In the past few months – for the most part of 2019, Bitcoin has been bucking the trend, attracting onlookers from the traditional investment circles, and while the reason behind the sudden increase in Bitcoin’s price may have been unclear, critics have engaged numerous sound reasoning wavering from strong fundamentals to typical bullish technical trends sponsored by whales.
In an interview with Forbes, owner of Digital Currency Group Barry Silbert noted how Bitcoin’s sudden uptrend began just as the trade discussions between the US and China broke down:
“It’s certainly interesting that the [Bitcoin] price started its acceleration, moving up and to the right, when the trade discussions broke down.”
He explained Bitcoin as a non-correlated asset and which has performed better than historical stores of value investments like gold, citing other events such as Brexit and Grexit and how Bitcoin price was up at both instances.
According to the Bitcoin bull, whose investment firm has a share in over 145 crypto-related ventures, and has its Grayscale Investments arm holding over USD 2 billion AUM, its 2019 Q1 reports suggested a heavy influx of institutional investors into the Bitcoin portfolio and significant interest from hedge funds.
Silbert has always been strongly opinionated about Bitcoin investments as against traditional investment hedge such as gold, and recently started a #DropGold campaign – as a zero-sum game – to intentionally place Bitcoin on the path of investors of all types – specifically targeting older generations. His reasoning is that as Bitcoin becomes more mature and becomes more resilient, there’s a possibility gold is not going to play the role it did for the older generation of investors, and perhaps Bitcoin may play that role at least for the younger generation. He said:
“Bitcoin has real utility. [It’s] creating a new financial system, eliminating middlemen, friction, cost, removing barriers. And if you think about the value it can bring from the remittance perspective –banking the underbanked and unbanked, that is [the] real true utility. Bitcoin has the potential to create real economic opportunity around the world. [Whereas], gold, the more expensive it gets, the less useful it becomes.”
It appears over the years, Bitcoin has been maturing to become the digital gold of an emerging economy. Silbert explained the trend in Bitcoin’s price history suggesting that its pattern of ups and downs over the past 5, 6, or 7 years with significant drops in the price of up to 60, 70, or 80% while testing new highs – up to 4 record highs – so far, were maturity indicators.
A major indicator is the infrastructural growth of the Bitcoin ecosystem since the last bubble in 2017 and to Silbert it is as clear as night and day. These growths are explained as the on-ramps of institutional grade bitcoin-related services as well as custody providers such as Fidelity and Bakkt, revamps of trading infrastructures, compliance structures, and increased awareness.
According to data from CoinMarketCap, Bitcoin is currently trading at about USD 7,938.01 after recently hitting its year-to-date high of USD 8,320.82 – a figure trending close to its 12-months-high of USD 8,424.27 in July 2018.
Follow BitcoinNews.com on Twitter: @BitcoinNewsCom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.
Image Courtesy: Pixabay