What realistic potential does Bitcoin Gold have
Future of cryptocurrencies: "The markets are on drugs"
The cryptocurrency has caused a stir with the recent turbulence in prices. Two experts explain why Bitcoin could soon take off.
In the past few months, big names have suddenly been able to use the former "dirty" currency Bitcoin a: First gave Paypal the tailwind of the cryptocurrency is also surprising world's largest asset manager Blackrock with the ranks to the digital currency.
Updated at the end of January Blackrock the prospectuses for two funds that investors can now use in Cryptocurrencies can invest. "Blackrock will assume rising prices; other US banks also have a different opinion on Bitcoin than they did three years ago," says Timo Emden, certified Blockchain expert from the Frankfurt School of Finance and owner of Emden Research.
In fact, prices fell shortly afterwards - Bitcoin even slipped below that $ 30,000 mark. This is nothing to worry about for Emden. "Even if we get to $ 25,000, it doesn't mean the rally is over," said Emden.
How will Bitcoin develop in the future?
From one Trend reversal At least according to Emden, there can be no question, a correction against it would be realistic. "Where the course was at the beginning of the year, that was beyond good and evil", is the fact Bitcoin expert for sure. He lists the rapid increase at the turn of the year Private investors back who want to participate in the success of the crypto currency due to the rising price. The technical term for it: "FOMO - Fear Of Missing Out ".
As early as 2017, this phenomenon led to a bladderwhich burst with a hard bang for some. But despite the FOMO bubble in January, the new boom cannot be compared with 2017. "Now are great addresses in the market, such as Paypal and money managers who use Bitcoin because of the technology see it as an important asset, "said Emden.
Where does the bitcoin hype come from?
The Corona crisis has a large part in this. Because the Monetary policy the American Fed and the European Central Bank (ECB) with ever new aid for the economy - and probably for years of low interest rates - would lead to a rethink and a higher one among investors Willingness to take risks. "The markets are open Drugs, pumped full of liquidity, "explains Emden. Due to the crisis, a bladderthat could possibly burst. "Then cryptocurrencies could do the Triumphant advance compete, "says Emden.
Ben Bilski, founder and CEO of the trading platform NAGA, with which investors can trade stocks, funds and crypto currencies, also sees a sustainable future for crypto currencies. "With every turmoil in world politics, Bitcoin will get more followers and will become more and more than Own currency establish ", predicts the Fintech founder.
Blockchain expert Emden also sees this: "Bitcoin is that Investment answer on the Corona crisis. "Confidence in the ECB has been irreversibly damaged.
Will Bitcoin soon be a "real" means of payment?
But that does not mean that Bitcoin will now shoot up inexorably. "The industry still needs time. It will always be Crashes ", says Bilski. Blockchain expert Emden also expects further fluctuations. However, in percentage terms, these have been smaller and smaller since 2013. This trend will continue.
According to Bilski, there is currently a lack of real money in the market. Currently are about a trillion dollars invested in the crypto market. Many have been able to increase their dollar stake massively through growth and are therefore less susceptible to fluctuations. "Not so long ago you could buy a Bitcoin for $ 700. These investors don't care about fluctuations of 10 percent," explains Bilski.
But the currency needs more stabilityso that companies could accept them as a means of payment risk-free. The so-called early adopters investors who invested in Bitcoin early on - would therefore have to get out of the market first.
Emden sees them too Concentration of bitcoins criticalthat are among the early beginners. "The power of some is very great to artificially influence the price of the course," he explains. It would therefore take more institutional investors like Blackrock or Paypal to stabilize the cryptocurrency.
Does the ECB want regulations for Bitcoin?
However, these could go through Regulations of the ECB be deterred. Only recently, ECB boss Lagarde criticized Bitcoin as a "funny business" and the American Fed also made it clear that it would like to keep cryptocurrencies on a leash. "The Regulations will come. Anonymity is currently a luxury that will not last long, "says Bilski.
However, the Emden expert does not assume that the ECB will "dead regulate" Bitcoin - even if it could theoretically. "It will be one or the other Threatening gesture give, but the ECB itself will be interested in the technology, "says Emden.
Besides, it could Conflicts of Interest and Power Struggles between big investors and the ECB when they try to devalue the Bitcoin. But Emden also makes it clear: "In the end, Blackrock would lose out."
Is Bitcoin the New Digital Gold?
Even if fans use the cryptocurrency as a digital gold As a long-term investment, Bitcoin is still far too fluctuating, Emden clarifies. Here is the Limit to 21 million bitcoins quite a factor that could turn Bitcoin into a kind of digital gold. "The potential is definitely there - in the long term, but not in the short or medium term."
Because Bitcoin has not yet reached a point where it can no longer be stopped - even if, according to Emden, this limit is no longer far away. Residents could still withdraw and the Bitcoin expire. "You always have to keep in mind: It can be Total loss come ", emphasizes Emden.
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