Bitcoin rushes at full speed to new heights for the second week in a row. Against this background is guesswork about what institutional investors can resort to this cryptocurrency in future, as the asset of "free harbor."
Over the last month, reviews about cryptocurrencies were more positive than condemnatory. People like Ronnie Moas and Max Keiser share their forecasts that Bitcoin is going to reach new heights in 2018. In conversation with RT eToro analyst Michael Mashchenko says that financial institutions can also access the BTC in the case of the economic crisis on global markets.
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"The demand for Bitcoin is growing as the crypto market has become less volatile, and an increasing number of professional investors see it as insurance."
Second bull market
As Fortune says, the current trend of rising prices for the securities market is the second-longest in history ― 104 months. The longest bull market ended in 2000 after an impressive run in 133 months.
Many people believe the current rally is a little long. People from Wall Street make plans for unforeseen circumstances ― i.e., in case of the inevitable reversal in the securities market. If Mashchenko is right, Bitcoin will play a significant role in these plans.
The change of opinions
Mashchenko’s comments appeared after the moods change in the mainstream of financial sector. Recently JP Morgan Chase announced plans to offer bitcoin futures to the Chicago Mercantile Exchange (CME). It is an essential step for one of the largest providers of banking and financial services in America. What is more typical, it happened just a few months after the condemnation of Bitcoin by the JP Morgan CEO, Jamie Diamond.
Online providers of banking services and exchange operators LedgerX and Revolut also introduce support for Bitcoin. Revolut recently conducted a clearing to offer bitcoin derivative tools, as people intend to do more than just cryptocurrency trading.
"LedgerX launched its first long-term options for Bitcoin, with an expiration date of December 28, 2018. In the coming months, we will continue to see the ‘domestication’ of Bitcoin: the Chicago Board Options Exchange and the Chicago Mercantile Exchange are planning to launch tools based on the cryptocurrency shortly."
Big money
When the flow of institutional investors will begin to invest significant capital sums into the cryptocurrency, some stunning predictions made by bitcoin optimists can become a reality. However, the forecast for Mashchenko was very modest. It suggests the approach of BTC to $10.000 by the end of 2017 will be based slightly on emotions than on some real reasons:
"We could see a Bitcoin at $10,000 in a month or so. However, such a surge will be based on emotions, not on fundamental factors. So, further growth of the cryptocurrency will require something more than euphoria."
The dynamic changes during 2017 allowed bitcoin to step onto the world stageReaching values of $8,000 per BTC, Bitcoin went up to $1.000 in just a few days. It allowed him to pass for $9.000 last weekend. At the time of writing, the price of Bitcoin was $9.697, which is only $300 less than Mashchenko expected.
Positive Bitcoin trend in 2018
The dynamic changes during 2017 allowed bitcoin to step onto the world stage. There is a force in the form of the cryptocurrency code. The Bitcoin phenomenon and its network are brilliant inventions allowing:
- to create complete protection from hacking and falsification of data;
- to structure the development process;
- to eliminate the competition.
1. Protection is created incredibly – every miner is a part of the system. His computer is a protection. It turns out that the increasing number of miners automatically make the network more secure, eliminating the last doubts about possibilities of hacking, and so on.
2. BTCs are not infinite. There is a limit of coins, which cannot be surpassed. The demand increases by the coins deficit. Also, the code contains a precise regulation of the remuneration. This code has a degree of proportionality to the coins appreciation.
3. Polls have shown that most people do not care about such issues as the possibility of free financing of terrorism (due to the impossibility to control the currency circulation by the government). The lack of a third party, significant savings, high growth, excellent prospects and a variety of other advantages make people switch to bitcoin.
The instability of the traditional markets forces investors to look in the direction of the bitcoin. The common currency is no longer the old trust, and each triumphant cryptocurrency step enhances the effect.
It turns out that the steady growth of bitcoin prices increase the number of miners, which enhances protection. There is a creation of great chain in which each development stage is directed exclusively to strengthening the network and creating the best conditions for users.
