Up or down? Bitcoin predictions for 2020

It is no secret to anyone that the introduction of Bitcoin into the financial market has revolutionized the way online payments work and has put regulators globally in a race against the clock to bring some order to this market.

Bitcoin has been the subject of growing interest from the financial community, attracting traders, investors, banks, countries, and even social media companies like Facebook that explore the possibility of introducing their own cryptocurrency to position themselves in this field full of possibilities and opportunities.



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Since its presentation in 2008 through an informative note published by its creator Satoshi Nakamoto, Bitcoin has become the reference currency of the cryptocurrency market and has been the subject of numerous controversies, applause, celebrations, and more importantly, of An attractive growth as an investment instrument.

If you are contemplating the idea of ​​investing in Bitcoin in 2020, through this article we will analyze the main facts that support the bearish and bullish predictions related to this cryptocurrency.

The evolution of Bitcoin as an investment

The first transaction with Bitcoin took place on January 12, 2009 when Nakamoto sends a first batch of 50 Bitcoins to Hal Finney . This transaction had no commercial value, but opened the door to the possibility of using Bitcoin as a means of payment.

From this moment, the value of Bitcoin has been fluctuating significantly, going from being valued at just USD $ 0.003 to reach a historical peak of almost USD $ 20,000 at the end of 2017.

These are many important events that have marked the evolution of this cryptocurrency during its more than 10 years of existence.

The history of Bitcoin is still being written. The introduction of new cryptocurrencies and the strengthening of blockhain technology that underpins the secure exchange of these assets remain the forces that continue to define their intrinsic value.

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Being the pioneer currency of the market, Bitcoin has a level of credibility that many other cryptocurrencies may never achieve. For this 2020 the perspectives on the evolution of Bitcoin as an investment are varied and below we present some facts that support the bullish and bearish predictions regarding the future performance of Bitcoin.

Bitcoin on the rise?

Most of Bitcoin's upward predictions place its value for 2020 between $ 10,000 and $ 94,000, which would represent a potential return between 30% and 1,200% on investment, respectively.

These predictions assume that the adoption of Bitcoin and other cryptocurrencies as traditional means of payment on a global scale will continue its upward trend, incorporating large retail chains and other commercial establishments whose transaction volumes would trigger demand for this cryptoactive.

On the other hand, from the technical point of view, some analysts point to an increase in the difficulty to undermine Bitcoin that will take place during 2020, cutting the growth of the cryptocurrency offer, which would keep the price at a high level if It is assumed that your demand will continue to rise.

The most exuberant prediction comes from John McAfee, the founder of the renowned computer security firm McAfee, who predicted during an interview with the prestigious Forbes magazine that the value of Bitcoin will amount to $ 1 million in 2020 due to its growing demand.

Bitcoin down?

Bitcoin's downward predictions today are slim. It seems that the market consensus is that its value will continue to rise due to technical aspects and certain economic factors associated with the cryptocurrency's supply and demand dynamics.



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However, there are some risks on the horizon that could affect its performance. Some of them are:

• Growing regulations: The adoption of cryptocurrencies as a valid means of payment seems to continue its course and this is one of the main factors cited by analysts that point to the rise in the price of this cryptoactive. However, regulators may decide to curb the use of Bitcoin as a means of payment for traditional transactions as part of their efforts to regularize their use.

• Adoption of other cryptocurrencies: While the demand for Bitcoin could continue to grow and its supply would remain limited, the emergence of new robust cryptocurrencies such as Litecoin or Ethereum would provide some relief in excess demand that can reduce the flow of capital that is directed towards Bitcoin, keeping its price at bay.

Conclusions

A large number of analysts and traders seem to agree that 2020 will be a year of high profitability for those who decide to invest in Bitcoin. However, there are risks on the horizon that must be taken into account before incorporating large positions in the investment portfolios.

While the history of Bitcoin demonstrates the full potential of this cryptocurrency and the technology that supports it, also the incidents that have occurred throughout its evolution warn that the novelty behind this technology is also one of its weakest and most vulnerable points.

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Posted via Steemleo