Whether traders and investors actually have any exposure to the Bitcoin price or not, it would appear that the price of this digital asset has captured the imagination. The Bitcoin price has become a byword for volatility, conspiracy and even scam. Part of the explanation is down to the history of this market, and part to the financial function this asset is supposed to be offering.
With the Bitcoin price, the young pretender to Gold, and fiat currency, you run the risk of offending plenty of established interests. It is also the case that with any new technology there tends to be a battle between the early adopters and the mainstream.
Bitcoin price breakthrough - Paypal
One of the aspects that has hindered the mass adoption of Bitcoin has been that lack of a common platform to use it on. It needed a Paypal type platform, one which is near universal, and in October it got precisely that. The US payments giant allows both spending in Bitcoin and leading cryptocurrencies, as well as conversion to paper currencies. This acceptance by a Silicon Valley giant is what the Bitcoin price has undoubtedly been waiting for, and the sharp 25% rise from $1,200 to $1,600 in the past few weeks underlines the importance of this move into everyday life for the digital currency concept.
Bitcoin price approaches all time highs
The story of the Bitcoin price in terms of the meteoric rise from 10 cents a decade ago, to over $20,000 in 2017 is the stuff of legend. Equally so perhaps has been the decline from those peaks three years ago.
The floor in December 2018, almost exactly a year after the record high, was $3,122. Clearly, if the US dollar or the British pound lost 80% plus of their value in a year, their status as leading currencies would be in doubt. The question now is whether in the wake of Paypal giving Bitcoin a solid international tech platform, the volatility will subside and the credibility will surge.
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The threat to cryptocurrency
For traders it is Bitcoin Gold, and the Bitcoin gold price, which is perhaps of most interest. However, for the financial establishment such as politicians, banks and central banks, if Bitcoin wins, they lose. A currency that sees no borders and no regulatory rules cannot be controlled and perhaps worst of all, cannot be taxed with ease.
Ironically, it may be a case of “if you can’t beat them, join them.” If, as it would appear, the ECB or the Federal Reserve make moves to deliver a digital euro or dollar, then this could be a threat to the existing cryptocurrencies.
This ties in with billionaire investor Ray Dallio’s latest comments that Governments would ban BTC if it became too successful. The Paypal initiative, which could bring Bitcoin that success, could turn out to be a mixed blessing. This is especially if we see digital versions of fiat currencies any time soon.
Bitcoin price GBP daily chart
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