Let’s start by saying that there are the same chances of BTC reaching 10000$ as they are of reaching 30000$ in 2021. This is besides the point. The goal of this story is to try and envision the reasons BTC could reach such heights in 2021.
The fact is 22% of total US Dollars supply was printed in 2020 by the Federal Reserve. While some economists consider this will not trigger inflation, in the long term the result seems inevitable. You can’t print money forever to solve any problem you have, is that simple. It’s enough to read a bit about such events in order to understand that the past keeps repeating itself and such policies have eventually ended in similar ways. In the 1960s several years of 10% to 20% inflation took place in both France and the UK. That is enough to reduce your capital by 50% and that’s the optimistic version of it.
Maybe past inflation is not something people believe will repeat itself. Sure, it’s hard to accept such events. In that case the best recent examples of hyperinflation are provided by Venezuela and Zimbabwe where the inflation of the last 10 years made the money actually worthless. US is not in the same position some economists will say. Keep printing money and the world will find out.
Another bullish reason for a BTC at 30000$ is the fixed supply and the reality that currently it represents only around 2.5% of the gold market cap. If this digital gold continues on this path a 5% proportional value seems in the immediate reach.
The institutional investors already involved in BTC have already passed the accumulation phase. The road now is clearly defined by the advancement phase. Investing now seems very foolish considering the distribution phase can start at any moment.
There is one more pivotal moment that it’s worth mentioning. After BTC passes the certain psychological level of 19000$ and can resist for a few days on such levels the road to 30000$ has practically no resistance. The general public has not yet started to invest and usually they are the last to get in.
Bitcoin at 30000$ could be the reality of 2021.
‘The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.’