The price of the Bitcoin has been highly volatile. The adoption of Bitcoin is becoming sluggish, and several of them are associating it with scams and criminals. The fiat currency system is expected to be under strain in several years.
Jim Reid, Deutsche Bank strategist, questioned, “The forces that have held the current fiat system together now look fragile and they could unravel in the 2020s.” Reid further stated, “Will fiat currencies survive the policy dilemma that authorities will experience as they try to balance higher yields with record levels of debt.”
Offsetting the global financial crisis is a challenge for the Central Banks. Several unidentified crises are looming on the horizon.
Bitcoin is projected as a digital gold under its scarcity. If governments back the cryptocurrencies, the adoption rates will drive the timeline for mainstream use. If the existing trends continue, there are likely to be 200 million blockchain wallet users by 2030.
Several banks warn that there will be an overhaul in the “status quo” of the Bitcoin and the fiat currency. Of the several predictions made for the year 2020, in the process of policymaking, the Central Banks are likely to step aside normalizing rates. They are further stating that the governments might breach the infrastructure and climate policy-linked spending. This is likely to be a pendulum swing where there will be opposites in politics, monetary, and fiscal policy.
At a point in time this year, the price of the Bitcoin was through an intense downtrend. There was a brief spike to $10,600 around October 26. Several technical analysts predicted a further decline to $5,000 to $6,000 region.
Bearish indicators are lighting up for Bitcoin. The token is not yet on track for a full recovery. If there should be upside movements, the token should reclaim higher price ranges.
The cost of actual mining is set at $7,100 after depreciation, expenses, and net finance expenses per a cryptocurrency researcher. And, further high profile investors state that halving might not have an immediate effect. If halving does not create positive ripples, then Miners would be under extra pressure to take upon efficient infrastructure to decrease their costs.
Based on fundamentals, Bitcoin continues to be very strong, like an increase in the numbers of unique addresses and increased hash rate.
Timothy Peterson, considering the fundamentals, stated that the “2019 bubble” will burst in two weeks. While all this news is doing the rounds, billions in bitcoin are moving.