Cryptocurrency is hugely impacted by the geopolitical issues and the financial crisis of society. There are some examples that you can see in the past like the financial crisis of the year 2007-2008. The trends happening in the bitcoin crypto world had a lot to do with several factors. These factors can not be ignored because they are the deciding factor behind the increasing and decreasing rates of the bitcoin cryptocurrency.
Bitcoin cryptocurrency works in an encrypted fashion where one person holds a bitcoin. The bitcoin is stored in a digital wallet that is called the bitcoin blockchain wallet. The bitcoin wallet has a public and a private key and is only approachable by its owner.
As we all know that the year 2020 has been a surprise for us all. The whole world goes under a lockdown situation shutting down all the business industries of the world. People lost a lot of things this year.
Bitcoin cryptocurrency has reached a huge level of price by the end of the year 2020 that was around 23,000 us dollars. This increase in the price of the bitcoin cryptocurrency is a result of several factors that are created by the COVID-19.
If you look back at the start of the year 2020, especially in March you can see that at that time the price of the bitcoin cryptocurrency is around 4000 US dollars. As the year had passed it bought a very surprising change in the price of the bitcoin cryptocurrency. A jump of price from 4000 us dollars to 23,000 us dollars.
Even if you are not using the platform of the bitcoin currency you may be interested in knowing all the factors that are going to change the bitcoin cryptocurrency concerning the influence it took from the whole situation of the pandemic of the year 2020.
Future of The bitcoin
Although bitcoin is quite unstable and the price of the bitcoin currency always gets low and high in a very unpredictable fashion. But if you talk about the year 2020 you can see that the rates and the values of the bitcoin cryptocurrencies kept on going up in the past year. That is the reason why the price of the bitcoin cryptocurrency is expected to come down as the year 2021 is starting. The following are some of the most obvious and noticeable things that are expected to influence the bitcoin cryptocurrency fate in the year 2021.
In the past it was seen that people were not very much interested in the Bitcoin cryptocurrency because of their trust issues but as time is passing people have started showing more and more interest in digital currency including Bitcoin. Bitcoin to currency is supposed to be a part of mainstream up to a great extent testing in the year 2021. This can be the influence of a tremendous change in the business and trading strategy that happened in the year 2020 because of striking evolution bought by covid-19 endemic. It was seen that big companies like pay fall have now a lot of their customer to do they are dealing with Paints and selling Bitcoin. This acceptance of Bitcoin by companies like Paypal is a big thing and it is being said that this will bring you change to the table of the digital market.
Critics and analysts throughout the world are also hoping that in the coming future the United States for European banks will also hello their uses to hold or trees bitcoins or other cryptocurrencies using the platforms.
Competing Central Banks
As time is progressing people are expecting that all the major Central banks will start introducing their virtual currencies. This is not only a theory as the bank for international settlements issued a report in which they mentioned that in 2021 80% of the central banks will provide their users with the facility of digital currencies.
This type has already been taken by several countries on experimental trials, for example, China has taken the concept of digital currency to two practical levels.
Recently they have arranged the lottery in which around a hundred thousand people participated. Then asked them to link their digital currencies with their bank accounts and said that they should use this digital cash within days. This was an amazing idea as it made people realize the importance of digital currency. To know in more detail go visit bitcoin-code.
New Regulatory Policies
As we know that the political environment greatly impacts the trend of cryptocurrency and the digital market. This is the reason why people are saying that the president a bi will prefer the use of cryptocurrencies and will take some productive steps to make it better.
Critics are saying that Joe Biden will be good for cryptocurrency and the digital market. Although this is a good step you should keep in mind that the involvement of the government and Central banks will affect the autonomy and dependency of the Bitcoin cryptocurrency. One of the most amazing things about Bitcoin cryptocurrency is its non centralization. The involvement of the government and other major banks will affect the autonomy of Bitcoin cryptocurrency.
As we all know that bitcoin is very elusive in nature and no one can predict anything about their rates. This nature of bitcoin will remain the same even in the coming years. As the bitcoin cryptocurrency has nothing to do with the trends of the physical market thus it takes no influence from the factors affecting the local currency.
Bitcoin has a long way to go. But we should know that if the bitcoin cryptocurrency or other digital currencies gets the involvement of the government and local banks it is expected that this will affect the nature and the working of the bitcoin cryptocurrency network. It is also expected that by the end of the year 2021 the bitcoin will reach around 50,000 us dollars. However, this is just a prediction and predictions can be wrong.