Bitcoin is a cryptocurrency or virtual currency developed in 2009. It is a medium of exchange, created and stored electronically using blockchain technology. Blockchain is a decentralized ledger of all transactions in a network. Using this technology, participants can confirm the bitcoin transformations without any central authority.
Bitcoin Price Prediction 2020
Buying a bitcoin is different from buying a stock or bond. Like traditional currencies, bitcoin is not issued by a central bank. So the monetary policies, inflation rates, economic growth, and other financial issues do not affect the value of bitcoin. Supply of bitcoin and its market demand are the only factors that determine the value of bitcoin. Here, we try to predict the price value of Bitcoin in 2020 based on several reviews and analyses conducted earlier.
Does Bitcoin Price Rise In 2020?
When bitcoin was founded in 2009, its value was almost equal to zero. Starting from there, bitcoin has always been in the no.1 position even though many other cryptocurrencies like Ethereum, Ripple, Stellar, etc have found.2019 has been a pretty nice year for Bitcoin. But by the end of September, a backflip occurred in the cryptomarket and due to that, the value of BTC collapsed under $9,000.It loses more than 15% of its value within one hour. But researchers still believe that the Bitcoin value will continue to grow and it’s expected value in 2020 and five years ahead may reach $50,000.It will be an all-time high value of BTC.
Even though the value of BTC fluctuates frequently, traders and experts believe that it will rise rapidly in 2020 and this year will be a challenging year for cryptocurrencies, especially for Bitcoin. Around the mid-may 2020, the cryptocurrency can confirm it’s status.
Bitcoin Price Determining Factors
The two factors which determine the price of Bitcoin are its supply and demand. The supply of Bitcoin is affected in two ways. The first impact on the Bitcoin supply is that the Bitcoin protocol allows creating new Bitcoins at a fixed rate. But the designing of new coins are reduced to slower when miners process blocks of transactions. This increases the demand for Bitcoin than the supply and causes a rise in price.
The strong fluctuations in cryptocurrencies are a common disadvantage. The investors are very emotionally conditioned to be able to withstand the ups and downs of these fluctuations. As a payment system, Bitcoin has steadily risen its popularity. The first officially documented purchase using Bitcoin was a pizza on May 22, 2010. Currently, it’s market capitalization is more than $125BLN.
Bitcoin To Its All-time High Value
The main advantage of Bitcoin is that it is out of the control of government, banks and other authorities. So Bitcoin holders experience freedom in transactions and no one can interrupt them in transactions. Since authorities cannot track the Bitcoin transactions, the purchases using Bitcoins are tax-free. That’s why traders and investors have long been waiting for 2020 to return to Bitcoin’s all-time high value. Many experts expect this to be reached by the end of 2020 and they are very confident about that.
However now, Bitcoin is at a price low by more than 57% of its an all-time high. It doesn’t matter, and history taught us that cryptocurrencies, especially Bitcoin have the power to take a u-turn. The value of cryptocurrencies is hard to predict as they fluctuate frequently and rapidly. But, when we check out the long term values we can conclude that to the halving of 2020 the value of BTC goes high.
Please let us know your comments or queries related to the price prediction of this digital asset in the comment section below and we will try our best to reach out to you.