The Head of Crypto at Visa thinks Bitcoin has a Bright Future

By Evie Harrison

Helped by rising tensions between the US and Iran, as well as growing uncertainty about the economic impact of the Coronavirus, Bitcoin has had a great start to the year. 

At the time of writing, Bitcoin, the first and most popular crypto-currency, has gained more than 35% since the beginning of the year, which has been great for traders – especially for those trading via a Bitcoin CFD.

While the BTC is currently down from its highest level of the year and the ever-significant $10,000 level, prices might keep rising due to increasing interest in the different ways the token can be used. 

According to the head of the crypto department at Visa, Cuy Sheffield, “there are some really interesting use cases and scenarios that could drive mainstream consumers to spend Bitcoin instead of traditional dollars or stablecoins in the future”. 

He explained on Twitter that most people feel there’s too much friction in dealing with Bitcoins, which is slowing down adoption. “You have to figure out how to buy Bitcoin first, stomach its volatility, and make sure that the traditional merchant that you want to transact with actually accepts it which limits your options of where you can transact”.

This is especially true when it comes to micropayments. He explained that today, nothing can be bought online for less than a penny with USD. These micropayments could be dealt with easier and faster on the Bitcoin network, thanks to the Lightning Network using Satoshis.

Will the Bitcoin reach $20,000 again this year?

Many analysts and investors are sharing their Bitcoin price forecasts, which range from very optimistic to outright dramatic. But it is actually quite complex to predict with certainty where the price of such a new asset will head. 

“Right now Bitcoin feels a little frenzied, and we could see it surge up, but I think by the end of the year we certainly take out the old highs,” declared the crypto investor, Michael Novogratz on CNBC. “Or at least we go to the old highs”.

The halving is also an important price catalyst for Bitcoin’s next leap towards the $10,000 and beyond. This event, which will reduce miners rewards by two (from 12,5 BTC to 6.25 BTC) in May, will increase the scarcity of the digital currency. Prices should therefore rise.

The crypto-market could take a hit, as some “significant” crypto-currency regulations might be on their way in the US. 

“We want to make sure that technology moves forward but, on the other hand, we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts,” declared the Treasury secretary, Steven Mnuchin, who considers Bitcoin a security risk.

What’s sure is that Bitcoin is the most traded and popular crypto-currency, showing great growth potential. Institutional investors, who are the actors that can truly support BTC price growth, are increasingly interested in new products and services offering them a chance to diversify their portfolio with Bitcoins and store them securely.