ForkLog spoke with experts about what the cryptocurrency market can expect in 2021.
Founder of the Kuna cryptocurrency exchange, Mikhail Chobanian:
The state’s presence in the cryptocurrency market will intensify. We will see attempts either to verify and regulate strictly, or to ban it, as with Ripple.
National digital currencies will begin to enter the mass market; we will see them face off against Bitcoin.
I also expect the collapse of the existing financial system and even some states; as a result, cryptocurrencies could surge dramatically—but this is not investment advice.
Managing Partner, GMT Legal, Andrey Tugaryin:
Cryptocurrency cannot be stopped and the world will not exist without it. Even football clubs already have their own token.
The world is no longer the same as it was three years ago, when Bitcoin’s first rapid rise occurred. Regulators in many countries have over this period thoroughly developed their laws—some professionally, some less so. Cryptocurrencies have been given various definitions in law; responsibility has been established, and regulatory requirements have become more precise and clearer.
A major gap in all legislation is the lack of a proper link between the judiciary and enforcement systems and cryptocurrency. Law is a start, but how to resolve disputes, how to prove and enforce—unclear, and not only to citizens but also to judges and bailiffs.
Obviously, in 2021 owning cryptocurrency and staying under the radar will be harder, but room for scams will become much smaller, which is welcome, since cryptocurrency is more about societal benefit than deceit.
GMT Legal Partner Dmitry Machihin:
The euphoria of late 2020 from Bitcoin’s rise continues, but I believe it will end in 2021. Cryptocurrencies have again drawn regulator attention, and belt-tightening is coming. Anticipating regulatory risks, institutions will likely want to lock in profits, followed by a deep correction across the market.
In the first half of 2021 I expect a wave of interest in first-tier altcoins, with a renewed DeFi surge likely.
Binance Director for Russia and the CIS, Gleb Kostarev:
Despite the coronavirus pandemic causing irreparable damage to global economies, for many sectors it has become a new starting point for further development.
After the pandemic, the role and importance of the digital economy will continue to grow, potentially leading to broader adoption of cryptocurrencies worldwide. From Binance’s side we will continue to work on products that change the market and reduce barriers to entry.
For Binance, 2020 was largely a record year in Russia, Ukraine and the CIS. And in 2021 we go forward with positive projections and bright prospects.
I think in 2021 the cryptocurrency market will remain attractive to both institutional and private investors, and attention will be directed not only to Bitcoin but also to altcoins. We won’t discuss Bitcoin price forecasts—we are not wizards, and sometimes our forecasts may not align with reality.
In 2021 we will witness a number of pilot projects for the introduction of central bank digital currencies (CBDCs), led by central banks in many countries, including Russia. The market for stablecoins will continue to grow actively.
We expect greater transparency and clarity on regulatory questions. Binance actively works with many regulators around the world to help positively influence rules that benefit the entire industry.
In 2020 we all hoped for explosive growth in crypto payments, but this did not happen. The entry of giants like PayPal will undoubtedly give a huge boost to this trend in 2021. Binance will continue to actively influence the penetration of cryptocurrencies into traditional payment spheres, developing the Binance Card.
Architect of the project “Robonomika,” Sergey Lonshakov:
2021 promises to be interesting. Ethereum 2.0 has moved into the engineering implementation phase, and therefore in the coming year there will be something to “tangibly touch.” Polkadot is finishing the implementation of its parachain architecture, and the network will reach full operation together with a dozen new projects at launch.
Also during 2021, keep an eye on Cosmos, Filecoin, Solana, Near, Free TON, Cardano and DFINITY. You can expect new releases and steps from them that many projects could not achieve even during the crypto winter, despite having funds.
Less talk, more action—that, I hope, will mark the first year of the new decade.
Professor Evgeny Kogan, Higher School of Economics:
The cryptocurrency market is set for a certain volatility at the start of the year. Clearly there may still be attempts at some growth, but then a hard correction is likely to follow.
The issue is that many who profited and entered in large numbers have joined the market, and a massive influx of people who had never heard of cryptocurrency is coming in. If newcomers come, it is unlikely they will be unwelcome, and their “being loved” will inevitably push the price down; the question is whether it will drop from $29,000 or $32,000—we do not know.
Most likely the correction will occur in tandem with the stock market correction and other assets. Later, with a cry of “all is lost,” investors, in other words failed speculators, will rush to dump it all at $16,000–$18,000. Then they will be bought up again by speculators and at some point drive the price back up.
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