The Bitcoin has won the Crypto Currency War
From 20,000 down to 4000 dollars, then up again to 8000: The Bitcoin takes the markets on a roller coaster ride. Experts believe that this is just the beginning of a new boom – and call out unbelievable price targets.
It sounds like an irony of history. It’s the most stubborn vehicle of all on the financial markets that seems to be a stronghold of predictability these days. While the political and economic turbulences worldwide are causing unrest on stock exchanges and in currencies of all kinds, the anarchic motto Bitcoin is being regarded by more and more investors as a reliable haven. Also it gets more popular for gambling these days. It is very popular in spanish speaking countries too, see Linuxhispano.net.
Just as US President Donald Trump had announced new tariffs against China, the crypto currency began another flight of fancy. In the meantime, the Bitcoin cost just under 8400 dollars, more than it has not cost since July 2018. Although prices fell back somewhat in the course of the week, digital money has gained 75 percent since the beginning of April.
- In this world of imponderables, in which the White House has a president who, at his whim, imposes customs duties or economic sanctions, who decouples entire economies from the dollar as the leading currency and calls for a state of emergency in order to thwart disagreeable companies from China, there is a growing desire for an investment vehicle that is largely free of political intervention.
- And not only Donald Trump or China’s President Xi Jinping are good for surprises. The central banks are also manipulating the markets with their unconventional monetary policy.
- This is where the Bitcoin, which ticks according to a fixed computer algorithm and is encrypted with cryptographic technology, can suddenly score points.
- The painful crash last year, when the crypto currency lost two-thirds of its value, seems to have been forgotten.
- On the contrary: supporters of digital money have identified a Bitcoin cycle that speaks in favour of further rising prices.
According to calculations by crypto analyst Nik Patel, the Bitcoin has lost an average of 70 percent of its value in the past four downturns, slightly more than in the recent crash. In the upswing that followed, investors were pampered with an average gain of 617 percent. Currently, the Bitcoin has only gained 130 percent from its low of 3100 dollars.
Institutional investors, in particular, are now providing for fantasy. According to a survey by Tetras Capital, every fifth professional investor now has a certain degree of involvement in Bitcoin. 40 percent of institutional investors can imagine investing a portion of their managed funds in crypto currencies over the next five years.
After all, this is good for risk diversification
The digital coins obey their own rules and develop largely independently of what is going on in the traditional financial markets. Fidelity, an asset manager, has made a major entry into the business and intends to trade and store Bitcoin for its customers in the future.
It is now paying off that Bitcoin and Co. have clearly grown up over the past year. Liquidity has increased. Larger orders can also be processed without any problems. The CME futures exchange has just announced a record in Bitcoin futures trading. The futures provide additional impetus. Many investors have bet on falling prices. Since the Bitcoin is now developing so rapidly upwards, the skeptics have to cover their bets and thus additionally drive the prices.
“I’m more optimistic about Bitcoin today than I have in my entire career,” says Mike Novogratz, venture capitalist at Galaxy Investment Partners. He expects Bitcoin to rise to $20,000. “Bitcoin has won the Crypto Currency War.” In fact, the best-known of the digital currencies has expanded its market share. At $140 billion, it represents nearly 60 percent of the crypto universe, although some digital coins have grown even faster since the beginning of the year than Bitcoin’s 115 percent. Litecoin, for example, by 220 percent.
Tim Draper of DJF Athena also sees a bright future for Bitcoin. In the long run he could account for five percent of the world’s money circulation. If the calculation works out, the Bitcoin would have room for up to 100,000 dollars.