How much will Bitcoin cost at the end of the year?
September 28, 2021
Since the birth of Bitcoin in 2009, the world of investment has suffered a strong revolution and over the years the cryptocurrency argument has become the core of the new online financial world. The revolutionary action provided by Satoshi Nakamoto, pseudonym of the inventor or group of the group of creators of the Bitcoin project, has succeeded, if not to change, at least to open a new horizon on the world of the exchange of goods online. Talking about cryptocurrency we refer to electronic currencies, independent of state legislation and government financial mechanisms, that allow the purchase and sale of goods online and exploiting encryption to validate and secure transactions, which are recorded on a blockchain which contains the decentralized public register and cryptocurrency transaction list. After the Bitcoin birth and its growth in popularity and consumption, other cryptocurrencies have entered the market. Ethereum, for example, uses tokens for network payment and allows to build different decentralized applications such as security programmes, electoral systems and payment methods, always operating outside the mandate of central authorities like banks and governments.To Charlie Lee we owe the creation of Litecoin, very similar to Bitcoin considering that they are based on the same source, but designed for small transactions and to be more efficient in everyday use. Also having a smaller capitalization compared to other currencies remains one of the currencies most commonly used. Another great revolution was brought by Ripple Labs, an American technology company, which in 2013 created Ripple Net. A platform that banks and financial institutions use to transfer XRP quickly and internationally at a lower price, trying to reduce transfer times and fees. The particularity of cryptocurrencies, however, remains the exclusivity that is the fact of being available only in limited numbers of specimens. In fact for Bitcoin there is an emission limit of 21 million.
In the first place we found the United States of America with a total trading volume of 535,660 BTC. One of the reasons is that cryptocurrency has the characteristic of not being subject to inflation and for this reason there are many American companies that are interested in Bitcoin to defend their capital.
The future of cryptocurrencies: the case of China and El Salvador
The unknown that is behind the cryptocurrencies and that often makes us reluctant to this world is always the same: is it convenient to invest in cryptocurrencies? Doubts that have recently been reinforced by the law proposed by China which prohibits its use all over the country. The Chinese’s move in the first period has weighed on the value with a loss of 5% but in reality has not stopped the growth that is becoming and will gradually become more and more explosive. It’s seen more as an attempt to boost the digital Yuan, directly controlled by Pboc ( People’s Bank of China) avoiding private competition. This factor has in fact reduced the value of the cryptocurrencies by a good 5% but has certainly not stopped the upward trend that has always characterized the Bitcoin and other virtual coins. On the other hand we find El Salvador, which has recognized Bitcoin as state money trying to cut exchange costs that weigh on the country’s coffers 6 billion every year. The government bought 550 Bitcoin and has allocated a fund of 150 million dollars to credit 30 dollars in Bitcoin to every citizen in order to encourage them to use these cryptocurrencies. Salvadorans can shop and even pay taxes using Bitcoin thanks to this move studied by the young president Bukele.
A radiant future for cryptocurrency
Although Bitcoin has struggled in the last period the road to success seems more and more concrete. There are rumors that US Securities and the Exchange Commission are trying to obtain a trading fund in the stock exchange, which could cause the value of Bitcoin to soar to 100,000$ with a 40% increase already by August. Canada has long adopted this system and surely the US government will not want to stay behind its neighbor. The world of cryptocurrencies, after the exponential growth, is receiving the right attention many investors are in fact leaving the gold market to jump into that of crypto. If this program is implemented the price of Bitcoin will be able, in addition to reaching the value of 100.000$, to bring more and more buyers. Now is only a prediction, but the software company for business intelligence Microstrategy MSTR has already announced that it has bought another 5000 bitcoins in addition to the 100,000 thousand possessed e soon other large companies will follow in his footsteps. For people looking for short-term investment is definitely not the right field to focus on, instead for those who have the patience to wait it can turn into a money-spinner or continuing on the theme, a Bitcoin wallet.