Economist Explains The State Of Bitcoin

Economist Explains The State Of Bitcoin

Economist Explains The State Of Bitcoin

 

Bitcoin is a currency which is unpredictable. In fact, the crypto market as a whole is volatile and subject change on an hourly basis, so, there’s no way of knowing what will happen tomorrow, the day after that and so on. This is why cryptocurrency investment is so risky

When it was initially created it was seen as one of the hardest currencies ever created – and maybe that is still true to this day – due to its finite supply which means it will always be a better store of value over time, Bitcoin economist Dr. Saifedean Ammous has suggested.

The number one digital currency in the world has just over 20 million token overall and so when the miners uncover all of these coins then there won’t be any more to dig out of the blockchain. This fixed supply is why the coin has surged so much in ten years according to Ammous.

In his new book, Ammous looks into the history of Bitcoin and where he sees it going in the future. The book is titled The Bitcoin Standard: Decentralised Alternative to Central Banking and is out now.

The book goes into what Bitcoin has gone through, from its creation by Satoshi Nakamoto to “ten years later, and against all odds, this upstart autonomous decentralised software offers an unstoppable and globally-accessible hard money alternative to modern central banks”.

In a recent interview with the Daily Express, Ammous says “Bitcoin is not the toy you want, it is the medicine you need.”

Just so you know, we are not financial advisors and this is not financial advice. So, do your own research and make sure you trade safe.

Ammous is one of the members of the Centre on Capitalism and Society at Columbia University and added that Bitcoin is here to stay and that is not optional.

As the number of coins in circulation increases, the cryptocurrency becomes a ‘harder’ asset which gives Bitcoin a better store of value according to the Bitcoin economist. Bitcoin is now

As reported by the Daily Express:

“BTC has become a ‘monetary good’ because its value is ‘completely determined by people buying it and selling it’ rather than people producing it… what makes something worth using as money is once people put their wealth in it and start to use it as a store of value it is hard for others to simply increase the supply and bring the price down and make more if it.”

 

By Robert Johnson Nov 14, 2018

David

Tom Lee Cuts $10,000 Off EOY Bitcoin Price Forecast

Tom Lee Cuts $10,000 Off EOY Bitcoin Price Forecast

Tom Lee Cuts $10,000 Off EOY Bitcoin Price Forecast

Per an article from CNBC, Tom Lee, Bitcoin’s inside man at Fundstrat Global Advisors, recently lowered his Bitcoin (BTC) price prediction by $10,000, claiming that this industry’s foremost asset will only hit $15,000 by year’s end, not $25,000 as he has stated incessantly on previous occasions.

Like his previous bitcoin price calls, the Fundstrat executive drew attention to the break-even cost of mining one BTC, which he believes correlates directly with the price of the digital asset. Lee noted that the break-even cost with Bitmain’s S9 machine has fallen to $7,000 from $8,000, adding that it would be fair for BTC to surpass 2.2 times that amount.

He also drew attention to the Bitcoin Cash contention, which is an ongoing epic, as seen by the endless tussle between Bitcoin ABC and Bitcoin Satoshi’s Vision. Like other analysts, Lee explained that recent bearish price action can be attributed to the hard fork, alluding to the fact that this so-called “civil war” is instilling feelings of distrust in crypto investors at large.

However, while Lee’s decision to cut $10,000 off his forecast may accentuate fleeting hints of bearish sentiment, the bottom line is that the Fundstrat’s in-house research savant isn’t ready to give up on BTC just yet, even though his dignity took a strong blow to the chin, so to speak.

Lee added:

While bitcoin broke below that psychologically important $6,000, this has lead to a renewed wave of pessimism… But we believe the negative swing in sentiment is much worse than the fundamental implications.

Other Insiders Remain Bullish On Crypto

Interestingly, Lee isn’t the only industry insider to be bullish on the short to mid-term prospects of this industry.

In early-October, Spencer Bogart, a partner at Blockchain Capital, explained that positive institutional news, like the arrival of TD Ameritrade, Yale, and the Intercontinental Exchange (ICE), will likely be the primary contributor to crypto’s impending bonfire (bull run), as it were.

Lee backed this claim, drawing attention to the looming launch of Bakkt and FDAS as “[a] part of a broader creation of infrastructure necessary for institutional involvement.”

In contrast, Nikolay Storonsky, CEO of Revolut, has recently claimed that retail investors will drive 2019’s crypto bull run, going against the popular sentiment that the launch of the institutional-focused Bakkt and Fidelity Digital Asset Services (FDAS) will propel crypto to Main Street after Wall Street fills their bags.

Others have begged to differ, but as always, investors, whether from the Bitcoin maximalist or altcoin advocate camp, have begun to exert their opinion that a cryptocurrency bull run is in the cards. However, at the time of writing, the crypto market has failed to recover, with BTC and its altcoin brethren posting losses of 2-3%.

David

Buying Bitcoins Recent Dip Could Be Profitable, Chart Watcher Points Out

Buying Bitcoins Recent Dip Could Be Profitable, Chart Watcher Points Out

Buying Bitcoins Recent Dip Could Be Profitable, Chart Watcher Points Out

Earlier this week, bitcoin saw its price drop nearly 12% in a single day, taking it below the $6,000 mark and breaking a longstanding support just under said mark. The day after, bitcoin hit a new yearly low under $5,500. The dip may be a profitable opportunity, according to one chart watcher.

As first reported by MarketWatch, Twitter user OddStats revealed that, throughout bitcoin’s history, large two-day sell-offs are usually followed by short rallies that can be profitable.

Using the Twitter users’ analysis it’s possible to see that in some cases it could’ve been extremely profitable to buy the dip, as long as it dropped over 10% in two days. The last time it occurred, at the end of March, BTC dropped roughly 14%, to about $6,840.

Those who bought the dip then would’ve seen their coins go up a whopping 46% in the next few weeks, as the flagship cryptocurrency then surged to nearly $10,000. As MarketWatch points out, in early February, the strategy would’ve been profitable as well.

At the time, BTC fell over 24.5% in said time period, but quickly recovered as in the next two weeks the cryptocurrency jumped roughly 72%. While in hindsight the strategy looks profitable, some of the microblogging website’s users have pointed out it would be hard to time the market, and that the data may not be representative.

Nevertheless, bitcoiners have seemingly been buying the recent dip. Data from the popular cryptocurrency exchange Bitfinex shows the number of long contracts surged from about 23,700 to roughly 26,700 in a few days.

As MarketWatch points out, the outstanding long interest is currently at its highest level since October 11. The two-day sell-off strategy, however, may have its flaws.

Late last year, when bitcoin hit its all-time high close to $19,000, the criteria were met on December 19-20. Buying the cryptocurrency then would’ve set traders down a further 20%, as the cryptocurrency kept on dipping.

David

Bitcoin Prices Fall Even After Switzerland Approves World’s First Crypto ETF

Bitcoin Prices Fall Even After Switzerland Approves World's First Crypto ETF

Bitcoin Prices Fall Even After Switzerland Approves World’s First Crypto ETF

Investing.com – Bitcoin and other major crypto prices fell on Monday despite news that Switzerland’s authorities approved the world’s first cryptocurrency ETF.

Bitcoin fell 2.8% to $5,515.4 at 12:47 AM ET (05:47 GMT) on the Bitifinex exchange, while Ethereum slumped 6.2% to $168.29.

Litecoin dived 6.4% to $40.636.

Elsewhere, XRP plunged 7.4% to $0.48959 on the Poloniex exchange.

Amun AG, a crypto startup, is offering the fund that would allow investments in major cryptocurrencies including Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin cash in the coming days, according to various reports.

The fund will track the Amun Crypto Basket Index (HODL5), which is based on the performance of the top five cryptocurrencies.

It would start trading on SIX, a Europe-based exchange that has a market capitalisation of around $1.6 trillion.

Hany Rashwan, CEO and co-founder of Amun, said he explored 23 other destinations before Switzerland but found Swiss the most suitable.

In other news, Japan’s Financial Services Agency plans to regulate virtual coin wallets. Currently, only companies that buy and sell digital coins are required to register with the agency.

The agency argues that wallets are like bank accounts and should fall under their jurisdiction. At the moment, Japanese law does not apply to the wallet service providers because they do not trade in digital currencies.

David