Posted 1 year ago | by Ben Armstrong
Blockchain Capital: Bitcoin Tops $20,000 USD in 2020
The recent “State of Crypto” report from Blockchain Capital was unabashedly bullish. The report touches on a number of issues that could move markets over the next few years, and in addition to pointing out how far cryptos have come over the last few years, Blockchain Capital is calling for Bitcoin prices to push past $20,000 USD in 2020.
According to sources that have read the report (there is no easily accessible PDF) Blockchain Capital sees adoption rates flying, and the use of DrFi (Decentralized Finance) systems exploding in popularity. These themes may help cryptos to continue to march higher, although there will have to be some serious buying to keep token prices higher on a sustained basis.
The Bull Case for Bitcoin
It isn't difficult to see how a major dislocation in the established financial system would be a catalyst for a big move higher in crypto prices. Something similar happened during and after the financial crisis of 2008 in the gold market, where gold sold off as liquidity drained from the financial system, only to fly higher when central banks unleashed a torrent of liquidity.
In the world of cryptos, represented by Bitcoin, the move higher after another crisis may be even more extreme. As many commentators have pointed out, central banks are basically out of options, and the next serious crisis will put them in a very precarious position.
Calling for Bitcoin prices to return to record high territory probably isn't as daring as it may seem, if there is a loss of faith in the Western financial system. We have already seen the Chinese government and Central Bank fast-track a project that would create a fully digital Chinese currency, and there may be more going on behind the scenes than we realize.
Is Bitcoin a Long-Term Winner?
The real Bitcoin question may be one of long-term viability, and not one of medium-term price action.
Bitcoin was the first token, but it isn't necessarily the best suited for global savings and trade. This may or may not impact the price of Bitcoin as time goes on, but it will almost certainly make a dent in Bitcoin's usage rates.
If there is another token that is faster to use, and isn't as expensive (the price of using BTC is going up too), people who only care about trading with tokens, and not price appreciation, may wonder why Bitcoin is worth the extra time and trouble, and just use something else.