[ad_1]
youUntil nowphrase Crypto Winter This means that cryptocurrency traders are facing a tough time: a period of price dips and dips that must weather until good times return. However, currently, the cryptocurrency industry is enjoying a more end-of-year season. Similar to the “summer of bullshit,” this month saw cryptocurrency prices hit unprecedented highs with Bitcoin. Trading above $100,000– In the new era of good feelings—lend phrase From early 19th century American history, skeptics turned into believers. And it is a digital economic tool designed to avoid If not replaced The traditional financial system is also becoming more and more integrated.
The catalyst for this prosperity Of course, following the election of Donald Trump last month, the price of Bitcoin fell this week, but It’s still there. up nearly 40 percent since November 5, and other major cryptocurrencies such as ethereum and ripple have also seen higher gains. It’s not hard to see why Trump Nominated Cantor Fitzgerald CEO and crypto enthusiast Howard Lutnick will be his Secretary of Commerce, hey. name Paul Atkins, also a crypto advocate, as the next head of the Securities and Exchange Commission replaces Gary Gensler, who has become a key crypto figure for suing the largest crypto exchanges and many other players in the industry. and trump recently repeated His campaign promised to establish the Bitcoin Strategic Reserve, which would require the Treasury Department to purchase billions of dollars worth of cryptocurrencies and hold them as “permanent national property–
Aside from the regulatory environment becoming noticeably more crypto-friendly, there are other positive signs. Happens as well Last week, investment giant BlackRock which back in January was one of 10 companies to issue exchange-traded funds linked to bitcoin. A recommended report was issued. Investors “with appropriate governance and risk tolerance” (defined as a tolerance for little oversight and high risk) should consider having up to 2 percent of their assets in Bitcoin and MicroStrategy. A software company whose current business consists almost entirely of issuing stock and convertible debt to purchase Bitcoin. just added to Nasdaq-100 after stock increased by more than 600 percent During the first 10 months of the year It’s all good news for Bitcoin owners, also known as HODLers. Nickname received From common online typos. hold It is said to stand for “Hold on for dear life” – Feeling Buoyant: In X, predictions of bitcoin hitting $1 million by the end of 2025 are easy to find.
I First time writing About bitcoin in 2011, when one Bitcoin cost about 14 dollars, and even then I think it’s a bubble. If I just took a flyer and bought it for $1,000, I’d be a billionaire today. So for long time bitcoin skeptics like me. Much false disappointment about the evolution of crypto is difficult to avoid. at the same time What’s interesting about Bitcoin’s popularity is another reason why it’s hard to believe it will ever disappear: it remains an extremely volatile asset. Most prices are still based on sentiment rather than fundamental value. It is not yet suitable to be a widely used digital currency. What has changed is that the world of investing hasn’t decided that those things really aren’t important. Like gold, Bitcoin has value because people decide it has value. As a result, HODLers have succeeded in conjuring something of respectable value out of thin air.
RExpectations It doesn’t mean stability. The history of cryptocurrencies over the past decade has been one of dramatic change driven by positive sentiment. This was quickly followed by a crash, with Bitcoin’s value dropping 49 percent or more. At least half a dozen timesAnd there is no reason to believe that it has now reached a permanent plateau. After hitting an all-time high of around $108,000, the price of Bitcoin fall Nearly 15 percent in a few days and MicroStrategy (It’s seen the company’s shares fall more than 40 percent over the past month.) Setting a fair price for Bitcoin remains a near-impossible task, though. (Which is why I won’t buy it.) Its value is simply the result of a once-common critique of hysterical bubble thinking that feels outdated. In keeping with its unregulated origins, the crypto industry is still full of so-called cryptocurrencies. memecoins and shitcoinsNot to mention the backers who promise 1000 percent returns within days. But Bitcoin itself has become a blue chip.
The reason Bitcoin is so valuable is not the reason its supporters initially argued it would make Bitcoin valuable. Bitcoin was designed to be a currency that people could use for trustless transactions. These are transactions that can be carried out without the use of a financial intermediary such as a bank, but transactions that use Bitcoin to buy or sell goods and services are only a small fraction. of the total trading volume of the currency This mainly consists of people buying or selling Bitcoin themselves. The actual use of Bitcoin is not as a medium of exchange. It is a secure, portable, and accessible store of value. which is very valuable This is especially true in countries where government inflation or confiscation policies are a problem.
Similarly, bitcoin is designed to facilitate decentralized transactions between individuals. But most bitcoin trading, at least in the West, Now it happens on centralized exchanges. Once again in its commitment to emancipation, Bitcoin should be not only free from traditional financial institutions and governments. But it also opens up options for them. But a key driver of the price surge over the past two years has been Bitcoin’s integration into the traditional investment industry. (via instruments such as exchange-traded funds or ETFs) increased purchases by institutional and corporate investors And now the opportunity for legalization by the government itself could include government purchases of Bitcoin, although why would Uncle Sam want to own such a volatile asset? It remains a question that has yet to be answered convincingly.
This integration has several consequences. First, for all benefits. It also adds a whole new set of risks to an already risky asset—if e.g. Trump has failed to follow through on his promise to establish a strategic Bitcoin Reserve. The price of Bitcoin is likely to snap. Another, more important consequence is that Bitcoin’s revolutionary promise has largely disappeared. No one really thought. that it will replace or even cause fiat currencies such as the dollar to weaken significantly. And it will not threaten the financial primacy of Wall Street. Cryptocurrencies often attract those who do not believe in the system and believe that economic disaster is imminent. But what the past six weeks have shown is that most Bitcoin HODLers don’t want to crash the system. They want Bitcoin to be a part of it.
[ad_2]
Source link
