That he bitcoin is in fashion is something indisputable. For more than the vice president of European Central Bank, Luis de GuindosQuestion the stability of this cryptoasset and talk about “very weak” fundamentals, the reality is that a huge amount of money has been channeled this year into this digital currency. If you keep your pulse fresh, you head toward a annual revaluation close to 80%. It is not a trivial topic.
Investors’ eyes are still on the cryptocurrencies in the final stretch of 2021, as they look for opportunities after the correction that began in November, when new all-time highs were reached. Currently, bitcoin is trading at $ 49,125.5, after having run into the $ 52,000 resistance, so that new approaches to support areas could be seen, according to Diego Morín, an analyst at IG.
But the question that should be asked to analyze the evolution of this digital asset throughout this year is: what is behind it? A speculative move? Yes, obviously, the strong rise in bitcoin responds to this in the absence of alternatives to equities – with sunk interest rates, fixed income was not an option either – in a year marked by the restrictions imposed by the pandemic and collateral damage to economic growth as new variants such as omicron, says a Stock Market operator in Madrid.
However, it is necessary to decompose the layers under the surface of the phenomenon to understand the explosion of this cryptocurrency in 2021, a year in which it became popular because it has been seen “as another type of asset,” explains Javier Molina, an analyst at eToro. The direct consequence is that a new market has been created in which these digital currencies, as well as derivatives, are avidly bought and sold.
The pandemic It has favored their development, which could be paradoxical since no one in their right mind would deem it appropriate to bet on assets considered risky like these in times of economic uncertainty. And it is that while the boredom of being confined encouraged some to buy flour to make cakes on an almost industrial scale, others took to spending their time in front of the computer studying cryptocurrencies and “they understood that investing in bitcoins can make some sense” , illustrates Molina.
“Now people are more digital and gold is stranger to them. In its 12 years of life, bitcoin has only risen, although there have been some adjustments, “he says.
The famous tweets of Elon Musk, the founder of the electric car manufacturer Tesla, in clear support of the use of bitcoin and its adoption as legal tender in The Savior have not gone unnoticed and, although they have generated detractors –China prohibits it, although it also prepares its yuan digital And he does not want another similar asset to overshadow him – they have also left a positive residue.
“An increasing percentage of investors buy bitcoins and store them, that is, they do not use them for speculation. Believe in this digital gold or in this store of value. That is his bet “, argues Molina. But, in addition, with «the underlying blockchain technology that supports bitcoin, new business models and companies such as Adidas, Nike, Coke The Inditex They are taking advantage of it ”, he adds.
Large investment firms capture business in bitcoin
Wall Street has sighted the business around bitcoin and, in general, cryptocurrencies -there are 16,000 different ones-, which capitalize $ 2.5 trillion. Investment firms like Fidelity The JPMorgan have established digital asset businesses. “A world is opening up,” says Molina. “Every time the bitcoin network costs less to win a user,” he says. One can already pay with bitcoins in restaurants in Madrid, this is a fact.
It is true that it is an asset very little liquid, since at the moment there are admitted in the market 19 million bitcoins and those that are bought and sold are just a little over two million. That is, 17 million are immobilized. To understand it well, an asset that trades an average daily volume of about 4,000 million dollars worldwide is not a big deal when compared to the trading of the shares of Apple, for example.
Despite everything, Morín, from IG, warns that “cryptocurrencies are not suitable for all investors, especially for retailers, due to the high risk and volatility they present.” Ethereum it is revalued so far this year more than 450%, Polkadot registers an increase of more than 300%, the same as Uniswap. And “the great rise of the century” is about to come, says Molina, which will occur when Amazon accept bitcoin as a form of payment on your platform. “But we are still far away, this is still maturing,” he says.
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Bitcoin will close a spectacular year with a rise close to 80%