In this article we discuss the 10 biggest Bitcoin predictions in 2021. If you’d like to skip our detailed analysis of these predictions, go straight to the to The 5 biggest Bitcoin predictions in 2021.
Bitcoin, the most popular cryptocurrency, has fallen almost in half since April from a high of around $ 64,000, sparking speculation on social media about crypto-related stocks in general, and the future of blockchain technology in particular. Some of these concerns stem from government crackdowns on digital currencies in China, one of the world’s top internet markets. However, financial professionals have stepped in to fill some of the information gaps and allay investor concerns about the issue.
Crypto-related offerings are volatile due to the nature of a company that is still in its infancy. Savvy investors recognize this and often understand why a dramatic loss in value for what is widely believed to be revolutionary is actually an opportunity to buy, rather than a panic sell-out. Another solid indicator of the long-term outlook for crypto is interest in hedge funds, and many of the best-performing funds over the past 12 months, including ARK Investment and Bridgewater Associates, hold crypto-related assets.
Bitcoin mining’s energy consumption has also caused quite a stir, with Elon Musk, CEO of Tesla, Inc. (NASDAQ: TSLA), ahead of the curve in this regard. Some financial experts also believe that Ethereum, the second most popular coin, could ultimately overtake Bitcoin in value. However, the consensus remains that Bitcoin has a brand value that extends well beyond other coins, and a history stretching back over a decade, which gives it further credibility compared to coins that were only released a few years ago.
Some Bitcoin competitors actually started out as a joke and experts argue that coins like this one help improve Bitcoin’s overall credibility. Dogecoin, for example, started out as a prank but has now become one of the top performing cryptocurrencies in 2021, due in part to the social media antics of Tesla, Inc. (NASDAQ: TSLA) boss Musk, up more than 10,000% on one Peak since the beginning of the year before declining by over 30% since then. A few more serious contenders for the Bitcoin throne are Ethereum and Ripple, two blockchain-based currencies that offer advantages over Bitcoin when it comes to processing transactions.
Companies like PayPal Holdings, Inc. (NASDAQ: PYPL) and Twitter, Inc. (NYSE: TWTR) have taken advantage of this competition between the coins and set standards for cooperation in order to ensure a level of quality in a still unregulated and prone to scams of various kinds. PayPal Holdings, Inc. (NASDAQ: PYPL) and Twitter, Inc. (NYSE: TWTR) have global reach, and their actions have ramifications for the blockchain not just in the US but in hundreds of countries around the world.
The fiscal year is far from over and Bitcoin still has a lot of leeway before investors have to rethink the overall situation. However, despite the recent setbacks, it is evident that cryptocurrencies, and Bitcoin in particular, have transformed finance in the years to come. The entire hedge fund industry is feeling the repercussions of the changing financial landscape. Its reputation has been tarnished over the past decade when its hedged returns failed to keep up with the unsecured returns on market indices. On the other hand, Insider Monkey’s research identified a select group of hedge fund holdings in advance that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter stock picks returned 197.2% versus 72.4% for the SPY. Our stock selection outperformed the market by more than 124 percentage points (see details here). In addition, we were able to identify a selected group of hedge fund holdings in advance that lagged significantly behind the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% by November 16. Because of this, we believe that hedge fund sentiment is an extremely useful indicator that investors should look out for. You can subscribe to our free newsletter on our homepage to get our stories in your inbox.
With that in mind, here is our list of the 10 biggest cryptocurrency predictions in 2021.
Biggest Bitcoin Predictions in 2021
10. David Solomon, CEO Goldman Sachs
Prediction: Bitcoin regulation comes on great evolution evolution
David Solomon is the chief executive officer of The Goldman Sachs Group, Inc. (NYSE: GS), a New York-based investment bank and financial services company. The bank reopened a cryptocurrency trading desk earlier this year and began offering crypto investing exposure to its clients. Solomon addressed Bitcoin in an interview with CNBC in April.
Solomon believed that a great development was afoot in the world of Bitcoin and other digital currencies, largely related to the regulations governing the participation of incumbent financial institutions in blockchain technology. Solomon said The Goldman Sachs Group, Inc. (NYSE: GS) kept cryptocurrencies tightly as the situation evolved.
When asked if the bank was actively lobbying for rule changes on this, Solomon said the area was still developing and The Goldman Sachs Group, Inc. (NYSE: GS) was trying to cater to customers. However, Solomon reiterated that there are still significant restrictions on the bank to act as a principle around Bitcoin.
As Tesla, Inc. (NASDAQ: TSLA), PayPal Holdings, Inc. (NASDAQ: PYPL), and Twitter, Inc. (NYSE: TWTR), The Goldman Sachs Group, Inc. (NYSE: GS) is one of the best cryptocurrency stocks according to the 10 largest Bitcoin predictions in 2021.
9. Jack Dorsey, CEO Square
Prediction: Bitcoin protects against currency devaluation
Jack Dorsey is the chief executive officer of Square, Inc. (NYSE: SQ), a California-based digital payments company with $ 400 million in crypto-related investments. Dorsey has long been a proponent of the wider adoption of digital currencies like Bitcoin and attended a Bitcoin conference in Miami last week to reiterate his bullish view on the currency.
Dorsey told conference attendees that Bitcoin was the most important thing in his lifetime. Square, Inc. (NYSE: SQ) CEO said Bitcoin has the potential to create an entirely new financial infrastructure that would serve communities of all kinds. Dorsey recently teamed up with a new Bitcoin foundation to help develop the currency in India and Africa.
Speaking at the Miami conference, Dorsey, who has seen Square, Inc. (NYSE: SQ) stock plummeting for the past few weeks amid a slack in the growth stocks market in general, said no single person or institution could see Bitcoin’s surge. He also noted that Bitcoin was quickly becoming a hedge against currency devaluations around the world.
As Tesla, Inc. (NASDAQ: TSLA), PayPal Holdings, Inc. (NASDAQ: PYPL), and Twitter, Inc. (NYSE: TWTR) is one of the top 10 crypto stocks according to Square, Inc. (NYSE: SQ) Bitcoin forecasts in 2021.
8. Charlie Munger, Berkshire Hathaway vice chairman
Prediction: Bitcoin success contradicts the development of civilization
Charlie Munger is the vice president of Berkshire Hathaway Inc. (NYSE: BRK-A), the Nebraska-based holding company with core interests in the insurance industry but also interests in several large consumer goods companies. Munger is the assistant to Warren Buffett, perhaps the most successful long-term investor on Wall Street in modern history.
Although Berkshire Hathaway Inc. (NYSE: BRK-A) has a diverse portfolio, Munger and Buffett avoided digging into digital currencies. At an annual general meeting earlier this year, Munger was asked to comment on the meteoric rise of Bitcoin and whether his company had made a mistake by not jumping on the crypto bandwagon.
In response to the question, the vice president of Berkshire Hathaway Inc. (NYSE: BRK-A) did not hold back his views on the matter, saying that he found Bitcoin’s success disgusting and an insult to civilization. He also said he was skeptical of financial products like Bitcoin that someone produced out of nowhere.
7. Michael Novogratz, CEO Galaxy Investment Partners
Prediction: Bitcoin pullback is a buying opportunity
Michael Novogratz is the head of Galaxy Investment Partners and a former partner of Fortress Investment Group LLC. He is one of a small group of hedge fund managers who are pushing crypto-related investments to clients and dismissing concerns about volatility and regulation by touting the product’s explosive potential.
In a recent interview with business news platform CNBC that aired on May 18, Novogratz appeared to be pushing aside long-term speculation about Bitcoin, reiterating its bullish stance on the coin, and saying that the depreciation was indeed a buying opportunity for investors , and noted that despite its recent setbacks, Bitcoin is still 50% up on the year to date.
While using the means to urge people to give their all on Bitcoin, the hedge fund guru commented that the depreciation of the most popular cryptocurrency was actually just a test of investor confidence, stating that markets should never be easy and that, if it were simple, everyone on the planet would be as rich as they wanted to be.
6. Stanley Printmiller, former President of Duquesne Capital
Prediction: Very difficult to replace Bitcoin as the ultimate store of value among assets
Stanley Printmiller is the billionaire, former president of Duquesne Capital, a hedge fund with one of the best track records in the market. He is an old school investor who made a name for himself in the industry by partnering with George Soros, one of the most famous investors in the world. Druckmiller hasn’t been the loudest Bitcoin admirer in the recent past.
But his views on Bitcoin have changed since he described the currency as a solution to a problem a few years ago. Sitting down for an interview with news publication The Hustle in late May of this year, he was very open about the evolution of his position on Bitcoin, even admitting that he felt like an idiot for not buying Bitcoin while it was up .
Printmiller expressed his views on Bitcoin’s recent depreciation and the idea that other coins like Ethereum could overtake Bitcoin and explained why it was unlikely to become a brand that has been around for a long time and had a limited supply of tokens.
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Disclose. None. The 10 biggest Bitcoin predictions in 2021 was originally published on Insider Monkey.