As the year draws to a close, there is already speculation over what will happen to Bitcoin over the next 12 months. The popular cryptocurrency has seen ups and downs over the past few years for a variety of reasons. The mass media’s claims of the crypto bubble bursting in 2017 and 2018 seem to be history, and traders continue to make money online despite Bitcoin’s famous volatility. According to price predictions, it seems that faith in digital money could be set to grow even more in the months to come. Will 2020 be the year that Bitcoin finally goes mainstream?
Festive forecasts
According to market research, Bitcoin is set to have a very merry Christmas on the markets. Recent statistics show that the crypto managed to overturn a deep dip around Thanksgiving, where Bitcoin value spiked up 20% over a four-day period. Trends suggest that, over holidays and public occasions, the value of Bitcoin seems to peak. With this in mind, experts claim that Christmas 2019 is going to be very big for investors all over the world.
Further research suggests that Bitcoin’s fortunes might actually link to search volume. When more people search for crypto-related terms, bubbles appear to grow. Bitcoin is still a mysterious entity to many people, particularly banks and big businesses. It is a volatile currency, which means that it regularly hits high peaks and deep lows. However, as interest in the currency continues to grow, many people are keen to suggest it’s getting easier to predict.
But what will this mean for the year ahead? News on the horizon suggests that Bitcoin traders could be in for a shaky 2020, particularly with the emergence of Libra.
What Will Facebook do?
One of the biggest changes to the world of digital currency is on the horizon. Facebook, the world’s leading social network, is set to launch Project Libra next year. This is CEO Mark Zuckerberg’s first foray into digital money. Facebook as a brand is pushing Libra to set a new standard for a universal currency. This, some predict, could eat into Bitcoin’s value.
But others are sceptical. Facebook’s infamy in the press surrounding privacy in the past few years might not inspire many investors. Therefore, there’s no guarantee Libra will pick up the interest Zuckerberg is expecting. In fact, many people may choose to sway to Bitcoin in favour of Libra.
Libra is going to be much different from Bitcoin. While it will still be digital money, it will be centralised. Bitcoin has spiked in popularity over the years due to a lack of centralisation, which means that there are no banks interfering in the trading process. This way, Bitcoin has stayed relatively discreet, and also benefits from carrying virtually no fees or transaction times.
The benefits of Bitcoin are clear to see, but it’s likely some people will give Libra a second glance. Many will likely continue using Bitcoin autotrading systems to automate their investments, regardless. However, does Libra’s rise mean Bitcoin is likely to dip hard moving into next year?
Dangerous dips ahead
Bitcoin is due to hit a major hurdle in May 2020, as it emerges that mining in the currency is scheduled to halve by mid-spring. Some sources, including hedge fund manager Charles Hwang, believe that this could hit Bitcoin’s value hard moving into the next 12 to 18 months. Hwang suggests that the value of the crypto may dip as low as $20,000. This means investors may need to ride big waves and dips if they are to make any money from Bitcoin by the end of the year.
Coupled with the emergence of Libra, it is even more difficult to predict where Bitcoin is heading. Seasoned investors and traders still suggest that digital money is due to go mainstream at any time but with banks and businesses still shaky on crypto, and with UK law in particular still not picking a side, things remain as hazy as they did at the start of 2019.
What will Bitcoin’s value be?
It is impossible right here and now to predict the value of Bitcoin for 2020 and beyond. However, with mining rewards due to drop mid-year, investors should be cautious. As Bitcoin and other crypto are so volatile, it is not always easy to know where things will stand in a month’s time, let alone a year.
For now, the future of Bitcoin is shaky – as always – and investors should take great care moving into Q2 and Q3 in 2020.
