Bitcoin asset: prospects for the future
Bitcoin has recently attracted the attention of most people: from retail investors to so-called third-party observers. People have a great fear when buying bitcoin, because of its possible fall. But everyone has in mind the factor that - "If I had decided earlier, I could have become a millionaire". These are the human factors that turn their attention to what has already gained value. Only the bravest can boast of an increase in well-being − those who are not afraid to lose.
What awaits Bitcoin in the near future
The approximate future of bitcoin is located on positive notes. BTC has become an investment asset, the capitalization reaches a trillion dollars, which allows virtual money to position itself as part of the assets with the highest capitalization of all markets and times.
The SEC has not yet approved the bitcoin ETF until the most convenient time for this is found, but in the end it will happen soon. Taproot, the upcoming bitcoin update, will be released next month, giving it the ability to execute smart contracts, which will significantly increase the value of this asset as its functionality and usefulness will grow.
And, of course, an important factor: limited supply, and reduced availability, but at the same time BTC is still a decentralized issuance system.
China had more than 60% mining equipment at the time when China banned bitcoin mining in the country. Due to the large amount of mining in China, bitcoin received a kind of centralization in the form of China, but after the ban, bitcoin became fully decentralized again.
This feature is very different from the banking system, for example, the Federal Reserve System, which over the past two years has issued more than 38% of the historical monetary base, completely making decisions that directly affect the economy and people.
Why Bitcoin can become the future of the Financial system
As long as central banks continue to pursue quantitative easing policies and raise the debt ceiling, bitcoin will become stronger because it is inherent in its nature. The cryptocurrency was created to avoid bankruptcies and ensure transparency of the financial system.
Bitcoin has a negative correlation with DXY. The dollar index shows its worldwide value. When they interact, it becomes possible to buy or sell BTC with profit. However, we must not forget that this only works in the long term.
However, Bitcoin is very vulnerable to negative events in the short term. One of their recent examples is the Evergrande effect. This is a Chinese giant that went bankrupt in September. The event caused a drop in stock markets, including cryptocurrencies, for example, bitcoin by 7% on the first day.
Some designate bitcoin as an unstable cryptocurrency. Because of his vulnerability to events. Every price drop that occurs due to some event unrelated to the asset itself is an opportunity to buy coins at a discount.
The cost of the first cryptocurrency is constantly jumping, thereby tempting to purchase and at the same time causing uncertainty and fear. Bitcoin is unpredictable. But for the entire existence of BTC, experts and analysts have already learned to predict the behavior of the coin. For example, today, everything is going to ensure that the coin will continue its growth.