Finance

5 Big Trends of Bitcoin in 2021- Predictions and more

bitcoin

Bitcoin has sparked this year again around 200% since many large and small investors are taking it seriously than ever before. Payment companies like PayPal and Square SQ have implemented various protections to offset security risks related to accepting the asset that has historically endured price volatility and trade fluctuations. The bottom line is that, as a long-term investment, Bitcoin leads the market and makes a good sense for a large number of investors.

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How to buy Bitcoins in India?

There are many ways through which you can buy cryptocurrencies and Bitcoins in India. Websites and Apps are some of the convenient ways where you can buy them whenever you desire. Some of the Apps which deals in crypto sell and purchase are Unocoin, Zebpay and Coinsure which allows users to buy bitcoins via online payment mediums.

To buy bitcoins, you transfer funds from your bank account using RTGS, NEFT or debit/credit cards. The website companies act as a cryptocurrency exchange that makes convenient for the traders to sell and buy Bitcoins easily. Some storage facilities include software wallets, online wallets and hardware wallets.

Investment opportunity presented by Bitcoin

The first users of Bitcoin did not intend to use them as an asset though the involvement of the exchange turned it into one. Traditional experts and investors are well aware of the significance behind Bitcoin as an investment medium. However, it can be noted that in 2018 the price of Bitcoin fell sharply from $18000 in 2017 to $3200 in 2018. It again went over $10,000 in 2019 and in 2020 it was $5,500. Market participants predict that high volatility in Bitcoin price will continue which might require retail investors to be more cautious.

5 big trends of Bitcoin expected in 2021

1. 2021 is the year of stablecoins

As per Blockchain Capital, many stablecoins have been circulated. In 2020, stablecoin surged 500% cementing its reputation as one of the most used payment modes worldwide. Looking forward, it is believed that the value of the dollar will back-up stablecoins and surpass $150 billion.

NFTs will enter on their own

NFT or Non-Fungible tokens developed in 2020 even though the year saw many ups and downs. Some biggest brands worldwide such as top-flight football teams along with makers of Who is offering NFT to many gamers. It is predicted that NFT will take the centre stage in 2021 and become one of the assets accumulated by masses.

2. Continuation of DeFi growth

While last year speculated about governance tokens, the total value of DeFi protocols was resilient. More recently, the user numbers have surged dramatically and are likely to continue in the upcoming months. With new products launch and innovations that hit the market, it is predicted that DeFi will continue to handle the challenges which previously held the Bitcoin sector back because of price data.

3. More regulation

With an upsurge seen in the Bitcoin market, government and central banks will look at this sector with urgency. Though, this will be a good thing as legitimising digital assets will give new and existing entrepreneurs a much-awaited clarity. Simultaneously, punishing restrictions in the market will also be seen particularly the ones who are hostile towards the crypto. In India, rumours continue to rise that the government is about to push an outright ban on Bitcoin trading once again.

4. PayPal will rule the market.

After the payment app launched quietly in the U.S., its new crypto service is going global. Millions of people are now able to acquire digital asset and exchange it with merchants globally with PayPal.

5. Many predictions may go wrong!

Since 2020 ended with a note of caution, many of the predictions made may become false this year too. Some big stories might dominate the crypto industry which has never emerged before. For example, in 2020 many of us were unaware of DeFi. Similarly, 2021 is going to be a rough ride altogether.

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