The growth of Bitcoin in 2020 will be caused by several factors

Bitcoin has spent the last six weeks consolidating, and many analysts believe it is preparing for a major climb. Currently, Bitcoin has risen to the $ 7,500 resistance threshold.

The fundamentals are being strengthened and five issues could cause Bitcoin to grow in 2020.

Rule x4

Since Bitcoin is traded, each year, the minimum value has increased 4 times in the next year. The only time that did not happen was in 2014-2015, when it only increased 2 times.

In 2019, the minimum year was 3260 delari. According to rule x4 in 2020 Bitcoin will reach the threshold of $ 13040.

Hash rate

According to bitinfocharts.com, the network hash rate reached a record value of 114.5 EH / s. This is eight times higher than the increase recorded at the end of 2017.

This dispels any suggestion that miners give up, as the power and security of the network is better than ever. The hash rates are not directly correlated with the price, but they are a good sign of the general health of the Bitcoin network.

Half the block reward

Any price analysis of Bitcoin mentions the halving of the block reward that will take place in five months. There is a risk that this four-year event will have a negative impact on the hash rate.

From the price point of view, however, many argue that the crypto market will benefit from a wave of speculators who will push the price up. This can happen both before and after May.

Previously, half the rewards had a very positive effect on the price of Bitcoin. There is no reason why history should not repeat itself.

CBDC or Libra

France, Turkey and the US are testing the concept of digital currency issued by a central bank. China wants to be the first big economy that has CBDC – digital yuan.

The Libra association has been dissolved, but the Libra project will launch in 2020. The team behind the project has launched Roadmap 2 even if governments and central banks oppose it.

Whether Libra or a CBDC is launched, the volume of newcomers to the ecosystem will be extraordinarily high. Everyone will learn about Bitcoin and many will learn how to use it. Adoption will play a key role and influence Bitcoin growth in 2020

An investment protected from economic risks

Bitcoin has established an asset reputation away from the effects of traditional financial system events. From this point of view, it can fall into the same category as gold and oil.

Also, the volumes of transactions on LocalBitcoins in countries with economic problems, hyperinflation and capital controls increased last year. There is no reason why it will not continue in 2020.

Currently, banking systems around the world are beginning to need state aid. In addition, interest rates fall into negative territory, which encourages debt accumulation. The printing of more money is the answer of the central banks of the world, but it is totally unsustainable.

These events will cause more people to avoid banking systems and seek decentralized safe haven assets for their future. Bitcoin fits into this category perfectly.