Thanks to increased global recognition of cryptocurrencies as a viable way to invest and protect assets, Bitcoin is becoming more popular than ever. As popular or more than gold, in fact. Looking forward into 2020, we will see Bitcoin giving gold a run for its money. There are likely to be more issues with economic stability surfacing the world over as well as an undervalued dollar. These factors in conjunction with a fixed supply of Bitcoin will only spell higher prices for the world’s most influential crypto currency.
According to Bloomberg in a statement which closely compared Bitcoin with gold, Bitcoin will very likely continue to grow until hitting highs of nearly $14,000 per coin, which was the highest point for Bitcoin last year. There are several global issues threatening economic stability, including the Iraqi Parliament voting to oust American presence in Iraq, Iranian missile strikes and vows to exact revenge on American interests for the assassination of the country’s most iconic military leader, and the high likelihood of a return of the Islamic State, to name but a few.
In the same Bloomberg report discussing expert predictions for the current year, Bitcoin is now entering a state of maturity that puts the coin in ranks with gold. A comparison of charts for both gold and Bitcoin indicates a parallel response to recent geopolitical events. What does that mean looking forward? If Bitcoin is able to break free from its $8,000 ceiling this week, it will be right on track with gold’s movements for the same period. Gold, has just experienced a channel breakout and it appears Bitcoin is soon to follow.
As far as Iran is concerned, the U.S. President, Donald Trump, has already alluded to tightening up on Iran economically by pursuing further sanctions to an already financially crippled nation. As we know, Iran has been pushing for its citizenry, and local business to adopt cryptocurrencies as preferred commerce tools in an effort to circumvent the effects of U.S. sanctions. Considering the limited supply of Bitcoin, increased and widespread adoption of the coin through the Middle East would also help the bull case.
Changes to supply is another contributing factor to Bitcoin’s positive outlook. With the halving event planned for later this year on its way, rewards per block will be drastically reduced to just 6.25. That will likely lead to minimal supply growth, dipping somewhere into the neighborhood of 2.5%. Reports also suggest that supply growth will be even slower next year.
Finally, greater diversity in how people will be able to invest in and use Bitcoin will also aid the popular coin in stabilizing itself. One of the primary reasons for Bitcoin not being already in the mainstream investment world is that it is a highly volatile asset that is hard to predict. Smart money that is conventionally managed tends to take a conservative approach, eyeing Bitcoin with an air of caution. The possible benefits to cryptocurrency investments are obvious, but until recently, the risks have proven to great for many. With Bitcoin entering a phase of relative stability, decreased availability, and increased demand, there will be a very strong case for Bitcoin in the coming months and years.