Pressure on stocks is raising Bitcoin

The synchronized movement of the value of cryptocurrency with that of gold. How Twitter CEO Jack Dorsey, through Square, can give new impetus to his acceptance.

Bitcoin behaves like gold, once again. In the case of the American strike on the Iranian general and the events that followed, we watched as Gold and Bitcoin synchronized as a team of rhythmic swimmers. At the same time, both up and down, with precision of seconds.

But as we can see in the diagram below, this is nothing new. For a year now, their behavior has been similar. The yellow line is the gold, while the blue is the Bitcoin, which climbed to $ 8,600.

It matters, of course, that we have seen such a positive start to the year since 2012. Then from $ 4, within two years, it has reached 1,200!

The good news, however, does not just come from the prices of cryptocurrencies that everyone sees. From the back is the job, the developments are running. In particular, we may be in for a shocking development. The catalyst for the widespread adoption of Bitcoin appeared.

We've talked to Jack Dorsey, CEO of Twitter, several times. He happens to be one of the most recognizable supporters of Bitcoin. But Dorsey is not only a CEO of Twitter but also of Square. A fintech company that may not be so well known but has even more capitalization than Twitter. If we were to describe the object of Square's activity in a single sentence, we would say that among other things it has most POS devices installed in the US.

The logic you would assume is for Jack to decide at some point to make a small conversion to his machine software. Accept except dollars and Bitcoin. Such a move would help in deciding the adoption and widespread acceptance of Bitcoin as a means of payment. It only blocks him from a critical "detail". The application that converts fiat currencies into cryptocurrencies should be flawless. There is no margin for error. The responsibility is enormous, as are the amounts that move daily.

But here's something to do. Square a few days ago received a diploma from the US Department of State for a patent that does exactly that: it automatically converts cryptocurrencies into currencies like the dollar and vice versa. If this patent can be applied, then it is up to the merchants and consumers to pay with Bitcoin for the business and to automatically convert the cryptocurrencies they receive into the currency of their choice. Immediately and (almost) for free.

What problems does it have today that the shopkeepers do not accept cryptocurrencies? First of all, transaction confirmation takes several minutes. It doesn't happen automatically like with the debit and credit card we know. Anonymity is a second major obstacle. Businessmen are reluctant because this feature of cryptocurrencies, such as Bitcoin, makes them suspicious of authorities as money laundering associates. Adding to the high volatility we occasionally observe in crypto, we get a good picture of the problems.

What is the solution that Square has found for all these problems? Let's say a consumer buys a blouse from a clothing store. Through this patent, the POS will receive a payment request from the consumer's electronic wallet of choice. Even if it is a currency that protects privacy such as Bitcoin, it will use and approve the process so that the trader has full value in the currency of his choice. And all this in real time. It sounds really promising, but Square has declined to make a statement about whether or not to market it.

A similar attempt in this direction is made by Bakkt. They are exploring methods and applications to expand into the huge consumer market. As they themselves have pointed out, their plans are not limited to trading Bitcoin futures.

We have mentioned it many times, we repeat it again. Bitcoin is not static technology and is in the corresponding initial phase of the Internet. What has the Internet done since the dial up period? Proceeded. So why not assume that blockchain complaints will be resolved? Why do we stay in today, as if their evolution will stop here? This is exactly what happened with the Internet. Even sending an e-mail, which is now used by even the most irrelevant in IT, was not as simple and easy at first.

And here's the great investment opportunity. Because when everyone can easily get and move them, guess what: the number of users will jump and guess how this will impact to Bitcoin’s price.