- Bitcoin eyes a fresh attempt to breach USD 7,000 after yesterday’s rejection
- Binance boss Changpeng Zhao believes USD 100,000 Bitcoin is no longer implausible after USA approves trillion-dollar stimulus package
- Vitalik Buterin admits the lack of a Bitcoin-Ether bridge is embarrassing and has backed the development of one
Bitcoin attempted to break past USD 7,000 yesterday, just as we wrote, but experienced an immediate bounce back from that level just hours ago when sell orders triggered, probably brought on by Europe time profit taking as well, but also likely a further reaction from a stimulus package announced by the US government to tackle the impending coronavirus pandemic slowdown.
Currently, Bitcoin has recovered and is trading closer to USD 6,700 levels again right now and does look like it could attempt another test of USD 7,000 today, but there’s plenty left to see what will happen and where price will go.
Regardless of price, we have plenty of good news to report elsewhere in the industry. We begin first with Binance CEO Changpeng Zhao who, in the wake of trillions of dollars worth of stimulus announced for the American economy, says that now, Bitcoin valuation at USD 100,000 does not seem implausible.
As we get used to talk about Trillions, a modest $2 trillion market cap of #bitcoin will put 1 BTC at $100,000. Not such a hard to imagine number now, right?
As most BTC are not for sell (HODLers), we only need a small portion of that $2t to buy to reach it.
— CZ ? Binance (@cz_binance) March 25, 2020
According to Zhao, with trillions of dollars already ready for disbursement, on the back of a US Federal Reserve willingness to print infinite dollars, Bitcoin will be able to continue its price gains all the way to the six-digit dollar valuation:
“As we get used to talk about Trillions, a modest $2 trillion market cap of#bitcoin will put 1 BTC at $100,000. Not such a hard to imagine number now, right?”
The Binance boss then went on to say that since most Bitcoiners were holding and not selling anywhere at current levels, it would only need a minor movement from that trillion-dollar stimulus package to fall into Bitcoin to achieve the equivalent market capitalization. We never say to follow any influencer at all, but logically, as more dollars are being printed, Bitcoin’s limited supply begins to look more and more attractive.
Meanwhile, Ethereum refuses to be left behind and its co-founder Vitalik Buterin has admitted that it’s one of the biggest shames of the industry that there has been no useful bridge between Bitcoin and Ethereum blockchains after so many years.
He claims that the ongoing lack of easy transfer between the two networks was an embarrassing oversight, and has now proposed that a new decentralized exchange (DEX) be developed that would act as a trustless bridge between what are two of the most popular blockchain networks in the world currently.
Buterin says that this DEX should be trustless and serverless and cites the Uniswap user experience as one to follow, which is a DEX that has no order books and uses Ether pairs to offer trading. Its upcoming update is happening in the next three months and, if successful, will allow for direct swaps, token to token.
Although in existence since at least 2016, DEXs have not gained much popularity and most of the world’s trading volume is found on centralized exchanges, even though DEXs appear to be truer to the original concepts of cryptocurrency: trustless and without giving over custody of individual assets and private keys. Liquidity is still king in the open market, but if Buterin can launch a popular Bitcoin–Ethereum DEX, it could prove to have enough depth in liquidity to gain traction.
The Ethereum co-founder even suggests that the DEX bridge could in future consider other currencies, such as Zcash, with whom initial talks have taken place already.
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