The strong appreciation of the bitcoin can be something more than a speculative frenzy. The upward trend is driven, in part, by many investors who are moving away from the digital assets with higher risk and are falling in this cryptocurrency, which with more than seven years of life begins to seem a safer asset.
"A large part of the volume in bitcoin at this time are not dollars or yen or euros going into the cryptocurrency, but rather alternative digital assets," says Peter Smith, co-founder and CEO of the software platform of digital asset Blockchain, at an industry conference. "People consider that many of these newer assets have increased risk, so ultimately end up doing a rotation of assets in which the winner in the new portfolio is the bitcoin."
Numerous alternative cryptocurrencies, such as ripple, have emerged since the bitcoin began to become known in 2013. While the price of a bitcoin has soared to more $2,000 from only 8 cents that was priced in 2010, you can also buy a litecoin for about $30. However, the risk that investors perceive is not the same.
Cycles influence the bitcoin
Some worry that a bitcoin bubble is forming, but Smith and Erik Voorhees, founder and CEO of cryptocurrencies market ShapeShift, are not too concerned. Booms and crashes are a normal part of any economic cycle, as they have told the Conference consensus 2017.
"Whenever the Bitcoin passes through these bubbles, a new wave of users enter", said Voorhees. "The reason that bitcoin is having so much success is because banks have not been innovating and have lagged behind".
Users of ShapeShift, of which only around 15% are in the United States, are moving small amounts of value between different currencies digital while they analyze what is the best place to invest your money, adds Voorhees. Bitcoin is "less speculative" digital assets, statement.
The bitcoin has also taken advantage of the turmoil in countries such as Greece, China or Venezuela. Many investors in those countries have changed their traditional currencies by bitcoin to expectations of future deprecaciones from their traditional currencies. Without a doubt, these peaks of demand have helped the bitcoin to continue climbing.
"One of the most beautiful things of the Bitcoin is that the free market economy in operation can be seen every day and the bubbles and the creative destruction are part of that process," argues Smith.
In the present day, the bitcoin climbs more than 3% against the dollar and now the unit is changed to 2,340 dollars. This cryptocurrency already has appreciated more than 185% from the minimum of 2017.
Good read! I agree booms and busts are an important part of any economic cycle, it helps to get rid of the pretenders in any market.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It's almost natural..
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Congratulations @arielpr! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honnor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPBy upvoting this notification, you can help all Steemit users. Learn how here!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit