*Article contributed by James R.
Do you currently hold Bitcoin or want to invest in Bitcoin and wonder what will happen to its price in the near future? What is the Bitcoin price forecast for 2020?
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This Bitcoin 2020 Price Forecast Guide starts with a brief overview of Bitcoin, followed by a brief explanation of the points to consider before you can invest on the basis of a Price Forecast Guide.
Bitcoin was created in 2009 by an anonymous developer named “Satoshi Nakamoto” and was the first and original crypto currency. Bitcoin allows people to send and receive funds without intermediaries. As such, it is a decentralized payment system. The network is neither controlled by a single person or authority nor supported by a central bank. Instead, transactions are checked by a community called miners, who use their computing power to confirm the movement of “funds”. According to CoinsSpent in return, miners are rewarded with an additional Bitcoin for their contributions to the network.
Price Predictions and What You Should Keep in Mind
In reality, no one can predict the future of a crypto currency, but if we could, we would all be billionaires. In the world of crypto currency prices are very volatile. This means that the value of a coin can rise or fall very quickly without any explanation. This makes predicting prices much more difficult than traditional markets.
Looking at the future value of a crypto currency, it is always better to look at events from the real world. This can include improved technology, future roadmap goals, new partnerships or even regulations.
The most important thing is to always do your own independent research before making an investment. Never buy a crypto currency just because you are enthusiastic about a price prediction or because you have been asked to do so by your favorite YouTuber. Ultimately, everyone has a different opinion and there is no guarantee that anyone will do anything right.
Bitcoin Predictions
McAfee
The first Bitcoin forecast comes from John McAfee, the developer of the popular McAfee antivirus software. McAfee is known in the crypto currency industry for making many crazy price predictions on Twitter. In the meantime, however, it has become known that crypto currencies and brands are paying him more than $100,000 for it.
In 2017, MacAfee announced that Bitcoin would reach $500,000 by 2020. If you didn’t think that was crazy enough, McAfee raised its Bitcoin price forecast for 2020 to $1 million. He seems very confident with his forecasts. McAfee claims that his prediction is based on his own price forecasting model, but no one knows what this looks like. If its future Bitcoin price of $1 million occurs in 2020, it will have a total market capitalization of $15 trillion. Market capitalization is used to determine the total value of an asset or transaction. It is calculated by multiplying the current market price by the total number of coins or shares in circulation. For example, if the current price of a crypto currency is $10 and there are 5 million coins in circulation, the total market capitalization would be $50 million.
Tom Lee
The next Bitcoin price forecast for 2020 comes from an analyst named Tom Lee. Lee works for the crypto currency research organization Fundstrat and is known for discussing Bitcoin’s price development live on television. Lee predicts that the Bitcoin price will rise to over 90,000 US dollars by 2020. This particular researcher has extensive experience in chart analysis. This is the case if you look at the historical price movements of a coin and then make a forecast for the future based on the development of the coin in the past. In reality, Bitcoin is probably the only crypto currency for which you can perform a graph analysis. This is because other coins do not have sufficient trading volume or historical data, while Bitcoin has a nine year track record.
Bitcoin Roadmap
One of the most important things to consider when considering the future Bitcoin price is real events, such as technical advances and regulations.
Technical developments
Bitcoin is the undisputed number one on the market for the real use of crypto currency and market capitalization. However, the level of transaction performance is very poor. Many other crypto currencies already exist here, which work much cheaper and faster.
At Bitcoin it takes more than ten minutes for a confirmed transaction. In comparison, Ethereum only takes ten to 16 seconds. Furthermore, the fees for the transactions have become much more expensive. However, the biggest problem is the number of transactions processed per second. Here Bitcoin comes to only seven.
This is currently for the scalability of Bitcoin and a big problem. For example, NEO and Ripple can confirm thousands of transactions per second. For the future, Bitcoin must be technically overhauled and improved, otherwise it will be replaced by other crypto currencies.
Regulation and regulation
Bitcoin has been around for over nine years. However, the currency is not yet optimally regulated. Many experts suspect that regulation by states would significantly affect the value of the crypto currency.
Example Japan: Japan is the first country that has fully integrated and regulated the crypto currency Bitcoin into the financial sector. The Japanese government classifies Bitcoin in the same way as its yen currency.
Partnerships and adoption
There are more than 200,000 shops in Japan that accept Bitcoin. Although there are shops in other countries like the USA and Great Britain, the number of shops is rather small. As more and more businesses begin to accept Bitcoin, people will be able to use it as their actual currency. On the other hand, a really popular app that accepts Bitcoin as the main currency would also give the coin a higher value.
If Bitcoin can increase its real use, one of the really positive Bitcoin price forecasts for 2020 could come true.
Competition
Although Bitcoin has always been the crypto currency number one, it is important to remember that there are more than 1,500 different coins on the market. Although most of these projects are based on other blockchain protocols such as Ethereum, there are also many individual blockchains.
There is no guarantee which crypto currency will dominate in the future. You should therefore always investigate and keep track of the other projects. In addition, several central banks and governments are considering releasing their own crypto currencies, which could be in direct competition with Bitcoin.
You should always make a decision based on your own research. There will be several crypto currencies in the future that will play an important role in the future of transactions. But Bitcoin will always be the most trustworthy and stable crypto currency of all.
Bitcoin will act as a value store. Bitcoin has probably not yet reached the peak of its career. As more countries begin to regulate Bitcoin, as has already happened in Japan, the price will increase by 2020. Regardless of whether it is a good investment or not. You have to make this decision through independent research alone. In the crypto currency markets, timing is everything. If you had invested in Bitcoin at the beginning of 2017 and sold it at the end of the year, you would have made a profit of more than 2000%.
However, if you had bought Bitcoin at the end of 2017 and held it until now, your stake would have shrunk significantly. If you believe in the ideology of the project, it is best to hold Bitcoin over the long term, as the markets are currently still very volatile.
*Article contributed by James R.