Is A 6 Figure Bitcoin Value A Scam?

Bitcoin has had a tremendous start to 2021, topping $40,000 per Bitcoin for the first time ever.

Right now, with retail investors increasingly eyeing bitcoin in light of its recent gains, new research shows how bitcoin “whales” accumulated a huge number of bitcoin tokens in December, helping the bitcoin price to never-before-seen highs.

This massive bitcoin accumulation helped the bitcoin price to soar fifty% through December, with the price rise accelerating in the new year. The bitcoin price has added a further forty% in the first week of 2021 alone.

With a bit of help from the media, the public has become curious about the fascination people have for the brand new venture known as bitcoins. As a currency, it stands out among all others. The problem is that many folks still don’t realize how it works or just how to use it.

This particular combination of increased investment interest in Bitcoin as an expense, as well as improved adaptation of Blockchain technologies, cryptocurrency, and Bitcoin by businesses, points to a perfect storm for prices.

Despite these expected “bumps,” most in the bitcoin and cryptocurrency space are predicting the bitcoin price will continue to rise over the long term.

With any significant change to the economy, there is going to be questions as to how this impacts the future of each specific currency pair. Naturally, investors are actually centered on the impact that the loss of the U.S. dollar will have on Bitcoin.

What In The World Is A Bitcoin?

First, a quick overview for the unenlightened:

Bitcoin is actually one of many digital currencies. Unlike traditional “fiat” currencies developed and operated by central bank and a government, Bitcoin is actually “mined,” or produced by people who solve mathematical problems with computing power. Transactions are actually kept on the blockchain, an encrypted and decentralized ledger which protects the integrity of Bitcoin while also ensuring the privacy of the user.

And also in contrast to fiat currencies, which can be printed on demand, Bitcoin is actually limited to a total of twenty one million possible coins once it’s fully mined. (Fortunately, it can be split fractionally down to 1/100,000,000th of a Bitcoin, known as a “Satoshi.”) It was designed to be a true store of value which could not be manipulated.

Indeed, Bitcoin was invented in 2008 and launched in 2009, just as world governments were printing money to respond to the global economic crisis. A slew of other digital assets followed.

Bitcoin Shoots Moonward In 2020

Bitcoin prices crashed after sharp rallies in 2013 and 2017, but these declines were not precipitated by any major event spanning multiple asset classes. While it’s feasible for the charges to fall back down once again, you could find yourself being incredibly wealthy from this particular investment in case you wait it out long enough.

Cryptocurrencies were hardly immune from the bear turn. Investors first began selling off equities in February as they moved to cash, and even protection plays such as gold ultimately took a dip in March. But Bitcoin eventually fell, also, crashing hard in mid-March.

Bitcoin bounced quickly, as most of the huge institutional funds moved in once they saw how the bitcoin price continued to move higher.

Cryptocurrencies such as Bitcoin are drawing comparisons to gold, as they’re a relatively fixed asset at a time when fiat money printing is growing out of control.

BCA Research strategists see a similar benefit, stating that “in addition to benefitting from ample global liquidity and the cyclical US dollar bear market, Bitcoin will be an attractive hedge against rising inflation in the second half of the decade.”

2021: Another Massive Year for Bitcoin Prices?

Bitcoin is actually attracting a growing number of analysts, and also as a result, Bitcoin price targets are actually starting to be more commonplace.

A few have been downright bombastic. Former Adaptive Capital partner Willy Woo calls $200,000 a “conservative” estimate for year end 2021. In mid November, Citigroup told its institutional clients that it sees the potential for Bitcoin prices to rise as high as $318,000 by the end of this season.

The Ever Present Regulatory Risk Factor

One of the primary risks to any bullish calls, sky high or not, is the potential for regulatory agencies to instantly erect a brick wall.

Probably the most noteworthy of late: In late December, the Securities and Exchange Commission SEC filed a lawsuit against the “altcoin” Ripple. (Altcoins are actually any digital coin that is an alternative to Bitcoin. ) The issue at question is actually whether the digital currency of its is really a digital currency, or in case it is an unregistered securities offering. The news was enough to cut Ripple costs by much more than half in only a few days, and several cryptocurrency exchanges stopped trading in the altcoin until the issue is actually resolved.

Even then, many Bitcoin bulls project a silver lining. Ripple has a different mechanism relative to Bitcoin’s decentralized model, so some believe a crackdown on altcoins points to Bitcoin as the first (and maybe only) stop for people interested in cryptocurrencies.

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