Will the coming year be a successful year for BTC?
A recently published report by Wells Fargo talks about both the pros and cons of cryptocurrencies. John LaForge, the bank’s head, thinks that specially in 2021 people should focus on digital assets. Factors such as sovereign central bank currencies (CBDCs) also play a role in the ongoing digitization of currencies. Pierce Crosby also gives a similar and interesting perspective on 2021.
The coming year is just around the corner. After the new decade was a complete success, at least from the perspective of the largest cryptocurrency Bitcoin (BTC), the question is what will happen next year. Will Bitcoin see new highs in 2021 and what events will go down as milestones in Bitcoin history?
In a report published last week by Wells Fargo, a major US bank, John LaForge, who is the bank’s lead for asset strategy, said: “Over the past 12 years, bitcoin and cryptocurrencies have risen from nothing and now have a market capitalization of $560 billion.”
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Will 2021 be the year of cryptocurrencies?
John LaForge talks about both the pros and cons of cryptocurrencies in the Wells Fargo Report. At the same time, his basic tenor is optimistic and directed towards the future.
In his opinion, we are long past the moment when it was still said that cryptocurrencies were a fad. Especially in 2021, he said, people should focus on digital assets. Factors such as sovereign central bank currencies (CBDCs) also play a role in the ongoing digitization of our currencies.
From a bitcoin price perspective, LaForge came to a bullish conclusion. Thus, he said:
“Bitcoin saw a 170% increase this year after already rising 90% in 2019. Investing in cryptocurrencies is a bit like life during the “gold rushes” in the 1850s. Here, people often speculated a bit more than they invested.”
Still, he said, investing in cryptocurrencies is not generally speculation. On the contrary, LaForge gives the justified indication that this year, in addition to classic private investors, in particular large players such as MicroStrategy, PayPal, Square, as well as a large number of hedge funds have entered the Bitcoin trade.
Bitcoin: symbiosis of modern and ancient finance
Pierce Crosby gives a similar and interesting perspective on 2021. Crosby works as a “general manager” for the all-knowing website and company TradingView.
“2021 will mainly revolve around continuous improvement and the ongoing dovetailing of the traditional financial market with the crypto market.”
In his opinion, this would result in a bullish case for cryptocurrencies like Bitcoin.
Companies like Square or PayPal impressively show that the interest of retail investors in cryptocurrencies is far from saturated, he said. Furthermore, there are many attractive use cases for Bitcoin and Co.
Increasing adoption, in turn, is also reflected in the price of Bitcoin and other cryptocurrencies, in his opinion. But despite BTC’s strong performance, Crosby sees another winner in 2020:
“Bitcoin volatility has been high this year and performance has also been strong. But it’s impossible to top what happened in this year’s DeFi Summer.”
Crosby also counts Ethereum (ETH), which is up nearly 300%, as one of the big winners of 2020. The rising interest in decentralized financial instruments has helped both DeFi itself and Ethereum tremendously.
From a trading perspective, the focus this year has been on generating returns through yield farming and similar products.
Finally, he concluded that we have seen a variety of applications of Bitcoin and Co this year. He expects that this was just the beginning and will continue more strongly in the coming years.
Accordingly, a prosperous 2021 is probably ahead for Bitcoin and all other cryptocurrencies!
(Featured image by André François McKenzie via Unsplash)
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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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