Bitcoin Forecast for 2020

Millions of investors around the world are considering investing in the most famous cryptocurrency - Bitcoin. Most investors are concerned about the volatility of this currency: does it make sense to purchase this digital asset in 2019 and how much will Bitcoin cost in 2020?

Current situation

As of January 5, 2019, the BTC rate is 260,245.12 rubles. or 3 976.6 USD. Over the past year, cryptocurrency has shown both periods of increase and intervals of falling value: if in January the cost of a token unit was estimated at 974 thousand rubles, then by 06.02.2018 the price had dropped to 437 thousand. Amid the high volatility of the digital asset and It’s quite difficult to give even a relative forecast of the future value of the Bitcoin cryptocurrency for 2019 and 2020 to clearly “bear” the trend of the last year.

Factors Affecting Bitcoin Exchange Rate

Any forecast of the Bitcoin exchange rate for 2019-2020 is based on a comprehensive analysis of the basic factors on which the stability of the cryptocurrency depends. The main aspects of the further development of Bitcoin include:

• The development of digital technologies - the growth of operations in this currency has led to certain difficulties in processing a gigantic data array. With the current block size of 1 MB, the issue of further scalability is tough: without expanding network channels and improving data processing technology in cyberspace, there is a high probability of transaction failures and delays. It takes 10 minutes to create a BTC block. For operations with multi-factor authentication (6 levels), it will take 60 minutes to spend, which is unlikely to satisfy the needs of most participants in the foreign exchange market. Companies and investors are increasingly thinking about switching to a faster analogue of BTS such as Litecoin or Ethereum.
• Economic feasibility - the cost of transactions in BTC has significantly decreased: if at the beginning of 2017 the commission was 52 USD, today less than $ 1 is spent per transaction. At the same time, the main competitors have a much lower commission, while for the same ETH this indicator is only 0.2 USD.

• Legislative aspect - a lot depends on the process of legalizing Bitcoin as an alternative asset at the legislative level of leading and developing states. Thus, the Government of Japan launched virtual currency on its market in 2017, while the Chinese authorities oppose the use of this tool, and at the beginning of 2018 introduced a lot of restrictions that undermined the confidence of local investors in the cryptocurrency market. But in the summer of 2018 in China, it was announced about the possible legalization of Bitcoin.

• The spread of BTC - in this aspect, cryptocurrency is a leader. For BTS tokens, you can purchase real estate, goods, cars and even citizenship. Most currency is distributed in the USA, EU countries, New Zealand, etc. The growth trend of outlets with Bitcoin support will continue in 2019-2020. Based on this factor, we can judge a positive forecast for the Bitcoin exchange rate for 2020.
• Competitive factor - the main competitors of Bitcoin are Lirecoin, Etherium, Ripple. The leading digital currency is already losing them in such positions as the size of the commission, the processing time of the block and scalability.
• The future of mining - for finding the element, the reward of miners in 2018 was about 12 BTC. In 2020, this indicator will be only 12.5 coins or 6.25 Bitcoins, i.e. the fall is almost 2 times. Mining profitability is decreasing year by year, and the number of elements is steadily falling - less than 3.8 million units remain. BTCThe situation was aggravated by the process of introducing ASIC devices, which will lead to an increase in the payback period of mining equipment from 10 months to 1.5 years already in the 1st quarter of 2019.
• Other factors affecting the Bitcoin exchange rate in 2020 include speculation, the psychology of depositors, the popularity of cryptocurrencies in general, and security.

Forecast data

The Bitcoin exchange rate forecast for 2019 and 2020 is presented below, according to Cryptoalien. The above calculation algorithm contains 26 key parameters.

Table 1 - Bitcoin exchange rate for 2019 (forecast)

Table 2 - Bitcoin exchange rate for 2020 (forecast)

Note! Bitcoin's forecast for 2020 is approximate: experts do not guarantee the compliance of the presented data with the real situation in the BTC market in the future.

Expert opinion

Analysts in many countries predict BTC a great future:

• McAfee Security creator J. McAfee in 2017 presented Bitcoin's forecast for 2020, according to which the token rate was to reach 1 million USD. The data was based on his own financial model. However, his expectations were not destined to come true;
• analysts Tom Lee from Fundstrat and O. Avan-Nomayo from Bitcoinist forecast Bitcoin exchange rate at 20 thousand USD by the end of 2020;
• Crypto Solutions Director believes Bitcoin will reach $ 50K by the end of 2020;
• Coinspeaker employee D. Harriston estimates that BTC could be worth $ 30K by the end of 2020.

However, if we take into account factors such as the technical imperfection of the system, high volatility, the lack of legalization of cryptocurrency in a number of countries, there is no reason to speak about an unprecedented increase in the price of Bitcoin in forecasts for 2020. The maximum that can be expected from BTC is the rate of 9.4 thousand USD or 693 thousand rubles. in February 2020. For the rest of the time, the cost of the token will be in the price range from 4.2 to 7 thousand USD.

Read also:

• Ripple Price Prediction for 2020
• Gold Price Forecast by 2020
• Ethereum Forecast for 2020

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