3 Main Reasons Why Bitcoin Could Reach the Highly Speculated $15k Benchmark
As time passes, more and more people are getting into the crypto train. Whether it’s your neighbor, or your local government organization, banking institution, accredited investor group or even a family member, Bitcoin seems to make more sense in social circles that used to treat it like another Ponzi scheme just a couple of years ago.
A recent study published by Grayscale Investments last month indicates that 83% of American investors, including amateurs, and hobbyists, would consider investing in Bitcoin and other cryptocurrencies or digital assets.
As a matter of fact, most of them were family men around their 45th year and not Millenials as expected so far.
A notable increase in women interested in crypto is also presented in the mentioned document, and most of them find it a good idea to start with Bitcoin (BTC).
So why the sudden change of heart?
There are many different factors that created this new wave of potential investors in cryptocurrencies, with some notable reasons being the following:
- Governments started to trust blockchain technology and cryptocurrencies
If we somehow managed to go 5 years back in time, we would only see governments attacking cryptocurrencies in general, while being skeptical about blockchain, the underlying technology behind Bitcoin.
Today, blockchain is an unavoidable part of our everyday life, and whether it’s offering an alternative monetary system to the table or just the ability to track physical goods and products, it is here, it is going to stay, and it probably has like 10 pokemon-like evolutions to follow up considering the vast developments undertaking the distributed ledger technology (DLT) industry on a global scale.
Governments and industrial titans such as the Netherlands, Taiwan, USA, China, S. Korea, Japan, Russia, BMW, Volkswagen, BOSCH, IBM, Walmart, Alibaba and more are already using blockchain for identification, tracking, and intel exchange purposes.
While the idea of a blockchain handling a functioning monetary system is still being under negotiations on a governmental level, it is pretty much unavoidable and self-explanatory on how and when governments actually decided to ride on.
- People don’t have to understand it as long as it works
European Parliament member Eva Kaili, described cryptocurrency adaption similar to the credit card adaption, during her speech at a conference room of Piraeus Bank of Greece.
She said that when you are paying for your coffee using your physical card, you don’t have to know how the SWIFT system works, what encryption does Mastercard or VISA respectively uses, where are their servers etc. You just swipe the card and voila! Here’s your coffee.
The leader of the EU’s science and technology board suggests that the same will happen with cryptos and blockchain.
Essentially people will be paying for their coffee using their phones, and they don’t really have to know what is blockchain, how it works, what encryption it uses, what is mining etc. They will be swiping and voila! More coffees.
- US-China trade wars
Recent speculations followed by most mainstream media suggest that Bitcoin’s current pump is basically generated due to the tensions developing between the two industrial behemoths.
Bitcoin indeed kited from $9,500 USD per BTC up to $12,000 / BTC in a matter of days, showcasing an easy +20% for the digital currency’s holders.
It is true that both the US dollar and Chinese Yuan have been devaluated over the last year, spiking on an all-time low since 2008 for the later.
Same for traditional stock markets, where we see Nasdaq and Hong Kong’s Stock Exchange respectively losing capital, especially from tech listings.
It is highly possible that more investors are seeing Bitcoin, and cryptocurrencies in general, as an economic haven in uncertain times such as what we experience now with the more psychological, rather than devastating trade war between the US and People’s Republic of China.