December 2020 saw Satoshi Nakamoto assets set an all-time high of $ 24,200, gaining worldwide attention as the most valuable asset over gold.
But as this year brings good luck to Bitcoin (BTC), what will happen to it by 2021? Is it continuing to set new records or vice versa?
1. Wider BTC Acceptance
Perhaps at the time of writing, the use of Bitcoin is still not widespread in everyday life. However, the increasing interest of institutional investors such as MicroStrategy, PayPal and Square will pave the way for these assets to continue to be accepted globally.
2. Competition From Large Technology Firms
Undoubtedly Bitcoin has prompted global entities to consider international digital currencies due to their nature involving the diversified currency markets.
Like Facebook’s digital currency ‘Diem’, if the product is successfully marketed extensively next year, it is not impossible that Bitcoin growth will be affected.
3. Competition From the Central Bank
For your information, this year the Bank for International Settlements reported 80% of central banks worldwide in their plans to develop digital currency.
As China is seen to be ready for the era of cashlessness, causing the US to feel threatened by the emergence of digital yuan, it will also affect the demand for BTC and other cryptocurrencies.
4. Introduction to the New Law
The Joe Biden administration is seen to be benefiting the crypto industry with a more comprehensive and rational plan without discrimination.
At the same time, it is possible that the Democratic party will act more decisively than the Republicans.
5. Prolonged Uncertainty
Since the value of Bitcoin is not directly tied to current situations such as fiscal or monetary policy, this asset has the potential to lose its status as digital gold.
But, Bitcoin could also reach $ 50,000 next year if investors transfer capital into Bitcoin.
