With January only just coming to an end in a new year, and a new decade, for Bitcoin, there has already been enough evidence to suggest that Bitcoin might be in for a promising year. The price of the coin has been climbing and again looks to be on the up which has led to some positive predictions coming forward.
One such predictor is Fundstrat’s Tom Lee. The analyst is known for his eternally optimistic view around Bitcoin, even backing the cryptocurrency in times of strong bearish markets. But, with 2020 off to such a good start, and a couple of factors looking likely to have an effect, his latest optimism seems well placed.
However, the main reason for Lee’s optimism revolves around the May mining reward halving which will have a big effect on the incoming circulating supply, and potentially the demand, which can greatly affect the price. That being said, many feel the halving is being blown out of proportion and won’t even factor.
Halving, and more
Lee’s interview with CNBC started with him mentioning the impact the halving could have, but also looked to the impact geo-political features such as White House elections and tensions in the Middle East.
“Yeah. 2020 should be tremendous for Bitcoin because you got the number one the halving occurs, the block rewards to miner getting chopped in half, that’s a decent supply to a major chain,” he said.
Lee went on to mention how, in the US, in the previous year, the White House affected the Bitcoin progression with their opposition, but with the Presidential elections on the way, it will be a very hopeful year for Bitcoin. This is also paired with geopolitical problems in the Middle East making it potentially a year for growth in the crypto industry.
Economic factors to consider
Other than the halving, the real test of Bitcoin’s space in the global space will come in the face of a financial crisis. Thanks to moves at the World Economic Forum, the technology and the notion of digital currencies – but not so much Bitcoin – is being legitimized. But if the world sees a crisis, then Bitcoin will come into its own as a hedge.
Some already feel that Bitcoin is the best bet if negative financial policies are enacted – like negative interest rates. However, this is yet to be seen if it pays off as Bitcoin is still very untested, especially if relied upon as the only escape for millions of people from financial ruin.