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Bitcoin trends to consider for 2020

Bitcoin has been since its inception in as much popularity as in its price.

physical bitcoin on table
Image: Unsplash

2019 has been a concrete year for the price of Bitcoin, doubling its value over the year. The beginning of the year 2020 has been very positive, Bitcoin rising during January. What can we expect from Bitcoin by 2020?

Gold or smoke, depending on how you look at it, bitcoin billionaire platform – the most typical digital currency of the 4,000 that exists in the market – has been subject to extreme volatility.

When it was created, in January 2009, bitcoin was worth less than one dollar, in 2017 it almost reached the US $ 20,000, the following year it collapsed to the US $ 3,200, in 2019 it jumped again to the US $ 13,800 and these days it about the US $ 9,000.

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After Iran’s attack on US bases in Iraq, in response to the death of Iranian General Qasem Soleimani at the hands of the US, bitcoin rose 8% due to investor uncertainty.

“I project that in 2021 bitcoin will reach (worth) more than the US $ 100,000,” says Pastor, convinced that digital money will completely transform the financial system in the future.

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That increase would be motivated by the development of the industry and international geopolitical circumstances, he says.

Although there are optimistic projections among those who participate in the business (such as Antoni Trenchev, co-founder of the Nexo platform, which projects a price of US $ 50,000 towards the end of this year), skeptical voices abound in the market.

digital bitcoin image
Image: Blockchain Global

“Must be outlawed.”

Economy Nobel Joseph Stiglitz has said that bitcoin “must be outlawed” because it is created to avoid regulations and “does not serve any useful social function.”  

One of the reasons why bitcoin has succeeded, he says, is that “it fed on an anarchist narrative, that the government is unnecessary and unworthy of trust.” And it is also a currency whose origin is unknown. Bitcoin turns 10: What it is and how the largest cryptocurrency in history works.

A classic bubble

Among the detractors of digital money, one of the most common arguments is that cryptocurrencies are not reliable since they do not have financial support in the real world.

Peter Schiff, head of Global Strategy at the financial advisory firm Euro Pacific Capital, tells BBC Mundo that digital money is a classic bubble.

“They have no intrinsic value. Unlike the currencies issued by governments, they are not even valid for paying taxes.”

Because of its high volatility, he adds, “its value could evaporate overnight,” since it has expanded based on “pure speculation.”

“The future is promising.”

With the same passion, those who work with digital currencies defend their value and profitability.

“The future of cryptocurrencies is promising,” Alex Mashinsky, founder and executive director of the Celsius Network platform, tells BBC Mundo.

It is one of the few assets with a limited offer, “which guarantees its long-term success.”

In fact, according to the structure of the technological system with which bitcoin was created more than a decade ago, there can only be 21 million.

Mashinsky compares the gain of 9,000,000% of bitcoin in the last decade, with the profitability of the best action, Netflix, which reached 4,000%.

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But in the world of digital money, there is no authority in charge of minting cryptocurrencies.

How the “blockchain,” the technology behind bitcoin, became a lucrative business (beyond cryptocurrency)

They are created by the so-called “miners,” for which they use blockchain technology.

It is completed with PC that works solving statistical problems. Whoever does it earlier, obtain new bitcoins as a prize.

That is why those with a higher installed digital power are more likely to solve the mathematical problem or “solve the block” of operations.

Currently, every time the miners discover a new block (something that happens every 10 minutes), they receive 12.5 new bitcoins as a reward.

Conclusion: Bitcoin has been since its inception in as much popularity as in its price. Each year represents a step forward, 2017 was the year of the ICOs, 2018 the year of the Bitcoin ETFs and 2019 the year of the Lightning Network and the creation of state cryptocurrency projects.

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