Dear Reader
Bicoin already broke the price level of 23 000 USD per Bitcoin.
I think Bitcoin could go on and rise above 40 000 USD for Bitcoin. As long as central banks keep printing money that liquidity will find itself into various asset classes, Bitcoin including.
However, when the crash comes, Bitcoin's price could fall more than 60 % from its future peak. Bitcoin and cryptocurrencies in general are attracting more and more interest from institutional money managers which increases the liquidity of Bitcoin and helps it on the way to become real money.
Bitcoin, based on both artificial and human intelligence is here to stay into the future, barring governments banning cryptocurrencies. But governments seem to have grasped the utility of cryptocurrencies and both government and central banks want to participate in the cryptocurrency revolution.
We are not far away from the time a major company, Facebook being a major contender, issues a stable coin, a cryptocurrency with stabilized price coupled to some major currencies or gold. Once that happens, cryptocurrencies' popularity could explode.
Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".
Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Respectfully yours,
Petar Posledovich
1 comment:
There is a big misconception about bitcoin and stable coin and also around fiat as money, where it is used a legal tender in more than one country.
What all those floating abstractions are - those are means of exchange.
The stable coin is another abstraction, similar to EURO and the US Dollar. We see that the issues with the EURO appeared in the Euro Bond market, where markets mispriced bond yields of the periphery first, which then led to the European Sovereign Debt crisis.
The issue with any form of fiat money is that it cannot be seen without bringing also the Bond and Credit Market in the picture as well and all the world central banks. This holistic approach brings us also to the valid point of how to the world economy worked during times when no central banks were available. Gold (not the gold standard) was replacing the role of a central bank, because it has the autonomous function to distribute value more properly than any central bank. Now, what we have is a market price mechanism utterly destroyed by the fiat (credit) money experiment. Sometimes wondering what is the barbarous relic - gold or fiat money?
Post a Comment