A critical question on everyone’s mind is what will bitcoin be like by the end of 2021. To be more precise, individuals who are investing in digital assets seek to know the price by the end of the year.
For those that are speculating, a move upward would be marvelous. But those that use leverage may notice that a downtrend creates a world of problems. Well, a bitcoin evangelist, and podcast host, Robert Breedlove noted on Kitco that bitcoin will hit over $300,000 in 2021.
That bitcoin prediction is a pleasant sign for many individuals.
Here is what Robert Breedlove had to say on Kitco about bitcoin and digital asset event happenings.
Bitcoin and other Digital Assets Repriced But May Rebound to $300K
Bitcoin, its legitimate peers and then a host of irrelevant tokens have repriced over the past few weeks. It has many people wondering if the party’s over. But the correction isn’t present in digital assets only but in specific high flying stocks as well.
These matters coupled with government crackdowns in China, a few governments (China and Turkey saying it can’t be used for payments) fear, uncertainty and doubt from Elon Musk, and others have added more concerns. Finally, issues like taxation in the United States and the IRS stepping up its efforts to ensure proper taxation has added more worries.
Again, the question is that if this is the start of a deeper correction or if it is a temporary correction before a significant spike upward? At the present moment, it looks as if the steam is being taken out of the market.
But could that reverse?
The Larger Theme in Digital Assets and the Government
Bitcoin, specifically, is a digital asset that was made to be decentralized and to serve as a bastion in a world of crumbling fiat currencies. From government debt growth to other fiscal issues, the fiat world, dollars, euros, yen, and other currencies do not seem appealing.
Bitcoin helps individuals in Argentina, Turkey, and other countries store value in a world where their respective currencies are declining in value. Individuals in these countries feel as if their labor is devalued and their time and work is being stolen from them. They work for their respective currency but then find that it will not purchase as much goods and services as they desire.
Meanwhile, bitcoin continues to rise in value over the past ten years. It has been through the Cyprus crisis and other events and has gone from $0 to its current price over a decade.
One gets chills thinking about the innumerable wealth one could have if one had obtained a few bitcoins when it was in the single digits and held until today. But I digress.
The key question today is, has the world gotten better from an economic standpoint? Have governments all over the world been able to reign in their debt and become fiscally healthy? The simple answer is, no. In fact, many have debased their currencies without providing much value in return to their respective currency holders.
Indeed, the overall fiscal situation seems to be getting worse. It is no wonder why the United States government is now seeking to raise taxes on the wealthy and coordinate a global tax rate to ensure that individuals have minimal incentives to move around to minimize their tax burden. Further, it may seek to impose a mileage tax, and increase property taxes to fund their spending initiatives.
The United States government is spending its way into oblivion and it has to find ways to finance its excessive spending.
In such a world, it makes sense for bitcoin to reach $300,000 or more over the long-term. Bitcoin should represent the free movement of capital and preservation of value in a world of governments that seek to suppress wealth preservation and liberties at every turn.
A Couple of Points on Bitcoin and Governments
If bitcoin’s value derives from the fact that it doesn’t have to deal with authorities and what they say, that does not necessarily hold up anymore. The value comes from supply and demand. Its supply is limited, and its demand keeps increasing. As long as that happens, bitcoin’s price keeps going up. But it is important to note that bitcoin continues to rise with the government’s blessing.
Governments legitimize exchanges by giving them licenses and classifying them in specific ways. Further, as you can now see, Coinbase and other exchanges are now listed publicly. That means that they will have to serve under more scrutiny under the laws of the land.
The main theme that still stands strong for bitcoin is that much like gold, bitcoin has been able to preserve and compound value at a faster rate.
The Government Is Likely to Double the Money Supply Over This Coming Decade
Robert Breedlove notes on Kitco that he expects the money supply to double over the next decade and then double once more. That means that present purchasing power should decline, as such, assets that tie to inflation, bitcoin, should rise.
Other International Currencies Should Collapse Into the Dollar
Breedlove expects other international currencies to converge into the dollar. This is a position supported by other experts at places such as Santiago Capital. As such, Breedlove expects many currencies to hyperinflate over the next decade or around 15 years.
Bitcoin Possess Key Traits of the Best Money
Divisibility, portability, recognizability, finiteness, and other elements that provide it with value.
The bitcoin halving over the past periods would bring bitcoin to new heights over the next 12-18 months. Indeed, if noticed in 2017, bitcoin would start at $1,000 before ending up at $20,000. That’s a significant increase. Conversely, the current increase has only been around or five times its previous price level of around $12,000. Now, the expectation is that at minimum, if it were to follow previous patterns it would hit about $150,000 and at maximum around $300,000.
What about this recent correction?
Well, corrections do happen, we are living in an inflationary environment and in an era of extreme risk and unprecedented times. Further, retail traders are using higher levels of margin, a factor that does not lead to the promised land of great returns. If much more people are taking risk, then the system becomes more fragile. A small breeze in one area can create a domino effect.
Remember that this is a correction, not a cryptocurrency winter as of yet. Why is that the case? Well, watch for dogecoin and other coins to lose a significant portion of its value for it to be a cryptocurrency winter. At the present moment, dogecoin is still holding steady at .33 for no reason whatsoever.
Until dogecoin and other random digital currencies crash all the way to a fraction of a cent or pre-2021 levels, the steam in crypto is still there.
If you are looking to check out other details in the interview, check it out below.
It is a fascinating interview.