Cryptocurrencies are a high-risk financial product, that is beyond doubt. Even the best known of all, Bitcoin, does not escape that insecurity. However, by 2020, experts predict an upward exercise in the value of cryptocurrencies in general and especially Bitcoin , especially since it is publicly traded.
The currency created by Satoshi Nakamoto more than a decade ago, has accumulated some increases during the first weeks of the year , after chaining several months in lateral range, specifically since last September 2019.
We can see the evolution of the price of Bitcoin with Bitvavo in recent weeks, to verify that the minimum price in 2020 reached it on January 3, 6,189 euros, while in recent days it has even exceeded 8,000 euros. Currently it does not reach 8,000 but it is above 7,800 euros.
What future awaits Bitcoin?
On January 14, the CME Group launched a new derivative product in addition to its Bitcoin futures, the Bitcoin futures options . These are positioned as an organized tool to operate in the cryptocurrency.
Thus, participants in this market do not need to contribute as much capital as they would need to negotiate Bitcoin futures contracts. In addition, participants can use traditional commercial platforms, independent of encryption exchanges and digital wallets.
The most important thing about this announcement is that one more step will be taken to join Bitcoin to the institutions. Anything that can be traded in the main regulated exchanges that has to do with Bitcoin is understood as something positive, as it gives institutional investors the possibility of participating in the market for this cryptocurrency.
All these steps will probably lead to the introduction of possible Bitcoin ETFs in the short or medium term. ETFs are investment funds that are listed on the stock exchange. Currently, analysts say there are approximately 60% options for an ETF to be approved during 2020.
The introduction of these investment funds is expected to create a huge demand for Bitcoins, which should in turn create a wave of demand from institutional buyers and individual investors.
In this forecast on possible scenarios, it should also be borne in mind that the new reduction of the reward for miners of this cryptocurrency is expected in May 2020 .
This phenomenon, which occurs approximately every four years, keeps investors in a tense wait. The halving , which is known as this situation does generate many operators and miners feel that there will be a greater market volatility.
It is currently estimated that there are about 45 million Blockchain accounts and wallets of people who own Bitcoin and other digital assets. Of that totoal, only about 20 million people own Bitcoin. The current moment of the cryptocurrency, despite the possible halving for spring or mid-year, points to a long-term uptrend.
What potential risks and opportunities does this currency offer?
Like many other cryptocurrencies, the main long-term threat is the introduction of a government regulation that harms or prohibits the distribution of Bitcoin. So far, the governments that are most favorable to cryptocurrencies in general and Bircoin in particular are the US, Japan, the European Union and South Korea.
On the other side of the balance is China , which has this activity between eyebrow and eyebrow and aims to outlaw the use and trade of Bitcoin , but not to park its investment in cryptocurrencies, but to develop its own projects. If other countries follow the example of China, especially the great economic powers, the consequence may be a fall in the price of Bitcoin.
Whatever the near future of this currency, what is certain is that Bitcoin continues to star in news in the economic and general media , as well as trapping the interest of many investors.
Last November we already published in El Confidencial Digital the creation of the first prepaid card for teenagers rechargeable with cryptocurrencies. Designed especially for generation Z, this prepaid VISA card does not require a bank account and can be recharged with cash, with cards, and as a great novelty with Bitcoin and other cryptocurrencies.
The card allows you to make transfers, send money between these cards, withdraw cash from any ATM and recharge the “economic” content of the card through bank accounts, transfers, with other cards, with exchangeable coupons and even converting cryptocurrencies to euros by paying a small commission.
2020 is presented as an exciting year for Bitcoin , but also as a year of instability, because of the halving. The fact that Bitcoin is the main cryptocurrency in the market also indirectly pushes other currencies.