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Cryptocurrency

Cryptocurrency Forecast

We will discuss the cryptocurrency forecast for 2021 and why we think Bitcoin, Ethereum and several other cryptos are important to our financial future. In addition, we will make some price predictions, including a Bitcoin price in the range of $100,000 – $200,000.

Before discussing the cryptocurrency forecast it is important to understand what Bitcoin and other cryptocurrencies are. In addition, we’ll discuss the history of Bitcoin, why it was invented and what makes it valuable. This will help you better understand our Bitcoin price prediction.

What is Bitcoin?

The largest and oldest cryptocurrency, Bitcoin is a Peer-to-Peer Cryptocurrency Payment System

Bitcoin is an open-source, block chain-based technology that was designed as a peer-to-peer payment system. It is designed to be a decentralized electronic payment method that can be conducted semi-anonymously among individuals. It is intended to be a digital cash. The other intent of Bitcoin is to solve the double spend, trust problem that had been encountered in the past with electronic currencies.

Using block chain technology to maintain its functionality, Bitcoin miners contribute to the system. In order for users to send and receive bitcoin, the block chain depends on miners. Moreover, computers are used by miners to complete complex calculations which build blocks on the block chain. As a reward, the miners receive Bitcoin as payment when each block is completed.

Satoshi Nakamoto Issued the Bitcoin White Paper in 2009

In January 2009, Bitcoin was born. It is unknown who invented bitcoin; however, a developer named Satoshi Nakamoto (probably a pseudonym) released a 9-page white paper entitled, “Bitcoin: A Peer-to-Peer Electronic Cash System.” The Bitcoin white paper describes Bitcoin’s purpose and how it works.

Finally, Bitcoin was the first cryptocurrency to experience widespread use and adoption. However, its use case has evolved over the years from a peer-to-peer payment method to a store of value model. Many Bitcoin users hold bitcoin much like you would hold silver or gold in an investment portfolio.

Bitcoin Limited Supply

Only 21 Million Bitcoins Will Ever Be Mined, Making Bitcoin Inflation-proof

There is a limited supply of Bitcoin, which directly effects the Bitcoin price prediction. Only 21 million Bitcoins will ever be mined for circulation. Therefore, by definition, Bitcoin is a deflationary money. This is in stark contrast to how central banks around the world like the Federal Reserve Bank print more money, continuously creating inflation.

Currently there are approximately 18.5 million Bitcoins that have been mined for circulation. In theory, there are only 2.5 million Bitcoin left to mine. This means that 88% of all Bitcoins that will ever be produced are already circulating. When 21 million Bitcoins have been mined at some point in the future, no more coins will be produced and the mining of Bitcoin will cease. In addition, limited supply of Bitcoin is what is so exciting about the prediction of Bitcoin price.

Bitcoin Adoption is Growing Rapidly

There are a couple of things to understand about Bitcoin growth. First, Bitcoin is growing in popularity and use worldwide. Users are adopting Bitcoin as a store of value like gold and using it as a payment method in places where banks don’t exist. Second, Bitcoin is growing in price.

When users began mining Bitcoin on laptops in 2009, it had little value. Yet, today one Bitcoin is equal to $10,000! Around 2020, billions of Dollars of institutional money began to flow into Bitcoin investments.

Examples of Institutional Money Investments in Bitcoin:

There are many other known examples of institutional investors who have begun investing in Bitcoin.  

What is Ethereum?

Ethereum is a Block Chain Project That Uses Smart Contracts to Power Other Projects

This project is an open-source, decentralized block chain project. Ethereum is the creator of smart contracts. It provides open access to money, via the Ether cryptocurrency coin (ETH), and technology, exemplified by the thousands of applications that are operating on the Ethereum network. The ETH coin of Ethereum is second only to bitcoin in market capitalization.

Like Bitcoin, Ethereum is a Proof of Work consensus system. This means that powerful computers all over the world are continuously solving complexed equations in order to build blocks on the Ethereum block chain. Whichever machine or miner solves the problem quickest, completes the block and receives a reward as payment: ETH coin.

Ethereum Smart Contracts

Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Bitcoin was the original decentralized payment system that didn’t require a bank to conduct payments. Although Ethereum is used for payment, its primary purpose is to serve as the core block chain for new projects.

Ethereum is a payment system that integrates ETH. However, it goes one step further by implementing smart contracts. It allows new projects to run on top of the Ethereum block chain. For example, in November 2017 “CryptoKitties” was launched on Ethereum. CryptoKitties was a digital trading app of virtual felines. Ethereum has always been a top 10 cryptocurrency.

You can learn more about Ethereum in our article entitled, The Fastest Growing Cryptocurrency.”

Ethereum Smart Contracts

Using block chain technology, the Ethereum Network of nodes is a true peer-to-peer world-wide network. Smart contracts are implemented using the Ethereum Virtual Machine (EVM), a specialized computer code that executes instructions in a decentralized, secure manner. While running contracts, Ethereum uses its own internal pricing fee, which is paid in Gas (GAS).

How Ethereum is Different from Bitcoin

When Bitcoin was introduced to the world in 2009, it was created to be a decentralized, peer-to-peer payment system. Bitcoin was essentially digital internet cash. Both Ethereum and Bitcoin use block chain technology and a proof of work system. However, Ethereum is used not only as a payment system using Ether (ETH), but it goes one step further by implementing smart contracts and allowing whole new projects to run on top of the Ethereum block chain. For example, in November 2017, the decentralized application (DApps) “CryptoKitties”, a digital collecting and trading app of virtual felines, was launched using Ethereum. Overall, CryptoKitties was a success, but also showed that Ethereum had more growing to do. In addition, these early DApps demonstrated real use cases for Ethereum, which changed the Ethereum price predictions in a big way.

Ethereum 2021 and Beyond

Fast forward to the cryptocurrency scene of 2020. Despite a market collapse store of 2018-2019, Ethereum has continued to grow. There are several hundred thousand developers actively working on the Ethereum block chain and related projects in different capacities. Currently there are over 600 DApps successfully operating on the Ethereum block chain network. And with so many big players involved and future growth assured, Ethereum promises to be exciting to watch in the future. Clearly, each new DApp increases the Ethereum price predictions expected from investors and crypto experts.

Ethereum Doesn’t Compete with Bitcoin

Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Bitcoin was the original decentralized payment system that didn’t require a middleman bank to conduct payments. But, although Ethereum is used for payment sometimes, its primary purpose is to serve as the core block chain on which newer projects operate.

Ethereum Adoption is Growing Rapidly

There are a couple of things to understand about Ethereum price predictions and its growth. First, Ethereum is growing in popularity and use worldwide. It is being rapidly adopted by smart contract users who require it for blockchain projects. Second, Ethereum is growing in price. There are many other known examples of institutional investors who have begun investing in Ethereum. With traditional banking and financial systems beginning to crumble, smart investors are beginning to look for a new, safer place to secure their investment.

Other Cryptocurrencies to Consider

Here are some other cryptocurrencies that are worth looking at more deeply. Although Bitcoin is the most dominant and most secure cryptocurrency, there are many other cryptocurrencies that have strong security and strong use case value. A cryptocurrency investment portfolio may include other cryptocurrencies. In addition, we have included these cryptos in our cryptocurrency forecast because we believe they are leaders in the industry.

Cardano (ADA)

Named after Gerolamo Cardano, a 16th century Italian polymath, the Cardano project began in 2015. It is an open-source software project. Moreover, it innovates the design of cryptocurrency. Cardano has a long-term plan called the Road Map. Cardano’s most notorious feature is its implementation of peer-reviewed research. Research and peer review are a part of project development. It has a $3 Billion market capitalization.

A team of academics, researchers and developers managed Cardano. They focus on solving cryptocurrency problems. Moreover, Cardano doesn’t focus on one use case scenario for cryptocurrency; instead, it appears to be tacking many problems at once, such as currency, proof of stake, smart contracts, scalability, security and even scripting. In addition, Cardano uses the delegated proof-of-stake method to maintain the network functionality. This is different because it is more efficient for electricity consumption. Cardano is definitely one to watch if you are looking for a cryptocurrency to invest in.

Monero (XMR)

Created in 2014 from a fork in the Bitcoin block chain, Monero is a privacy coin. Monero uses what it calls an “obfuscated public ledger” which makes transactions of Monero private. Moreover, Monero is a tested privacy payment method. The project has longevity and a working record of privacy.

Monero gets a bad reputation at times. For example, it has been used on the dark web as an illegal payment method. However, it should be noted that paper currency such as the US Dollar can also be used for illegal purposes. Privacy for legal transactions is an important aspect for money and Monero is the foremost privacy cryptocurrency on the web. Monero is cryptocurrency to invest in for those who love privacy.

Chainlink (LINK)

Developed in 2017, Chainlink is a decentralized network that connects smart contracts with real world data. Furthermore, the Chainlink decentralized oracle network is operated by node operators. In addition, operators that maintain nodes are paid LINK cryptocurrency. The nodes connect the system like links in a chain. Chainlink runs on the Ethereum network and plays a critical role in execution of smart contracts. It is one of the new rising stars of the cryptocurrency revolution and an important cryptocurrency to invest in.

Polkadot (DOT)

Another new rising star in the cryptocurrency space is Polkadot. The Web3 Foundation created Polkadot. Its primary function is to facilitate the operation of block chains together. The DOT coin functions in three ways: staking, bonding and networking. Finally, Polkadot contains special tools like specialization, scale and inoperability which act as catalysts between block chains.

Pros of Owning Cryptocurrency

Owning Cryptocurrencies May Save A Failing System

Owning cryptocurrencies requires that you have a future vision that is radically different than our current banking system. In addition, cryptocurrency and the cryptocurrency forecast are inherently risky and volatile for investors. However, many believe that cryptocurrency investment is a vote for monetary freedom and independence from governments.

Currently, many countries throughout the world are struggling with debt. As sovereign debt climbs higher in the United States, there doesn’t appear to be an effort to keep the financial system from boiling over. In addition, inflation for many people has become a problem and prices are going higher. Many investors are looking for an alternative investment from an overpriced stock market and real estate market. Cryptocurrency may be a safer place to invest and the cryptocurrency forecast is positive at this time.

Cryptocurrency Forecast: Potential Investments for 2021

In early 2021, Bitcoin is trading around $35,000 per coin. There are many analysts who are estimating an even higher cryptocurrency forecast for BTC, even as high as 6-figures in late 2021. But even more importantly, Bitcoin and other cryptocurrency may break the banking chains that imprison us today. And it’s no longer a conspiracy theory to discuss cryptocurrency. Respected investors are taking it seriously like never before and the cryptocurrency forecast is looking bright.

Future Predictions of Bitcoin and Ethereum Prices

Reputable Investors Foresee Exponential Growth in Bitcoin and Ethereum Markets

It seems clear that in 2021, Bitcoin and Ethereum will begin the next phase of expansion and adoption. As a result, the price of both cryptocurrencies will likely go much, much higher. In addition, these may be the best cryptocurrency to buy in 2021. However, there are other good choices as well.

Will Bitcoin Reach $100,000?

Anthony Pompliano: $100,000-$400,000

Anthony “Pomp” Pompliano of Morgan Creek Digital made the Bitcoin price prediction $100,000 in late 2021. Well, there’s not much time left for that to happen, but anything is possible. However, in August 2020 Pompliano doubled down on his Bitcoin price prediction. He’s now predicting $400,000 Bitcoin with an overall market capitalization of $8 Trillion. At this level, Bitcoin would be more valuable than the gold market.

Max Keiser: $220,000 in 2021

Much like Pomp, Max Keiser has also made a very bold Bitcoin price prediction. Max has been in the Bitcoin space for many years and has been bullish for years. In 2018 he correctly predicted that bitcoin would hit $28,000 in 2020. He originally began predicting that Bitcoin would shoot up to $100,000. However, recently he has moved up his prediction to the $400,000 range like Pomp. In fact, on a January 5, 2021 interview on Stansberry Research, Max predicted that Bitcoin will rise to $220,000 in 2021 (this year)!

In February 2020, Max spoke with radio host Alex Jones about Bitcoin. He stated,

“I am officially raising my target for Bitcoin and I first made this prediction when it was $1. I said this could go to $100,000. I’m raising my official target for the first time in eight years. I’m raising it to $400,000.”

-Max Keiser, February 2020

Bitcoin Future Value Predictions – Prediction of Bitcoin Price – 2025 and Beyond

Mike Novogratz: $350,000-$400,000

Former hedge fund manager, Mike Novogratz, has gone on the record several times predicting bitcoin market capitalization. Furthermore, he believes Bitcoin will ultimately surpass the market capitalization of gold and reach approximately $7.5 Trillion. This equates to approximately $400,000 Bitcoin price prediction.

Chamath Palihapitiya: $1,000,000

The founder of Social Capital, Chamath Palihapitiya, has been trading bitcoin since 2012. He allegedly owned approximately 5% of the total volume of Bitcoin in existence at one time. Mr. Palihapitiya made a Bitcoin price prediction of $100,000 in the next few years. He also believes Bitcoin will reach $1,000,000!  

Future Bitcoin Price Prediction

$50,000 – $250,000 Price Range for Bitcoin Based on Gold Market Capitalization

It seems clear that in 2021, Bitcoin will begin its next phase of expansion and adoption. As a result, Bitcoin’s price will likely go much, much higher. We at Piggy Bank Coins believe the future is bright for Bitcoin. We have made a clear case that Bitcoin is a strong store of value, a deflationary asset with limited supply, strong security and a growing network of users.

Historically, Bitcoin price has fluctuated, which hurt its reputation. However, Bitcoin price has stabilized over the past 2 years. As the world economy stumbles through a massive recession and the US Dollar struggles to maintain relevance in a changing world economy, Bitcoin may be the answer.

Future Bitcoin Market Capitalization $1 – $5 Trillion is Reasonable

According to the Visual Capitalist, the world gold market is valued at approximately $10.8 Trillion. Less than half of the value is in jewelry. Therefore, we can assume that gold, the world’s favorite “store of value,” is a $5 Trillion market. Bitcoin, a new “digital store of value” has a market cap value of only $200 Billion (4% of gold’s value). Imagine what Bitcoin will be valued at when it begins to realize its place as the world’s new store of value. A Bitcoin with a market capitalization of $1-$5 Trillion is not beyond reasonable calculation.

A Bitcoin market capitalization of $1-$5 Trillion equates to $50,000 – $250,000 Bitcoin, priced in US Dollars. Pricing Bitcoin in this range does not require much imagination. In addition, we have not factored in price impacts such as US Dollar devaluation/failure, other money supplies moving to Bitcoin (M1, M1, M3, etc.), institutional adoption, and so much more. The Bitcoin sleeping giant has awakened. Are you ready?

Cryptocurrency Forecast for Ethereum: $35,000?

As for Ethereum, investors are optimistic about the cryptocurrency forecast for ETH as well. Because Ethereum’s market capitalization is only $120 Billion, there is a lot of room for growth. Continual adoption of Ethereum by institutional investors could easily lead to a $200-300 Billion market capitalization, equating to a $1,500-2,500 ETH price. Investors such as Nigel Green and Blockfyre co-founder Simon Dedic predicted much higher prices ($2,500 – $9,000) for Ethereum in the future.

Several of the investors mentioned are worth Billions cumulatively and have a clear track record of investing in markets. They have been advising investors of which is the best cryptocurrency to buy for years. As a result, their predictions are very serious.

In January 2018, Ethereum rose above $1,200, which was the all-time high for the token. As of the writing of this article, Ethereum has reached $1,150. With Bitcoin nearing its all-time high of around $39,000, there’s no reason to think that Ethereum can’t do the same in the near future. As a result, the next target for Ethereum is probably $1,800 and it will likely happen in 2021.

Prime XBT: $35,000

In an article written in November 2020 by Prime XBT, Ethereum price is predicted to exceed $750 by the end of 2020, which so far is correct. They go on to predict that Ethereum will likely approach $1,400 in 2021-2022. They subsequently predict a price of $35,000 Ethereum by 2025!

Simon Dedic: $9,000

Another cryptocurrency expert who has been in the space since the early days is Simon Dedic. Simon presented at the first Bitcoin conference and has been a Bitcoin hodler for a very long time. He also wrote the first book related to Bitcoin. Many people have made Ethereum price predictions, but when Simon speaks, smart people listen. He’s on record saying that Ethereum will reach approximately $9,000 someday.

Other Notable Ethereum Price Predictions

James Todaro believe that Ethereum will have a $1 Trillion market cap (this equates to $8,900 Ethereum)

Crypto Research Report predicts that Ethereum will reach almost $3,500 by end of 2025

CoinSwitch predicts that Ethereum will rise to over $1,400 by end of 2020, and move to $3,800 by 2025

Crypto Rating estimates that Ethereum will reach almost $11,000 by end of 2025

PBC Cryptocurrency Forecast: Ethereum Price Predictions

$3,000 – $9,000 Price Range for Ethereum Based on Gold Market Capitalization

It seems clear that in 2021, Ethereum will begin its next phase of expansion and adoption. As a result, Ethereum’s price will likely go much, much higher. We at Piggy Bank Coins believe the future is bright for Ethereum. We have made a clear case that Ethereum is a strong store of value, a deflationary asset with limited supply, strong security and a growing network of users.

Historically, Ethereum price has fluctuated, which hurt its reputation. However, Ethereum price has stabilized over the past 2 years. As the world economy stumbles through a massive recession and the US Dollar struggles to maintain relevance in a changing world economy, Ethereum may be the answer.

Future Ethereum Market Capitalization $350 Billion is Reasonable

According to the Visual Capitalist, the world gold market is valued at approximately $10.8 Trillion. Less than half of the value is in jewelry. Therefore, we can assume that gold, the world’s favorite “store of value,” is a $5 Trillion market. Ethereum has a market cap value of only $120 Billion (1-2% of gold’s value). Imagine what Ethereum will be valued at when it begins to realize its place as the digital silver to Bitcoin as Gold. An Ethereum with a market capitalization of $350 Billion is not beyond reasonable calculation for Ethereum price predictions.

A Ethereum market capitalization of $350 Billion equates to $3,000 Ethereum, priced in US Dollars. Pricing Ethereum in this range does not require much imagination. In addition, we have not factored in price impacts such as US Dollar devaluation/failure, other money supplies moving to Ethereum (M1, M1, M3, etc.), institutional adoption, and so much more. The Ethereum sleeping giant has awakened. Are you ready?

Bitcoin Exchanges and More Information

Hopefully this article has helped you make a better decision about the best cryptocurrency to buy. There are many exchanges that can be used to purchase cryptocurrency. Binance, Gemini, Kraken, Coinbase and so many more. Please do your research if you decide to invest. There are many scams in the crypto industry that are searching for an easy mark. If you want to learn more about Bitcoin and cryptocurrency, there are more articles by Piggy Bank Coins below. Thanks for reading and good luck!

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Disclaimer

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.

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