Bitcoin now records new annual highs, almost every day after day. The volume at the bureaux de change is growing and so far there is no indication that this trend should end. And what is the forecast? There are several factors to consider.
1. Institutions, not individual investors
The volume of bitcoin during 2017 exceeded the ceiling. The reason, as we know, was the effort of thousands of individual investors to make a quick profit. But as Google Trends unveils, this time the price is driven mainly by institutions. This means that in the meantime, individual investors do not catch up with the bandwagon. On the other hand, institutions' interest in bitcoin continues to grow. The total amount of contracts reached 26,555 BTC, or about $ 246 million.
2. Network status is still improving
Cointelegraph said last Friday that the network hash rate is at its highest in history - 65,000,000 TH / s. In other words, bitcoin is more safe than ever. A 51 percent attack on the network is unthinkable today. Other statistics also show qualitative growth. Daily transaction volume, individual block size, and other metrics. Everything suggests that more and more people are using bitcoin in a different way than a speculative tool. Also, network usage fees cannot be forgotten. Despite the unexpected growth of the cryptocurrency, they remained low.
3. In 11 months it will be halving
This unexpected growth was 11 months before the next halving. It is due to come in May 2020. The block extraction fee will be reduced from 12.5 BTC to 6.25 BTC. This is a great reduction in the pressure of the miners on the market. The last halving took place in 2016 and we all know what came after that.
4. Macroeconomic image
Those who support bitcoin are divided into two camps - maximists and conservatists. The first claims that bitcoin will replace all the world's banking currencies. Conservatism, on the other hand, claims that bitcoin will grow together with the already rooted financial capabilities of the world, the states. The European Central Bank recently said that it would have to come sooner or later to intervene in the price of individual currencies. To put it simply, in order to revive the economy, the situation for the banks will improve for a short time, but the situation for the people will deteriorate. All this artificially. It is evident that the world economy is tired after several years of growth. At that time, people are looking for stable investment instruments. Digital gold is one of them.
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