Bitcoin’s Resilience is Prompting Lofty Projections
When the spread of the coronavirus plunged the world economy into uncertainty, there were questions about how a lot of valuable stocks and assets might perform. At that time, some of the most interesting speculation surrounded Bitcoin — the leading cryptocurrency that some had highlighted previously as a likely stalwart in difficult times.
In April, we speculated as to whether Bitcoin would drop or raise with the coronavirus lingering, and to some extent acknowledged both extremes. We noted that conditions didn’t seem to point to any sort of full-scale crypto collapse in 2020, but also pointed out that some experts believed Bitcoin could drop below $2,000 by the end of the year. Now, however, a few months further into this bizarre and unprecedented year, we have a little bit more data at hand.
What we see is subtle but enduring strength from the world’s leading cryptocurrency. Measuring Bitcoin against the dollar (as it is most commonly measured), Bitcoin is down marginally in the month of June — but still up from where it was when we wrote about it in the middle of April. Its overall trajectory since world economies truly plummeted in early spring is clearly positive, even if the climb has been gradual. This appears to be evidence that BTC has withstood the worst of the pandemic’s consequences. The interesting thing, however, is that despite the price being seemingly capped around $10,000, Bitcoin’s recent resilience appears to be inspiring some lofty projections.
Recently, for instance, the Winklevoss twins (famously associated with the founding of Facebook but now heavily involved in Bitcoin) have been holding fast to their long-term optimism for the cryptocurrency. The twins actually take an active role in attempting to develop the cryptocurrency world, as evidenced by their efforts to expand crypto appeal in the Asia-Pacific region — which is to say they’re actually working to make cryptos’ values increase. They’ve remained optimistic specifically in the face of the coronavirus as well though, recently indicating that they see Bitcoin rallying to $50,000 in time.
The tone of broader expert predictions has also shifted in a positive direction of late. Just last year, some were beginning to believe we’d seen the best Bitcoin had to offer — that it may dwindle in value, or at least that it would never again approach its high of nearly $20,000. Now, however, with Bitcoin having weathered a fairly serious storm, we’re beginning to see some of the same dramatic predictions we grew accustomed to several years ago. For instance, as outlandish as it may seem, some are now suggesting the cryptocurrency could conceivably reach $1 million in value one day.
Of course, these are just predictions, and as is usually the case with cryptocurrency, you can find a negative one to counter any positive. For every analyst who sees a $1 million future for Bitcoin, there’s another who believes the cryptocurrency is running out of steam and will one day be worthless. In the context of 2020 so far though, it’s notable that we’ve seen some of the more optimistic projections resurfacing. It appears that bitcoin’s performance during the time of coronavirus has inspired a degree of confidence.