What is Bitcoin And do They Have a Future

We hear more and more about Bitcoins, this new currency circulating on the internet. We wonder what it is, if Bitcoins have a future, or even if they will replace the other currencies we know, like the for example, but do Bitcoins really meet all the conditions necessary to qualify as money? And if so, do they function similar to the currencies we know? You will find the answer to these questions in this video Draw me the eco! Since the beginning of the year, Bitcoin has experienced more than 20% increase.

The cryptocurrency indeed reached $ 8,897.64 Tuesday morning, or 23.8% more than its price in early 2020 of $ 7,188.30. To explain this increase, some market observers believe that Bitcoin should gain popularity in 2020 and reach the general public more widely. Others mentioned the concerns surrounding the next halving, scheduled for May. While some of these explanations may be very plausible, other factors must also be taken into account. Bitcoin has been oversold According to some analysts, cryptocurrency was undervalued at the start of the year.

Jeff Dorman, chief investment officer at risk management specialist Arca, said: ‘The price fell too low at the end of last year’. According to him, this ‘led to a drop in sales and the intervention of opportunistic buyers’. He continues: ‘From production costs to stock-to-flow, passing through the MVRV (market value / realized value) and NVT (network value / transactions) ratios, all parameters pointed towards value’. For Marouane Garçon, managing director of the Amulet cryptocurrency derivatives platform: ‘These figures reveal the value’.

Get quality help now

Proficient in: Bitcoin

5 (339)

“ KarrieWrites did such a phenomenal job on this assignment! He completed it prior to its deadline and was thorough and informative. ”

+84 relevant experts are online
Hire writer

Tim Enneking, managing director of Digital Capital Managament, also told us about his opinion: “The minimum value at which miners can operate also plays a role, because“ value buyers ”will only intervene when they think they can buy from lowest price. Therefore, what should not be forgotten is that the cost of $ 6,000 seems to be a minimum, because miners will not offer a new offer for a price lower than this one. ”

Bitcoin as a refuge Another factor mentioned by analysts is the attractiveness of Bitcoin as a safe haven or as a cover against macroeconomic turbulence. Several market observers point to the Iran conflict as a factor that prompted investors to turn to the world’s largest cryptocurrency. Jeff Dorman explains: “The Iran / US conflict rocked Bitcoin because it behaved exactly as expected for an active“ safe haven ”. Investors have thus placed their trust in Bitcoin as global macro hedging ”. For Evan Kuo, CEO and co-founder of crypotmonnaieAmpleforth, things are clear: ‘It seems to me that last year the idea that Bitcoin benefited from global instability started to gain ground. With the elections scheduled for 2020 (among other things), people are very apprehensive. ”

A perfect hurricane As soon as Bitcoin prices started to rise, a multitude of factors were added to amplify the gains. Tim Enneking says the start of a new year is often synonymous with optimism, but the crisis between the United States and Iran was the trigger. ‘ Jeff Dorman agrees, saying, ‘Once the market started to gain momentum, the usual suspects started leveraging again, further accelerating the course of events. Over the past few days, we have seen a sharp increase in the acquisition of call options and futures. ” Market outlook For Matti Greenspan, founder of Quantum Economics: “There are a hundred reasons to be optimistic about cryptocurrencies at the moment. Recently, I have observed a lot about the consequences of the actions of central banks on the markets. In the second half of 2019, all the major central banks suddenly changed their policies to become ultra-accommodating. The effects on the stock market are glaring, and many technology companies are seeing their valuations skyrocket.

It will have taken a few months, but it looks like capital is starting to flow into the cryptocurrency market. ” Evan Kuo mentions other positive developments: ‘There is no doubt that the spread of the stock-to-flow analysis of the specialist PlanB and that the halving planned for 2020 have excited the general public’. He also notes: ‘The miners, who must speculate in advance on individual investors, have increased the hash rates, which contributes to the craze’. Tim Enneking concluded by giving his opinion on the market outlook. He points out that January’s recovery was ‘far more measured’ than Bitcoin’s sharp rise in October, when it jumped about 40% in a single day. ‘Bitcoin has had its ups and downs (more highs at the moment however), the strong rises have been moderate and accompanied by consolidation. Today the trend is much more sustainable in the long term. Knowing Bitcoin, I am sure that we will still see significant developments, both upwards and downwards. However, some consolidation is taking place compared to the 110% retracement observed after the peak in late October 2019 which had defied gravity.

Cite this page

What is Bitcoin And do They Have a Future. (2022, Mar 09). Retrieved from https://paperap.com/what-is-bitcoin-and-do-they-have-a-future/

Let’s chat?  We're online 24/7