Predict the development of Bitcoin, cryptocurrency and blockchain this year

At this time of the year, let's take a look at some cryptocurrency and blockchain predictions for 2021.

To put it mildly, the past year has been a turbulent year, but in this context, the blockchain and cryptocurrency industries continue to advance, develop and grow.

Whether it is through increased regulatory attention and clarification, wider adoption of Bitcoin and other cryptocurrencies as a medium of exchange, or wider use of blockchain in different organizations, the trend is obvious.

Measured by any standard, blockchain and cryptocurrency have moved away from early conceptual understanding and technical curiosity, and have now become part of mainstream business conversations.

Nevertheless, there is still a lot of uncertainty in the economic and blockchain fields; this continuous uncertainty also creates a dynamic market. Predicting the future is always a tricky thing, especially for such a rapidly evolving and changing industry.

In other words, let's take a look at 5 predictions for the blockchain and encrypted assets sector in 2021, although some of these developments may take longer to materialize.

By 2021, the closing price of Bitcoin will exceed $30,000. This seems to be a conservative forecast, especially considering the rise that has already occurred at the end of 2020, but prices will not rise forever. However, given institutional capital flows and interest, these recent price trends do seem to be supported.

Stable coins will lead this trend. Although discussions and concerns surrounding the price and transaction volume of Bitcoin continue, stablecoins are quickly becoming the main entry point for wider applications. The market value of stablecoins is as high as tens of billions of dollars, which is a bridge to existing payment processors. The wider use of stablecoins seems to be a reasonable business prediction.

Central Bank Digital Currency (CBDC) will be launched. The rise of CBDC is almost certain. The only remaining question is the exact time when CBDC will be launched. As efforts around the world unfold, the only unresolved question is which country will deploy CBDC first. However, in addition, people will re-focus on privacy and security issues; it is indeed an exciting time.

Tax enforcement will be upgraded. The U.S. Internal Revenue Service (IRS) has taken several initiatives in the past year or so, indicating the severity of the enforcement of cryptocurrency taxation in the future. However, taxation is not the only problem in the United States. With the increase in cryptocurrency prices in 2020, it is expected that global tax authorities will re-examine this potential income.

Blockchain will expand beyond financial services. This may surprise individuals and organizations operating in the field of blockchain and encrypted assets, but more non-professionals still generally regard blockchain as Bitcoin. In 2021, blockchain will fully enter the mainstream and enter a wider economic field. Fields such as healthcare, transportation, and logistics may benefit from the widespread adoption and use of blockchain.

Predicting the future is always risky, because there is no way to know what will happen next. In other words, according to the emerging trends in 2020 (and even accelerating), it seems that 2021 will continue the breakthrough trend of encrypted assets and blockchain technology.

This year will be an exciting and dynamic year in the field of blockchain and crypto assets, and continued growth and adoption seem to have a bright future.