Advancement and Consolidation: Predictions for Cryptocurrencies During 2021

The pandemic unleashed an economic crisis not seen for decades, but after the strongest growth is consolidated, including digital currencies

If you want to know what 2021 holds for cryptocurrencies, here are some predictions to get the most out of 2021.

2020 – Growing mistrust of fiat money

When the pandemic began , both stocks on the stock market, such as gold or bitcoin fell 30% in value; Contrary to the first two, Bitcoin returned to its maximum annual value, starting 2021 with prices that reached $ 40,000.

The world changed as a result of the pandemic and many of these long-term consequences (such as the digitization of our lives) have given way to cutting-edge technological elements such as cryptocurrencies, technology blockchain or fintech.

The Bitcoin will be recognized as an international currency

The largest digital payment system, PayPal , has joined the cryptocurrency market, giving its users the opportunity to send, receive and save in cryptocurrencies through their digital wallets.

PayPal affirms that by the first half of 2021 its users will be able to use cryptocurrencies as a payment method in the more than 26 million establishments that use PayPal, without extra fees.

To address the issue of high volatility, consumers will immediately convert their cryptocurrency balance to fiat currency; With the more than 340 million users that PayPal has globally, we can ensure a greater adoption of cryptocurrencies with these measures.

The vaccine will not greatly affect the cryptocurrency market if demand for bitcoin from institutional investors is high

Although the entry into play of the vaccine promises to lead us to a pre-pandemic life, the truth is that this does not cause any significant effect on the rise in the price of bitcoin , being that the stock market would be the first beneficiary with respect to vaccination massive population.

Although, if the adverse outlook regarding the pandemic continues, cryptocurrencies, and especially Bitcoin, will continue to be considered as an escape route from inflation, so money from the stock markets and gold is invested in Bitcoin , attracting more and more investors and people who trust it as a safe investment method.

Ethereum 2.0 will lay the foundations for a new wave of development for cryptocurrencies

The creation and implementation of the Ethereum 2.0 is another step towards mass adoption of cryptocurrencies, as well as an indicator that the industry is making great strides.

With topics like scalability and security improved, Ethereum 2.0 will become quite an ambitious upgrade, given that no other blockchain of similar size to Ethereum has attempted to migrate its ecosystem to an entirely new network while keeping the old one running.

Cryptocurrency Outlook for 2021

Although the emergence of the vaccine and the possible arrival of normality do not greatly influence the rise of cryptocurrencies, blockchain technologies and fintech, the truth is that it can bring some stability to the bigger picture.

Likewise, the growing institutional investment in cryptocurrencies (especially Bitcoin ), as well as the increasingly wide acceptance and governmental recognition, in addition to the growing regulations at a global level, leave us a very promising outlook, indicated TG Press.

Source: – iProUP

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