10 reasons why Bitcoin is poised to hit $100,000 in 2021
Scarcity, Acceptance and Financial industry transformation, mean that the world's first Crypto-Currency is set to fly.
January 10, 2021
Finiteness- There are only 21 million coins that are assigned to be mined. Satoshi Nakamoto, the founder of Bitcoin declared that only 21 million coins would ever be mined. This drives up the value of the existing coins and makes the unmined ones ever so priceless.
Scarcity- We live in a fear-based world and increasingly in the Technology and Finance space, a lot of decisions are made based on fear or FOMO (the Fear of Missing out) in particular. This is human psyche at its deepest and will cause a lot of people to buy just for the sake of it and so that they don't miss the boat when it's too late.
Cutting edge Technology –Whether you may or may not be a fan of Bitcoin itself, the Block chain technology, which underwrites Crypto currency is here to stay. Even economists and banks can agree to this and are getting on the bandwagon by issuing their own coins.
The 'Early Bird' Syndrome- sure there are hundreds of Crypto currencies in the market today but only about 10 of them really have a market presence and amongst those Bitcoin leads the way in terms of recognizability and credibility. Yes Etherium, Ripple, Litecoin and others are swiftly catching up, but they still have a long way to go before they overtake Bitcoin. Normally, subsequent products improve upon ones that came first, however in the Crypto space, all these products differ in some way and are not exactly the same.
Acceptance - With countries like Japan now accepting Bitcoin as legal tender, and many other companies like Virgin Galactic etc, Bitcoin has gained a sort of acceptance in the open market. For emerging markets like Zimbabwe, Nigeria and Venezuela that have heavily inflated and untrustworthy currencies, its citizens are now looking at Bitcoin as a possible alternative, which will push the entire global market upwards.
Store of value- For anything to be considered a viable currency, it needs to be accepted as a store of value. Gold is the best example of this. The Cryptopunks out there deem Bitcoin as the new Gold 2.0, because of this. Even if the Crypto currencies are not widely accepted as an official currency, they are more likely to be accepted as a store of value, making it more valuable.
Financial industry transformation- so many unpredictable changes and shifts within the Financial industry makes new technolpgies lile Bitcpin popular and enticing. In a Post-Covid world, people are looking for new ways to send and recieve money.
Decentralized nature- Crypto currency is different than any other currency in that it is not regulated by any Federal governance, giving it an open and independant framework.
Scrupulous intentions- Unfortunately until the world stops resorting to illegal activities such as money laundering, Terrorism funding and tax evasion, the likes of fraudsters will find Bitcoin very enticing. This sort of illegal and immoral activity is not set to be stopping anytime soon, so rest assured technology such as Crypto currency will not stop having a use for them. Experts don't not foresee this sort of illegal activity discontinuing anytime soon, thus reinforcing the appeal of an untraceable platform such like Cryptocurrency.
As an added treat to my readers, I would like to throw in my foresights and interpretations as a professional astrologer which second these logical and technical explanations.
10. It is written in the Stars: whether you are an astrology pundit who swears by the planets or a skeptic, there is no doubt that leading thinkers and seers around the world have predicted major transformations within the global financial industry. There will be a total dismantling of the old corporate and financial structures that no longer serve humanity. We are seeing this already around the world. In the coming years, we can expect many such revolutionaries and an abandonment of the archaic frameworks of the past.
For all these reasons, I predict that Bitcoin will reach 100k value at some point in the near future.
Preity Upala, an author, Journalist and Media personality is an ex- investment banker who worked for South African investment bank Investec. She is also a crypto mining club entrepreneur. She is the director of The Omnia Institite, a Global Think Tank. You may contact her at [email protected]