Specifically speaking, Bitcoin has shown more upward trend than downward with few periods of stagnation in-between. Bitcoin technology has registered a CAGR growth figure of 8.3% over the forecast period of 2021-2026. These trends and figure is greatly dependent on events such as the governmental policy put in place to regulate digital assets, the effects of the Corona virus pandemic, the continuous digitalization of the payment industry, and finally the growing dissemination and awareness of the utility behind each cryptocurrency.
The continuous accent of bitcoin to one hundred thousand or beyond by the end of 2021 will depend on several factors as aforementioned. For starters, it is majorly hinged on continuous digitalization of money while incorporating bitcoin as a payment system. For instance, major business are now accepting Bitcoin as their payment method while major players in the financial market have been investing in Bitcoin to diversify their portfolio.
Next is the reversal or quell of talks from governmental entities about regulating Bitcoin transactions, trades or banning cryptocurrencies entirely. For instance, In India a law banning cryptocurrencies is in the works. Officials have said that the law will fine and criminalize possession, mining , issuance, trading, and transferring of crypto-assets. While In China, The People’s Bank of China(PBOC) has issued a statement stating that it would block access to all domestic and foreign cryptocurrency exchange and ICO website but will not penalize possession. While in Nigeria, the most populous country in Africa and the biggest economy. The Central Bank Of Nigeria (CBN) in early February has issued a warning to banks and financial institutions that facilitating cryptocurrency trades are prohibited, the issue is still currently being debated. Essentially, if the ban or regulations from these three countries can be reversed or loosened, Bitcoin will see a dramatic surge to 100K and beyond.
The next factor is the continual demystification and de-risking of cryptocurrency as an investment to the general public. That is, the more comfortable and knowledgeable the average person feels about its utility or value behind cryptocurrency, the faster the upward growth for all cryptocurrencies especially Bitcoin.
The last and final factor that is impacting the growth of Bitcoin is the Corona virus pandemic. The pandemic is playing a big role in that it created a large sense of uncertainty. Consumer were less likely to take risk with their finances due to instability in their jobs and their income. Most consumer are not able to earn as well as they were earning prior to the pandemic hence investing in a risky asset such as cryptocurrency is far from their thoughts and perhaps unreasonable in their current financial aspirations.
In summary, since the beginning of 2021, Bitcoin has seen more upward trajectory than downward. however, the continuation of the Upward trend depends on factors such control of the current Corona virus pandemic, faster rate of adoption by banks and financial institutes, reverse or quell of prohibitory policies and faster dissemination of information about cryptocurrency to the public. Once these barriers and factors are rectified, Bitcoin will undoubtedly break the 100K mark before the end 2021.