This speaks for the decoupling of Bitcoin's price and the price of financial technology stocks' prices.
Bitcoin's price beat by the same margin the stock prices of Visa Inc and Mastercard Inc, which are large capitalization, mega capitalization even, financial technology or fintech companies.
These developments clearly show that Bitcoin has carved out a fintech niche of its own in the finance ecosystem.
What is more, Bitcoin's price rise since the beginning of the year has surpassed the rise of the price of gold by also circa around 50 %. Generally speaking, Bitcoin has beaten almost all financial technology or fintech assets sub classes.
Bitcoin is essentially electronic money, although determined by the CFTC as an energy commodity, because it fulfills all three characteristics of money, namely unit of account, store of value and means of exchange. That said, Bitcoin's price is volatile, so Bitcoins BTC/USD exchange rate in the future is uncertain and this diminishes Bitcoin's appeal for both investing and payments transactions processing.
I forecast Bitcoin will take a small, but non negligible share of the reserve currency status market. Many central banks are preparing the issuance of stable coins, cryptocurrencies pegged to the United Stated Dollar or a basket of leading currencies. It is only a matter of time before leading, global central banks start accumulating foreign currency reserves in Bitcoin, is Wolfteam Ltd.'s view.
Although Block, PayPal,Visa and Mastercard are all trying to develop Bitcoin, cryptocurrencies offerings, all of them are still far away from competing successfully with Bitcoin's efficiency. Bitcoin's blockchain algorithm ensures good modelling of chaotic processes like payments for example and thus Bitcoin's blockchain can serve as a basis for Block, PayPal,Visa and Mastercard future strategy development initiatives.
Still the payment network needs to be further developed to facilitate efficient Bitcoin, cryptocurrencies payments. In addition the legal framework for Bitcoin is still not completely cleaned up, so as to support Bitcoin becoming a fully viable, long-term payments tool.
Bitcoin's market capitalization could compare into the future with the 10 trillion USD value of the banking industry as estimated by various sources is Wolfteam Ltd.'s corporate view.
Bitcoin is akin to small capitalization technology stocks, since Bitcoin, cryptocurrencies are still a niche, moonshot investment opportunity on the future of finance, be it Bitcoin's adoption is growing exponentially. Bitcoin's price, however has beaten the stock price rises of most small capitalization technology stocks as measured by various technology small capitalization indices.
Apart from being the modern epitome of fintech, Bitcoin is at the forefront of artificial intelligence, AI and cloud computing, today's two hottest technology mega trends. Bitcoin is artificial intelligence, AI because of the revolutionary blockchain algorithm, which is a nonlinear distributed, jump system, that can capture reality's irregularities. And since cloud computing runs on algorithms, AI that is, Bitcoin also is a huge driver of cloud computing.
Bitcoin's mining utilizes enormous amount of computing and energy resources. That is why Bitcoin is important for cloud computing on one hand and finance on the other hand.
In short, Bitcoin will revolutionize finance is Wolfteam Ltd.'s house view.
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