Bitcoin has struggled in recent months, falling by more than half from its April peak of about $68,000. Yet, the bitcoin price is still substantially higher than before the most recent boom in October when the total crypto market reached a staggering $2.5 trillion before falling to more relaxed numbers.
Now, a panel of cryptocurrency specialists predicts that bitcoin will displace the US dollar as the primary form of global finance by 2050, with expectations for the Bitcoin price cash to recover to over $66,000 by the end of 2021.
Bitcoin Price Status
First Half of 2021
Bitcoin rallied with a solid start to 2021, reaching an all-time high of about $68,000 at the height of the bull market in April. However, the digital coin ended roughly 47% down after closing the first half of the year - and a range of potential issues specific to Bitcoin may lead to more pressure on the market.
Second Half of 2021
According to the majority of panellists (58%) featured in Finder's Bitcoin Price Predictions research, the BTC bull run will persist until the second half of 2021.
The panel of 47 academics and fintech professionals expects that BTC will continue toward a stable trajectory—based on its current position at the $50,000-mark—and will close at $51,951 per coin by the end of next year. Meanwhile, 46% believe now is a good time to buy Bitcoin, 43% believe it’s a good time to hold, and 11% believe it’s a good time to sell.
Bitcoin’s Future
Important Updates
How far will Bitcoin rise? Bitcoin's past can offer some insights, says Kiana Danial, author of "Cryptocurrency Investing for Dummies."
Since 2011, there have been numerous large price surges followed by pullbacks, according to Danial. Meanwhile, others are more optimistic about Bitcoin's short-term growth.
The industry is still in its early stages and is continually evolving. It's tough to forecast where things will go in the long run, but in the coming months, experts will be looking at themes ranging from legislation to institutional use of crypto payments to get a better feel of the market.
Since 2011, there have been numerous large price surges followed by pullbacks, according to Danial. Meanwhile, others are more optimistic about Bitcoin's short-term growth.
The industry is still in its early stages and is continually evolving. It's tough to forecast where things will go in the long run, but in the coming months, experts will be looking at themes ranging from legislation to institutional use of crypto payments to get a better feel of the market.
What Future Updates to Look For
Big Investors will continue to keep on debating between BTC vs ETH. Gradwell (Chief Economist, Chainalysis) says that these two widely known cryptocurrencies are most mature for institutional investors. They’re also strategically relevant in the unpredictable and inflationary age that the market has begun entering.
Bitcoin’s Battles
Because of several restrictions, investors believed that Bitcoin wouldn’t outperform conventional currency in 2018. However, times have changed. Fiat currency is being threatened by BTC.
Bitcoin vs. Fiat: The “Battle of Giants”
The coin has won the heart of mainstream investors due to its potential as a valuable asset that can:
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Accumulate value over time without the involvement of banks and other financial institutions - primarily through a restricted supply, decentralized protocol, and investor interest.
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Remain secure without the help of third parties due to its robust blockchain protocol.
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Retain longevity, as despite having a limited supply, the last BTC isn’t expected to be minted until the next century.
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Some industry experts believe that Bitcoin will overtake fiat currency by 2050 - a phenomenon known as hyperbitcoinization. In this situation, the world would have recognized the value of BTC and is consistently using it to pay for goods and services.
Bitcoin vs Other Coins
The altcoin market has progressed into an entire industry of its own, housing thousands of coins with massive potential to penetrate various markets - from the overarching decentralized finance sphere to accommodating niche use cases.
For instance, unlike traditional cryptocurrency and stablecoins, The People’s Reserve is an anchored coin pegged to the last highest price of gold. This anchor point allows the blockchain’s algorithm to automatically monitor the market’s supply and demand, allowing prices to retain a level of stability that aligns with their reference asset. Unlike Bitcoin, which suffers from slow transaction speeds and expensive gas prices, TPR transactions are significantly cheaper and faster. An accessible 12% annual compounding rate calculated daily also gives app users passive earning opportunities.
Most importantly, TPR addresses a crucial flaw in the Bitcoin ecosystem: its inability to scale up to day-to-day global transactions. TPR changes the game by offering an economy entirely for the people - no middlemen, no high fees, and no instability caused by a volatile market.
COVID Evaluation and Bitcoin Price
While the pandemic caused massive economic shifts across the globe, the cryptocurrency market dodged most of its bullets. In particular, institutional investors sought Bitcoin as a hedge fund to alleviate possible inflation caused by government stipends. This move prompted the exponential market growth and familiarity that led up to the 2021 bull run.
BTC grew from $7,000 in March 2020 to $54,000 in August 2021. Based on this breakthrough, experts think there will be another increase in the Bitcoin price in 2030.
The implications of the pandemic-infused landscape don’t end there. Investors’ fortunes tripled or quadrupled during the bullish market, prompting individuals to become crypto millionaires and billionaires. The number of people that know, accept, and trade Bitcoin increased, turning the coveted cryptocurrency into a household name. As crypto moves toward catering to mainstream interest, the analysts believe that the Bitcoin price in 2040 is expected to further grow upward.
Cryptocurrencies Replacing Cash
Because the cryptocurrency industry is highly experimental and constantly innovating, some observers question whether coins are genuine currencies. While the crypto market boasts a massive market cap of over $2 trillion (with Bitcoin accounting for nearly half), sceptics are still wary about the legitimacy of digital currency and its ability to scale up to worldwide use. On a positive note, supporters believe that more significant changes are about to come in a constantly innovating landscape - and cryptocurrencies are still walking down the road to replace fiat cash in the future:
Pros
There would be several likely outcomes if Bitcoin were to exceed fiat currencies.
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Due to their decentralized and uncontrolled nature, cryptocurrencies can’t be manipulated as easily as conventional currency.
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The concept of a universal basic income may be better matched by cryptocurrency than by cash. Some programs have already initiated this effort, but major wins are yet to come.
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Cryptocurrencies may aid in the elimination of intermediaries in routine transactions.
Cons
Of course, there are also several significant issues and concerns with this scenario:
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If cryptocurrencies outnumber cash in usage, existing currencies will lose value with little alternative.
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If cryptocurrencies completely take over, new infrastructure would be required to allow the world to adapt.
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The change would be inherently challenging since cash may soon become inconsistent, leaving some with lost assets.
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Established financial organizations would very certainly have to adjust their ways.
Bitcoin Replacing Cash
No, not directly to replace the USD. However, the notion of Bitcoin emerged in 2008 as a response to the Great Financial Crisis and the financial world's reliance on banks as middlemen of all financial transactions.
Was Bitcoin Originally Designed to Replace the Dollar?
Satoshi Nakamoto, the founder, constructed the concept of removing banks from financial transactions and developing a peer-to-peer payment system that did not rely on third-party confirmation. It would eliminate banks from interfering with every monetary exchange.
What is Missing in Bitcoin to Replace Cash?
Bitcoin is a definite game-changer that brought to light the negative aspects of financial institutions and the dire need for decentralized finance. As the market’s first and oldest cryptocurrency, it has braved numerous storms and retained relevance for over a decade. That’s why BTC has become a popular asset—it has attracted many institutional and independent investors.
Despite the massive support for Bitcoin, it still isn’t strong enough to replace the USD—or any other currency, for that matter. Its biggest flaw is the lack of stability and scalability. Whereas fiat money is fungible, relatively stable, and is regulated by official bodies, cryptocurrencies need to keep improving their infrastructure to achieve the same level of useability.
Recent Solution
In their most basic form, cryptocurrencies enable people to deal in a completely trustless, transparent, and efficient manner. They eliminate the centralized intermediaries and counterparty risk traditionally involved with digital money transactions.
Thanks to blockchain technology, value in the form of coins may now be exchanged on a global scale in seconds/minutes and at relatively minimal rates. However, Bitcoin, Ethereum (ETH), and many other coins remain too volatile to be utilized as currency, hampering their widespread acceptance.
Stablecoins were created to solve the issue - these coins are backed by a fiat reserve, ensuring a 1:1 match with their pegged asset. While cryptocurrencies are volatile in and of themselves, their underlying technology can be used to construct assets tied to and backed by more stable assets such as fiat currencies, precious metals, and others. These stablecoins are primarily utilized for everyday payments and trade settlements and in helping investors hold cryptocurrency without the risk of volatility.
Certain stablecoins have grown in popularity due to their peg to the US dollar, with USDT having a market value of more than $51 billion and Coinbase-backed USDC having a market capitalization of over $14 billion.
Wall Street, Governments and Bitcoin
Bitcoin promises to be “the first decentralized peer-to-peer payment network operated entirely by its users, with no central authority or middlemen.” The lack of centralized authority is the main reason governments are wary about cryptocurrency.
Governments’ Recent Answers to Bitcoin Adoption
Some governments are concerned that Bitcoin may be used to avoid capital controls, empower money laundering or unlawful purchases - subsequently making the coins unsafe for investors since they lack sufficient regulation, fiscal policy, and other monitoring concerns.
Most governments have also yet to devise a method to tax Bitcoin and other cryptocurrencies, as these coins are extremely difficult to track. On the same note, the inability to track transactions enables illegal transactions to flourish, adding to an already long list of government concerns.
Wall Street: Can BTC Ever Replace Fiat Currencies?
Wall Street is questioning if cryptocurrencies can ever entirely replace the dollar after El Salvador made the brave decision to embrace Bitcoin as legal tender.
According to Julian Sawyer, CEO of Bitstamp, one of the world’s oldest crypto exchanges, the answer is still no.
“There have been a number of folks in the crypto industry who have stated, ‘Oh, crypto is going to be taking over the globe and conventional banking and central banks’,” he said. “Not going to be happening.”
While the technology itself may be utilized more in the back-end plumbing of financial services, such as money transfers across borders, Sawyer believes Bitcoin is still too unpredictable to totally replace the dollar.
Bitcoin Price Prediction 2050
Best Case Scenario
Bitcoin Grows as Digital Gold
This is the most straightforward best-case scenario. Bitcoin keeps doing what it’s doing, more people accept it, and the network’s value rises. Bitcoin would be found in pension funds, sovereign wealth funds, and maybe on government balance sheets. Bitcoin’s market capitalization has surpassed that of gold, and it has been labelled as the best asset class for the past three years - rather than currency, it makes sense for BTC to become a wealth catalyst.
Bitcoin as the Web's Reserve Money
Bitcoin has the potential to become the internet’s natural currency. “When you utilize something with a finite settlement, like Bitcoin, it enables for geographic-agnostic commerce in a digital environment,” explains Anthony Pompliano, also known as “Pomp” in crypto circles. This would provide local merchants with an additional benefit: worldwide clients. Because most retailers are already shifting their focus to a wider global audience, experts believe incorporating cryptocurrency will allow seamless cross-border transactions.
Bitcoin Will Be Used to Purchase a Bowl of Breakfast
Most people feel that before Bitcoin can succeed as a digital currency, it must first succeed as digital gold. That is a requirement. And, indeed, bitcoin is already utilized as a medium of exchange for cross-border payments, remittances and in countries with severely devalued currencies.
Worst Case Scenario
Regulation Will Strangle Bitcoin
Nigeria, China, Turkey, and India are cracking down on bitcoin. What if the rest of the world decides to do the same? It is true that when countries have attempted to ban cryptocurrencies, it has never really taken hold. However, with a unified global regulation—a scenario where world leaders assemble to adopt a unified crypto policy similar to the Paris Climate Agreement, and all agree to smash it down with severe regulations—the result might be disastrous.
Freezing Accounts
Gladstein of the Human Rights Foundation believes that governments would not outlaw cryptocurrency, but he concedes that there is a more “smart approach for governments to battle Bitcoin.” In this scenario, governments refrain from a complete ban in favor of preventing people from accessing the exchanges. It would specifically prevent users from withdrawing their funds, marring their usability outside of the metaverse.
Bitcoin's Impenetrable Network Has Been Breached
The currency has never been hacked. The network is impenetrable. Bitcoin is more secure than your bank. These are popular bitcoin arguments. One of its guiding concepts is security. What if that security is breached?
It might be game over. A Black Swan failure might take several forms, including a 51% attack, a quantum computer attack, or some kind of network problem or failure that we haven't even imagined - what politician Donald Rumsfeld sometimes referred to as the "unknown unknowns."
Final Thoughts
If you’re thinking about buying Bitcoin (BTC), the most important thing to remember is to do your research and become familiar with all of the risks involved. While this digital currency has provided significant gains to its early adopters, there’s no guarantee of future growth.
Suppose cryptocurrencies continue to gain traction in the mainstream and get universal approval from consumers and governments throughout the world. In that case, the situation might bode well for Bitcoin. And, if the Bitcoin blockchain’s scalability difficulties are successfully resolved, there will undoubtedly be room for future expansion - possibly paving the way to global mass adoption.
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