Four reasons why 2021 could be the best year for Bitcoin and co.
Bitcoin (BTC) and Co. have started the new year with enormous price fluctuations. What issues could cause even more volatility in the crypto market in 2021?
Bitcoin and many other cryptocurrencies have performed better than all other asset classes in 2020. BTC had a triple-digit return last year, Bitcoin Formula outperforming all major asset classes by a wide margin with 303 per cent price growth.
Since the Corona crash in March, the Bitcoin price has risen by more than 450 per cent, thanks to institutional adaptation and the expansionary monetary policy of central banks worldwide. Below are four of the most significant themes for Bitcoin and the entire crypto space in 2021.
1. bitcoin and co. go mainstream
2021 could be the year of mainstream adoption of cryptocurrencies. PayPal plans to give 346 million people access to digital currencies this year. It will also soon be possible to pay with cryptocurrencies at over 26 million merchants worldwide.
In the US, it is already possible to buy cryptocurrencies via PayPal and more selected markets are to be added in the first half of 2021.
Moreover, more and more companies and institutions are expected to jump on the Bitcoin bandwagon. After Square and MicroStrategy, it is therefore quite possible that even more companies will come out as Bitcoin hodlers in the coming months.
But that’s not all – Decentralised Finance (DeFi) could also make a breakthrough before the end of the year.
2 DeFi integration into the traditional financial system
Only last week, the DeFi project Chainlink (LINK) and PayPal partner Paxos announced a cooperation.
Leading crypto brokerage platform @PaxosGlobal launches #Chainlink Price Feeds for PAX & PAXG to boost their adoption within #DeFi. Paxos will also support Chainlink Proof of Reserve data feeds that attest to the off-chain reserves backing both PAX & PAXG. https://t.co/n0Q1CVGGO8
– Chainlink – Official Channel (@chainlink) January 14, 2021
Paxos intends to use Chainlink’s oracle network to drive the adaptation of the Stable Coin Paxos Standard (PAX) in the DeFi sector, among other things. In addition, a press release published by Paxos indicates that further expansion into the DeFi sector is imminent in the coming months. It would therefore be conceivable that in the future, in addition to Bitcoin and other cryptocurrencies, DeFi applications will also be integrated with Paxos customers such as PayPal or Revolut.
In addition, the travel app Maps.me, which has over 140 million customers worldwide, has announced that it wants to integrate DeFi applications into the app. The company has already raised 50 million US dollars from investors.
Maps.me co-founder Alex Grebnev explained that in the long term, his company plans to integrate a wide range of financial services into the app. In addition, Maps.me is to receive a native crypto wallet. This is also extremely positive news for Bitcoin, as it is highly likely that the digital gold could also gain access to the DeFi sector via the app integrations.
3. IPOs of crypto companies
Currently, there are still few publicly listed companies through which investors can invest in the crypto industry. This could change drastically this year.
The bitcoin exchange Coinbase wants to go public this year. Therefore, the San Francisco-based company filed for an IPO just a few weeks ago. With 35 million users in more than 100 countries, Coinbase is one of the pillars of the crypto industry.