Bitcoin Does Have Value
Mike Novogratz is a former Goldman Sachs partner and now represents Wall Street's transformation to Crypto. He is now CEO of Galaxy Digital CEO Michael Novogratz said witht the U.S. Federal Reserve continuing to cut rates, along with other central banks around the world, things could get really bullish for Bitcoin. Mike thinks that predicts that Bitcoin could mirror gold in 2008 with a delayed reaction to the looming economic crash.
But Mark Cuban billionaire thinks that crypto and gold are both valued in similar ways and both rely upon a market of potential buyers to grow in value.
Even the soon to be new new Governor of the Bank of England, Andrew Baily chimed on about his feelings on Bitcoin. Andrew stance is, if you want to buy Bitcoin, be prepared to lose all your money because it has no intrinsic value.
Bitcoin offers an efficient means of transferring money over the internet and is controlled by a decentralized network with a transparent set of rules, thus presenting an alternative to central bank-controlled fiat money.
Currency is usable if it is a store of value, or, put differently, if it can reliably be counted on to maintain its relative value over time and without depreciating.
Aside from the question of whether it is a store of value, a successful currency must also meet qualifications related to scarcity, divisibility, utility, transportability, durability, and counterfeitability.
Bitcoin is more a store of value, than any fiat currency and now I see why it’s considered digital gold. But then why has it declined, while gold has increased the last several weeks as the equity markets play with bear market territory.
Mike Novogratz think Bitcoin goes from being a hedge against bad stuff to getting washed out and trading like a risk asset. When things go from bad, to very very bad like they did last week, investors take leverage down as fast as they can. They book profits to make up for other losses.
Yesterday, the US equity markets moved closer to a bear market as on Monday as Saudi Arabia announced a oil price war with Russia. A bear market is defined as a 20% decline in price from the peak. Goldman Sachs think stocks to stage a powerful recovery from their worst sell-off since the 2008 financial crisis, but only after suffering more declines first.
So what does this mean for Bitcoin, well the chart suggests, if the daily demand doesn't hold, price could go down to the daily demand at $6000.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted via Steemleo
