The price of Bitcoin has been on a parabolic bull run since March of 2020. There is no shortage of conjecture as to where it will top out and how far it will fall in the bear market. Ligitimate financial experts, fund managers and technical analysts quote priceWhile much of this speculative asset's price appreciation has been the result of retail buyers pumping their freshly printed fiat currency into gamified customer-as-product exchanges now offering basic crypto purchasing as well as an overall easing of the wall of entry, there does in fact seem to be a fresh wave of long-term institutional interest in Bitcoin.
The Bull case for Bitcoin:
1. Bitcoin is a product with a limited total supply as well as limited global production capacity. When the number of miners increases, the difficulty automatically adjusts to compensate and keep the monthly average production in steady decline. Every four years the entire blockchain automatically increases its security level by a factor of two which increases the mining difficulty and keeps production in constant decline on the yearly average. Add to this, 85% of the world's supply has already been mined and distributed.
2. Institutional investors and their clients tend to make entry-exit times greater than 1 year to avoid increased tax liability and most of the firms first to the gate are in the habit of holding for 3-5 year timelines and longer.
3. When large market-leading companies like Microstrategy (MSTR), Tesla (TSLA) and Apple (AAPL) place various amounts of their company cash holdings into Bitcoin as what they believe to be a hedge against the impending hyper-inflation of the dollar, other companies will be watching very closely. ens of thousands of them, worldwide.
4. If the 5 year average trajectory where to sustain buying pressure by a sudden interest from many institutions, there could be a severe liquidity issue on the Bitcoin exchanges, private markets and even among the mining pools. The Bitcoin Bull Run may lead to a run on Bitcoin.
5. On average, more Bitcoin is being purchased by just Paypal (PYPL) and Square (SQ) than can be mined to cover the demand.
While traditional markets offer proxy in companies like Riot Blockchain (RIOT) , Marathon Patent Group (MARA), Bit Digital (BTBT) , Hive Blockchain (HVBTF) and
One of the biggest fears behind Bitcoin is that it will be replaced with another, better, faster, lower transaction fee crypto coin making it essentially worthless. Something things worth considering, however:
At a ~1Trillion Dollar Market Cap, Bitcoin is the size of a tech company. Many researchers feel that Bitcoin not only has the ability to reach the market cap of gold, but of
21 million BitCoin will be mined ever. Over 18 million are already mined. leaving fewer than 2.5 million left to be mined between now and 2140 and the difficulty doubles every four years. Also, unlike cash which can just be re-printed when it's lost, all the Bitcoin lost in the early days before exchange accounts and secure wallets, will never be recovered.
Billions.
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