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Opinion: Bitcoin (BTC) Is Poised for Long Term Bull Run

Opinion: Bitcoin (BTC) Is Poised for Long Term Bull Run

DailycoinDailycoin2024/09/03 18:57
By:Dailycoin

Compared to Swiss pharmaceutical companies and many other classic growing listed companies, BTC price should increase. Bitcoin is 15 years old, and it resisted the collapse of 2022 that will probably actually strengthen it. 

Bitcoin: Origins

Even came out of the ashes of 2008 crisis, Satoshi Nakamoto (whose identity is unknown) revealed the bitcoin, the source code of what he estimated could be a decentralized digital cash, in a document he called, “white paper bitcoin” in which he explained the idea behind which he talked about Transactions between 2 parties (peer-to-peer) without the involvement of intermediaries (banks), “We have opened an online version of peer-to-peer money transfer,” he wrote, “through payments that will be sent directly from one party to another without going through a financial institution… We offer a solution for the double spending problem (caused by the banking intermediary) using a peer-to-peer network… this is a safe and risk-free way using the block chains. This is the very basis of the reason why this rare asset, commodity, security or currency as it can be defined in accordance to the scholar and legal point of view.

Bitcoin’s Real Value

In sum, as a decentralized payment system based on cryptography, which was certainly initially received with enthusiasm by investors and went wrong, during 2017-18, due to a sharp increase in the cost of registering transactions in the blockchain infrastructure. 

Sponsored

When it turned out that the transition to crypto currency encountered problems of pricing on the one hand and vigorous opposition from the banking system led by the central banks on the other, speculative narratives developed on Wall Street (such as “digital gold” and more) that gained global momentum among investors and sparked a “crypto demand panic”. Very quickly thousands of cryptocurrencies appeared that compete with Bitcoin: more than 23,000 types of cryptocurrencies of which approximately than 9,000 were traded on exchanges. Tesla purchased Bitcoin for 1.5 billion dollars and allowed the use of the currency for its vehicle purchases and also SpaceX, Musk’s space giant, invested huge sums in Bitcoin, but due to being a private company this became known only recently when She was reported to have sold the entire Bitcoin package.

Bitcoin Raising Doubts 

This illusion of crypto-assets, which are used as easy money and a solid store of value (which was adopted by the way by many analysts), faded as mentioned in November 2021 due to the inflation that started to rise, which led to fears of interest rate increases. Throughout the 2022 correction in the capital market, other factors came into play that contributed to the avalanche like the fraudulent crash of the FTX crypto exchange which was accompanied by thousands of investigations for crypto scams when suddenly over 50 investigations were opened by the authorities and as usual on Wall Street in such cases panic developed among the investors. 

The Real Threat 

The real threat to the increase of the price is the regulatory uncertainty: however what are the risks that it might go in the wrong direction? The US houses of representatives, European parliaments and all central banks are dealing with regulatory solutions for crypto in order to accept them as a regular system of payment under the imposed conditions of Anti-money laundering rules. The second thing is technological progress in the field of blockchain chains. This May (in 2024) another “bitcoin block crossing” will take place. This is an event that occurs when the reward for mining bitcoin Halving event that halves the rate of coin insertion.

Sustainability Issues

In 2009 when Bitcoin was first released to the network, Bitcoin miners were rewarded with 50 coins per block and in the next crossing, in May 2024, they will receive 3.25 coins. There are currently a total of 18.5 million coins and according to Nakamoto’s white paper, it will be possible to reach a maximum of 21 million coins. This issue, of a limited amount, is also important for the possibility of “competition” against the dollar and the currency’s valuation.

Another potential obstacle to the price increase is the mining the coins which consumes a lot of energy and emits large amounts of 2CO. Bitcoin alone is estimated to consume 127 terawatt-hours (TWh) per year – more than most countries. Cryptocurrency activity emits between 25 and 50 million tons of CO2 each year, similar to the annual diesel emissions of all US rail traffic. Hopefully, these problems will disappear over time and decrease with technological progress.

To Sum Up

In sum, one has to look at levels of rarity of the offer of BTC and especially the availability on the exchange platforms, competition among other digital coins, cost of mining (evolution of cost of production), international regulation, IT infrastructure with constant updates of softwares.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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