More Analysts Expect Breakout Performance for Bitcoin in 2020Ryan Tucker
With more and more Bitcoin investment options opening up all the time, and with interest in cryptocurrencies continuing to grow each month, it looks like 2020 could be a breakout year for Bitcoin and other cryptocurrencies. A recent cryptocurrency report published by Bloomberg sets out a bullish case for Bitcoin in 2020, as unease in stock markets could send Bitcoin soaring.
We saw how Bitcoin acted just like gold in response to tensions between the US and Iran. Bitcoin really is digital gold, and if it continues to act like that then it could end up moving upward along with gold once stock markets retreat from their highs. With all indicators showing that recent stock market gains have largely been fueled by the Federal Reserve’s balance sheet increase, those gains won’t last forever. And when the money creation stops, stock markets will come crashing back to earth.
That’s where Bitcoin comes in as digital gold, a useful and necessary alternative investment for those looking to hedge their exposure to conventional financial assets such as stocks and bonds. The advantage of Bitcoin and many other cryptocurrencies is that their supply is limited. There will only ever be 21 million bitcoins in existence, which reassures investors worried about continued devaluation of the dollar.
Because fiat currencies and central banks face no such limits on money creation, the prices of all financial investment assets such as stocks and bonds will move wildly depending on the effects of new money and credit being created. That instability and volatility may be loved by Wall Street, which loves to make its money based on price changes and price differentials, but individual investors want to see their investments go up in value, not swing wildly all over the place. And while Bitcoin may have gotten a rap in the past for being volatile, those days are long gone. Now the only way for Bitcoin is up.