- Analysts believe Bitcoin’s value will surge in 2020, owing to the fixed supply and increasing demand.
- They added that as gold’s price matures in 2020, so should the “digital version of the metal.”
Given its fixed supply and increasing adoption, Bitcoin is expected to soar in 2020, according to a report by Bloomberg’s analysts. However, they believe that the competition between Bitcoin and other cryptocurrencies will remain the same, which generally results in growth and innovation.
The experts believe that due to various reasons, Bitcoin’s value will probably reach the 2019 high of $14,000. Bitcoin spiked by 23% this year following political turmoil between the US and Iran. The estimated rise in the supply of Bitcoin this year is projected at 2.5%, which is expected to drop to less than 2% in 2021. The analysts added that as gold’s price matures in 2020, so should the “digital version of the metal.”
The report stated:
Our takeaway is straightforward: Bitcoin is winning the adoption race, notably as a store-of-value in an environment that favors independent quasi-currencies. […] Bitcoin should again outshine most crypto assets in 2020 as the unique and appreciating digital version of gold.
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