Have you wondered what the future of Bitcoin looks like? How about the price of Bitcoin?
Well, we can’t answer what the price of Bitcoin will be in 7 months. However, we can offer some very educated guesses based on what we know about how Bitcoin operates.
The Future of Cryptocurrency (Bitcoin) Looks Great
First of all, the future of cryptocurrency looks great. As most cryptocurrency enthusiasts know, cryptocurrency can be equated with Bitcoin.
The price of Bitcoin rises whenever cryptocurrency has any good news surrounding it. That aspect of Bitcoin does not appear to be going away anytime soon.
With that in mind, here are some of our reasons that we think the price of Bitcoin could greatly increase in the next seven months.
Decentralized Finance (DeFi) will be the next big thing in cryptocurrency. Basically, decentralized finance is attempting to replace conventional finance with finance that operates in a decentralized manner.
This means no banks, clearinghouses, or any other middlemen.
Everything operates on smart contracts on the Ethereum network.
Now, you might think this will cause the price of Bitcoin to drop. But as we saw in 2017, the price of Bitcoin rose rapidly in large part because of Ethereum and the initial coin offering (ICO).
Experts expect a similar trend to happen with Bitcoin when, not if, the DeFi bull run occurs sometime in 2021.
Last Cryptocurrency Bull Run Was 3 Years Ago
The last cryptocurrency bull run was in 2017, which might sound like a long time. However, in terms of Bitcoin it may as well be an eternity.
What we’re trying to say is that Bitcoin operates in very short bubbles – the price will stagnate for a year or two, but it always comes back.
This pattern has been blatant ever since Bitcoin’s inception. There’s no reason to think it will stop anytime soon.
With that in mind, it’s due for another increase in the future. It’s simply unreasonable to think the price will stay in a depressed state forever.
Online Transactions Keep Increasing
Online transactions have increased since Bitcoin was founded in 2011. Obviously, most of those transactions have been done with credit cards. However, Bitcoin has been taking up an increasing share of online transactions.
The reasons are obvious – there are very low transaction fees with Bitcoin and it can be used across borders without any issues. It’s also much faster than traditional finance.
The Future Of The US Dollar Is Increasingly Questionable
Bitcoin was originally founded after the Great Recession because the viability of the US Dollar was questioned. People were also annoyed that major banks received a bailout and they did not receive a bailout.
The US Dollar has recovered since then. But an increasing amount of people question the viability of fractional reserve banking.
Bitcoin, and cryptocurrency in general, offers a solution to fractional reserve banking.
Major Bank Hacks
There have been numerous hacks of online banking and credit institutions. Experian, Bank of America, Target, and Wells Fargo have all been hacked over the past decade.
The combined losses from those hacks total in the billions.
Bitcoin, on the other hand, has not had any hacks of the blockchain. Sure, some exchanges have been hacked, but that is a financial institution similar to a bank.
The Bitcoin blockchain has never been hacked. And it will likely never be hacked due to the strong encryption that it employs.
What will the price of Bitcoin be in 7 months?
With all the previous points in mind, we believe that the price of Bitcoin will be higher in 7 months than it is today.
That’s a bold statement because the price of Bitcoin is already somewhat high at approximately $13,000.
The reason we are so confident that the price of Bitcoin will increase pertains mostly to DeFi.
The next bull market in cryptocurrency will almost certainly come on the back of DeFi. All the speculation that fueled the ICO bubble has finally come to fruition with DeFi.
Basically, the results that companies promised when they launched their ICO are finally starting to materialize.
Is now a good time to buy Bitcoin?
Yes, the bull run on Bitcoin is still in its early stages. The price has increased a little bit, but there is still plenty more for an increase.
Remember, Bitcoin peaked at about $20,000USD/1BTC at the end of 2017. And the next peak will likely be even higher than that.
Will altcoins also increase in price?
Yes, some altcoins will increase during the next cryptocurrency bull run. Most of the ones that involve DeFi, such as LINK, will increase.
The other top cryptocurrencies like Ethereum, Litecoin, and Bitcoin Cash will probably increase as well. Of course, a few of the lesser known altcoins will probably fail due to the increased demand, but that’s normal in the free-for-all cryptocurrency market.
Will blockchain bloat be a problem for Bitcoin in the future?
Blockchain bloat might be a problem for Bitcoin in the future. However, it will be in the distant future and solutions to blockchain bloat are already being worked out at the moment.
All things considered, we wouldn’t worry too much about blockchain bloat. The problem is far enough away that a solution will be found to the problem before it becomes a problem.
That covers it for our price prediction of Bitcoin in the next 7 months to one year.
Overall, the future for Bitcoin looks bright. We obviously don’t have a crystal ball to see into the future, but everything about cryptocurrency looks positive at the moment.
To further add to that, the future of traditional finance looks bleak. People are simply too annoyed with the fees, slow transaction times, and other problems that arise with traditional finance.
Cryptocurrency offers a viable solution to that problem. The price will increase as more people use cryptocurrency for their day-to-day transactions. And more people are using cryptocurrency everyday.