Why Isn’t the Price Rising?


One question goes viral on social media reflecting the bite skeptics and the conflicts shared by believers.

“Can anyone tell me why companies get billions of dollars Bitcoin every week and almost unchanging the price over the last 6 months?” One user placed in X on June 27. “Explain me like 5”

The article was created by two million sands quickly because it was shot in the heart of Bitcoin’s strange new reality. The world’s most famous cryptocurrency has hit a height of $ 111,814 on May 22, according to the information firm Coingecko.com. But since then, it has been stagnant. Retreated and now trades for about $ 106,000. Despite the large amount of money flowing from companies such as Microstrategy, Hedges and even foreign governments, the price was difficult.

With such need, you will return prices to heaven.

But they don’t have. Why?

Bitcoin is a digital gold, but not all gold is fast moving

To understand what happened, you need to understand what Bitcoin is: Digital Gold. People are primarily buying to catch it for a long time to spend it. When large investors receive Bitcoin, they generally transfer it from stock exchanges and locked in a safe “cold storage” wallets.

This creates a strange situation. A large amount of Bitcoin is taken, but it is actively sold. It reduces the existing supply, new, speculative buyers do not automatically push the price until you enter the market. Currently, this did not come in a hurry. It seems like a seller of equally motivated for each motivated receiver.

“The legendary financier, who sells someone else,” says the legendary financier Jim Chanos, the legendary finisher Jim Chanos, who is famous for the bet against Enron.

The explanation is simple supply and requirement. “Sellers, as” buyers are motivated to buy at current prices as buyers, “Buyers are one of the oldest critics of SCIFF, EUROPAC.com, the most strikers of the global strategist and Bitcoin maximum.

Blame her in Stablecoins: boring coins that make great things

Although Bitcoin stuck in place, Stablecoins became the real stars of crypto. A stablecoin is a crypted type of cryptanan that is designed to catch a fixed value, generally with US dollars. They are not meant to be a speculative investment. Instead, they are designed for use.

Think of them as a Venmo or PayPal of Crypto, but 24/7 use anywhere in the world. Their use is an explosion, each year with the volumes of transactions overturns the trillions between the large stablecoins such as USDC and USDT. The last passage, both street streets and Wall Street Banks, but also Wall Street Banks, stablecoins for traditional transfers to the traditional transfers, moving money faster than traditionally moving money.

It gives Crypto real world useful and Bitcoin is not really part of this story.

So why do companies still get bitcoin?

Simple. This is a hedge. Devaluation of long-term bets and traditional currencies against inflation. Bitcoin for large corporations and even some governments is like getting insurance policy. When a global economic crisis is a treasure you can spot part of your treasure. This vault is not useful to get grocery, but it can be a rescuer below the road.

Therefore, the price does not fly despite the price of apples. The demand is not speculative. The market is no longer a Bitcoin treatment like a high growth technological stock. Treated as insurance policy.

What does this mean for the future of this cryptoid?

Crypto is now divided into two different worlds:

  • On one side, you have Bitcoin: a digital gold, a deposit asset, a long-term hedge against disaster. This is a value store.
  • On the other hand, there are stablecoins: digital dollars are used to send and solve every day. They are the engine of benefit.

One is the bunker. The other currency used in the world outside. Currently, all actions occur beyond.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *