Digital Gold: What happens to Bitcoin and its prospects
The most famous and expensive cryptocurrency is Bitcoin. Its creation has turned the world of Internet trading upside down and opened up huge opportunities for secure payments, including anonymous payments. Analysts of the authoritative Bloomberg magazine have conducted research on the development of this type of virtual money. They expressed the opinion that Bitcoin is digital gold, which in time will become one of the main assets.
The results of the Bloomberg research showed that the digital market is rapidly developing and that digital assets will soon become interesting for most investors.
If at the beginning of its appearance Bitcoin was presented as a speculative instrument, then in the process of improving and expanding its applications it gradually becomes a digital analogue of gold. In support of this thesis, analysts provide a number of arguments.
The first of these is to reduce volatility. The course of the main type of crypt is not so volatile anymore, if we consider indicators during the year. Besides, the growth of the bitcoin rate is noticeable on the stock market. For example, experts have noticed that the rate of digital currency has decreased by 5% at the beginning of this year. At the same time, the S&P 500 index fell by 22%. This trend suggests that BTC is strengthening its position and can be used by investors as assets in gold.
Another factor that distinguishes Bloomberg edition is the increase in the number of futures trading operations when using bitcoin. This point makes it possible to reduce the element of speculation. Experts also recalled the sharp decline in the rate of the crypt, which occurred 2 years ago, but it was able to restore its positions, which shows the confidence and relevance of the currency for modern business.
Of course, one should not be silent about the fact that the stock market has a serious impact on bitcoin. However, analysts say that this correlation will weaken in the near future. If previously BTC was perceived as a risky asset, now this opinion has no grounds. In favor of increasing the reliability of the currency says about its recovery by 45% after a significant decline.
The opinion of Bloomberg that Bitcoin can be considered digital gold is also shared by analysts of Kraken. The latter recently said that the increasing popularity of bitcoin is due to the demand for it from the millennials. According to forecasts, within 25 years, it is the young generation that will invest in the cryptocurrency, and the volumes may reach $1 trillion. Such interest in digital money will lead to an increase in its price to about $250,000. This forecast once again confirms that the future is behind Bitcoin and another crypt, and it makes sense to invest in it now.