Bitcoin is a cryptocurrency developed by Satoshi Nakamoto in 2009, named after the unknown creator of this virtual currency. Transactions are recorded on the blockchain, which reflects the transaction history for each company and can be used to prove ownership.
Bitcoin has long been seen as “digital gold” because it is a limited asset that cannot be easily expanded to meet the changing demand for the yellow metal. With the incidence of the event decreasing later this year in 2020, block rewards will be reduced from 12.5 to 6.25 BTC, should demand increase as demand increases.
Bitcoin supply is expected to grow by about 3 percent by 2020, reaching an all-time low. Black Reward is part of the reason for that. Although bitcoin is about 9 years old, there are still very early days. If more countries start controlling it, like Japan, there is a good chance it will increase its price by 2020. As the bitcoin price movement changes continuously, it is expected that the price will bitcoin will rise tremendously in 2020.
Price Prediction of Bitcoins in 2020 by Experts:
- i) McAfee
McAfee is best known in the cryptocurrency industry because he is a very crazy value on Twitter. McAfee stated that his assessment was based on his valuation model, however, no one knew what it was. Since then it has been revealed that crypto projects will pay him more than $ 100,000.
- ii) Tom Lee
Lee works for cryptocurrency research firm Fundstrat and is known for discussing bitcoin price performance. Lee predicts that the price of bitcoin will be $ 91,000 as it moves forward to 2020.
iii) Osato Avon-Nomayo
The next Bitcoin price estimate is 2020, performed by bitcoin analyst Osato Avon-Nomayo. This estimate will reduce the bitcoin mining reward from 12.5 BTC to 6.25 BTC by 2020.
- iv) Fran Stranger
In his Bitcoin forecast, Franz Strazner believes that by 2020, its price will reach a new high, 000 200,000
Factors that Affecting the Worth of Bitcoins:
- i) Supply and demand
Countries without fixed foreign exchange rates may partially control how much their currency is adjusted by adjusting the discount rate, changing reserve requirements, or engaging in open market operations. With these options, the central bank will affect the currency exchange rate.
- ii) Cost to make
Although bitcoins are virtual, they still affect the actual cost of production with manufactured products and electricity. Bitcoin mining, as stated, relies on a complex cryptographic math problem, which everyone competes to solve. In fact, the market value of bitcoin is closely related to the marginal cost of production.
iii) Availability in currency exchanges
The more popular the conversion, the easier it will be for additional participants to create a network effect. The existence of bitcoin in these exchanges reflects the level of regulatory compliance, regardless of the legal graph area in which the cryptocurrency operates.
- iv) User adoption
One factor that affects the price of bitcoin is the receipt of consumer property. Bitcoin is being adopted by individuals, governments, institutional investors. and multinationals, so it is clear that value is pushing to new heights.
- v) Cryptocurrency terms
Another factor that affects the price of bitcoin is the cryptocurrency rule. As the cryptocurrency industry has experienced rapid acceleration, regulatory bodies have begun to focus more on the industry. Governments now focus on money laundering, terrorism financing, and other criminal activities that can be linked to cryptocurrency.
Price Outlook of Bitcoin in 2020
Although bitcoin has gained more than 20% since the beginning of the year, this discontinuity may be different from its predecessor, given the volatile and uncertain economic environment.
Another factor behind the bitcoin price is the coming of bitcoin due to geopolitical tensions and the uncertain global economy in May, which takes place every four years and is a black reward for half the miners.
Bitcoin halving is a phenomenon where the reward for digging up new blocks is halved, meaning miners receive 50% fewer bitcoins to validate transactions. Of every 210,000 blocks, bitcoin halting happens every four years. The obvious effect of the discontinuation is that the amount of newly minted bitcoins per day drops from about 1,800 to 900 bitcoins and the miners’ daily income is halved.
This decrease in the bitcoin creation rate strengthens supply and some arguments will lead to faster market and bitcoin price increases.
Historically, every bitcoin holding has led to a bitcoin bull market, and many in the industry are confident that this year’s stagnation will have the same effect.
When considering the future value of cryptocurrency, it is always advisable to look at real-world events. This may include improved technology, future roadmap goals, new partnerships, or regulations. Bitcoin should surpass most crypto assets in 2020 as a unique and appreciated digital version of gold. Bitcoin wins the receiving race, especially as a repository of value in an environment that favors independent crypto-currencies.