2020 is just hours away, and few will certainly miss it. However, as everyone in the crypto community starts looking towards 2021, many are wondering what this year will bring for crypto assets. And in this sense, the columnist and crypto influencer Andrew Keys gives his predictions for Ethereum in 2021. Which can serve as a guide to know what to expect from this market in the coming months.
The year of cryptocurrencies for Andrew Keys
Right from the start, Andrew Keys is quite optimistic in his predictions for 2021. Stating that next year will lead cryptocurrencies to take a more important position on the global political and economic scene. As investors start to accept Bitcoin as the new ‘digital gold’ and Ethereum as the ‘digital oil’. Thanks to the growing importance of smart contracts created on the ETH Blockchain.
This will also be driven by the progress in the implementation of Ethereum 2.0, which began this December. The one that will allow not only the development of increasingly ambitious DeFi projects, with the establishment of bridges between different blockchains, with products such as Wrapped Bitcoin. In addition to the advancement of web 3.0, and projects for the storage of information on the Blockchain.
This situation will put great pressure on Ethereum’s competitors, who will have to find a niche to pursue or they will be defeated, according to Andrew Keys. Which would include Blockchain projects like Tron, EOS, and Cardano, but also more serious competitors like Binance Smart Chain.
The performance of Ethereum and Bitcoin
On the other hand, Andrew Keys also has a very positive view of the future of the price of Ethereum and Bitcoin. Thus, for the analyst, Bitcoin could reach $ 50,000 in 2021, thanks to the entry of more institutional investors in this market. A vision that matches the trend that we have been observing so far in the crypto market.
At the same time, Keys expects Ethereum to be able to achieve a price of $ 2,000 in 2021. Essentially due to the same causes that would drive the price of Bitcoin, that is, the entry of institutional investors attracted by the advantages that Ethereum 2.0 offers for the creation of Blockchain projects on the ETH chain.
Andrew Keys gives his predictions for Ethereum in 2021. Source: CoinDesk
Cryptocurrencies in finance
Finally, for Andrew Keys the financial sector will also experience a true revolution thanks to cryptocurrencies. On the one hand, with companies in the crypto world following the path that Coinbase is setting with its Initial Public Offering (IPO), in turn entering the stock market themselves.
This at the same time that countries like China and the United States accelerate the development of their own government virtual currencies. A mechanism with which they intend to address the challenge posed by cryptocurrencies such as Bitcoin and Ethereum, offering several advantages of crypto assets, but under government control.
In addition to this, Keys also sees a possible explosion of venture capital inflow into the crypto market. With investment firms of this type dedicating a greater proportion of their capital to Blockchain technology. All of which at the end of the day will make cryptocurrencies like Ethereum better known, and enhance their value and usefulness.
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