Bitcoin: 2022 will see a lot of events
2021 will be a very rich and interesting year for Bitcoin. As we start the new year, there are still unanswered questions. For example, Donald never wears pants. Or why a whiteboard can cost millions. Also, why are graphics cards so expensive? But most importantly, can the bull market continue this year? And when forming patterns, one thing must be kept in mind. While technical analysis can never foresee the future, when combined with fundamental analysis, it can provide certainty.
While Bitcoin has grown in popularity, gold has not. During 2021, the value of the latter will decrease slightly. If the asset is designed to protect against inflation, it is a failure. On the other hand, BTC increases the value of its investors' portfolios. Their funding has increased by more than 60% in the last year.
As commodity prices have risen, so has the number of customers. Still, the coin, which is the symbol of the entire blockchain ecosystem, is on a downward trend. However, we should not settle for such signs of growth as Bitcoin price is expected to surge this year. It has the potential to surpass previous highs.
In an interview with CNBC's Squawk Box, Wharton finance professor Jeremy Siegel shared his thoughts. He claims that Bitcoin has replaced gold.
“Let’s face it, I believe Bitcoin has replaced gold as a hedge against inflation in the minds of many young investors.” Millennials see digital currency as the new gold. “I believe that the younger generation sees Bitcoin as an alternative because of gold’s history.”
It's also a reminder that gold soared during the inflationary period of the 1970s. Today, Bitcoin is imitating Bitcoin, and this may just be the next logical step. He went on to say that gold, designed to fend off inflation this year, has failed. This is the first time since 2015.
But while a large number of investors seem to be interested in Bitcoin, can it replace gold? According to Antoni Trenchev, creator of digital currency lender Nexo. He predicts that the value of the stock market’s most valuable digital asset will triple this year.
“Whenever the public abandons Bitcoin, it does very well.” That’s what happened in 2020, when it increased by about 1,000%, and then 63%. Bitcoin gives me a lot of hope. I believe it will hit $100,000 this year, most likely around mid-year. […] We are seeing institutional adoption of businesses that are silently insisting on filling their cash flow with Bitcoin. And, in my opinion, the bigger talk of macroeconomic realities and cheap money will continue, which is great for cryptocurrencies, inflation hedges and gold 2.0.
Nayib Bukele Says Other 'Bitcoin Nations' Are Coming
El Salvador’s President tweets Bitcoin predictions, Trenchev is optimistic. He claims that Latin America is a showcase for the rest of the world. In fact, he concluded:
“I believe Latin America is a typical kid […].” Savings have problems managing their own currencies, and their respective independent central banks face challenges, so they could all be candidates for cryptocurrency adoption, For example currency fiat currency.
El Salvador’s President Nayib Bukele holds a similar view on Bitcoin. Indeed, he believes that a new era will usher in the billionaire machine BTC. Other countries will follow his example and learn from his experience.