Bitcoin Is Still Bull. The Reasons Will Surprise You
Bitcoin has stabilized from its recent lows.
On June 9, BTC climbed almost 10% after crashing to a new three-week bottom the day prior. Much of this recent price swing can be attested to El Salvador becoming the first country to accept BTC as a legal tender.
Interactive Brokers, an online brokerage with $170.1 billion in customer equity and recognized for their sophisticated clientele, also announced their plans to roll out crypto trading on their leading platform by summer’s end.
Some investors may be still reluctant to embrace Bitcoin for its store-of-value properties and as a hedge against inflation due to fierce competition with Ethereum, which has recently grown less correlated to Bitcoin, and some political headwinds.
Despite these deterrents for holders looking to average down and adopters on the fence, some recent developments have elevated BTCs appeal significantly. In retrospect, decades from now, “the now” may be considered one of the better entry points in BTCs short history.
ProBit Global’s currently running BTC Exclusive at under $20,000 makes adding BTC to your portfolios a “no-brainer” if you missed Round 1. This June, ProBit Globals BTC Exclusive will run the entire month with an increased allocation of $100,000 BTC at 50% off.
Is it too late to take advantage of this opportunity? Not yet!
The funding will be allocated across four rounds, leaving plenty of opportunities to add to your holdings this June. Don’t be caught on the sidelines when the next bull run begins.
Bitcoin Is Making Big Moves
Recent moves from central governments and key regulators solidified bitcoin as a legitimate asset class. It graduated to this level in mid-May when Goldman Sachs made the announcement.
This is for a few key reasons.
Bitcoin holds idiosyncratic risk, a technical way of saying it has unique trading risks, uncertainties, and BTC-specific problems. Systematic risk is another popular term thrown around in financial circles and describes broader developments that may impact an entire market or sector. Much of this idiosyncratic risk is due to its nascence and being a maturing asset.
The solidification of Bitcoin as a legitimate asset class occurred after El Salvador became the first country to adopt Bitcoin as a legal tender, a significant development for mainstream adoption. Just 11 short years ago, 10,000 BTC was used to pay for two large pizzas, and now residents are paying their taxes with crypto. The seminal nature of this evolution should not be understated.
Businesses in El Salvador must now accept BTC as payment while the government collects it for taxes. Foreign companies and regulators can now treat BTC as a foreign currency, altering the way it is taxed.
The Basel Committee on Banking Supervision, a firm that determines international banking standards, recently enabled banking institutions to hold digital assets. Banking and financial firms globally can now hold BTC and ETH directly on balance sheets provided they hold a requisite amount of capital to back the equivalent amount of cryptocurrencies held.
Small countries plagued with economic uncertainty or a rough political climate that rely on remittances from friends and family abroad do not have to rely on the dollar any longer. They can make the switch to a decentralized universal currency with no agitating intermediaries.
Numerous other countries have made their interest in Bitcoin known, including Colombia, Tonga, and Paraguay.
Bitcoin is Becoming More Sustainable
The Bitcoin Proof-of-work model has long been a point of debate. The network energy consumption can lack palatability for potential investors and new adopters. Much of the media clamor regarding Bitcoin’s energy consumption is disingenuous, offering a one-sided take on the issue.
There is a distinct difference between energy consumption and carbon emissions, and Bitcoin does much of the former but not much of the latter.
Bitcoin operations are powered disproportionately by renewable energy sources, with current research pointing to around 74% of all energy used to be renewable. For a deeper dive into Bitcoin’s greener future, check this out.
Mining firms such as HIVE Blockchain Technologies Ltd., which produce Bitcoin and Ethereum continuously on the cloud, are dedicated to mitigating the environmental impact of mining operations. Based in Canada, Sweden, and Iceland, HIVE strategically chose data center locations near relatively low-cost green energy producers.
HIVE is not alone in this transition, with firms popping up with different ideas and propositions to enhance mining sustainability. Green bitcoin is one of the more intriguing developments, suggesting users will pay a premium of up to 10% for BTC mined sustainably.
Consumers will pay more for free-range or organic foods to support the environment, so it’s not out of the question to assume this mentality will bleed over into cryptocurrency mining.
There are many different forces at play with BTC’s value today. Some of the most prominent players and governments are taking a closer look as the enlarged media microscope is likely to generate sentiment-driven drama and volatility.
Still, there are legitimate long-term growth prospects if BTC continues on its current trajectory. 50% off at ProBit Global coupled with BTC trading at roughly half its ATH make this an opportune time to add exposure.
