Bitcoin has exceeded many traders’ expectations this year, after more than doubling in value in 2020. This has seen the bitcoin price adding almost 50 percent to its value this month alone. BTC is currently trading at £13,894 ($18,528), as of 8am on Monday, November 23, according to Morningstar data.
Danny Scott, CEO and Co-Founder of CoinCorner thinks there are many reasons to remain optimistic BTC’s impressive performance will continue.
I can only see more positive growth in 2021
He told Express.co.uk: “As we come to the end of what has been an iconic year for bitcoin, I can only see more positive growth in 2021.
“Living and breathing this extremely fast-paced industry and soaking up global bullish news daily means that I’ve forgotten more good news from this week alone than bitcoin had in years back in its early days.”
Stated simply, bitcoin is finite and there will only ever be 21 million of the digital asset.
May witnessed bitcoin’s third halving — an event that occurs approximately every four years, halving the supply of Bitcoin coming into circulation.
Bitcoin price news: BTC crypto could rise significantly in 2021 bull run
This year saw BTC go from 12.5 bitcoin to 6.25 bitcoin per block, roughly every 10 minutes.
Mr Scott said: “There are expectations for what might come after, with history telling us that the Bitcoin price will typically begin to rise significantly (20x+) within the 18 months following a halving — often simply put down to supply and demand.”
If the coin did rise by 20 times its value, this would make bitcoin worth £277,880.
However, although the supply is fixed, CoinCorner CEO suggests the “dynamic demand” has been underestimated at each halving.
He said: “During the  bull run, we were signing up a record number of registrations but our system and processes weren’t ready for this, and we weren’t alone.
Bitcoin price news: There are many reasons to remain optimistic that BTC’s impressive performance will continue
“Some of the larger exchanges had to freeze registrations as they couldn’t handle the throughput, while others experienced technical issues with their trading engines locking up and websites going down due to overload.
“This time around though the industry as a whole is better prepared for the predicted 2021 bull run – it’s not perfect, but it’s better.”
Mr Scott added there is also a change in where the demand is originating from this time.
“Compared to 2017 when demand came from the retail market – this will eventually happen again, of course – the current demand is coming from an institutional level completely flying under the radar for many people and it looks set to continue through 2021.
“Roughly 27,000 bitcoin are mined [brought into circulation] each month and although this may sound like a lot, it’s really not.
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“For context, Grayscale added 32,000 bitcoin to their portfolio last month alone, CashApp received $1.6 billion worth of revenue from their customers buying bitcoin in Q3 2020 and PayPal has announced that their customers will be able to buy Bitcoin come 2021.
“Companies aside, traditional investors are also beginning to make their moves.
“The well-respected Rauol Pal has this year become more and more bullish on bitcoin and his position, even more recently mentioning that he was going to sell his gold to buy more bitcoin.”
Mr Scott also thinks the financial uncertainty triggered by the coronavirus pandemic may have actually improved bitcoin’s prognosis.
He told said: “Touching briefly on the unfortunate situation the world has suffered this year, the coronavirus crisis had the knock-on effect of causing a long-awaited financial crash in March.
Bitcoin price news: BTC continues to soar to fresh heights, following the 2017 crash
“This resulted in Government bailouts: the US FED printing $3 trillion, plus another $2 trillion on the way, the Bank of England likely printing towards £1 trillion and many more around the world following suit.
“Not to forget the introduction of negative interest rates which look to become the norm.
“Although this may be necessary in their eyes to stimulate the economy and it’s future protection, this comes with a huge risk of inflation on a scale unseen in these territories before.
“Putting this into perspective, the FED printed $3.9 trillion between 2008 and 2014 during the 2008 financial crisis, and they’ve already surpassed this within the last 7 months of 2020 alone, with more likely to come.
“When it comes to financial uncertainty, people look for a safe haven and bitcoin is becoming this.”
Mr Scott believes the evidence indicates today’s bitcoin investors are here “for the long-term”.
He said: “CoinCoiner statistics indicate 61.71 percent of all bitcoin in circulation has not moved in the last 12 months.
“Bitcoin investors have stomached sharp drops greater than 50 percent this year and still didn’t sell.
“Bitcoin’s sitting comfortably around the $15,000 to $16,000 region right now and still those coins aren’t moving.
“Bitcoin investors are here for the long-term, they have strong hands and are preparing for the next 20 years.
This bitcoiner crowd is also continuing to accumulate and HODL [holding the cryptocurrency rather than selling it] more every day, leaving less liquidity available for newcomers.
“In turn, this will drive the price. Once Bitcoin pushes past the $20,000 previous all-time high and starts hitting mainstream media again, retail investors will enter just as they did in 2017, but this time with the backing of public global companies, billionaires and hedge funds.”
Bitcoin price news: Bitcoin has exceeded traders’ expectations this year
The CoinCoiner CEO already views bitcoin as a success, telling Express.co.uk “this is only the beginning.”
He said: “The industry has been challenged by a lot of negativity over the years, but as time has passed, its reputation and sentiment has grown stronger.
“At what point do we call something a success? 10 years? 20 years? What if it fails in 70 years time?
“Would that make bitcoin a failure? No, it would mean that it’s had its time and something better has surfaced.
“Personally, I’ve gone past the stage of treating Bitcoin like an experiment, or wondering when it will be considered a success — I already see Bitcoin as a success.
“The bitcoin community is continuing to build a decentralised monetary future and this is only the beginning.”