Weiss's cryptocurrency rating platform recently forecast that Bitcoin could trade close to $ 180,000 if it can capture only a third of the Safehaven gold business.
But how could this happen?
Cryptocurrency rating platform Weiss has recently predicted that bitcoin could trade close to $ 180,000 if the leading cryptocurrency can capture only a third of Safehaven's gold business. That price figure is currently 20 times more than what leading crypto is currently worth. But how could this happen?
Weiss believes that demand is what will drive the price of BTC to such a height. Take a look at Weiss's tweets:
But to reach this price range, it would take significantly less volatility in order to increase the demand for bitcoin, which would help build its reputation as a store of value assets.
According to the rating agency, they say that investors have a certain culture of buying bitcoins when the price drops, which is a great reason why the price is going through a stagnant period.
But even with this, the COVID-19 pandemic shows that investors are beginning to trust and realize the potential of the leading cryptocurrency, regardless of what the market price movement is.
The investment guru who said Bitcoin was in a bubble as early as 2017 recently speculated that all cryptocurrencies will eventually disappear.
In an interview with AERA dot's Asahi post on June 19, investor Jim Rogers said cryptocurrencies, including Bitcoin (BTC), "will eventually go into decline and everything will go to zero."
"Those who use cryptocurrencies think they are smarter than their governments," Rogers told AERA dot. "In fact, I think they are right. But their governments have something that the people of cryptocurrencies do not have. They are weapons. The reason I believe that cryptocurrencies will eventually disappear is that they are not based on the armed force of the power of the governments".
There has been some unproven correlation between the rise and fall of cryptocurrency prices and governments acting more authoritatively. When Donald Trump ordered the forced dispersal of peaceful protesters near the White House grounds on June 1, the price of Bitcoin rose more than 8%.
Cryptocurrencies are just a coin in the air
In November 2017, Rogers said that BTC "looks and smells" like a bubble. This was before the cryptocurrency reached its all-time highest price of over $ 20,000 in December 2017.
"cryptocurrencies didn't even exist a few years ago, but in the blink of an eye they became 100 and 1000 times more valuable. This is a transparent bubble and I don't know the correct price. Virtual currency is not an investment objective. It's just a gamble. ”
Along with billionaires like Warren Buffett and George Soros, Rogers is considered one of the largest investors in the world.
meanwhile the digital yuan is just around the corner
Former vice chairman of the National Council for the Social Security Fund of the People's Bank of China, Wang Zhongming, announced that China completed the development of the backend architecture for its central bank digital currency (CBDC).
Wang made the announcement during the 2020 Fintech Forum, organized by Tencent's Fintech Research Institute and the Fintech 50 Forum in Beijing.
With so many cryptocurrencies already existing and developing, China is trying to create a payment infrastructure in which these currencies can coexist with the state's digital currencies. Wang said such a system will create a healthier environment for competition and cooperation in the digital currency space.
According to Wang, the epidemic has increased competition in the digital currency space, with more technology giants and governments interested in creating a better digital payment infrastructure. He specifically pointed to the development of Libra, through which Facebook is experimenting with digital wallets based on social media.
CBDC of China in its testing phase
China's CBDC is currently in its testing phase, Wang said during the forum. China has also started drafting laws that will help launch and implement its digital currency.
The leading payments and technology companies Alibaba, Tencent, Huawei and China Merchants Bank are believed to be working with the People's Bank of China on development and testing.
While everyone is still unsure when China plans to officially launch its digital currency, Glenn Woo, head of the Ledger Vault, believes that the digital yuan is likely to be the first state-backed digital currency to be launched worldwide.
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