In this article we discuss the 5 biggest Bitcoin predictions in 2021. If you want to read our detailed analysis of these predictions, go directly to the 10 Biggest Bitcoin Predictions in 2021.
5. Anthony Scaramucci, Managing Partner Skybridge Capital
Prediction: Bitcoin Is Apex Predator in Digital Currencies Despite Altcoins
Anthony Scaramucci is a managing partner at Skybridge Capital, a New York-based global investment firm. He has also served as the communications adviser to former United States President Donald Trump. Scaramucci is bullish on Bitcoin despite the recent setbacks and speculation surrounding the future of crypto amid governmental crackdowns.
Last month, during an interview, Scaramucci said that Bitcoin was still the currency to own even as it struggled while alternate coins soared. Underlining the resistance he faced when he advised clients to invest in crypto a few years ago, Scaramucci said that Bitcoin was the only cryptocurrency that had managed to reach escape velocity.
Scaramucci added that the fall in value was an opportunity, urging investors not to miss out on it. He added that even with the growing prominence of altcoins, Bitcoin had been able to maintain supremacy as the apex predator in digital currencies. Scaramucci said he asked his clients to own small amounts of Bitcoin to get them to appreciate its value.
4. Ray Dalio, Former CIO Bridgewater Associates
Prediction: Bitcoin Better Than Bonds as a Savings Vehicle During Inflation
Ray Dalio is the former chief investment officer of Bridgewater Associates, the Connecticut-based investment firm that was the top performing hedge fund in 2020, reporting $46 billion in earnings through the year. Dalio recently sat down for an interview with New York-based crypto news site CoinDesk to talk about Bitcoin.
Dalio said that the United States dollar was on the verge of devaluation and that China was threatening the role of the dollar as the preferred reserve currency in the world. In such an environment, Dalio elaborated how Bitcoin could be a good savings vehicle and a hedge against inflation should things go from bad to worse.
Dalio also revealed that he owned some Bitcoin during the interview, saying he would prefer Bitcoin over bonds for savings in the present economic situation. The billionaire was bullish on the most popular cryptocurrency, saying that the greatest risk associated with Bitcoin was the success it looks set to achieve.
3. Paul Tudor Jones, CIO Tudor Investment Corp
Prediction: Sovereign Governments Will Eventually Use Own Version of Crypto
Paul Tudor Jones is the chief investment officer of Tudor Investment Corp, the Boston-based hedge fund that manages over $20 billion in assets. In a media interview late last year, Jones explained his position on Bitcoin, saying that the cryptocurrency was a crazy rocket ship that looked set to soar higher in the coming weeks and months.
Jones told Yahoo Finance that he expected the price of Bitcoin to be significantly higher two decades from now. Despite the highs that the currency had touched over 2020, Jones said he believed that the price of Bitcoin was still wrong considering the possibilities it offered, comparing it to the dotcom boom in the late 1990s.
In an investor letter dated May 2020, Jones called Bitcoin the faster horse among cryptocurrencies and a solid bet against inflation. He was also bullish on the overall digitization of money as banks and governments took steps in that direction. Jones predicted that sovereign governments would eventually use their own versions of crypto.
2. Balaji Srinivasan, Former CTO Coinbase
Prediction: Firewall, Domestic Penalties Will Affect Blockchain in China
Balaji Srinivasan, is the former chief technology officer of Coinbase and an angel investor with significant exposure to a range of technology-related companies. Srinivasan is perhaps one of the most ardent Bitcoin bulls in the finance world, but is equally cautious about the threat of possible crackdowns against crypto as it challenges traditional power players.
Balaji Srinivasan
For example, Srinivasan predicted the recent crackdown on cryptocurrencies in China as far back as two months ago during an interview with The Tim Ferriss Show. Balaji explained how the Great Firewall of China would act against foreign influences on domestic internet operations, making crypto a prime target of the authorities sooner rather than later.
Srinivasan also warned of domestic penalties for those dealing in blockchain technologies in China. A couple of months after his interview, the Chinese government placed restrictions on the finance institutions dealing in cryptocurrencies like Bitcoin. Coin mining has already been banned in China.
1. Cathie Wood, CEO ARK Investment Management
Prediction: Bitcoin Will Reach $500,000
Cathie Wood is the chief executive officer of ARK Investment Management, the New York-based hedge fund renowned for investments in technology-related growth stocks with explosive potential. Wood owns stakes in several crypto-related firms, including Tesla, Inc. (NASDAQ: TSLA), the California-based electric vehicle maker.
Cathie Wood of ARK Investment Management
Wood, who has hundreds of millions invested in crypto, has publicly bashed Tesla, Inc. (NASDAQ: TSLA) chief Elon Musk recently for caving in to institutional pressure and questioning the energy-usage of coin mining farms, sending crypto-related stocks on a free-fall in April that looks set to continue over this quarter.
Wood made an appearance on Bloomberg TV in May to stress that Bitcoin would rise to $500,000 despite the recent fall in value. She highlighted that the adoption of solar energy in coin mining was accelerating dramatically and that Tesla, Inc. (NASDAQ: TSLA) chief Elon Musk would come back to be part of the crypto ecosystem soon.
You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.
