2020, nuff said, am I right? Covid, wildfires, mass protests, economic downturn, quantitative easing, etc.. Enough is enough, with 2020 soon to be in our rear view mirrors, let’s look back at the top 3 memorable moments of Crypto in 2020 and give ourselves something to look forward to in 2021.
- Bitcoin (BTC) reaching historic heights
Bitcoin has hit its all time high above $23,000 in December, putting Bitcoin’s gains this year to over 200%. This bull run is wildly accepted to be caused by increased investments from institutional investors. We have witnessed a rise of professional investments into Bitcoin and other cryptocurrencies in 2020. Cryptos are being structured as funds to provide guaranteed returns for investors, cryptos being included in various investment products. Also the entrance of major financial players played a big role. For example. PayPal has provided its massive client base – 26 million merchants the payment gateway for cryptocurrencies and DBS bank has also announced its crypto plans.
- Central Bank Digital Currency (“CBDCs”)
CBDC stands for “central bank digital currency,” it is a novel type of money that some powerful governments are trying to develop and incorporate into their financial systems. CBDC utilises blockchain to revolutionize how governments treat the concept of currency and potentially improving the current financial system resulting in one that is more efficient, even broader and lower costs.
In 2020 we have seen major economic powers trying to push for the launch of their own CBDC, including China. The effects of CBDCs are yet to be seen and we suspect 2021 is going to be a turning point for Central Banks around the world to start innovating in the Crypto space.
- DeFi adoption
Decentralized Finance really picked up its pace in 2020 after its popularization in late 2019. We can now see a lot of exchanges incorporating DeFi in their product offerings. For the uninitiated, DeFi is short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
As exchanges start to roll out their DeFi products globally in different jurisdictions, we can see there is a higher adoption rate and in the long run, we are optimistic to see further adoption as institutional investors continues to put resources into Crypto investments.
With 2020 ending with a Bitcoin bull run, it is reasonable to expect a good start of the year for 2021. However, at Bitprive, we only focus on bringing you a better and more secure marketspace to buy and sell crypto, we do not do price prediction. However, with Bloomberg strategist like Mr. Mike McGlone publicly stating the price of Bitcoin may go up to $170,000 and this is by no means a prediction erring on the high side as there are experts and analysts predicting the price of Bitcoin going to north of $400,000.
Well, without speculating the price of Bitcoin, we expect to see a continued support by institutional investors and a renewed interests from sovereign funds allowing Bitcoin and perhaps Ethereum to continue to grow. Also keep an eye out for the launch of Libra, the crypto of Facebook and also some CBDCs including the digitized Bahamian dollar and Chinese Yuan being ready in 2021.
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About Bitprive (BPVE)
Bitprive is a Blockchain startup focusing on developing a regulated global cryptocurrency OTC marketplace with 180+ popular payment methods in the world.
Verified users can list buy and sell offers on the Bitprive platform for multi-cryptocurrency trading with a wide range of digital and physical payment methods. On top of providing the platform technology and matching services, we also provide the BitEscrow Network where crypto is held in our Bitprive hot wallet before the payment is confirmed. Once the seller confirms payment, Bitprive releases the crypto from the BitEscrow Network to the buyer’s Bitprive wallet.
At Bitprive, we value security and efficacy.