There are already opinions in the market that compare the current development of encrypted digital currencies with the early days of the Internet. Investors in encrypted digital currencies are also taking full advantage of current trading and investment opportunities. The current bull market of encrypted digital currencies obviously provides a large number of such profit opportunities. Traders and investors are getting the development dividend of this emerging industry. Looking back on the investment experience of the Internet, one of the hot spots that the market is paying attention to is to find Amazon in encrypted digital currency. By entering such encrypted digital currency early, you can get the same benefits as investing in Amazon. So among the thousands of encrypted digital currencies, which one or several encrypted digital currencies will become the Amazon among the encrypted digital currencies?
In my opinion, Bitcoin is clearly the best product candidate. In its 12-year history, its continuous growth has surpassed all other encrypted digital currencies. Thousands of other encrypted digital currencies were produced, developed, and then disappeared. Only Bitcoin is still developing and is now hitting a record high. The most important thing is that Bitcoin is gaining universal acceptance in the market, including institutions. Morgan Stanley can be said to fully recognize Bitcoin. It is investing in the largest encrypted digital currency exchange in South Korea, investing in major encrypted digital currency service institutions in the United States, and will soon provide encrypted digital currency related services to its wealth clients. Goldman Sachs will soon provide its wealth management customers with services related to encrypted digital currencies. Chase Morgan's research views began to recognize Bitcoin. The most conservative financial institutions in the financial industry, insurance companies such as Mass Mutual and New York Life, have begun investing in Bitcoin. The views of these financial institutions can be said to have undergone a substantial change in less than a year. With the participation of these mainstream financial institutions, more assets will flow to Bitcoin. This will definitely promote the long-term growth of Bitcoin.
The actions of financial institutions will not only be affected by market conditions. In other words, financial institutions will not see a highly speculative product welcomed by the market, and they will immediately provide services related to this product (although this is certainly a major influencing factor). The action of a financial institution must be based on its knowledge before starting. In other words, these financial institutions have fully realized the value of Bitcoin, so they have begun comprehensive actions. If they only recognize the opportunities brought about by the fluctuation of Bitcoin's price, these institutions can only participate in transaction-related activities, and they cannot invest as a company's strategy, nor can they recommend this product to its wealth customers. Therefore, it can be seen from Morgan Stanley's actions that Morgan Stanley has fully recognized the long-term value of Bitcoin. Similarly, we will soon see the full participation and investment of mainstream financial institutions in Bitcoin this year.
After 12 years of development and the current global currency issuance, Bitcoin has now become more and more recognized as a store of value, and it is likely to develop into a reserve currency in the future. Such judgments have gradually become the consensus of the market. In the process of understanding the market, some personal opinions and books have had a great impact on the industry. Michael of MicroStrategy
Saylor is perhaps the most influential person in this regard. He first bought Bitcoin through MicroStrategy, a listed company, which had a huge impact on the market. He is also constantly using various media to preach the value of Bitcoin and why he needs to hold Bitcoin. He also organized a two-day online conference on Bitcoin introduction for US institutions. This meeting was strongly welcomed by the market. His actions and opinions greatly affected the acceptance of Bitcoin in the US market. In terms of books, "The
"Price of Tomorrow" had a very strong influence. The basic point of this book is that the advancement of technology applications has led to a large number of enrichment of products, and abundant products have led to continuous decline in prices. So this world should be a deflationary world. But the current financial system is an inflationary world. This is therefore an essential conflict in the current society. This conflict leads to the second- and third-level contradictions in society. Some turbulence in the current society can be traced back to this basic conflict. Bitcoin provides a peaceful means to resolve such conflicts. This book has had a very positive impact on the views of Bitcoin in the market.
Due to these changes in the views of Bitcoin in the US market, the investment of individuals and institutions in Bitcoin is also undergoing substantial changes. The enthusiasm for investing in Bitcoin can be said to be unprecedented. The Bitcoin ETF listed in Canada reached $1 billion in less than a month. This ETF has continued inflows for 25 consecutive days. This is unprecedented in the history of ETFs. Relative to the size of the Canadian capital market, the size of this ETF is far beyond expectations.
In terms of Bitcoin applications, Bitcoin has increasingly become the base currency. Among the various applications of blockchain, it can be said that the most basic application of each public chain is the introduction of Bitcoin. This is true whether it is in the ecology of Ethereum and Polkadot. In terms of geographic area, when there is a problem with the currency of any place, the transaction volume of Bitcoin will definitely increase. This is true in Venezuela, Lebanon or Turkey. It can be seen that Bitcoin has been used as a safe-haven asset. Therefore, whether it is in the application of encrypted digital currency or in the actual economic environment, the acceptance of Bitcoin is increasing. And such applications are already a long-term growth trend.
In terms of advancing the market acceptance of Bitcoin, the support of major financial payment instruments is increasing the number of Bitcoin holders. PayPal, Cash App, Robinhood all provide retail users with bitcoin trading services. PayPal and Cash
The growth of App’s Bitcoin holders has also far exceeded expectations. Venmo, another payment tool in the market, also proposes to provide services that support encrypted digital currencies in the next few months. The support of these financial user terminals for Bitcoin has greatly increased the number of Bitcoin holders and provided a more solid foundation for the growth of Bitcoin.
USD-based stablecoins are now growing rapidly. One of the main uses of stablecoins is the trading of encrypted digital currencies. The current bull market of encrypted digital currencies is inseparable from the massive increase in stablecoins. The Diem stablecoin is expected to be launched this year. After the launch of the Diem stablecoin, one of its main uses must be the buying and selling of Bitcoin. This will definitely bring huge capital flows to Bitcoin. In addition, I think that the U.S. banking industry will definitely launch a dollar-based stable currency because they must do so. On the one hand, it is in line with the trend of technological development, and on the other hand, it is also necessary to resist the competition of stablecoins like Diem. The massive increase in stablecoins will definitely bring more traffic to Bitcoin transactions.
It now appears that the probability of launching Bitcoin-based ETFs in the US market is increasing. These positive factors include the newly appointed SEC chairman, the development of the encrypted digital currency market, the improvement of the encrypted digital currency custody mechanism, the popularity of the Canadian Bitcoin ETF, the number of institutions in the U.S. market that have proposed to establish a Bitcoin ETF, Users have a strong demand for Bitcoin, and the current level of Bitcoin's circulation in the US market. All these factors have greatly increased the probability of Bitcoin ETF launches. At present, the SEC has announced VanEck's Bitcoin ETF application. It will approve or reject the decision within 45 days (at the end of April or early May). The high probability event is that there will not only be one Bitcoin-based ETF in the US market, but there will be many Bitcoin-based ETFs. If we look at the impact of the launch of the gold ETF on the price of gold, we can easily see the impact of the Bitcoin ETF on the price of Bitcoin.
Among the most recent events, Coinbase is expected to be listed for trading on April 15. Its market value has now been estimated at $100 billion. Such a market value scale has surpassed many mainstream financial institutions. Its successful listing will surely push the price of Bitcoin to rise sharply.
In terms of investment views on bitcoin, there is a view that the price of bitcoin is now too high and the number of bitcoins that can be bought is too small. But this view is a wrong judgment on Bitcoin. For current retail users and future institutional users, the consideration now is to hold Satoshi instead of Bitcoin. One bitcoin is equivalent to one hundred million satoshis. So no matter how high the price of a bitcoin is, it is still possible to buy satoshis with funds. If the price of Bitcoin increases by 10 times, then the amount of money invested and purchased now will also increase by 10 times, so the number of Bitcoins or Satoshis that can be purchased is not that important.
Another erroneous view of Bitcoin investment is that the best investment opportunity for Bitcoin has now been missed, and it is not worth buying Bitcoin now. But I think it depends on investors' judgment on the future of Bitcoin. If you think that Bitcoin will rise in the future, then the current price of Bitcoin is the lowest point in the future. If you are not optimistic about Bitcoin, then the current price of Bitcoin is its highest point, so there is no need to buy. Therefore, the decision to buy or sell depends on the judgment of the future price of Bitcoin, not its current price. A decision related to this view is to use the same amount of funds to invest in other products in order to obtain better returns. But if you consider it from the perspective of risk and return, Bitcoin is still the best choice.
Finally, it needs to be specifically stated that the views in this article are only personal views, not investment advice. Investors should make corresponding decisions after making their own judgments.