Bitcoin will hit $ 40,000 any time soon! UPDATE!
Hello all traders, today I would like to introduce you to a few more facts that should open your eyes more to the present situation, and take rational steps for the future. Today, for a change, I present a 1-day chart. ok let's start :)
More and more (wealthy) people and companies are looking for ways to protect the value of their capital against the inflation expected as a result of these interventions. Therefore, places of refuge, so-called safe-haven assets, are being sought. Gold is the most famous example of this.
Bitcoin also shows the characteristics of a safe investment, with the caveat that it has a much more limited track record than gold. Still, apparently that is no longer a reason to avoid bitcoin as a place of refuge, with the most famous evidence of this being the purchase of 38,250 BTC - worth more than half a billion dollars at the time of writing - by the publicly traded company MicroStrategy.
A bear market is for builders, it is sometimes said. The reduced attention and activity that these "low days" entail has the advantage for companies and developers that they can work undisturbed. Building new products. Having discussions with regulators. Further development of a protocol. Or launching new services.
Between the previous all-time high of Bitcoin and now there has been a lot of work. At the end of 2019, Bakkt launched one of the most highly anticipated events in the crypto world ever. Bakkt has never been able to meet the sky-high expectations, but the launch also represents various breakthroughs in the field of legislation and regulations and services relating to cryptocurrencies that are considered natural and necessary for the institutional investor, such as the storage and custody (custody) of purchased assets. Jumping forward a few months, we see that there are two crypto companies with a US banking license, Avanti and Kraken.
Staying in the context of banks, we see that more steps have been taken that legitimize the existence of Bitcoin. For example, the bank watchdog OCC (The Office of the Comptroller of the Currency, part of the Ministry of Finance) has reported that (large) banks have the green light to take custody of crypto currency. The door is ajar to also launch services around it, because “as a custodial service you can go further than just passively storing the 'keys'”, according to the OCC. We also see that well-known names take the plunge in services for consumers. have taken. For example, Visa and Mastercard have reported that they are preparing for wider use of cryptocurrency. “We believe digital currencies have the potential to extend the value of digital payments to a greater number of people and places, and want to help shape and support the role they play in the future of money,” writes Visa. Competitor Mastercard took a different approach and announced an alliance with the crypto platform Wirex!
How further?
We now know a little about the composition of the driving forces behind the price increase. A mix of macroeconomic conditions, legitimizing developments and a reduced supply of an asset with properties that no one is in control of. The latter is what makes Bitcoin unique. It is open, neutral, censorship-resistant, has no borders between countries and can be controlled by everyone. A digital money system with unforgeable scarcity.
What we now see is that Bitcoin is increasingly accepted as a worthy store of value, a store of value. This is what gives the currency the image of "digital gold". And exchange and calculation, the other two functions of money? In this area, the currency still has a long way to go, not only because it is now much more attractive to keep it than to spend it, but also because there are still many technological and social barriers to overcome.
Anyway, you could say that Bitcoin is done with the beginning and still has a whole life ahead of it. If all puzzle pieces fall in the right place, this also implies that their value as a money system increases. But that future is far from set in stone. There are all kinds of ways things can go wrong. In any case, keep in mind that it is a process of falling and - if all goes well - getting up again. It will not be the first time that a large price increase has been followed by an equally fast, or even faster, price decrease.
But until then, it has been an exceptional trading day for various traders and investors: it has been a while since the value of bitcoin rose by 1,000 dollars in one day. And the last time the $ 15,000 barrier was broken? That was in early 2018, just weeks after the high, just below $ 20,000.
Kind regards
More and more (wealthy) people and companies are looking for ways to protect the value of their capital against the inflation expected as a result of these interventions. Therefore, places of refuge, so-called safe-haven assets, are being sought. Gold is the most famous example of this.
Bitcoin also shows the characteristics of a safe investment, with the caveat that it has a much more limited track record than gold. Still, apparently that is no longer a reason to avoid bitcoin as a place of refuge, with the most famous evidence of this being the purchase of 38,250 BTC - worth more than half a billion dollars at the time of writing - by the publicly traded company MicroStrategy.
A bear market is for builders, it is sometimes said. The reduced attention and activity that these "low days" entail has the advantage for companies and developers that they can work undisturbed. Building new products. Having discussions with regulators. Further development of a protocol. Or launching new services.
Between the previous all-time high of Bitcoin and now there has been a lot of work. At the end of 2019, Bakkt launched one of the most highly anticipated events in the crypto world ever. Bakkt has never been able to meet the sky-high expectations, but the launch also represents various breakthroughs in the field of legislation and regulations and services relating to cryptocurrencies that are considered natural and necessary for the institutional investor, such as the storage and custody (custody) of purchased assets. Jumping forward a few months, we see that there are two crypto companies with a US banking license, Avanti and Kraken.
Staying in the context of banks, we see that more steps have been taken that legitimize the existence of Bitcoin. For example, the bank watchdog OCC (The Office of the Comptroller of the Currency, part of the Ministry of Finance) has reported that (large) banks have the green light to take custody of crypto currency. The door is ajar to also launch services around it, because “as a custodial service you can go further than just passively storing the 'keys'”, according to the OCC. We also see that well-known names take the plunge in services for consumers. have taken. For example, Visa and Mastercard have reported that they are preparing for wider use of cryptocurrency. “We believe digital currencies have the potential to extend the value of digital payments to a greater number of people and places, and want to help shape and support the role they play in the future of money,” writes Visa. Competitor Mastercard took a different approach and announced an alliance with the crypto platform Wirex!
How further?
We now know a little about the composition of the driving forces behind the price increase. A mix of macroeconomic conditions, legitimizing developments and a reduced supply of an asset with properties that no one is in control of. The latter is what makes Bitcoin unique. It is open, neutral, censorship-resistant, has no borders between countries and can be controlled by everyone. A digital money system with unforgeable scarcity.
What we now see is that Bitcoin is increasingly accepted as a worthy store of value, a store of value. This is what gives the currency the image of "digital gold". And exchange and calculation, the other two functions of money? In this area, the currency still has a long way to go, not only because it is now much more attractive to keep it than to spend it, but also because there are still many technological and social barriers to overcome.
Anyway, you could say that Bitcoin is done with the beginning and still has a whole life ahead of it. If all puzzle pieces fall in the right place, this also implies that their value as a money system increases. But that future is far from set in stone. There are all kinds of ways things can go wrong. In any case, keep in mind that it is a process of falling and - if all goes well - getting up again. It will not be the first time that a large price increase has been followed by an equally fast, or even faster, price decrease.
But until then, it has been an exceptional trading day for various traders and investors: it has been a while since the value of bitcoin rose by 1,000 dollars in one day. And the last time the $ 15,000 barrier was broken? That was in early 2018, just weeks after the high, just below $ 20,000.
Kind regards
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and we're going on;)
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