Bitcoin has recently seen new all time highs and has again become one of the most popular topics being discussed on finance channels and tweeted about right now. The number of users continues to grow, and with more regulated counterparts coming into play, along with institutional investors, it looks like 2021 could be an even better year for Bitcoin.
“Bitcoin has the potential to become for our global monetary economy what the Internet has been for our global society,...The main concern and turning point for Bitcoin are trust, adoption and regulation.” - T. Cordero, founder of Kuros Associates in London.
Bloomberg's Eddie van der Walt recently gave an interview about Bitcoin and answered some questions about the polarization of cryptocurrency, who is fueling this bull run, and if we might see $400k for Bitcoin sometime in the future.
In regards to the polarization of Bitcoin, and people either really loving cryptocurrency or despising Bitcoin and alt coins altogether, it is clear that there are a decent amount of people who are willing to buy it. Not only are they willing to buy but it has been shown that they are willing to hold it and deal with the volatility that comes with it.
"The strange thing is that even the people who are buying into it right now, they don't have a clear investment case for what the blockchain and Bitcoin, and what this technology is going to do down the line" -Ed van der Walt, Bloomberg
Regardless of that uncertainty in what Bitcoin might become, or what it might replace etc, we still see that a growing number of people are investing in Bitcoin regardless of the uncertainty. It has increasingly become regarded as a potential safeguard against inflation and along the way has changed the minds of many who were skeptical of it.
With the supply halving this year, and the institutional money that is flowing into this space, Bitcoin has significantly increased in value but the run might not be over yet. There are some predictions that suspect we might see a $400k BTC price, but of course that isn't going to look like a straight line all the way. Who knows how long it might take to get there.
"All we can say as an investment community is there are people out there who are willing to buy it, they are willing to withstand the volatility, and that does make it a potentially lasting investment class." - Ed van der Walt, Bloomberg.
Still, it might be too early for some to determine whether or not BTC is the new gold 2.0 because many don't see it yet as a good enough store of value. For others though, they've been referring to it as digital gold for years and it continues to be compared to the safe haven alternative that has proven successful for thousands of years.
According to a recent study paper from the Department of Economics of the University of Pretoria, they too see Bitcoin as the new digital gold and assert that it has been a good hedge against trade wars and worldwide economic and political uncertainties.
not financial advice