The ten Greatest Cryptocurrency Predictions of 2021 – Insider Monkey
In this article, we discuss the 10 biggest cryptocurrency predictions in 2021. If you’d like to skip our in-depth analysis of these predictions, go straight to the The 5 biggest cryptocurrency predictions in 2021.
Cryptocurrencies are hailed around the world as the future of finance, but the price volatility of these digital offerings still makes them risky investments. For example, after seeing record increases over a period of more than twelve months, Bitcoin, the largest cryptocurrency by market capitalization, fell from around $ 64,000 in April to under $ 30,000 in mid-May after social media speculation about coin mining before rebounded slightly to over $ 40,000 but has since fallen back to $ 32,000.
The free fall was initiated when Tesla, Inc. (NASDAQ: TSLA) CEO Elon Musk took to Twitter to question the environmental impact of coin mining around the world. Musk is a world-renowned tech mogul with a cult-like following in many countries, and his followers, who until then had been bullish on Bitcoin, began to cash out, creating a chain reaction that ultimately hurt many crypto-related stocks. including Tesla, Inc. (NASDAQ: TSLA) itself. That decline coincided with a wider slump in technology growth stocks.
With the volatility of growth stocks fueling institutional concerns, hedge fund managers, many of whom are optimistic about companies, have been accepting crypto transactions, such as Shopify Inc. (NYSE: BUSINESS) and Square, Inc. (NYSE: SQ), tried to address concerns by revealing its own holdings of cryptocurrencies and even buying up some crypto stocks at lower prices in anticipation of a crypto boom in the second half of the year.
There is still a lot of uncertainty in the cryptocurrency market in general. Amid all the big drama recently, financial experts, hedge fund managers, government officials, and even some of the founding members of popular digital currencies have appeared on news platforms, spoken at conferences, and joined their followers on social media to predict the future of the crypto industry and provide what is much needed Context for the talks about crypto and fintech and their power as disruptors of traditional finance.
There is no doubt that the financial world revolves around new technology. 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 flip side, Insider Monkey’s research was able to pre-identify a select group of hedge fund holdings 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. We have mentioned predictions, key statements, analysis and forecasts from famous experts on cryptocurrencies.
Biggest cryptocurrency predictions of 2021
10. Jed McCaleb, CTO Stellar
Prediction: Blockchain will change the way money is moved around the world
Jed McCaleb is the chief technology officer of Stellar cryptocurrency, a digital currency that is making a name for itself by providing corporate-level expertise in crypto transactions. Stellar has partnered with popular companies like International Business Machines Corporation (NYSE: IBM) to enable cheaper and faster cross-border money transactions.
When Stellar announced the partnership with International Business Machines Corporation (NYSE: IBM) in 2017, Jed McCaleb predicted that the new collaboration would mark a significant milestone for Stellar and the financial technology industry as a whole. He added that blockchain technology will be used to facilitate cross-border payments.
Predicting the future of the crypto industry, he noted that once the new technology was fully scaled by International Business Machines Corporation (NYSE: IBM), it could potentially change the way money was moved around the world. Stellar faces competition in the enterprise crypto market from Ripple, another cryptocurrency with low cross-border transfer fees.
Just like Tesla, Inc. (NASDAQ: TSLA), Shopify Inc. (NYSE: SHOP), and Square, Inc. (NYSE: SQ), International Business Machines Corporation (NYSE: IBM) is among the top 10 crypto stocks largest cryptocurrency predictions in 2021.
9. Changpeng Zhao, CEO Binance
Prediction: It will take years to become a decentralized autonomous organization
Changpeng Zhao is CEO of Binacce, a cryptocurrency exchange platform such as Coinbase Global, Inc. (NASDAQ: COIN), which is the largest digital currency exchange in terms of trading volume. The exchange also offers Binance Coin, a cryptocurrency used for transactions on the Binance platform. Zhao gave an interview to business magazine Bloomberg in April.
When asked about the future public listing of his exchange after Coinbase Global, Inc. (NASDAQ: COIN) blockbuster debut on the exchange earlier this year, Zhao insisted that the Binance exchange had no such plans, saying that his company was liquid and could grow without help.
Binance is the main competitor of Coinbase Global, Inc. (NASDAQ: COIN), the largest cryptocurrency exchange in the world in terms of the value of transactions on their network. When Zhao was pushed to have his company run only by software, Zhao said it was still possible for Binance to become a decentralized autonomous organization, but it would take a few years.
Just like Tesla, Inc. (NASDAQ: TSLA), Shopify Inc. (NYSE: SHOP), and Square, Inc. (NYSE: SQ), Coinbase Global, Inc. (NASDAQ: COIN) is among the top 10 crypto stocks by the top 10 largest cryptocurrency predictions in 2021.
8. Timothy Massad, former chairman of the Commodity Futures Trading Commission
Prediction: Disruptions in stablecoin value could devastate crypto
Timothy Massad is the past chairman of the Commodity Futures Trading Commission and an expert on digital currencies. In an opinion piece for the Bloomberg business press in May, Massad went into many details about Tether, a dollar-pegged cryptocurrency that companies like Mastercard Incorporated (NYSE: MA) have supported in the recent past.
Because Tether is tied to a stable fiat currency, it is significantly more stable in price than other coins on the market, making it a suitable crypto candidate for Mastercard Incorporated (NYSE: MA). In his Bloomberg article, Massad explained how this important distinction between tether and other digital currencies would affect the broader crypto industry.
He compared Tether’s hypothetical depreciation to less than $ 1 with the collapse of Lehman Brothers prior to the 2008 financial crisis, which hit even market giants like Mastercard Incorporated (NYSE: MA). Massad wrote that disruptions in the value of a stablecoin could wreak havoc on the broader crypto market if regulators don’t step in.
Just like Tesla, Inc. (NASDAQ: TSLA), Shopify Inc. (NYSE: SHOP), and Square, Inc. (NYSE: SQ), Mastercard Incorporated (NYSE: MA) is among the top crypto stocks according to the 10 largest cryptocurrency predictions in 2021.
7. Charles Hoskinson, CEO Input Output Hong Kong
Prediction: Cardano more energy efficient than Bitcoin
Charles Hoskinson is CEO of the research firm Input Output Hong Kong and one of the founders of Cardano, a blockchain-based cryptocurrency that is not very different from the cryptocurrency used by big companies like DocuSign, Inc. (NASDAQ: DOCUMENTARY) to build general trust in digital currencies in the business world.
However, Cardano is different from the digital coins accepted by DocuSign, Inc. (NASDAQ: DOCU) because they are more energy efficient than the other currencies, a point Hoskinson made in an interview with the Forbes business press in April. Cardano’s founder said its currency was 1.6 million times more energy efficient than Bitcoin.
The general impact on the environment from mining coins has put pressure on companies like DocuSign, Inc. (NASDAQ: DOCU) to move to more energy-efficient options, resulting in a dramatic drop in the value of cryptocurrencies that are energy-intensive or not used cleanly for energy solutions mining.
Like Tesla, Inc. (NASDAQ: TSLA), Shopify Inc. (NYSE: SHOP), and Square, Inc. (NYSE: SQ), DocuSign, Inc. (NASDAQ: DOCU) is among the top 10 crypto stocks on the Top 10 largest cryptocurrency predictions in 2021.
6. Brian Kelly, CEO of BKCM LLC
Prediction: Use cases will add value to Bitcoin Cash like other cryptocurrencies
Brian Kelly is the CEO of BKCM LLC and one of the early proponents of the wider rollout of Bitcoin Cash, a Bitcoin spin-off being mined using powerful computer hardware developed by companies like NVIDIA Corporation (NASDAQ: NVDA). Bitcoin Cash offers several advantages over Bitcoin, including faster transaction speeds.
However, the market has been slow to catch up with the untapped potential of Bitcoin Cash, much like the undervalued visual processing power of NVIDIA Corporation (NASDAQ: NVDA) chips. Kelly, a seasoned financial expert, believes that the only way to increase the value of new cryptocurrencies is by increasing their use cases.
Through this strategy, NVIDIA Corporation (NASDAQ: NVDA) has successfully grown into a leader in computer hardware by making its hardware more adaptable. In an interview with business news publication CNBC a few years ago, Kelly named Bitcoin Cash an indispensable cryptocurrency, based on news about setting up a Bitcoin Cash Development Fund.
Just like Tesla, Inc. (NASDAQ: TSLA), Shopify Inc. (NYSE: SHOP), and Square, Inc. (NYSE: SQ), NVIDIA Corporation (NASDAQ: NVDA) is one of the top crypto stocks according to 10 largest cryptocurrency predictions in 2021.
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Disclosure: None. The 10 Biggest Cryptocurrency Predictions in 2021 was originally published on Insider Monkey.