The strong 2020 Bitcoin will bring in 2021
- 2020 What a year.
- This is good for Bitcoin
- Enter the organizational climate
2020 is unforgettable, especially for Bitcoin. We ask our stakeholder network to look at Bitcoin price trends, technology development, community growth, and more in 2020 and think about what all of this might mean for 2021.
2020 What a year
Bitcoin 2020 starts off with optimism. After two years of quiet decline, with prices stabilizing, Lightning Network and Taproot have made visible technological advances, and we are looking to "halve" in May. We hope this event is a prelude to yet another bullish wave given the strong performance of the global economy, which indicates that we are only having a good time.
The rocket works on fuel, so when does the moon come? However, 2020 is a year that barely passes according to plan, everyone's lives have been destroyed by the unexpected arrival of a new virus from China, and with the rapid spread of the virus around the world, the government has caused a devastating economic response.
We are now at the end of 2020, and the death toll from the emerging coronavirus and the growing economic disaster is increasing. Despite all the pains and fears, there is still hope and faith that enables us to recover and rebuild. There is a chance it gets messy.
This is good for Bitcoin.
Bitcoin is no stranger to economic turmoil. After the 2008 financial crisis, Satoshi Nakamoto immortalized it in the original block of Bitcoin, and then it was born into the chaos of 2009. It looks like 2020 will witness the dawn of another financial crisis. However, this time, Bitcoin is ready.
In addition to the massive impact of COVID-19 on healthcare and medical care, the associated global financial and economic mess also created the perfect storm for Bitcoin's boom: Bitcoin supply halved in May Financial relief work for COVID-19 and global quantitative easing of stimulants (go brrr ...) Spread of golden digital novels Kill physical currency (COVID-19 concerns = don't touch / credit card / only for digital payment)
This storm of events appears to have attracted the attention of large sums of money. As the desire to protect wealth in turbulent times drives a new round of large institutional investors and realizes that Bitcoin has evolved into a viable alternative to gold or bonds, the narrative of Bitcoin's "store of value" has suddenly become the central focus.
Every new public statement of a traditional big investor buying Bitcoin contributed to this claim, which in turn attracted more attention. In stark contrast to the 2016/2017 bullish trend driven mainly by retail speculation, it appears that we are now ready to start a new bullish race, mainly driven by institutional investors.
In addition to price speculation, Bitcoin is developing into a currency. When we look back in 2020, we might think of it as the year Bitcoin really began to be viewed as a store of value more broadly. Remember the money evolution theory, which states that to make things become money; they go through the following stages:
2. Store the value
3. A means of communication
4. Unit of account
The year 2020 has brought us an unprecedented level of unnecessary chaos. But the bright side maybe that it is attracting more attention to the importance of a sound currency, which in turn has accelerated the development of Bitcoin as a currency, converting it from a “collectible” to a “store of value” in the minds of institutional investors.
With the end of 2020 entering the year 2021, the current trend of downside economic health may continue, and Bitcoin gears up to gain more and more global wealth as a true asset and global value. The more powerful Bitcoin as a store of value, the more likely it is that you will one day become a medium of exchange, and then an accounting unit.
Enter the organizational climate
But it is not easy. With the increasing interest from institutional investors, it has attracted the attention of government regulators. We need to prepare for a new wave of negative consequences, which will become more prominent and people accept as a store of value. For Bitcoin, the long-term future looks bright, but it looks like the near-term path may be full of pitfalls.