Despite the fact that the end of 2021 revealed that there may still be some concern about market volatility, there is no doubt that last year was massive for the cryptocurrency industry and massive in general.
Indeed, there were a variety of things to keep an eye out for, like non-fungible tokens (NFTs) and decentralized finance (DeFi), Ethereum (ETH-USD), and smaller cryptocurrencies, but it was also a year that had a significant impact on Bitcoin.
The cryptocurrency, which had experienced a number of fluctuations over the last 12 months, had reached an all-time high of near $69,000 in November. Still, it was recently reduced to around $47,000, leaving its market capitalization to be its second-lowest and around 40%, according to TradingView data.
Nonetheless, many bulls continue to anticipate that Bitcoin will be able to achieve the $100,000 price that many had hoped for, with many staying firm in their prediction and still having as much confidence in it happening as before.
Naturally, many individuals and professionals may want to point to a variety of other elements when attempting to back up their prediction, with the gambling sector being one of the most significant.
Crypto gambling is a pastime loved by many virtual currency holders, with the use of a Bitcoin casino increasing due to the perks that gamblers can have when playing their favorite games. Furthermore, to reinforce the notion that Bitcoin has benefited from this business and will likely continue to do so, a 2020 study by Thomas Conlon and Richard McGee found that the crypto token had previously experienced a price boost due to the wagering industry.
While there may be some volatility in the “near term,” according to CryptosRus George Tung, in the “long run, inflation is going to be a persistent issue, and bitcoin is considered as the best hedge against inflation at this point.”
Blockstream’s chief strategy officer Samson Mow appeared to double down on the prediction that Bitcoin will reach a six-figure price over the next six months. “We’ll see $100,000 during the first part of the year,” he said.
How did it also show that Bitcoin will remain a risky asset in the short term, with a variety of factors at play, but also stated: “over a long enough time horizon, [Bitcoin] does its own thing.”
El Salvador’s President, Nayib Bukele, recently expressed the belief that Bitcoin will be able to reach $100,000 in 2022, making a number of strong forecasts while taking to Twitter and tweeting to all of his followers.
One of his forecasts that might help the digital asset become a six-figure currency was that two more countries would adopt the token as legal tender in the next 12 months, joining the Latin American country as the first to accept it.
Mow stated that “[Bitcoin] mining at the national utility level is the first stage,” and the market has resurfaced in a number of countries. According to Cambridge Bitcoin Electricity Consumption Index data, despite China’s prohibition on cryptocurrency mining in June 2021, countries such as Canada, Iran, Germany, Malaysia, Russia, and the United States have all experienced a recovery in market interest, according to Cambridge Bitcoin Electricity Consumption Index data (CBECI).
Some might argue that Bukele’s and Mow’s opinions are shared, owing to their mutual interest in offering “volcano bonds” after a collaboration was revealed. Half of the billion-dollar national debt would be used to fund “Bitcoin City,” which would mine Bitcoin using nearby geothermal energy from a volcano.
Mow stated that a “zero tax on everything” development zone would help transform El Salvador into the “Singapore of Latin America,” however it should be noted that the bond is not yet available, as Blockstream continues to work with a number of brokers. The other half of the 10-year bond offering will be converted into Bitcoin, with a coupon of 6.5% being carried over the next decade.
