History is riddled with end-of-the-world predictions. Somehow, the world keeps turning. The folly of forecasting is that, despite our best calculations, fate can forego our predictions. In the case of Bitcoin, nothing is further from the truth. While Bitcoin's price has fallen...for now, the performance of other cryptocurrencies continued to rise.
Welcome fellow Hivians and Lions to our next discussion on finance. Today we'll be covering recent trends on Bitcoin. On January 8, 2021, at approximately 6:00 PST, Bitcoin reached an all-time high of about $42,000 (USD). As of January 17, 2021, at 8:00 PM PST, Bitcoin is currently valued at about $35,000 (USD).
I initially thought that if Bitcoin dropped in price, then all others would follow. Unsurprisingly, I was incorrect in my assessment. We'll discuss what other currencies have changed in the current opposite direction of Bitcoin. Additionally, I'd like to touch on the speculation mentioned in #LeoFinance, specifically the peak price people expect Bitcoin to reach in 2021.
Is Bitcoin in a Bubble?
According to Investopedia, a bubble occurs when the value of a stock, or currency in our case, rises significantly above its intrinsic value. Economist David Rosenberg, speaking on Business Insider holds that many investors feel Bitcoin is in a bubble because they don't understand the supply inflow. Additionally, while there is a cap of 21 million, there's no definitive evidence that Bitcoin production will stop there once it's met. As of December 17, 2020, its market capitalization is $428 Billion.
It's more likely than not that people claim Bitcoin is within a speculative bubble. The "bubble" exists as a result of emotion rather than calculation or other technical analyses.
Does anyone know if some proofs have been presented in the market demonstrating an actual financial bubble?
Bitcoin & Cryptocurrency Trends
While Bitcoin's performance over the last week has dipped, other Defi currencies show marked improvement in their performance. Aava and Maker, as reported by Forbes, have risen significantly in the last week alone.
Polkadot, a cryptocurrency reported to be a rival to Ethereum, has had fantastic progress since August 2020. On August 21, 2020, at 5:20 PM (PST), it was trading for just under $3.00. It currently sits at approximately $17.82 on January 18, 2021, at 12:16 AM (PST). It seems like Polka has just entered a resistance band, so we'll have to see where the future takes us with this currency.
How High Will Bitcoin Get?
I am not currently able to guess this on my own with any degree of accuracy. However, I can certainly report on it. The following predictions for Bitcoin's maximum trading price are listed below. The link for the magazine title I've referenced is also included.
I welcome any additional predictions, with references, to continue to tally them as the year progresses.
- Nasdaq-January 1, 2021: $100,000 in 2021
- Forbes-November 19, 2020: $318,000 by December 2021
The Forbes Magazine article for November 19, 2020, was a surprising prediction. Billy Bambrough, the contributor to the article, wrote it based upon a leaked Citibank report. Unfortunately, these are the most singular forecasted Bitcoin prices I could find for 2021. Perhaps it is too early for anyone else to guess at its maximum trading price or range.
In Closing
Image by Gerd Altmann from Pixabay
Thank you all for joining me on this financial adventure. I welcome, as always, any comments or critiques below.
Your dreams may seem difficult to reach, but if you quit it becomes impossible.