“History will show that 2020 was a breakout year for Bitcoin,” said Nigel Green, the Chief Executive Officer (CEO) of deVere Group, a financial advisory and fintech organization. The analyst said Bitcoin’s price will soar, prompted by the upcoming US presidential election in November and the weakening dollar.
“We can expect the world’s largest cryptocurrency to be further fuelled for the rest of 2020 by the U.S. presidential election and the weakness of the U.S. dollar, which will serve as high-octane price drivers,” said Green, speaking to Finbold.
The price of bitcoin has seen about 60% gain this year (based on the current price), coming off as one of the best performing independent assets as the COVID-19 pandemic stirs uncertainty, as Green stated. This uncertainty which has already caused a two-year drop in the value of the dollar will be further compounded by the November presidential elections, he finds.
Amid this uncertainty, investors “will pile into safe-haven assets, in particular those not tied to any specific country, such as Bitcoin and gold,” said he. What’s more, BTC “could potentially knock gold from its long-held top spot as the world becomes driven by the tech revolution.”
The continuous “printing of historic sums of helicopter money” was identified by Green as the cause of dollar inflation and subsequent loss in value. According to the Cryptoverse residents, such as Nic Carter, co-founder and Castle Island Ventures, the supply of Bitcoin cannot be adjusted unnecessarily and thus eliminates the fear of inflation as the dollar is seeing today.
The United States Dollar is presumably not the only fiat currency posited to fuel the bullish run of bitcoin and digital currencies. In Turkey, a number of citizens, consistently plagued with dwindling value in the Lira, seem to have embraced bitcoin as a viable alternative.
As reported by Abhay Aluri, co-founder of Ryze, a bitcoin investment and research outfit, major cryptocurrency exchange BtcTurk has had nearly 1 million signups this year with about 100,000 monthly active users.
Despite the strengthening of the Turkish Lira between September 2018 and June 2019 in response to central bank actions, said the author, the currently recorded lows led analysts to say that the Turkish central bank is running out of reserves to prop up the Lira’s value, stating that it’s “only one shock away from a crisis.”
Furthermore, OKEx CEO, Jay Hao wrote that Turkey’s economic woes are fuelled amid deteriorating relationships with foreign governments like the United States, as well as a series of central bank measures to avoid running out of reserve liquidity. Therefore, the Turkish government is encouraging its young population to study blockchain and supporting tech-based businesses in an attempt to save its economy without relying on external resources.
Bitcoin price was at the time of writing USD 11,423 (14:20 UTC). Its value dropped by 3% in the past 24 hours and 5.5% in a week.