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Bitcoin's utility will be a key price factor for 2021

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According to the president and founder of the Bitcoin Association, Jimmy nguyen, in 2021 the real utility of cryptocurrencies will become a key price factor.

Nguyen maintains that, after years of hype, 2021 will be the year in which the potential of cryptocurrencies will finally be put to use.

The actual utility will be revealed by applications that exploit the benefits of the blockchain and the public ledger, both for data and for microtransactions.

It is true that Bitcoin does not facilitate on-chain microtransactions, given the high fees involved, but thanks to the Lightning Network it allows fast, cheap and reliable off-chain microtransactions.

The Bitcoin Association actually is compatible with Bitcoin SV, and not with Bitcoin, so it's obvious that Nguyen is trying to promote on-chain microtransactions rather than off-chain solutions like LN.

The President of the Bitcoin Association Also imagine that we will see improved interfaces and user experiences that will make digital currencies and blockchains easier to use and therefore more accessible compared to what they are today.

In particular, it says its use will extend to sectors that process and monetize important data, such as healthcare, gaming, digital marketing, supply chain, and the Internet of things.

For example, Nguyen says that most cryptocurrency prices today are largely based on the speculation, including that of BTC, and that he does not believe that Bitcoin is a store of value, as many others do.

Rather, he argues that growing interest in cryptocurrencies by institutional investors, such as hedge funds, will make 2021 the year in which actual profit will become a key price factor.

The sectors that will move Bitcoin and crypto prices in 2021

The two sectors that he cites as examples of mass adoption are the health and online gamesBut to be fair, these hypotheses have been around for a few years.

In fact, 2020 proved to be the beginning of the adoption of crypto technology in the sector of games and, in particular, of the NFT on Ethereum, and this is a phenomenon that could grow in 2021.

The other examples that Nguyen has also analyzed, namely the new social networks or the use of the blockchain in the supply chain or the Internet of Things (IoT), have also been considered for some time, but have yet to be shown to be able to exploit the use of cryptocurrencies and blockchain.

Therefore, although on the one hand, it seems that Nguyen's predictions do not introduce any significant novelty, with respect to what is already known, on the other, they seem to be much less focused on the financial world, which has shown to date that it is clear and unequivocally the most interested in these technologies.





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