Bitcoin could crack the 100,000 level
Despite the price slump, investors should remain calm. The Bitcoin price will recover - it has always done so far.
Cryptocurrencies Are Currently Running An Unprecedented Run
Bitcoin was able to reach a price of almost $ 54,000 just under a week ago. The price of Ethereum has also increased over the long term. The latest price drops do nothing to change that. Nobody knows when the end of the flagpole will be reached. On the other hand, it is very likely that Bitcoin will soon crack the 100,000 mark.
There are several reasons that this scenario could actually occur. Reason number one: More and more companies are accepting Bitcoin as a means of payment. This increases its acceptance. In the US, PayPal customers can pay with merchants using cryptocurrencies, including Ethereum, Bitcoin and Litecoin. According to the company, this should work in a similar way to credit cards. After the announcement of PayPal, the share prices rose.
Tesla, PayPal and Apple Have Already Accepted Cryptocurrencies
Tesla also accepts the cryptocurrency as a means of payment. You can now buy a Tesla with Bitcoin, tweeted Elon Musk one month ago. Bitcoin paid to Tesla would be retained as cryptocurrency and not exchanged for fiat currencies. Musk's company is not alone in this. Apple users can also pay with Bitcoin and other cryptocurrencies via Apple Pay, as the provider BitPay announced.
Second reason: Bitcoin could beat gold as a store of value. Gold is such a medium because as a precious investment it does not expire - in contrast to a car, for example, which immediately loses value as soon as you drive it from the parking lot at the dealer. Bitcoin does not expire either, at least not in the digital world, as it is stored decentrally on a blockchain.
Bitcoin Could Displace Gold As A Store Of Value
Like gold, Bitcoin is limited by a quantity shortage, 21 million units. This means that both can serve as a safe haven in times of crisis. Now to the differences: Cryptocurrencies can be transferred and stored more easily and cheaply than gold.
The contents of this article are for informational purposes only and are not investment advice.