How to Earn Money During The Lockdown

Friday

Why Bitcoin Keeps Going Up

What is the big deal with Bitcoin and why does it keep rising more than it falls? I am going to answer these questions and dispel any myths out there about bitcoin being some sort of fad or all out scam...

In fact, I will also prove why you should be storing as much of it as possible...

Based on CoinDesk's reporting, here are a few key reasons why bitcoin prices have recently rallied:
  • Demand from institutional buyers, many of them eyeing bitcoin as a hedge against inflation. The cryptocurrency is seen as a hedge against inflation because, under the network’s original programming, only 21 million bitcoins can ever be created; so there’s a contrast with central banks like the Federal Reserve that can decide based on a committee vote to print more money. Big asset managers including Tudor Investment and Guggenheim Partners have announced bitcoin purchases or wagered on prices using futures contracts on the Chicago-based CME exchange. Even old-line Wall Street firms such as Morgan Stanley have weighed in with bullish pronouncements. Analysts at JPMorgan Chase, the biggest U.S. bank, recently predicted a price of $146,000 over the long term.
  • The U.S. dollar’s decline in foreign exchange markets. The U.S. Dollar Index, a gauge of the dollar’s value against major world currencies like the euro and Japanese yen, slid 6.8% in 2020 and is down again in 2021. That’s key for bitcoin because the cryptocurrency’s price is mostly denominated in U.S. dollars. Possible reasons for the greenback’s decline include the Federal Reserve’s $3 trillion-plus of money printing over the past year, which is roughly three-quarters of the entire amount previously created in the U.S. central bank’s 108-year history. Images of protestors storming the U.S. Capitol on Wednesday probably didn’t burnish America’s leadership role on the global stage, and now many economists are predicting that big spending plans under a Democratic-controlled government would lead to new stimulus bills and potentially outsize government budget deficits for years to come. Much of those extra costs could be financed through additional Fed money printing.
  • Many individuals are speculating on bitcoin prices, and it’s become increasingly easy to buy bitcoin, with big services like PayPal enabling purchases last year. Analysts for the digital-asset firm ByteTree noted this week that blockchain data appear to show a high concentration of bitcoin purchases in the amount of $600 - the same amount as the American stimulus checks sent out in the latest U.S. coronavirus emergency aid package.
Ref: https://www.coindesk.com/why-is-bitcoin-going-up-and-will-it-crash 

It is obvious to any savvy investor that Bitcoin has more growth potential than ANY other investment instrument of the past. So much so that even the mighty Nasdaq themselves predict that it will rise to the heights of competing with Gold, just look at what the Nasdaq said here in this recent article...
So, for its use case, Bitcoin is very early on its adoption curve. For it just to reach the same size as the gold market, Bitcoin will have to grow by 30 times. This is the asymmetric bet. If you invest in bitcoin now, you get both the benefits of a store of value and a potential 30-times return.
Although I do not tout myself as some "financial guru" it doesn't take a guru to see that the very definition of money is evolving. That paper mixed with cotton fiat currency we delight in carrying around in our pockets will soon only be as good as its counterpart that sits next to your toilet ready to be used after you have excreted your human waist.
At times when central banks everywhere in the world are relying on a debt monetization strategy to keep the legacy financial system running, you don't want to pass on a good store of value. This is valid now and will remain valid in ten years.
All of this leads back to my point that MONEY is evolving BUT its evolution is actually heading back towards its true intended purpose of being a store of value while acting act as a medium of exchange at the same time!
The point is: Bitcoin is climbing on the adoption curve. Deep pockets investors are buying at the same time as the supply is getting more scarce. You don’t need complicated models to see the writing on the wall. You don't need to be a genius to realize all of this will push the price high enough for bitcoin to start seriously competing with gold in terms of market size. When that happens, everyone will want a piece of the pie, including large mutual funds and asset managers. And from there, things will snowball into something much bigger than what we can imagine now. How long will that take? Ten years? Less? More? Who knows.

That’s not in your control. What is in your control is how you will act now.
Read the full Nasdaq article here: https://www.nasdaq.com/articles/bitcoin-will-rise-above-%24100000-in-2021-2021-01-01

WCR recommends:
* You can buy, sell, and store your Bitcoin at http://coinbase.wcrpro.com 
* Did you know you can mine your own Bitcoin right from your web browser even if it's on mobile? Click image below...


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