Everyone is celebrating today, Dec. 16th, 2020 as Bitcoin surges past 20K - hitting a new all-time high. And when I say surges, it literally blew past the last line of resistance and is on its way to 21K. And more than likely beyond.
The last time we saw a breakout like this there was a large correction in the price and people who bought at the top were disappointed only a few months later. However, if they held onto their BTC, they are now in profit. What makes this time different from the last? We’ll touch on a few key differences.
1. In 2017 the market was fueled by FOMO after an incredible year of ICOs bringing a lot of new people to the space hoping to make a quick buck. When they didn’t the weak hands sold and the market corrected. In 2020, the crypto ecosystem has matured and BTC is going mainstream. The buyers are large institutions scooping up as much BTC as they can afford to hedge against the declining dollar. This has been accelerated by the public legitimization of BTC as a solid asset class by Microstrategy, Square, Paypal, MassMutual and Greyscale, which by the way now owns more than 3% of all BTC in circulation.
2. In 2017, there was just more BTC available to mine. In 2020, out of the 21 million supply that will ever be mined, there are only about 2.66 million left. This programmed scarcity built into the Bitcoin code is doing exactly what it was created for.
3. Rewards for miners were cut in half since the last All-time high. In 2017 the mining reward was 12.5 BTC. This means 12.5 BTC were newly created with every block, so about every ten minutes. In 2020, it’s only 6.25 bitcoin.
4. There are just more ways to buy BTC today than there were 3 years ago. Today you can open your phone and choose any number of apps, like Exodus, to instantly buy Bitcoin. Easy Peasy. We all want to celebrate, not only for passing the Bitcoin All-time High but for the future and how the whole world is moving toward crypto one bit at a time. What is your BTC price prediction for 2021? share with us in the comments.