Bitcoin has endured a rather dramatic fall over the past few months, but for many analysts, the world’s number one digital currency by market cap is not entirely down for the count yet.
Bitcoin May Be Getting Ready to Make Its Triumphant Return
Bitcoin hit a new all-time high of roughly $64,000 per unit by mid-April of 2021. The currency seemed unstoppable until suddenly, it began experiencing a rough period of heavy drops that about two months later, brought its value down to about half. The currency is now down by more than 50 percent and trading for just over $30,000.
In addition, other aspects of the financial market are not doing particularly well either. The world of fiat currency has seemingly taken a nasty dip, with the U.S. dollar and other forms of national currencies experiencing inflation like they never have before. Governments around the world are overprinting money like crazy, and thus many of these currencies are losing value.
But for some analysts, things are not as bad as they seem. In fact, they believe bitcoin will likely strike a new high of about $66,000 per unit towards the end of the year. They are also confident that bitcoin is going to overtake USD at some point.
One of the individuals thinking in this direction is Joseph Raczynski, a futurist and technologist with Thomson Reuters. In a recent interview, he stated:
Some countries will leverage bitcoin as their primary currency of choice. With fixed circulation, ease of transfer, it will serve them well to move to a ‘bankless’ model inherent in this ecosystem.
We are already seeing examples of this in the form of countries such as El Salvador, which recently became the first nation in history to make bitcoin legal tender. While the country is still very dependent on the U.S. dollar, someone can easily walk into a store with bitcoin and use it to purchase items the way they would with fiat. Raczynski thinks it is only a matter of time before other nations follow in El Salvador’s footsteps.
While he and other analysts believe that it is possible for bitcoin to hit its all-time high again before the end of the year, the currency may experience more drops before finally finding an even floor to stretch its legs on. They predict that bitcoin could easily drop to as low as $25,000 per unit before things really start to steady themselves.
Not Everyone Is Convinced
And still, there are others that live in doubt and claim that bitcoin will never accomplish more than what it already has. One of those figures is Lee Smales, an associate professor at the University of Western Australia. He says:
Ultimately, I think bitcoin (and many other cryptocurrency assets) will lose out to central bank digital currencies, many of which will be live by the end of the decade.