BTC/USD: why the Bitcoin could reach $50,000 (+400%) by 2021

The BITCOIN cryptocurrency reached an all-time high at the very end of 2017, hitting nearyly $20,000. This could be nothing, as many crypto analysts think that the BTC could hit $50,000 within the next 2 years.

From that high, it fell back down to $13,800 a few days later. As of today, BTC/USD stands at exactly $10,163.90, but drastic new highs could be reached according to some experts.

Recently, the crypto pair has evolved in a range between $9,000 and $12,000.

However, according to cryptocurrency experts, it is not inconceivable that a record figure of $50,000 could be reached.

Joe Denne, CEO and founder of Edge Network, said "it is more than likely that a new record for Bitcoin will be hit within the next 1 to 2 years."

"The underlying technology has proven its worth, and the financial mechanism is fundamentally sound; the hash rate (the rate at which a computer completes a Bitcoin transaction) is at a record low; in most cases we have clear regulations and the ecosystem is developing strongly, with new technologies and interfaces constantly improving the market."

"It should also be noted that only a small segment of traders currently holds Bitcoins in his/her portfolio.

This number is on an upswing and easier ways of trading it are becoming more and more available.

The more people who own Bitcoin, the more its value increases. And there is still plenty of room for growth."

What will it take to drive the Bitcoin up to $50K

A combination of the need to attract new investors, the global economic environment and the acceptance of cryptocurrency by traditional financial players.

Simon Peter, an analyst at eToro, says that "the most important factor that will determine whether Bitcoin can reach $50,000 is adoption. Like other new technologies, Bitcoin follows a bell curve of adoption.

"For the time being, it seems that we are in the early adoption phase, with a small number of early-adopters who are heavily involved in its trading. The next crucial step is to involve the general public more. However, a few elements must first be in place for this to happen.

The first is that Bitcoin, and the entire industry, needs a regulatory framework that protects users and gives authorities the confidence to approve certain types of financial instruments, such as Exchange Traded Funds (ETFs) of crypto-currencies, that could attract more institutional players to the market.

The second thing that is technological progress. Today, it is still too slow and too expensive to use BTC as an alternative to other payment systems such as Mastercard.

There is some good news, though. Bitcoin developers are working on technologies such as the Lightning Network, which significantly reduces the time and costs associated with Bitcoin payments".

He adds that "with this new system, transactions will take a few seconds and fees will be far, far lower. This will make Bitcoin more attractive to both consumers and retailers and could lead to much more widespread adoption.

We could soon see the use of Bitcoin to pay for online purchases, in the same way that Skrill has become a preferred payment method on certain shopping platforms.

Lastly, it is already recognised that demand for Bitcoin is increasing in countries where confidence in the local currency is shaken. In theory, greater demand for Bitcoin from economically weak countries could lead to a higher Bitcoin price."

Daily Bitcoin chart