Saturday , May 28 2022

Bitcoin over $ 41,000: value doubles in one month amid fears of inflation and political turmoil


The rally at Bitcoin it does not slow down. On the contrary: on January 8 the value criptovaluta on the platform Coindesk pierced i 41mila USD, a new record, bringing the market capitalization to over 700 billion. In less than a month, prices have doubled, and in the last year the increase has been higher than 400%. Unlike the short “flame” of 2017, followed by a rapid collapse, this time the shooting was fueled by interest institutional investors and investment banks. City Group predicts that in the next 12 months the virtual currency based on a peer to peer system will reach quotas $ 300 million. Although the movements of recent days, led by many small savers attracted by the above perspective advantage, raises concerns that there will soon be a new decline, albeit temporary.

In recent days Chamath Palihapitiya, analyst of Social capital, in an intervention on CNBC he said the advantage for Bitcoin is still substantial: “It will probably increase to $ 100,000, then $ 150,000, then $ 200,000. Maybe in five / ten years, but it will get there. ” And the explanation also calls into question policy: “Every time such rallies remind us that ours leader are not reliable and trustworthy as in the past. So you really need some form of insurance, which we can hide under the mattress and which gives us access to a form of protection“.

And from this second point of view Christian Miccoli, the founder of Conio fintech after the launch of CheBanca! of Mediobanca, the “Trump factor” also weighed on the strong growth in recent hours: “There are underlying factors in the medium and long term that are pushing the crypto to grow. In short, it must be said that when there are images like the ones we have all seen, when a The American president incites the coup the population pushes them to assault the institutions and we see people who manage to enter the buildings of the institutions without significant opposition from the army, the police and so on, what happens? “.

Looking long-term instead, in addition to the fact that the maximum number of Bitcoins that can enter the circulation is inherently limited there is another factor that for analysts will push further growth. With ultra-expansive policies now adopted by most central banks, is the reasoning, traditional currencies are destined to lose value due to‘inflation and cryptocurrencies, from Bitcoin to Ethereum, could come to replace them. After all, it is no coincidence that the same ECB prepare a digital euro. It also weighs the weakness of the dollar, which pushes us to look for other “shelters”. However, the warning remains that there are expectations for the growth of digital currencies betting and the risk of any bubble outbursts in the hands of the small investor who is in a hurry to buy as prices rise.

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