Apparently Black Friday wasn’t at all “black” for Bitcoin as it broke the next major psychological hurdle of $9,000!
Bitcoin surged from $250 just two years ago to over $9,000 today; 1 Bitcoin now is worth a whopping 7 ounces of gold and the industry around it is booming, so the next major hurdle, and arguably the largest psychological barrier of all, is $10,000 which with this pace of development it is quite realistic to expect to be achieved at the end of December.
Analysts such as the mostly optimistically Tom Lee, founder of Fundstrat, recently indicated that his near term price projection is $14,000.
This expected development and rise in the price of Bitcoin and major cryptocurrencies such as Ethereum, is a result of all over growing signs of mainstream adoption, Wall Street Interest, the massive user adoption from hedge funds, futures markets and further increases in the number of users, especially among the millennials. Millennials appear more likely to be inclined to purchase Bitcoin in coming years given rising economic power among them and with that also rising the demand for Bitcoin.
As from some stats Millennials prefer Bitcoin to other traditional financial assets as well; they would choose Bitcoin over government bonds, would choose Bitcoin over real estate, would choose Bitcoin over gold! While only 4% of millennials own Bitcoin today, many say they would prefer to own Bitcoin over stocks, bonds, real estate, or gold so all this will be showed in price rise of Bitcoin in near future.
Gold Fund: Bitcoin Will Make Gold ‘Global Money’ Again
Interesting and ever surprising Bitcoin as explicitly designed to be “digital gold” with all its amazing features will help real gold to reinstate its centuries long property as a “global money”, paving the way for the return of gold as a global currency.
The Old Mutual Gold & Silver Fund with over $220 mln under control has decided it’s high time to diversify into the crypto space’s “digital gold (Bitcoin),” as the fund’s just announced they’ve been conducting a large buy-up of bitcoins for months. The amount of bitcoins the precious metals fund’s bought to date is over $11 million. Ned Naylor-Leyland, manager of the Old Mutual Gold and Silver Fund, said it started buying bitcoin in April.
Naylor-Leyland sees the move as nothing short of a natural fit as a gold fund is investing in “digital gold”, Bitcoin!
“Bitcoin is paving the way for the reintroduction of gold as global money […] Bitcoin was explicitly designed to be digital gold. So if you’re going to have a small proportion of a fund in bitcoin, it should be in a gold fund, because that’s exactly the point.”
He said that both bitcoin and gold complemented each other as assets, as the Bitcoin was designed to be “digital gold.”
In his interview with Bloomberg, Naylor-Leyland conceded that “Bitcoin and blockchain resolve gold’s problems of divisibility, ownership, and speed of transmission”.
Bitcoin as a Store Value
People are not buying Bitcoin because they intend to use it in their daily lives as medium of exchange, they mostly buy it for most important property of bitcoin which is; to be a censorship resistant STORE OF VALUE that can be held and transferred without reliance on any trusted third party.
Similarly as it happened during the centuries of history with gold, which ironically has been in 5,000-year long bubble but has proven to be a great, if volatile, STORE OF VALUE. Essentially nobody today uses gold as a medium of exchange. As to whether bitcoin is a better store of value than gold perhaps bitcoin should be considered as digital gold rather than a currency outright.
Not everyone in the wider gold industry is as happy with the status quo and having a competitor such as Bitcoin as “Digital Gold”.
Discussing a drop in profits, BullionVault Research Director Adrian Ash said earlier this month that Bitcoin “noise” was “distracting” some investors and leading to gold being sidelined and redirecting huge amount of cash in buying Bitcoin and other Cryptocurencies with today’s market cap of more than $270 Billion.
EVER GROWING INTEREST IN BITCOIN AND CRYPTO
These moves in Bitcoin community comes after the everyday growing number of hedge funds investing in cryptocurrencies and are at an alltime high with the numbers of hedge funds steadily rising as the value of cryptocurrencies is skyrocketing this year.
TOBAM, a France-based asset management company, has introduced a Bitcoin Mutual Fund to offer an alternative investment for institutional investors seeking exposure to Bitcoin. TOBAM’s bitcoin fund precedes the huge move from Chicago Mercantile Exchange’s plans to list Bitcoin futures.
This symbiosis of Both Stores of Value; Gold and Bitcoin are exciting, enthusiastic and optimistic developments in the cryptocurrency community.