Finder Cryptocurrency Predictions Report

January 2020: Bitcoin price predictions and Facebook's Libra

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Bitcoin

What’s in store for crypto and digital currencies? Finder surveyed 13 fintech leaders to find out.

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Bitcoin price predictions

Bitcoin (BTC) was worth $7,200 on January 1, 2020. Our panel predicts Bitcoin will increase nearly 20% to $8,589 over the next three months on average. But not everyone thinks an increase is in the short term: Three panelists — Dr. John Hawkins at the University of Canberra; Paul Levy, a senior researcher at the University of Brighton; and Dr. Elvira Sojli from the University of New South Wales — forecast a price decrease. Hawkins is most bearish, predicting Bitcoin will drop as low as $5,000. Meanwhile, Jimmy Song, author at Programming Bitcoin and lecturer at the University of Texas, is the most bullish, predicting Bitcoin to soar to $14,500.

If the panel is correct, short-term gains will be followed by a strong price increase by the year’s end. The panel thinks Bitcoin will nearly double by the end of the year, with an average forecast of $14,275 by December 31, 2020. Here too, the three panelists who thought Bitcoin would be worth less by April 1st think Bitcoin will end the year worth less than it is now. Hawkins predicts as low as $2,000, saying, “In over a decade, Bitcoin has not made any substantial progress in becoming a payments instrument and may face stronger rivals in 2020, such as Libra, and then central bank cryptocurrencies. Payments systems in central bank currencies are also improving.”

Ben Ritchie, managing director at Digital Capital Management, offers the highest end-of-year price prediction at $34,500. He suggests the price could increase due to geopolitical and economic uncertainty, meaning “investors will look to some alternative assets to shield from these events, and cryptocurrencies is likely to be a benefactor.” He notes that onboarding infrastructure for cryptocurrency investors, such as custody, insurance, wallets and user experience, continues to improve.

Song ($22,375) predicts the second-highest end-of-year value, followed by Fred Schebesta, cofounder of Finder and Crypto Finder ($22,000), and Joseph Raczynski, technologist at Thomson Reuters ($14,000).

How will the halvening affect the price of Bitcoin?

One reason panelists think Bitcoin will increase in price is due to the upcoming halvening. The majority of panelists (82%, or 9 out of 11) believe the halvening will increase the price of Bitcoin. Many of the panelists attribute this to reduced supply and subsequent increased demand for the cryptocurrency.

CEO of Digital Asset Capital Management Richard Galvin put it this way:

[The halvening] creates a focus on Bitcoin’s supply cap — one of, if not the, key broad investment thematics. An event that drives focus on a key positive is likely to have a positive impact on price.

Venture capitalist Tim Draper, founder of Draper Associates, also thinks the price of Bitcoin will increase. He says, “It [Bitcoin] becomes more valuable as the usage and costs to make it go up.”

Dr. John Hawkins, assistant professor at the Canberra School of Politics and Economics, is the only panelist who expects Bitcoin’s value to decrease as a result of the halvening. “It will create more uncertainty about whether the number of Bitcoins that can be created is really immutable,” he says.

Dr. Elvira Sojli, associate professor of finance at the University of New South Wales, doesn’t think the halvening will affect Bitcoin’s price.

Sentiment on other cryptocurrencies

We asked the panel whether they are positive, negative or neutral on 11 cryptocurrencies. Only three cryptocurrencies — Bitcoin, Ethereum and Tezos — scored a positive sentiment as a result.

Cryptocurrency sentiment score

CryptocurrencySentiment rating
Bitcoin6
Ethereum3
Tezos2
Bitcoin Cash-1
XRP-1
Binance Coin-2
Stellar-3
Monero-4
Litecoin-5
EOS-5
TRON-6

Our panel is most optimistic about Bitcoin, which earns an overall sentiment score of 6. Three quarters of the panel (75%, or 9 of 12) say they’re positive about Bitcoin, and 25% are negative. Ethereum earns the second-highest sentiment score of 3, with 50% positive, 25% neutral and 25% negative.

Aaron LePoidevin, director at Every Capital, is positive on Bitcoin, XRP, Monero and Bitcoin Cash, explaining the signals from corporate investment firms, institutions and brokers are consistent in their positivity for quality currencies:

Stablecoins continue to make an impact on market liquidity, and there appears to be traction in the decentralized finance and staking sector, as it has gained in popularity in the second half of 2019.

Ritchie notes we are likely to see a surge in the price of Bitcoin before investors broaden their investment to the altcoins toward the end of the year.

While he thinks Bitcoin will be the best performer, he believes Ethereum network upgrades toward a proof-of-stake model is likely to occur in the first quarter of 2020, which should increase its price. He notes Binance Coin is likely to do well “due to its tokenomics linking its token price to trading volumes.”

The panel is most negative on Tron, EOS and Litecoin. TRON earns the lowest sentiment score of -6, with 58% negative, 33% neutral and 8% positive. EOS and Litecoin both score a sentiment rating of -5.

Raczynski, who is positive on six coins, neutral on four and negative on one, has this to say about XRP: “Ripple confounds. It has drifted lower, fairly consistently, even though there have been generally good news stories coming from their camp … Their more centralized model may prove a challenge to skeptics going forward.”

The future of fiat

This report, we also asked panelists about their confidence in the current fiat system, given a recent Deutsche Bank Image 2030 report that suggests fiat currencies could unravel over the next decade. More than three quarters of the panel (77%, or 10 of 13) say that’s either somewhat or very likely to happen.

Jimmy Song thinks the collapse of fiat is somewhat likely to happen, explaining, “There will probably be another black swan event that no one saw coming that will expose how fragile the whole system is.”

ConsenSys Strategic Initiatives Lead Claudio Lisco thinks it is very likely to happen:

Disruption seems inevitable and necessary in the current context, as on a daily basis we experience the negative outcomes of inefficient and disjointed financial infrastructure, ineffective monetary policy and insufficient AML and CTF practices.

Just three panelists say it’s either somewhat or very unlikely to happen: Dr. John Hawkins, assistant professor at the Canberra School of Politics and Economics; General Partner at Blockchain Capital Spencer Bogart; and Dr. Elvira Sojli.

Bogart notes that while there is fragility in conventional fiat systems, he doesn’t foresee them disappearing in the next decade or two.

Sojli says, “The political and monetary system will adapt and change into a more palatable, but still fiat currency–based system.”

The French central bank’s digital currency

According to the French central bank, the Banque de France, France aims to pilot a wholesale national digital currency for use by financial institutions. We asked panelists how they feel about this approach, considering the creation of a national digital currency for use by households and individuals, rather than institutions alone. A third of our panelists (33%, or 4 of 12) hold a somewhat positive position, while a quarter (25%) are either somewhat or very negative. Five panelists (42%) are neutral.

Song, who is neutral on the matter, says: “This is just an IT infrastructure upgrade to current fiat monetary systems that already exist.”

Raczynski says he is somewhat positive. “These are simply attempts to keep the power back in the hands of the fiats,” he explains. “It makes sense, but I don’t think these will last in the long run. In the short run, it helps people wrap their heads around a digital currency, especially as it is issued by a government. In time, people and businesses will likely then move to a more privatized system. This will be a gateway.”

Meanwhile, Hawkins notes that because France no longer has a national currency, it makes sense to organize this at the eurozone level.

Will Facebook’s Libra ever launch?

When asked if private stable coins such as Facebook’s proposed Libra digital currency threaten the monetary sovereignty of nations, 77% (or 10 of 13) say yes.

Despite speculation that Facebook’s Libra will never launch, 85% of our panel (11 of 13 panelists) believes it will go live.

Several panelists — including Sojli, Ritchie and Bogart — say the platform will go ahead, but in a restricted or new format.

“The real question around Facebook’s Libra launching is: In what form? If you’re asking, ‘Will it launch as described in the original whitepaper?’ my answer would be no. But I do think that some form of it will launch,” explains Bogart.

Claudio Lisco also thinks it will launch, but that it will take a lot longer than currently projected, as Facebook and its partners seem committed to undergo regulatory approval before launching.

Lisco adds, “We will continue to see technical development next year, with continued regular releases to the testnet and perhaps early live PoCs that could fit the scope of regulatory sandboxes and gray areas.”

Meet our panel

  • Tim Draper, Founder, Draper Associates
  • Jimmy Song, Bitcoin Educator, Developer and Entrepreneur, Programming Blockchain LLC
  • Joseph Raczynski, Technologist, Thomson Reuters
  • Fred Schebesta, Cofounder, Finder and Crypto Finder
  • Dr. Elvira Sojli, University of New South Wales
  • Richard Galvin, CEO, Digital Asset Capital Management Inc.
  • Dr. John Hawkins, Assistant Professor, University of Canberra
  • Aaron LePoidevin, Director, Every Capital
  • Paul Levy, Senior Researcher, University of Brighton
  • Spencer Bogart, General Partner, Blockchain Capital
  • Ajay Shrestha, Ph.D. Candidate, University of Saskatchewan
  • Ben Ritchie, Managing Director, Digital Capital Management
  • Claudio Lisco, Strategic Initiatives Lead, ConsenSys

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14 Responses

  1. Default Gravatar
    mannaJuly 29, 2019

    What is your production for the KBC coin in the coming months

    • Avatarfinder Customer Care
      fayemanuelJuly 30, 2019Staff

      Hi Manna,

      Thanks for contacting Finder.

      At the moment, we don’t have a review page for Karatgold Coin (KBC). We also don’t have the information about the rates and its prediction.

      We’re always on the lookout for new information available to you on our site. We’ll surely look into this and you can check back on us every so often. We’re hopeful to have this information ready for you soon.

      Kind Regards,

      Faye

  2. Default Gravatar
    MarufNovember 10, 2018

    Do you have any alternative about new cryptocurrency that has a potential ?

    • Avatarfinder Customer Care
      JoshuaNovember 21, 2018Staff

      Hi Maruf,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Throughout the past months and years, there have been different crypto coins that appeared in the crypto sphere. While we try to cover a wide range of cryptocurrencies, there might be some that we missed. We don’t have a specific list of cryptocurrencies that have newly entered the market. However, you will see all the cryptocurrencies that we have covered so far on this page. From there, you can select a specific coin and read more about our review. From there, you can know about their potential and performance.

      Moreover, you could also follow this page or bookmark it. It lists all the latest cryptocurrency news that might interest you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  3. Default Gravatar
    KalaSeptember 17, 2018

    What do you know and think about the new Kala coin

    • Avatarfinder Customer Care
      johnbasanesSeptember 18, 2018Staff

      Hi Kala,

      Thank you for leaving a question.

      Kala is a cryptocurrency built on a fork of the Bitcoin blockchain that will integrate
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      across multiple industries. While we do not provide specific product recommendations, this is what we have currently. Hope this helps!

      Cheers,
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  4. Default Gravatar
    imranAugust 12, 2018

    ICO investing made easy?

    • Avatarfinder Customer Care
      JoshuaAugust 20, 2018Staff

      Hi Imran,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Regarding your question, are you asking how to make ICO investing easy? If yes, then it would be helpful to read this guide: What is an Initial Coin Offering (ICO) and how does it work?

      On that page, you will learn more about what an ICO is and how to get involved. Once you read this guide, you would learn more how to make ICO investing easier.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  5. Default Gravatar
    NiharJuly 15, 2018

    What is NEXALT?

    • Avatarfinder Customer Care
      JhezJuly 19, 2018Staff

      Hello Nihar,

      Thank you for your comment.

      NEXALT is a kind of cryptocurrency coin. This is also called XLT. The main feature of this Money is based on advance DAG (Directed-Acyclic-Graph) associated technology by which most of the DAG functionalities are refined up to their optimized variations.

      Kindly visit their page for a guide on how to start using XLT.

      Regards,
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  6. Default Gravatar
    FazailJuly 12, 2018

    Actually I wanna ask about the rates of Trade Coin Club (TCC) nd the prediction of its rates in future can I have some information about it??

    • Avatarfinder Customer Care
      nikkiangcoJuly 22, 2018Staff

      Hi Fazali!

      Thanks for leaving a message on our page.

      As much as we’d like to give you rates of Trade Coin Club and its prediction, we don’t have any information on this yet. We’re always on the lookout for new information available to you on our site. We’ll surely look into this and you can check back on us every so often. We’re hopeful to have this information ready for you soon.

      Hope this clarifies.

      Regards,
      Nikki

  7. Default Gravatar
    KabeloMay 21, 2018

    What are your predictions on bitcoin private , do you expect bitcoin cash to grow this year?

    • Avatarfinder Customer Care
      JoshuaMay 22, 2018Staff

      Hi Kabelo,

      Thanks for getting in touch with finder. I hope all is well for you. :)

      Bitcoin Private is a relatively new Bitcoin hard fork. With so many hard forks in the past and most certainly in the future, it is difficult to see whether Bitcoin Private will attract a lot of users or not. Although, Bitcoin Private seems to be promising and it comes with important security and user features, time will tell how people will respond to this new fork.

      Regarding Bitcoin Cash, our page predicts that it will grow in value. Our page predicts that by December 2018, this coin will increase for more than 100% in value.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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