Previously, no one has been able to predict the future for Bitcoin; indeed not many investors would have guessed that it would reach the heights it has. 2020 saw Bitcoin reach some record-breaking numbers, smashing the previous records it held for 2017. 2021 has seen an increasing rise in the value of Cryptocurrency, but does that mean it is set to continue? Let’s look at the past of Bitcoin & what the future might hold.
What Are The Experts Saying?
With any investment opportunities, you’ll get mixed results when you speak to people in the know. With something as forward-thinking and versatile as Bitcoin, people have even stronger views on how it will do in the future. If you speak to people in the investment industry, some of them will tell you it is a complete no go and others will tell you that you’re missing out by not investing every single spare penny you have. So, who’s right?
Well, truth be told, cryptocurrency isn’t an exact science so no one can say for sure. However, if you look at the facts the popularity of Bitcoin is certainly on the increase. For starters, the media have had heavy coverage of the virtual currency and how much it has risen in the past – and no one wants to miss out! With people wanting a piece of the pie, the chances are people who have maybe only dabbled in little investments previously will be considering Bitcoin as their next opportunity.
The fact that brands such as Starbucks, lots of internet cafes and plenty of online retailers are adopting Bitcoin as a legitimate way to pay for their services will certainly help the popularity of Bitcoin – you can even place a crypto sportsbet if you want! The accessibility of Bitcoin, in terms of both investing and spending, has improved massively and this is something that will certainly encourage people to pay attention to Bitcoin.
Will It Be As Successful in 2021?
The world changed in 2020 and we’re all still working out what that means for many industries. However, this change has plenty of people considering their place in life and new investment opportunities. The chances are that Bitcoin will continue to be as successful as it has been in previous years – if not more so! It would only take a massive international retailer such as eBay or Amazon to accept it as a way of paying for goods and the value of Bitcoin would shoot up massively!
What Could Stop It Being Successful?
At the moment, Bitcoin is allowed to take place & to be traded. If any Government was to stop this it would undoubtedly affect its value. The chances of this happening are slim and certainly not within the next 12 months.
With Bitcoin being a great place to store your money without any real way to trace it, it remains a viable place to invest your money and this doesn’t show any signs of changing any time soon.
Nigerians increasingly using Bitcoin since CBN’s Crypto ban
A growing number of Nigerians are not giving up on the crypto that has outperformed any Nigerian-based financial asset.
It’s been roughly three months since the Central bank restricted Nigeria’s financial institutions from dealing with anything crypto-related, yet recent data suggests its citizens have increasingly found other alternatives to access the world’s flagship crypto.
Data retrieved from Usefultulips (a Bitcoin analytic data provider) shows that the usage of Bitcoin’s peer to peer trading in Nigeria surged by 27% since the CBN directive took effect about 85 days ago, as Nigerians moved about $103 million worth of Bitcoins on just Paxful and LocalBitcoins channels alone.
Bitcoin recorded gains and its suitability in hedging against inflation, coupled with access to other crypto assets that offer more viable options, seem not to have weakened despite the recent N5/$ rebate scheme introduced by the Central Bank of Nigeria to encourage Nigerians in the diaspora to use official channels to remit their funds instead of doing so through Cryptocurrencies.
The world’s most popular crypto has rallied by almost 500% since its latest bull run began at the start of Q4 2020, hitting record highs of almost $65,000 this month before pulling back to $55,000 at the time of drafting this report amid strong institutional purchases sighted in emerged markets.
Some market analysts argue that Nigeria’s apex bank’s hold on the country’s financial system has further complicated transactional processes in Africa’s largest economy because Bitcoin still relies heavily on fiat currencies despite being virtual, from pricing its value to how its ownership is being ascertained. In spite of this, the growing interest in Bitcoin has not weakened.
Adding credence to Nigeria’s grip on Bitcoin includes data collated from Google trends, printing that Africa’s largest crypto market, emerged as the first amongst other countries by a long-distance over its interest in Bitcoin with a perfect score of 100%.
Nigeria’s relatively young educated population coupled with its growing internet adoption and smartphone penetration has facilitated Bitcoin to thrive exponentially amid rising inflation that has eroded the savings of many Nigerians.
The borderless feature of Bitcoin also makes payment effortless for Nigerians in addition to offering outrageously low transaction fees.
To give context, many Nigerian banks charge 1–2.5%. For a $1 million offshore transfer, bank charges may go up to $10,000, but with the flagship crypto, transfer of such amount would not exceed $300, even at peak periods.
Consequently, a significant number of Nigerians already pay a premium for accessing the crypto market, as data from Binance, the world’s largest crypto exchange by volume, at the time of writing, posted a rate of N607 to 1 USDT with Nigerian banking channels close to the global crypto ecosystem.
A growing number of Nigerians are not giving up on the crypto that has outperformed any Nigerian-based financial asset. They are thus ready to pay a premium to hold on to Crypto irrespective of the Central Bank’s ban.
Paypal’s Venmo now permits cryptocurrency trading
Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Venmo, a mobile payment service owned by PayPal has announced that it has started allowing users to buy, hold and sell cryptocurrencies on its app. Just like PayPal, Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, and users can carry out transactions with as little as $1 on the app
Founded in 2009, Venmo has over 70 million users and it is one of the most popular payment channels in the US. The payment platform processed around $159 billion in payments last year.
Since the app functions like a social network, adding cryptocurrency will offer a more user-friendly feel for people who love buying and selling crypto.
As bigger companies show more interest in cryptocurrency, there will be wider adoption of virtual currencies in future. Venmo is the latest payment app that is offering support for cryptocurrency on its platform.
Paypal, the parent company of Venmo is one of the most active companies in the crypto space as it allows users to buy, sell and hold cryptocurrencies in their digital wallets. Paypal users can also spend their coins at millions of merchants globally.
Crypto on Venmo is enabled through PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.
What they are saying
Darrell Esch, Venmo’s Senior Vice President and general manager said “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”
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