The following are bitcoin predictions found from various sources. These are merely predictions (not guaranteed), and we are not related to anyone in the news or article.
Bitcoin News, dated 19 Aug 2020.
The following are extracted from the news:
A new, comprehensive analysis has predicted the price of bitcoin to reach almost $20K this year and will keep rising to almost $400K by 2030. The researchers have also predicted the future prices of several other major cryptocurrencies, including bitcoin cash, ethereum, and litecoin.
After examining “all the variables and addressable markets,” the CRR researchers arrived at future price estimates for BTC, ETH, LTC, BCH, and XLM. They expect the price of bitcoin to rise to $19,044 in 2020, $341,000 in 2025, and $397,727 in 2030. Ethereum’s price is expected to reach $331, $3,549, and $3,644 respectively while bitcoin cash’s price should climb to $414, $6,690, and $13,016 during the same time periods.
On the linked page, there are many predictions from many people with their backgrounds include. At the bottom of the page is a track record of who predicted correctly and incorrectly.
How accurate are these predictions, are they purely a guessing game or is there a reason for the bullish sentiment?
In this old article dated end Dec 2019, an skeptic suddenly became bullish and predicted that the bitcoin will rise. Back then the price of bitcoin was $7000+.
But now the price (as of writing this on 19 Aug 2020) is $16,000+.
“By 2025, we’re likely to see $250,000 bitcoin, and then some time out, 2030, we could see $400,000 or $500,000 bitcoin as it reaches gold equivalence.”
Bitcoin and other cryptocurrencies have been identified as speculative bubbles by several laureates of the Nobel Memorial Prize in Economic Sciences, central bankers, and investors.
Not everyone feels bullish about the bitcoin currency. If you read the history of bitcoin, the only constant appears to be the huge and unexpected fluctuation or dips from time to time.
We guess that someone jumped in, the price goes up. So when the price is up and right, others will want to sell off to cash-in the profit. Some may use sell on news as the excuse to dump.
Since bitcoin is not a tangible asset, it why is there sudden spike in pricing? There more useful reading about the Economics of Bitcoin.
According to Wiki,
Bitcoin is pseudonymous rather than anonymous in that the cryptocurrency within a wallet is not tied to people, but rather to one or more specific keys (or “addresses”). Thereby, bitcoin owners are not identifiable, but all transactions are publicly available in the blockchain.
When we see the word “anonymous” and “not identifiable”, then we wondered if previous spikes could be caused by illegal activities such as this news using bitcoin for money laundering.
In another another section of Wiki, we found this major concern:
The legal concern of an unregulated global economy
As the popularity of and demand for online currencies has increased since the inception of bitcoin in 2009, so have concerns that such an unregulated person to person global economy that cryptocurrencies offer may become a threat to society. Concerns abound that altcoins may become tools for anonymous web criminals.
Cryptocurrency networks display a lack of regulation that has been criticized as enabling criminals who seek to evade taxes and launder money.
Transactions that occur through the use and exchange of these altcoins are independent from formal banking systems, and therefore can make tax evasion simpler for individuals. Since charting taxable income is based upon what a recipient reports to the revenue service, it becomes extremely difficult to account for transactions made using existing cryptocurrencies, a mode of exchange that is complex and difficult to track.
Systems of anonymity that most cryptocurrencies offer can also serve as a simpler means to launder money. Rather than laundering money through an intricate net of financial actors and offshore bank accounts, laundering money through altcoins can be achieved through anonymous transactions.
The reason why we are asking is to find out what caused the previous spike, so that we will know if it will happen again in future. Could the spike in recent years be caused by money laundering activities? And if this was the case, would tighter control and government regulations cause affect the future prices?
Today, buying, trading and use bitcoin is legalized in some countries but banned in others, probably due to difficulty to regulate the currency. Investopia has a list of countries dated in May 2019, while CryptoNews have more detailed list in 2020. The countries appear to split into 4 groups as follows:
- Neutral (have not decided)
As of January 2020, the most Bitcoin-friendly countries where BTC is legal are:
- The Netherlands
- The United Kingdom
- Hong Kong
Over here, we are mainly concerned about whether it is worth the risk to get into cryptocurrency. As the saying goes, higher the risk, the better the potential – to go either direction significantly.