The growing support for Bitcoin is now placing BTC at a stable position, likely to see further potential growth
Image source: pixabay - TeroVesalainen
Bitcoin buyers and investors are hoping for a rare glimpse to buy BTC at $3,000, if the markets were to perform badly in the next nine months. However the odds of this occurrence is getting less probable, according to a forecast made by cryptocurrency investor and media personality Trace Mayer.
Trace Mayer tweeted a photo of a Bitcoin price scenario based on his 'Mayer Multiple' tool to forecast undervalued or overvalued BTC prices.
Using the 200-day moving average for Bitcoin prices, a ratio is obtained to look what how Bitcoin is fairing (better or worse) in this time frame. A ratio less than 1 would mean that current BTC prices are undervalued while Bitcoin is overvalued when the ratio is higher than 1.
Mayer's chart showed that in four occasions in the past where prices are severely overvalued (ratio more than 3), the aftermath would be a sharp drop of BTC prices back to the ratio between 0.87-1.3x.
For 2018, BTC prices have been remaining constant at around 0.67-1.32x. That means that Bitcoin prices were either 'cheap' or within the 'normal' range.
According to that principle, for December 2018 and June 2019, the 200-day moving average could read around $9000 and $12,100, and the price of Bitcoin $9850 and $15,500 respectively. Source: bitcoinist - Wilma Woo.
Image source: pixabay - 3dman_eu
Reflecting the stabilization of Bitcoin is the rising adoption in countries with unstable economic frameworks. There is a growing community of Bitcoin users from the Palestinian territories of the Gaza Strip and the West Bank.
Families have started sending their money abroad using Bitcoin to invest in stocks. One such currency dealer in Gaza, Mohammed, told CoinDesk over the past four years he helped up to 50 families a month purchase an average of $500 worth of bitcoin each to send money abroad or shop online. Source: coindesk - Leigh Chen.
"There is no payment gateway, like PayPal, for entrepreneurs to receive payments internationally, so here comes solutions on blockchain with private nodes," Laith Kassis, CEO of the nonprofit Palestine Techno Park in the West Bank, told CoinDesk.
Source: coindesk - Leigh Chen
Bitcoin, the people's currency, has already seen much adoption in countries facing hyperinflation such as Venezuela, Iran and Turkey. It is expected that BTC will be picked up by more in the following months.
For the full situation in Palestine see: https://www.coindesk.com/crypto-gaza-west-bank-bitcoin-palestine/
As for Zimbabwe, their new finance minister is urging the country to embrace Bitcoin. Citing the Swiss central bank’s “investment and understanding” in Bitcoin, Mthuli Ncube said he would call on the Reserve Bank of Zimbabwe (RBZ) to follow in its footsteps. Source: cointelegraph - Willian Suberg.
“But there are other countries which are moving faster. If you look at the Swiss central bank they are investing in and understanding Bitcoin,” Mthuli Ncube said.
Source: cointelegraph - Willian Suberg
Image source: pixabay - Pexels
While national currencies fight it out to stay on top of each other, cryptocurrencies have become a common ground and a digital commodity countries could rely on for a stable value store of asset.
Many countries including US that are financially stable do not see the need to store the value of their assets in other forms of commodities. Because of the trust built by financial institutions, the "crypto-shift" would take longer than expected to fully roll out into mass adoption.
In times of impending financial crisis, will it be too late to flock to Bitcoin and other cryptocurrencies? When the next Bitcoin bubble grows, we shall see if it bursts.