2019 has been quite the year for cryptocurrency. We’ve seen some incredible rallies, some maddening slumps, but overall things have been pretty good for the cryptoasset industry. As we close off on the decade, let’s take a look at 5 bullish Bitcoin facts that could help define your cryptocurrency journey in 2020.
1. Blockchain is rising
Number 1 out of the 5 bullish Bitcoin facts, is that blockchain is on the rise. Since Bitcoin’s invention, blockchain has come a long way. Blockchain technology has so many uses, and governments and regulators are beginning to catch on. Already, more and more centralized entities like banks and other financial institutions are looking into implementing their own blockchains (some are already doing it). As the industry is revolutionized by this technology, mainstream adoption will begin. When it does, it’s going to be big, and you should probably hold some Bitcoin to avoid missing out.
Maybe you’re sick of hearing this word, but diversification is important. Evangelists of any single cryptocurrency should be aware that a diverse portfolio helps to improve your chances of ROI. Bitcoin should absolutely be in everyone’s portfolio, not just because it’s the OG cryptocurrency with the largest market cap, but because holding Bitcoin, alongside other coins, is key to a portfolio that performs well.
Tell your family why bitcoin matters before you tell them how to buy it.
— Bitcoin (@Bitcoin) December 26, 2019
3. Bitcoin is useful
When Satoshi Nakamoto invented Bitcoin, it was in response to the global financial crisis of 2008. The failings of the payment systems that we use drove Satoshi to invent a technology that improves upon it. Bitcoin is inherently meant to be used. Many merchants and service providers accept Bitcoin payments, including Microsoft, and Overstock. US-based payments start-up Flexa has also enabled Whole Foods, Nordstrom, Starbucks, and many other companies to begin accepting Bitcoin payments - totaling to around 30,000 stores overall.
There will only ever be 21 million BTC in rotation, of which 85% are currently circulating. Bitcoin is scarce, and that makes it a resource worth holding. Many analysts suspect that Bitcoin could reach $50,000 per coin in the next few years, which means that the overall market cap for the coin would be a whopping $1 trillion (up there with Microsoft and Amazon, although a different asset class entirely).
5. The 2020 Halving
Every 4 years or so, Bitcoin goes through a halving. Bitcoin miners receive a reward of 12.5 BTC for every block they successfully mine, but that’s going to change fairly soon. The 2012 Bitcoin halving saw the reward drop from 50 BTC to 25 BTC, and the 2016 halving cut the reward from 25 BTC to 12,5 BTC. That means that the next halving will see miners receiving only 6.25 BTC per block mined. While that doesn’t sound very good for miners, it’s actually great news for the Bitcoin community as a whole. Historically, halvings have heralded a bull run. The 2012 halving saw a bull run in 2013, and the 2016 halving heralded the historic 2017 bull run that saw Bitcoin reach its peak of $20,089 - the highest price achieved on record. It’s quite likely that the 2020 halving will see Bitcoin reach new heights, although probably only in late 2020 or 2021.
Bullish on Bitcoin & Crypto
Now’s the time to get bullish on Bitcoin, and taking a look at these 5 bullish Bitcoin facts might help. 2020 is going to be a big year for the cryptocurrency, and probably the digital asset industry as a whole. There’s no doubt that things are changing, and mainstream adoption is likely on the way. Governments, banks, and regulators are showing more and more interest in the uses that blockchain technology can have, and that in itself will drive the entire industry forward. Bitcoin, and blockchain in general, is a phenomenal technology. There’s no reason why you shouldn’t be bullish on Bitcoin.