Technology

What is The Future of Bitcoin and Blockchain in 2021?

2021 will be a good time for the cryptocurrency market, and the current developments reveal that the future of bitcoins and blockchains will flourish. Just a few years back, the market displayed that it can go parabolic even more than what the world witnessed way back in 2017. 

In 2018, the globe entered a bear market with just about 1,600 cryptocurrencies, and the value of Bitcoin plummeted to less than $4000. However, 2021 begins on a much-improved note as there are more than 8,300 cryptocurrencies that are registered on Coinmarketcap, depicting an all-time high for bitcoin. This means it is an increasingly niche that is going to invoke more functionalities than before this year. 

Where the cryptocurrency industry is headed this year?

Bitcoin in December 2020 has experienced a steady climb to reach an all-time high. It broke through at $20,000 per BTC; however, it did not have the chance to be so steady in the past. In order to understand how troubled the cryptocurrency market had been back then, one needs to look at 2018. 

In 2018, Bitcoin traded almost to $13,500 after it had attained an all-time high of about $19 783 in December 2017. However, it later dropped to as low as $3,400 that is a loss of nearly three-quarters of its current value at that time. When it comes to the other digital currencies at that time, they were not doing well either. For example, Ethereum or ETH fell from a high of $1,300 at the beginning of the year to about $91 in December 2018 before going back to more than $450 at the end of 2020. 

If you examine cryptocurrencies like Ethereum and Bitcoin, you will find there have indeed proven themselves to be resilient. The interest of the investor like institutional and retail in digital currencies has grown drastically in the recent months. Several early investors have been willing to create gains from the craze over cryptocurrency. However, they have now moved to other ventures. However, a small group of investors has solid reasons to believe that the future of cryptocurrency in 2021 is indeed bright and will fly high again pretty soon. 

The current status of cryptocurrency now

In 2021, investors are now asking what the current status of the cryptocurrency market is? Experts in the field state that if you consider Bitcoin is again has climbed back to an all-time high in December 2020 and has now reached over approximately $23,625, whereas Ethereum has almost $700. Now, if we go back to the end of last year and into the beginning of 2021, the question is, how will the cryptocurrency market perform in the future? 

Institutional investors are joining the game 

Indeed, the trade figures for individual investors are quite down in several cases; however, several institutions are largely getting into the cryptocurrency market. This is happening for the first time across the globe. 

These institutional investors allow larger volumes of the trade than individual investors, which means that even if fewer trading partners are carrying out transactions in the cryptocurrency industry, it can still sustain itself in Pandemic times. 

Experts from a credible name in the field of database administration and management, RemoteDBA, say that there are many potential developments in cryptocurrency that are projected to occur in 2021. They will significantly influence the participation of institutions in the digital currency market. If cryptocurrency is floated on the Nasdaq or any similar exchange, for instance, it instantly will get a boost in its reputation and most likely value. 

The Bitcoin EFT is elusive 

For several years, enthusiasts of cryptocurrency have desired anExchange Traded Funds or ETF for bitcoins available to investors in the USA. Unfortunately, the US Securities and Exchange Commission or SEC has repeatedly rejected or delayed applications for a Bitcoin ETF, citing the issue will be decided in the future. In addition, one of the most discussed funds by the provider, VanEck has experienced its final approval of the above repeatedly being pushed back many times. 

Some analysts believe that the approval of any mainstream EFT for Bitcoin will be a major jolt to the world of digital currency. It will open the industry’s doors to those investors that are willing to participate sans the risks associated with the direct buying and selling of tokens. However, as of now, one needs to wait and watch to know what will be the future of the funds of VanEck. 

Stablecoins have now taken the lead

Stablecoins refer to digital tokens that have been pegged to fiat currency. They act as a mechanism for hedging against the possible fall of the underlying collateral prices of cryptocurrency. In fact, in 2021, they are a high hope for the cryptocurrency industry. 

There is a possible growth for Stablecoins primarily for two reasons next year-

  1. There is a long-term instability of tokens that are non-centralized 
  2. The present leader in the stablecoin industry, i.e., tether, is currently in a position to get dethroned. 

What do experts predict for 2021? 

When it comes to the question as to whether digital currencies will witness dramatic gains in price in 2021 or not, experts say with confidence that cryptocurrency is here to stay for a long time. The underlying technology of Blockchain behind several cryptocurrencies has expanded far and wide outside the industry of digital currency. Therefore, it is highly likely to witness several new applications in 2021. However, regulators and governments will grapple with the issue as to how to control and best facilitate digital tokens across the globe.

It’s only normal that such an increasing number of small businesses worldwide are beginning to embrace bitcoin as payment.

The good times for cryptocurrencies have often come and later gone, however. One can safely say that the market does have hope. There is one thing that everyone is sure about, and that is cryptocurrencies are placed to end the financial systems in the future. Of course, this will not occur overnight, but there is some noise in this direction that might take place soon in the future!

 

Leave a Reply