Canada Adopts International Crypto Tax Reporting Standard
Canada is aimed at having the OECD standard for crypto asset tax reporting in place by 2027, as agreed with 46 countries.
With the Coronavirus pandemic highlighting the unhygienic nature of cash and contact payments, there has been a massive global shift towards digital payments. Several national banks are looking to central bank digital currencies (CBDCs) to integrate blockchain technology into national currencies. While this doesn’t necessarily imply that Bitcoin and cryptocurrency will see immediate adoption into mainstream use, it does offer greater opportunity for casual investors and traders to consider adding digital currencies to their portfolios.
While no one could have predicted that the year could have gone the way it has so far, it’s interesting to consider how the estimations from cryptocurrency enthusiasts, Bitcoin traders, and economic analysts have – or haven’t – played out.
What Are The Expert’s Price Predictions For Bitcoin in 2020?
Bloomberg Analysts: Bitcoin Will See A Record High of $20,000 USD
According to a report released by Bloomberg experts, the analysts believe that Bitcoin should not hit any obstacles this year. The report suggests that investors should look to Bitcoin as an asset worth considering as it has a major advantage over other asset classes, such as gold, crude oil, and other commodities. The report notes that cash will lose demand as businesses stop accepting it out of Covid-related reasons and that the functionality of Bitcoin has become more appealing.
The report states:
“After 2014’s 60% decline, by the end of 2016, the crypto matched the 2013 peak […] After the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year, in our view.”
Citibank: Bitcoin Will Reach $120,000 USD by 2021
Financial institution Citibank based its prediction on Bitcoin’s historic movements. According to Alistair Milne, British investor and entrepreneur, Citibank issued a chart to its mailing which showed the potential for Bitcoin to hit a bullish surge by next year. The chart takes movements from 2016 and points towards similar trends that seem to be emerging this year.
This chart was sent to the @Citibank FX Wire mailing list this morning …#Bitcoin pic.twitter.com/SWPgTG0kEI
— Alistair Milne (@alistairmilne) July 27, 2020
Max Keiser: Bitcoin Will Surge to See $100,000 USD
Founder and CEO of Heisenberg Capital Max Keiser thinks that Bitcoin will explode to see a price tag of $100,000 USD after a pullback happens. After a recent Bitcoin rally, Keiser commented on Twitter that he thinks Bitcoin will head to $28,000 USD before a pull-back. And after that, the cryptocurrency will hit $100,000 USD.
The $20,000 level for #Bitcoin won’t pose any resistance. We won’t see any resistance till $28,000. A brief pullback then the assault on $100,000 begins with renewed vigor. pic.twitter.com/8Fu3CzdFJa
— Max Keiser (@maxkeiser) August 1, 2020
Panxora: Bitcoin Will Drop to $7,000 USD But See A Record High in 2021
Forbes reported that Gavin Smith, the CEO of cryptocurrency analysis firm Panxora, thinks that Bitcoin will face volatile prices until the end of 2020. During the year, Smith thinks estimates Bitcoin might depreciate as low as $7,000 USD, but will surge next year to smash through to see an all-time high. He told Forbes:
“Our view for the balance of 2020 is still high volatility with a year-end of around $7,000 [per Bitcoin] with a drive higher to new highs in 2021. A short term washout [will happen] this year before the true rally takes hold [in 2021]… the markets are pulled on the one hand by the inflation hedge story driving bitcoin higher while at the same time the global economy is suffering a massive demand shock with the potential to drive bitcoin lower.”
Anthony Pompliano: Bitcoin to $100,000 USD By 2021
Known Bitcoin bull, founder of Morgan Creek Digital Anthony ‘Pomp’ Pompliano estimates that the price of Bitcoin will rise to see $100,000 USD by 2021. His prediction is aligned with his through that the market will see a surge of new investors as Bitcoin adoption becomes mainstream. He thinks that fiat will start to fail as a result of hyperinflation and this is “rocket fuel” for Bitcoin and cryptocurrencies to take off:
“I think the response to COVID-19 probably does [mean] that you’re going to see central banks around the world print trillions of dollars. The fear of inflation, whether it actually happens or not, will drive people to, seek out something like a Bitcoin that is an inflation hedge. And, as currencies fail, people will look for whatever is able to store value or move value easier.”
His bullish approach to Bitcoin is long-term focused too. In June, he urged investors to consider adding cryptocurrency to their pension and retirement funds.
PlanB’s Stock-to-Flow: Bitcoin Will Increase to $55,000 USD
Pseudonymous cryptocurrency analyst ‘PlanB’, the creator of the Stock-to-Flow (S2F) Model predicts that Bitcoin will reach $55,000 USD based on the Bitcoin halving event in May. PlanB stated that:
“The predicted market value for Bitcoin after May 2020 halving is $1trn, which translates in a Bitcoin price of $55,000,” further adding that, “gold and silver, which are totally different markets, are in line with the bitcoin model values for SF.”
In May, PlanB commented that Bitcoin is “not just a toy anymore” and it might be more than an asset, pointing to his bullish advocacy for Bitcoin’s success.
Elliot Wave Theory: Bitcoin Will Sink to $3,000 USD
The Elliot Wave Theory, discarded by most but used by some, has a bearish prediction regarding Bitcoin’s price this year. The theory is that Bitcoin will see a massive correction before the end of 2020, and that the price of the leading cryptocurrency will sink to a low $3,000 USD.
John McAfee: Bitcoin Will Skyrocket up to $1 million USD
John McAfee, eccentric and wild in his predictions, is one to take with a pinch of salt. In November of 2017, the anti-virus software creator predicted Bitcoin would surge to see $1 million USD by the end of 2020.
He backtracked in May 2020, claiming that his prediction was in humour:
Put a different way:
If Bitcoin ever hit $1 mil, it’s market cap would be greater than the GDP of the entire North American Continent.
What idiot could believe such nonsense?
Whale Fucking is a thousand times more likely to make its way onto the Olympics Stage.
— John McAfee (@officialmcafee) May 30, 2020
The Winklevoss Twins: Mass Adoption Accelerated by Pandemic
The famed Winklevoss twins behind the cryptocurrency exchange Gemini think that the global pandemic will lead to accelerated adoption for the market. The twins think that a bullrun is on the way, but that it will be dramatically different to the one in 2017.
July 29th 2020, Cameron commented:
“Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!”
And his brother Tyler echoed the sentiments later that day, saying:
“The pandemic has catapulted us into the future. Hastening failure of offline retail, uptake in streaming, social media…also exposing structural problems w/ fiat, ballooning debt-to-GDP ratios, and likelihood of hyperinflation — which means it’s accelerating #Bitcoin adoption.”