Experts agreed that in the near future, a large amount of investment in the amount of more than 5 trillion dollars will enter the Bitcoin market.
According to investor and founder of Gold Bullion International, Dan Tapeiro, after such an investment, the dollar will weaken even more, and digital assets will become its full-fledged competitors.
Bitcoin can increase its capitalization
"Now the cryptocurrency market is considered one of the most promising amid the drawdown of the us currency and stock markets. There is no denying that the era of modern technology is taking its toll.
We cannot oppose this process. Gold has long lost its popularity, and as an asset it exists because of investments for more than a hundred years.
If bitcoin had appeared a century earlier, it would have displaced precious metals long ago. The dollar would be destined to fall into oblivion too early," said Tapiero.
According to Refinitiv Lipper, within three months of the fall, the so-called "liquid cache" grew to $ 4.6 trillion. This means that investors have converted their savings into a currency, withdrawing them from the stock market. If they decide to invest in more promising modern industries, then cryptocurrencies will be able to increase their capitalization by tens of times.
Tapeiro also noted that - not the entire amount will be used to purchase cryptocurrency. Many investors will choose an option from other markets, but most of them will still lean towards digital assets. Do not forget about the natural increase in the capitalization of the cryptocurrency industry. He added that gold and stocks would also share this portion of cash, but to a much smaller extent. Assets that were previously considered promising have lost their confidence coefficient, which means that all the laurels can go to cryptocurrencies.
Analysts at JPMorgan Chase previously reported that the collapse of Bitcoin in March was a so-called stress test for the cryptocurrency market. The industry managed to deal with it in a matter of months. Now Bitcoin periodically undergoes correction, but it has every chance to become the main competitor for the stock markets.
In April, Quantum Economics founder, Mati Greenspan, noted that the entire financial industry depends on the correlation of Bitcoin with the S&P 500 index. A few weeks after this announcement, it reached a historic high. Gold is also gradually increasing its correlation with Bitcoin, but it tries to keep its distance, so it can keep its adherents.
Specialists of VanEck Global during a recent online conference with specialized experts noted that the growth of Bitcoin can begin by the end of the summer, when the situation in the stock market and the oil industry stabilizes. Due to the weakening economy around the world, investors will be looking for alternative assets, and at this point, cryptocurrencies will come to their aid.