Why Do Enthusiasts Believe Bitcoin Will Be Growing In The Future?
Bitcoin (BTC) has been in a bear market since the end of December 2017 when it reached $20,000. The most popular digital asset in the market fell down to $3,200 a few months ago. Now, enthusiasts and analysts are starting to evaluate how Bitcoin will grow and what will trigger the next bull run in the market.
What Would Make Bitcoin Grow?
According to Dan McArdle, co-founder of Messari crypto, there are several long-term situations that would help Bitcoin grow and increase its price. In a recent tweet, he mentioned several things that could have a strong impact in the cryptocurrency market.
As he said, there is a $200 trillion global debt that grows as time passes. With such a large debt, investors would be looking for a safe haven asset such as gold. In this situation, Bitcoin could become the new “digital gold” with its limited supply and a larger demand. Indeed, Dan McArdle explains that Bitcoin is better gold.
He then mentioned other factors such as socialists policies being implemented, government competing and inevitable fiat crisis. Indeed, Venezuela is a clear example of what socialist politics can generate. After several decades of socialism, Venezuela ended with 90% of poverty and hyperinflation that seems no to have limits. Thus, socialists policies ended up in an inevitable fiat crisis. Venezuela today has no currency and people is using Bitcoin to survive.
He added a few more points such as “arc of digital vs physical,” the need for the internet to have a native currency, and the “human desire for freedom.” Jack Dorsey, the CEO of Twitter, called Bitcoin the native currency for the internet.
Longrun BTC Tailwinds:
– $200T in global debt
– It’s better gold
– Socialist politics
– Governments competing
– Inevitable fiat crises
– Arc of digital vs physical
– Internet needs a native currency
– Human desire for freedom
— Dan McArdle (@robustus) February 26, 2019
Alec Ziupsnys, cryptocurrency enthusiasts and developer, has also written a Tweet in which he shows some interesting number about the world economy and how Bitcoin compares to it. He said that Bitcoin is worth $0.068 trillion and there are many other economic sectors that are worth even hundreds of trillions.
Sovereign funds account $7.5 trillion, pension funds $18.1T, the stock market $73T and the real estate sector $228T. This shows that Bitcoin and digital currencies have great potential to grow and expand all over the world.
Sovereign funds: $7.5T
Pension funds: $18.1T
Stock market: $73T
Mutual funds: $40T
Real estate: $228T
Still think you missed the boat?
We haven’t even figured out how to build the boat yet.
— Alec Ziupsnys (@AlecZiupsnys) February 26, 2019
At the time of writing this article, Bitcoin is being traded around $3,900 and it has a market capitalization of $68 billion.
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