At the end of 2020, bitcoin showed tangible growth. The cryptocurrency more than tripled in just a couple of months and reached a historic high. What will happen to bitcoin in 2021? In this article, I give the most likely forecast.
Bitcoin and cryptocurrencies have been on everyone's radar in recent years. Because:
Many people have made huge profits on them;
Even more people invested at the wrong time and incurred losses;
Computer parts have skyrocketed in price because of cryptocurrencies. And especially video cards.
At the end of last year bitcoins (and many other cryptocurrencies) began to rise sharply. So, people have a reasonable question: is it worth investing now? Is it too late? To answer this question, at first I will briefly explain what bitcoin is (for those who already know - skip a few paragraphs). Then, to understand why cryptocurrencies are growing again. And most importantly, I will give a consensus (based on my observations, supported by the opinion of a number of experts) forecast for the price of cryptocurrency in 2021.
Briefly: what is bitcoin
So, in brief (detailed article), bitcoin is a popular commodity. Like, for example, oil or gold. But, only digital. It is not stored in barrels or safes, but in computers. And it is a trustworthy commodity. It can be forged, except in theory.
Bitcoin is also interesting because it performs some of the functions of a means of payment. It's not quite full-fledged money yet. But, you can pay with it in many places. Or you can earn income in bitcoins.
But the main thing: bitcoin periodically begins to rise in value against the ruble and the dollar. With the best possible timing, it is possible to earn 100% profitability per month. Such explosive growth was observed 5-6 times only during the last three years.
How and why Bitcoin grows in value
People consider bitcoin to be a kind of reserve value. Something like gold. And, rightly so. After all, bitcoins do not depend on political events in any country. Unlike national currencies of different countries.
People used to buy gold in times of crisis. And now people are buying gold and bitcoins.
The year 2020 was a crisis year for the whole world. Accordingly, people started investing more actively in cryptocurrency. Then, according to the laws of the market, the increase in demand spurred the growth of the value. And it snowballed.
Watching bitcoin grow, more and more people began to invest in it. The rate went up even faster. Faster and faster. Until it reached an all-time high of $29,000 per bitcoin. And then came the new year 2021. So what to expect? Will the growth continue, is it too late to invest?
What will happen to bitcoin in 2021
Most analysts agree that it is not too late to invest. Growth is expected to continue for at least another 2-3 months. However, the growth rate will slow down.
By the summer of 2021 bitcoin will stabilize. Further we may expect the weakening of the exchange rate. Quite sharp.
However, in the long term, bitcoin will continue to strengthen. And it is likely that the bitcoin value will exceed $50,000 per unit in two years. Moreover, many well-known financiers predict the growth not even up to fifty, but up to one hundred thousand dollars. This is a lot of money. And, at least, it is good that bitcoins can be bought in shares.
So, from all of the above, we can distinguish three variants:
If we want to quickly scroll our money by investing in bitcoins for 1-2 months, then it's not too late to invest. It is quite realistic to earn 15-50% net profit.
If we want to invest in the medium term (6-12 months) - then you should not wait for substantial profits.
Investing more than a year is advisable. For a couple of years really double or even triple your investment.
This is perhaps all that is important to know about bitcoin exchange rate forecasts.
How best to invest in bitcoins in 2021 - read in a special material.
I appreciate your questions or your opinion on what will happen with bitcoin in 2021.
I wish you all a profitable investment!