The bitcoin rate is not like other assets. Increases of ten percent within 24 hours are not uncommon here. But just as fast, he can come back down. If the BTC class has just broken a certain mark, it may have been forgotten the next day. But will everything be different this time? These reasons argue in favor of a long-term increase of the main cryptocurrency by market capitalization: we take bull's horns.
1. Bitcoin as a backup resource for a crumbling economy
This is not a secret: there were times when the global economy was doing better. The trade dispute between the two economic powers, the United States and China, is getting worse day by day. US President Donald Trump never tires of imposing sanctions and threatening others. Trump's policy weakens not only the Chinese yuan, but ultimately the US economy with its US dollar. Since, it seems obvious that since the recent imposition of new punitive tariffs and the increase in the price of Bitcoin.
Finally, Bitcoin is increasingly recognized as an additional asset for portfolios in crisis. If investors generally turn to precious metals in times of impending recession, cryptocurrency could become gold, silver, etc. One of the reasons why the price of Bitcoin can increase in the long run.
2. Bitcoin price and geopolitical tensions
Venezuela shows it again and again: crypto-currencies are increasingly an instrument of the struggle for geopolitical power. The Maduro government in Venezuela has released its own digital currency, the Petro, in 2018.
The promise: each unit of the cryptocurrency should be covered by a barrel of Venezuelan oil. The trick: the action allowed the country to bypass US tariffs. The treacherous: The inflation-prone population does not seem to benefit from the action, but must look for alternatives. Because inflation is sometimes so strong that money at the end of the day only has a fraction of the value that he had in the morning.
To emancipate from the central bank system, the population – it can be suspected – accesses Bitcoin and other crypto-currencies. Because of its peculiarity of not being controlled by a central institution, BTC offers a way out here. The reasons may not be beautiful. Nevertheless, another reader for the bitcoin course.
3. The view from the outside
Public perception of crypto-currencies is changing. From time to time, a better understanding can be observed, which finally gives more seriousness to the cryptocurrency. The perception of Bitcoin as a niche product and the Darknet motto is becoming more and more of an asset that no longer holds.
Once again, the view abroad shows the evolution of crypto-currency understanding. Recently, members of the US Senate have expressed the opinion that crypto-currencies can not be banned. The German government has recently shown the only sensible reaction: to mitigate damage rather than limit damage. In other words, what you can not forbid, you must adjust the meaning.
Finally, a regulated environment will also increase the willingness of institutional investors to invest capital in cryptocurrencies. More food for the Bitcoin course.
4. BTC Halve and Bitcoin Course
The next half will surely arrive. At this event, scheduled for the coming year, the reward for Bitcoin Mining is halved. In the end, this means that miners receive only 6.25 BTC per scraped block instead of 12.5 BTC. For the deflationary structure of cryptocurrency, it is expected that this reward will be divided by two at regular block intervals.
This will make cryptocurrency ever more valuable. Depending on the flow stock model, one can also expect an increase in the price of bitcoin:
In anticipation of a price increase of half the BTC Coinbase reward bonus, prices increase in advance. This could explain the cyclical course of the crumbling of the cryptocurrency No. 1. The model promises a peak of the next cycle (after the halving in May 2020) of $ 55,000.
Last but not least, BTC's increased demand for mining devices argues for such optimistic forecasts for the future. Major appliance manufacturers are increasingly struggling here, appliances nachzuliefern, the pressure of competition among prospectors continues to increase. The new AvalonMiner, for example, is no longer printed until October.
5. Growing interest and deflation fuel bitcoin rate
In the end, it is the basic deflationary structure of the BTC system that can fuel price developments. Because, according to a study (very optimistic) of the investment company Grayscale, there are 21 million potential investors for cryptocurrency in the US market alone. This coincides almost exactly with the maximum number of bitcoins of 21 million. However, if the demand continues to increase, the offer will not change because the number of crypto-currencies is limited. Here too, we can see the factors of a possible price increase.
But despite all the euphoric possibilities and fireworks imagined, we must not forget that we are dealing with an extremely volatile and unpredictable market. So there are reasons that argue in favor of a long-term increase in the price of Bitcoin, which are perfectly founded and probable. However, the past also shows that sooner or later prices will fall again. Reason enough to look at some trading tips.