2021: More BTC adoption, more stablecoin adoption

[Master107]

The first prediction for 2021 is that we’ll see a continuation of the move towards BTC that we witnessed in the latter half of 2020.

“Bitcoin will still be the main focus. The institutional demand for bitcoin is increasing this year, and will continue to increase next year,” predicted Bendik Schei, the Head of Research at Arcane Crypto.

Schei suggested that bitcoin adoption next year will be facilitated by the “massive development in the infrastructure for BTC,” which has improved the accessibility of the cryptocurrency for institutional investors.

“Now, the data also shows that the institutions are coming. In 2020, we’ve seen new records and strong growth on CME and Bakkt, massive inflows for Grayscale and public companies buying bitcoin as a reserve asset.”

Most other industry figures and commentators agree with this analysis. Nick Cote, the Senior Analyst at crypto-trading platform Hxro Labs, is one of them.

“Bitcoin stands to gain substantially in 2021 due to further institutionalization of the space, as more custodial services and insurance offerings become available. Adoption can be reflected not only by price trending up, but also in the amount of unique wallet addresses, total dollar value transacted on-chain, and further global penetration of Bitcoin's brand, which continues to benefit from its first-mover advantage,” he told Cryptonews.com.

Related to bitcoin’s use as a hedge against inflation will be the parallel growth of stablecoins such as tether (USDT), which serve to provide liquidity in markets where fiat-to-crypto trading isn’t easy.

For more info: Cryptonews