Although a significant feature of the bitcoin market is volatile, many Bitcoin proponents claim that bitcoin technology is a suitable substitute for safe-haven assets such as gold, even legal tender.
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Despite this, a person who criticized Bitcoin claimed that the success of Bitcoin in the past 10 years was only the result of ingenious marketing. He believes that Bitcoin may not be able to maintain its price for a long time as early buyers begin to cash out.
Peter Schiff: The success of Bitcoin is the result of a marketing strategy
Peter Schiff is an outspoken critics of cryptocurrencies such as Bitcoin and a strong advocate of gold. He is also a senior Wall Street predictor and CEO of Euro Pacific Capital. A veritable golden shack. He has long claimed that Bitcoin is just a trick that is fabricated out of thin air, just to give the world a worse gold form.
Schiff has repeatedly criticized this criticism on a recent tweet. He put forward a somewhat unique view that bitcoin's fame may be the result of a smart marketing strategy that will eventually require early investors. Sell the Bitcoin it holds to new investors.
“Bitcoin is a major marketing success for big buyers who enter the market early. But to be truly successful, they must sell their money without lowering the price. To do this. It is necessary to create enough "social control or fear of missing" (FOMO) to attract institutional investors to join, while not allowing hodler to jump off the boat.
Although the price of Bitcoin is based on the balance between buyers and sellers, it should be noted that the price of all assets is the same, and the intrinsic value of cryptocurrency comes from its decentralization and as an unrelated asset and currency. Dual function.
Will the intrinsic value of BTC rise with the instability of the global economy?
Importantly, the above benefits of Bitcoin are largely based on the global paradigm shift that has taken place in the direction of decentralization in recent years, as well as the global economy due to the huge debts held by the government and the high inflation rate of legal tender. Unstable.
Pomp, a partner at Morgan Creek Digital, recently spoke about this on Twitter, noting that the ECB's rate cut is evidence of a gradual economic downturn.
"Rocket fuel: As we move towards bitcoin, they will cut interest rates and print money. Fasten seat belts. It will be crazy," he explained.
As the story surrounding Bitcoin is “Gold 2.0”, investors are likely to soon discover whether Bitcoin is widely accepted as a digital alternative to widely used safe haven assets.