Bitcoin: long term - up, short term - down.

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The prospects for bitcoin and other cryptocurrencies are indeed amazing. It should be remembered that the very first cryptocurrency in the world is still very young - it is only 13 years in the market. Many companies or assets took much longer to form. Therefore, if we take a long-term perspective, we would prefer a further rise in the price of BTC. Unfortunately, as we found out in the previous article, every year, it is more likely that central banks and governments will find a way to control cryptocurrency flows and identify the owners of the bitcoin. This will immediately depopulate all cryptocurrencies, since their main attraction is precisely in their lack of state control. In the short term, however, it is high time for bitcoin to go down. If you look at the entire trend over the past 13 years, you can distinguish the last two waves of growth. After the first one, from $ 20,000 per coin, bitcoin fell by 90% and consolidated for more than 2 years. It is hard to believe that such a young asset after 13 years of its existence will reach its maximum value, which will remain for many years. Most likely, bitcoin continues to be in the process of becoming. And if it is not crushed by governments and central banks, then there will be several more waves. It should be understood that most of the world is still skeptical about bitcoin. When the attitude to it is the same in the world as to stocks or ordinary currencies, then we can talk about price stabilization in the long term and reduce volatility. But before a new wave of bitcoin growth begins, it needs to seriously roll back down. Maybe this time the rollback will not be 90%, but 50% of the value of digital gold is quite capable of losing.

In the long term, Anthony Scaramucci, head of the SkyBridge Capital hedge fund, also supports the growth of Bitcoin. The functionary believes that bitcoin may well repeat the path of the shares of the retailer Amazon. In his opinion, the volatility of bitcoin will fall as it is accepted by the masses. The head of the fund notes that over the past 12 years, Amazon shares have grown 64 times and are now trading much more stable than 10 or 20 years ago. Thus, there are still extremely attractive prospects for bitcoin, but it should be understood that Amazon shares are shares of a real company that is engaged in activities, has various types of assets that also cost a lot of money, and also brings profit to its shareholders and owners. Bitcoin does not bring any profit if you do not take its investment properties. In fact, it does not cost anything, it can lose up to 90% of its value at any time and is determined only by people's faith in it. And it has risen in price by 58,000% over the past eight years.

The material has been provided by InstaForex Company - www.instaforex.com

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