Bitcoin has been on quite the journey since its inception in 2013. Nobody had really heard of the technology in the early days, and fewer still understood how cryptocurrency could have any real world application. Now more established as a technology, but still fluctuating heavily on price, how will Bitcoin fare in the upcoming year? What will be Bitcoin’s price in 2020?Anybody who tells you that they know for sure how much Bitcoin will be worth at a given time, is either lying to you or deluding themselves. Nobody truly understands the market yet, not even expert market traders.
If you’re looking for a more solid and slightly more predictable investment, then consider other options.
The Story So Far…
What we can do right now is examine past trends. By December 2017, Bitcoin was hitting headlines for peaking at its all-time high of $20,000. It was a time when everyone jumped on board to plough in their extra income (or worryingly, their life savings) in the hope of making a quick return. I did the same.
What followed was an inevitable market correction. Much of Bitcoin’s journey in 2018 involved rapid decrease in value and loss of faith in the market. Those who put money in were quick to pull it back out again as the market took a tumble. The price reached its low point for this year of around $3,500 in December.
This year has been a more optimistic one, both in terms of the infrastructure and adoption of the technology, and in the steady increase in price. Almost unnoticed, Bitcoin has been creeping back up since mid-March, reached highs of nearly $12,000 in June, and now fluctuates regularly between $8,000 and $11,000. Still a long way off the $20,000 peak, but the price has trebled during the year so far.
As stated, it’s impossible to know for sure whether this generally positive trend will continue into 2020. Some have it that Bitcoin hasn’t even truly started its next bull run yet, while so-called expert predictions range from zero to a million. Let’s delve a bit deeper into a few possible scenarios:
Scenario 1 – Steady Gains to $20,000+
This scenario sees Bitcoin’s price in 2020 to be far higher than it is today, with a steady rise throughout 2020, fluctuating up and down, but ultimately continuing on a positive trend. Experts in this school of thought believe that Bitcoin is not going anywhere. Adoption of cryptocurrency by retailers, along with the strength of the underlying blockchain technology, will ensure the long term impact of BTC.
Since Bitcoin’s price first boomed up to nearly $20k, there have been improvements in infrastructure and case uses for crypto. In 2020, we could see Bitcoin used more in countries where the national currency is unstable, as well as for cross-border transactions. Everyday online merchant use and mobile smartphone wallets could also help to bring up the value.
This scenario compares well with reasonable stock market investments. In the casino gaming stocks list, companies such as Wynn Resorts typically bounce back after corrections and steadily grow in value in the months to follow. Meanwhile, Amazon stocks have plateaued recently, so in this scenario Bitcoin could even be the better investment.
With much more going on in terms of real-world applications and accessibility, Bitcoin could reach $20,000, this time with more support.
Scenario 2 – To The Moon!
It’s a phrase that you’re all bored of hearing, but I’m going to use it anyway. In this scenario, Bitcoin goes to the moon!
With increasing demand for Bitcoin coming from global awareness and enhanced accessibility of the technology as a currency, we could also see a decreased supply. In fact, this supply drop is almost inevitable due to the Bitcoin halving that will take place in May 2020.
The halving means BTC is harder to mine (miners receive 6.25 BTC per block, down from 12.5). As Bitcoin reaches its supply cap, its rarity effectively increases and demand could become much greater than supply. Halvings have historically lead to an 18 month or so bull run, and this one could be the biggest yet.
There’s also the potential launch of institutional investment markets like Bitcoin ETFs, as well as the recent launch of the Bakkt cryptocurrency futures platform. If the ETFs are allowed to go ahead, it could bring trillions of dollars more flooding into the crypto markets.
According to some experts, if this scenario occurs and all of the factors align for Bitcoin, the value could rise to as high as $50,000 or more, with higher end estimates closer to $100,000. This could be over-optimistic, but not impossible. John McAfee still stands by his million dollar prediction for 2020, but we can assume he is being a little bit dramatic.
Scenario 3 – Similar Price/Negative Trends
There’s no telling what is round the corner for Bitcoin. On the one hand, all of the forces could align and the market boom. On the other hand, stricter regulation could knock buyer confidence. Bitcoin traders should always conduct their own analysis and set their own limits.
If the aforementioned Bitcoin ETFs are not approved, this could lead to trouble. The SEC is currently dealing with several major applications for ETFs. They are expected to rule on these by the end of 2020. If the ruling goes against Bitcoin, the price could fall.
The price could also continue pretty much as it has throughout 2019, or remain relatively stable at the $6 – $12k mark throughout the year. After all, 2020 may not be the decisive year for Bitcoin, and business could continue as usual.
Not many so-called experts predict negative trends, as most are involved with the industry, but there are those who are still sceptical about the lifespan and viability of Bitcoin as a financial product or asset. Economist Joe Davis and Bill Gates both believe the price is destined for zero.
All of these scenarios of Bitcoin’s price in 2020 are possible, as well as many other variations. It’s impossible to truly know the value of Bitcoin throughout 2020. This article can help you to think about the different possible scenarios. It is not meant as investment advice.
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