Before the pandemic, bitcoin has seen a dip in the price. This was the case in 2020. With the start of the pandemic, the bitcoin price has dipped even more to 50% of its actual value in just two days of time. The conventional financial markets have also seen the dip in March. There is a standout recovery that is posted by bitcoin by smashing all time records and hit the highest price. There is a prediction that the price of the bitcoin is going to drop. Bitcoin is considered to be the largest cryptocurrency. Based on the thoughts that are put forth by Dermot O’Riordan who is a venture capitalist, it is clear that bitcoin value would be considered as the non-sovereign censorship resistant hedge. When compared to the dollar, the price of bitcoin is growing day by day higher as per the thoughts of O’Riordan.
However, the volatility of bitcoin would remain the same in the coming times. There would be a rise in the volatility of bitcoin in the upcoming times. The price milestone will unlock the bigger class of institutional investor who made it a mandatory to buy the asset. There are many financial bigwigs over which bitcoin has attained a victory, especially MassMutual, Paul Tudor Jones, Micro strategy and so on. The players have given enough cash to the digital store of value in 2020. The buying trend would heat up the later portion of the year. With the rise in bitcoin, breaching USD 40000, there would be liabilities.
O’Riordan stated that the bitcoin would see two larger risks. The first thing is how it is going to handle the questions that arise about its security. If there is no rise in the fee, how bitcoin is going to supplement the bitcoin issuance. The risk of the bitcoin would be related to the institutionalization of bitcoins. There is a great change that bitcoin is seeing over time. Every time even if the price of the coin is falling, it is seeing a rise again after a certain time period. Due to this, many are still adopting bitcoins. There are many investors who are showing interest in investing in the bitcoins. Many people are investing in bitcoins as the price of it is growing at a brisk pace. When there is a rise in the price, you can sell the bitcoins to make huge profits. Today, bitcoins are accepted in many countries and places.