Are you not happy that you kept your Bitcoin? Don’t sell it.

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Are you not happy that you kept this Bitcoin? I know I am.

Even with the recent drop from its highs, reaching nearly $ 20,000, investors have been bullish. Is it going to $ 50,000? Nope. It’s going to $ 500,000, some on the street have told me (hint: she runs a large, innovative ETF). It’s the wild speculative predictions that make Bitcoin what it is. But keep it. Even if it comes to $ 5,000. We have seen that what happens circulates.

It took more than 1000 days since Bitcoin hit its previous all-time high, recorded in December 2017.

“We are buyers at this price because we believe that Bitcoin will appreciate in the short, medium and long term,” said Daniel Wolfe, fund manager at the Simoleon Long Term Value Cryptocurrency Fund, which he manages in partnership with SPRING, a company investment based in Moscow. “Taking a three to five year view and an average dollar cost in a position that represents about 5% of your portfolio is prudent today. “

Okay, but are we already on takeoff? You know, that Bitcoin Moon thing.

“The next nine months will bring substantial appreciation for Bitcoin,” Wolfe thinks. “I wouldn’t be surprised to see $ 50,000 next summer. Within four years, we expect the capitalization of all cryptoassets to increase fivefold, with Bitcoin at $ 100,000, ”he told me last week.

There are a number of factors behind Bitcoin’s meteoric rise this year. Microstrategy

MSTR
and square

SQ
, for example, were buyers. Big investors like Paul Tudor Jones and Stanley Druckenmiller are there.

The availability of infrastructure at the institutional level facilitated their entry: Fidelity’s custody solution is one example. Second, the so-called halving of the BTC reward (since May 11 each block carries a 6.25 BTC reward instead of the 12.5 BTC reward before the halving) means that one more much of the new demand has to be met in the open market because miners cannot continue.

Historically, the halving led to a further peak in the BTC price 13 to 15 months after the BTC reward was reduced.

Buying and holding BTC has become easier for retail investors. Pay Pal

PYPL
Now allows its 350 million users to buy and hold Bitcoin using their existing accounts, something Robinhood and other fintech companies now also allow.

“I think the reason for the growth is the dollar that we expect to weaken against other reserve currencies. All respectively stable assets and goods are the most attractive investment, ”said Nikita Zuborev, marketing manager at BestChange.com, a Russian free trade aggregator, 13 years old.

“The cryptocurrency market has changed,” Zuborev says. Many derivatives, futures and options have been launched in recent years. Bitcoin has gained a significant share of the crypto trading market. “Despite the ‘DeFi fever’ occupies a dominant position unlike the trends of 2017 when the previous price record was set,” he says.

“DeFi” refers to decentralized finance, or peer-to-peer funding done on a blockchain ledger that eliminates the man in the middle – typically banks and brokers.

Bitcoin’s incredible run this year is also due to the arrival of new money, said Benjamin Duval, CEO of 4C-Trading and UpBots, a Swiss trading interface for cryptocurrencies, DeFi, forex and commodities. premieres located in Zug, Switzerland. “There is a more stable market with more advanced projects … with long-term solutions offered by DeFi for example,” he says. The growth of this segment of crypto, or rather – its promise – prompts investors to keep their capital invested instead of selling it for hard currency.

“Three years ago, in November and December, Bitcoin jumped to $ 20,000 – and the reason was human greed. There was no widespread application of the technology that could justify this growth, ”said Gapporov Behkzod, CEO of Okschain, a next-generation decentralized financial service using crypto. “People were looking to go fast and got lost in panic a lot,” he says of those heady days in 2017.

“Bitcoin is only at the beginning of its history,” says Behkzod. “There is more growth and corrections to come. I won’t try to make a prediction, but I guess we’ll see a Bitcoin price of $ 1,000,000 – and that’s not a limit. Many of our colleagues who work on large volumes on a daily basis are already talking about it, ”he says. “These are the guys who have the vision.”

Regulation is also advancing. This has always been a sticking point for those who wanted to make cryptocurrency a real industry. They wanted more transparency and new things that were a sticking point before more money came in.

All the elements are coming together now, says Duval from Switzerland. “Even if a drop in prices occurs in the coming weeks, 2021 is expected to see a new peak for virtual currencies and it would not be surprising to see Bitcoin hit the $ 50,000 to $ 80,000 mark,” he says. .

In some ways, the pandemic has underscored the need for market-resistant investment opportunities in 2021. What started as a demand for interest rates above inflation has now grown into a deeper need for growth and growth. security.

“People want to diversify into alternative investments and cryptocurrencies offer everything from collateral-backed loans to store of value protection to forex-style trading,” says Chris Roper, communications manager. for the alternative finance startup, MyConstant. They equaled $ 16.6 million in cryptocurrency-backed loans – their core business – in the third quarter of this year. It was a record quarter for them.

Paypal will make Bitcoin a household name, Roper says. “You will get a new generation of investors in the crypto-ecosystem looking for growth in tough economic times. “

If Bitcoin seems overpriced, there are always the other two darlings of the crypto world – Ripple XRP and Ethereum, priced at $ 0.51 and around $ 571, respectively.

“Alternative coins generally follow the movement of Bitcoin’s price, but the difference is that it’s easier to have a speculative effect on them – so sometimes we’ll see a gap in the charts,” says Oleg Fakeev, a well-known investor. and founder of Kit Investments, a community of investors. “The superiority of Bitcoin’s capitalization over other coins is one of the few factors that protects it from constant manipulation by the big players,” he says.

The creator of Ethereum, Vitalik Buterin, of Russian origin, remade the smart contracts used by Ethereum, but explaining that it is well above my pay level. Crypto investors got excited about it. Even Tim Pool was talking about it this weekend on his YouTube show.

“Interest is definitely increasing,” Fakeev says of cryptocurrencies in general, not just Bitcoin. “Markets are trading audiences – those who have only invested in cryptocurrencies have gone public, and stock market investors, having made sure that Bitcoin has survived the ‘test of time’, are starting to invest in cryptocurrencies. “

Behkzod, however, believes crypto man of the year to be fellow Russian Buterin.

“If there weren’t for Ethereum smart contracts, I think there would be a collapse in supply and demand (crypto),” he says. “Ethereum will grow more in the future. It will grow,” he says. “I’m pursuing the same goals as Buterin at Okschain,” he says, hoping some of that resurgent crypto pixie dust can rub off. on him and what is apparently a rash of new investors rediscovering what was once almost left for dead.

The “crypto winter” appears to be over, ”says Roper. “It’s an exciting time with the entry of Square and Paypal. The industry is maturing.

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