all over the world (Germany) have passed official legislations to integrate Bitcoins into the formal banking structure of the country. You can store, buy or sell Bitcoins directly from established financial institutions in a country.
3. The Coronavirus crisis has exposed the vulnerability of traditional currencies-
Almost all the major national economies and their currencies are on a downward spiral. Economies and markets have taken a thrashing at the hands of the Coronavirus. This has made most people start conversations about Bitcoin and other crypto.
At a time when every major asset was losing value, Bitcoin was rallying hard to cross-important thresholds every day. If you had bought one Bitcoin in March 2020 for $3K, you could spend it for $10K in May 2020. Two months and more than 200% profit!
4. Major economies like India are opening up to Cryptocurrencies-
Even while having the world’s biggest lockdown in place, India was where the world’s attention was because of a law reversal. The Supreme Court of the country allowed Bitcoin and other crypto to become legal entities turning down an older law.
This opened the floodgates with Indians trading 10x the trading volumes in the country’s different crypto exchanges. This is sure to bring millions of new investors into Bitcoin and other crypto investing.
5. Bitcoin Halving and the Market Logic-
Every four years, the rewards given to miners for harvesting a block of Bitcoins goes down by 50%. This year (May 2020), it is going to come down from 12.5 to 6.25. Every time in history, when the halving has taken place, the prices of Bitcoin has shot up incrementally.
Bitcoin is a finite financial entity, unlike currencies, which can be printed repeatedly. There are only 21 million bitcoins ever. We have already reached the 18 million mark. If supply is low, the demand will always be high, and the asset, will continue to hold its value.
With Bitcoin controlling one of its major criticism, we are seeing newer people getting attracted to them. From merchants to investors, almost everyone is slowly starting to accept Bitcoins as a credible and stable financial asset. If you would like to know more investing in Bitcoins, you can register now.