Bitcoin was the high-roller for the year 2020 as the Cryptocurrency saw an all-time high surge with more than 300%, but will the surge sustain?
Bitcoin, the most popular cryptocurrency has seen its all-time-high surge in 2020. With its record surge, experts predict that it may also cross the $100,000 mark in the near future. Reaching that high a mark could change the face of the crypto-market faster than ever.
Launched in 2009, Bitcoin emerged as a financial pioneer with comparatively lower transaction fees than traditional online payment methods. However, operated by a decentralized authority unlike government-issued currencies, Bitcoin transactions need to be monitored which needs massive computing power. Bitcoins are not considered legal tenders yet. Nevertheless, it gained popularity and triggered the launch of several other cryptocurrencies, popularly known as altcoins.You will find more infographics at Statista
The Massive Surge in 2020
The prime cryptocurrency saw the highest ever surge in 2020. This massive growth is projected as unstable by analysts, but also has a possibility to grow higher in the future. According to the experts, Bitcoins can easily claim their stake against a popular commodity such as gold. This claim was proven somewhat right when Bitcoin witnessed a surge of about 300%. In comparison, the surge of gold was only 30%.
Watch: Here’s why Bitcoin’s 2020 surge is different from its 2017 highs
Bitcoin went through another massive surge thanks to world-famous American entrepreneur Elon Musk. The Tesla, SpaceX, and Neuralink CEO posted a few tweets on bitcoin. His comments on the cryptocurrency, stating them as a “less dumb form of cash”, drove values through the roof. Tesla’s purchase of Bitcoins was followed by a number of other corporations endorsing the cryptocurrency..
According to the experts, Bitcoins can easily claim their stake against a popular commodity such as gold.
Will the Surge Sustain?
Bitcoin has seen a massive surge of as much as 300% in the last year. Though the bitcoin surge is projected to continue in 2021, experts believe a higher surge can be unsustainable. In one of his latest posts, JP Morgan has mentioned this surge of Bitcoin and cryptocurrency. In the note talking about the cryptocurrency, he mentions that though the surge can propagate further in the coming months “pushing the bitcoin price up towards the consensus region of between $50k-$100k”, such surge can be proven unsustainable.
Last month, Bitcoin saw a decline in its price from an all-time high of more than $58,000 per coin even though it finished the month with a surge of 37%.
Bitcoin in Business and Institutions
With an approximate market value of $575 billion, this cryptocurrency will need a surge of $146,000 to match the private-sector investment in gold through bars and coins or exchange-traded funds. But for bitcoin to become as valuable as gold, private institutions need to grow comfortable with the volatility of the crypto assets. Adopting a less volatile format can solve this issue for bitcoins leading the institutions to effectively invest in bitcoins.
Last month, Elon Musk’s Tesla Inc. announced their investment of $1.5 billion in bitcoin. In their statement, they mentioned achieving better flexibility to “diversify and maximize returns” to be the reason for their bitcoin investment. They also revealed their willingness to accept any payments made through bitcoins in the future as a payment method for their products. This investment has resulted in a higher surge in the price of this cryptocurrency.