Is this the end of the bitcoin billionaire phenomenon? Edgy Labs covers the latest news on bitcoin gold, coinmarketcap updates, & blockchain market trends.
At the time of writing this article, Coinmarketcap shows a single Bitcoin is already valued at $10,204.20.
That’s nearly ten times the value of a single ounce of gold, according to APMEX.
Bitcoin prices have skyrocketed in 2017. If you bought Bc in January, you would have doubled your money in just half a year.
By August, the digital currency vaulted to a new record high above its $4,000 mark value. In fact, its value surpassed that of even Gold for the first time.
This has led to outrageous headlines such as “Bitcoin Price Will Hit $250,000 by 2020 If Seven-Year Trend Continues” and “Bitcoin Price Can Reach $1 Mln: CNBC’s Jim Cramer“.
However, there are still those skeptical of the new currency. Billionaire investor Warren Buffet joined the ranks of other Wall Street influencers in claiming cryptocurrency has no value because it is not a “value-producing asset”.
Despite that, Mastercard announced that it’s opening up its blockchain API to several developers, partnering banks, and merchants. The Mastercard blockchain technology is expected to provide new ways for consumers, businesses, and banks to transact and meet their financial needs.
In light of this, many stockbrokers seem to have a growing faith in the Bitcoin futures market. Lynn Sebastian Purcell of SeekingAlpha has forecast that the Bitcoin market will: (a) continue to gain stability over the long term and (b) continue to increase in price (though not as swiftly as some might expect).
As the Bitcoin futures market stabilizes, there will be fewer opportunities to cash in for traders seeking quick profits. In fact, the development of Bitcoin Gold has resulted because a specific group of Bitcoin miners has argued that the existence of too many private players wanting to get involved with the mining process has changed the way the Bitcoin network should be operated.
This ultimately means buy and hold strategies for Bitcoin (“hodling” as it called) is likely to have far lower returns and traders will lose the volatility that has made Bitcoin trading so profitable.
So, it appears that the end of the digital gold rush is coming. Yet, instead of a total collapse, this could instead be the handing over of Bitcoin value from small decentralized parties to bigger players. If BTC is used for high profile investments in the coming months, it is more likely that the price will stabilize and cease to be a buy-and-sell for-profit commodity.
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