Will Bitcoin grow in 2021, the predicted maximum rate

Every year, cryptocurrencies are becoming increasingly popular in the modern world. In 2021, Bitcoin remains the leader in popularity.

It is used both for various payments and as an investment asset, along with gold, real estate and securities.

Most investors are interested in the traditional question “Will Bitcoin grow in 2021?” Is it worth continuing to invest in this asset?

After all, after record growth, and over the last year this cryptocurrency has risen in price almost 5 times, a record fall may follow.

 To accurately answer the question of whether Bitcoin will grow in 2021, it is necessary to understand the reasons for its growth and the prospects for using this asset.

Only after this can we confidently say whether the digital currency will rise or fall.

The first and most important argument in favor of growth is that Bitcoin is the leader in terms of use in payments for goods and services.

Even reputable companies are starting to use crypto wallets to process current payments:

Almost every online store supports the ability to pay for goods with Bitcoin, and even banks and payment systems that accept Bitcoin accounts support this cryptocurrency.

The second argument is the high capitalization, which currently amounts to more than a trillion US dollars.

This is precisely what makes cryptocurrency so difficult to manipulate, as is currently possible with altcoins. It would require colossal injections or sales to influence the existing price.

In other words, the Bitcoin price is currently determined solely by supply and demand. Demand still exceeds supply, as new cryptocurrency wallet users emerge daily, and new companies use Bitcoin for their own purposes.

How much could Bitcoin's price rise in 2021?

This is an interesting question because predicting Bitcoin's maximum price in 2021 is quite difficult:

While everyone was previously talking about the $100,000 figure, some analysts are now citing $400,000 as a likely price prediction for Bitcoin.

But if we're being realistic, we can expect a figure of 80-90 thousand by the end of 2021 and the beginning of 2022, with growth expected at the end of the current year and the beginning of the next, after the financial results are summarized.

Risk of a rate collapse

Cryptocurrencies always face the risk of a price decline, and Bitcoin is no exception. Should one of the world's largest powers completely ban Bitcoin and criminalize its use, the price would plummet.

However, it's no wonder that cryptocurrencies are considered one of the riskiest investment assets. You can hedge against large losses by trading Bitcoin through a trading platform and placing stop orders to force the trade to close.

That is, if you bought cryptocurrency and set a stop loss at a certain level, the transaction will close automatically when the price drops to this level.

Instructions for opening an account and starting Bitcoin trading through the trading platform - https://time-forex.com/azbuka/instr-fx For beginners, it is recommended to first complete training on a demo account.