In this article we discuss the 5 biggest cryptocurrency predictions in 2021. If you want to read our detailed analysis of these predictions, go directly to the 10 Biggest Cryptocurrency Predictions in 2021.
5. Charlie Lee, Managing Director Litecoin Foundation
Prediction: If Bitcoin is Gold, Litecoin is Silver
Charlie Lee is the Managing Director of Litecoin Foundation and the founder of Litecoin, the sixth largest cryptocurrency in the world that works on a proof-of-stake mechanism. Lee was a former employee at Alphabet Inc. (NASDAQ: GOOG) before he founded Litecoin. Litecoin is also a Bitcoin spinoff that offers lower fees and faster transaction times than the parent coin.
Lee gained exposure to crypto as a former engineer at Alphabet Inc. (NASDAQ: GOOG), one of the largest institutional investors in digital currencies. In an interview with American news publication CNBC in late April, Lee explained that Litecoin was like silver to the gold that was Bitcoin, noting that Litecoin used a different mining algorithm to the parent coin.
This difference could be important for companies like Alphabet Inc. (NASDAQ: GOOG) that want lower fees and faster networks, as well as environment-friendly options in the crypto industry. Lee told CNBC during his appearance that Litecoin was four times faster than Bitcoin and had more tokens, making it easier to use.
4. Denko Mancheski, CEO Reef Finance
Prediction: Polkadot in Position to Take Over Altcoin Space
Denko Mancheski is the CEO of Reef Finance, a cross-chain liquidity and yield farming aggregator that has invested aggressively in Polkadot, a network and cryptocurrency that acts as a bridge between different blockchain systems. It is a secure financial system, much like that used by Square, Inc. (NYSE: SQ), the California-based digital payments firm.
However, Square, Inc. (NYSE: SQ) does not let new users take advantage of the security system, whereas Polkadot provides developers access to security to beef up the defenses around their new currencies, making them less susceptible to attacks from the outside. Mancheski is a great admirer of this system.
Just as Square, Inc. (NYSE: SQ) markets itself as an alternative to traditional finance, Mancheski believes Polkadot is the best alternative to crypto giant Bitcoin. In an interview with business news publication Forbes in February, he said that Polkadot was in a prime position to take over the altcoin space because of slow developments within Ethereum.
3. Hesham Elsafty, Group Head for Financial Institutions and International Financial Services at National Bank of Egypt
Prediction: Ripple Will Improve Efficiency, Establish New Market Alliances
Hesham Elsafty is the Group Head for Financial Institutions and International Financial Services at National Bank of Egypt, which has invested in the Ripple cryptocurrency, one of the most popular crypto offerings in the world that was developed by Ripple Labs, a payment protocol that is aiming to be as big as PayPal Holdings, Inc. (NASDAQ: PYPL).
Just as PayPal Holdings, Inc. (NASDAQ: PYPL) makes it easier to process cross border transactions, Ripple has established relations with the Egyptian bank by marketing the same service at even lower fees. While announcing the partnership in May, Elsafty elaborated how Egypt, one of the top five countries that received remittances from abroad, would benefit.
Elsafty said the partnership with Ripple would help to improve overall efficiency by enabling NBE to establish new alliances across wider markets with reduced cost and quicker integration time. Perhaps anticipating this, PayPal Holdings, Inc. (NASDAQ: PYPL) recently also allowed users to checkout with crypto on its platforms.
2. Sarah Bergstrand, COO BitBull Capital
Prediction: Ethereum Will Rocket to $100,000 by 2025
Sarah Bergstrand is the COO of BitBull Capital that has a bullish view on Ethereum, the second most popular cryptocurrency in the world that many believe will take over the number one spot from Bitcoin in the coming years. Big companies like Shopify Inc. (NYSE: SHOP), the Canadian ecommerce platform, already accept Ethereum as payment for sales.
The trust that Shopify Inc. (NYSE: SHOP) has shown in Ethereum looks set to pay off as finance experts like Bergstrand believe that new developments within the Ethereum network, which is in the process of transferring itself to a more leaner platform that is less energy intensive, will lead to a staggering increase in the price of the coin.
In an interview with business news publication Forbes in May, Bergstrand predicted that Ethereum will rocket to a staggering $100,000 by 2025. Shopify Inc. (NYSE: SHOP) CEO Tobi Lutke is similarly bullish on Ethereum, taking to social networking platform Twitter in April this year to ask for ideas related to investments similar to Ethereum that his company could explore.
1. Cathie Wood, CEO ARK Investment Management
Prediction: Bitcoin Will Reach $500,000
Cathie Wood is the CEO of ARK Investment Management and one of the most successful investors in the world. She has been consistently backing Bitcoin to succeed as the most popular cryptocurrency in the world, along with big firms like Tesla, Inc. (NASDAQ: TSLA), the California-based electric vehicle maker owned by billionaire Elon Musk.
Cathie Wood of ARK Investment Management
Earlier this year, Bitcoin value fell sharply after reaching a high of around $64,000 in April after Tesla, Inc. (NASDAQ: TSLA) suspended Bitcoin payments for sales and Musk voiced his disapproval of the energy intensive mining methods used by Bitcoin, sending stocks of many crypto firms, including those in which ARK has ownership, sliding to new lows.
Wood, whose hedge fund has a big stake in Tesla, Inc. (NASDAQ: TSLA), disagrees with Musk on the issue, and appeared on business news station Bloomberg TV in May to claim that Bitcoin would rise to $500,000 despite recent setbacks. Wood made the claim on the back of reports that the adoption of solar energy in coin mining was accelerating dramatically.
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