Bitcoin: Why more and more major investors are jumping on the BTC train
In Turkey, inflation has been rampant at times, with the Turkish lira depreciating by up to 30 per cent against the US dollar, the key currency. Some of the people threatened by inflation seek refuge in Bitcoin.
Inflation is a phenomenon that has become an integral part of today’s macro-economy. The ECB issues an inflation target of about two percent per year. Especially in times of economic unrest, this is intended to provide an additional incentive to consumption and investment. But the side effects bei Bitcoin Compass can be serious. Especially when inflation targets are missed or even deliberately opened up in order to make debt-financed public financing possible.
It is a privilege that Europe still has a relatively moderate inflation rate. You do not necessarily have to look to Venezuela or Argentina to see what happens when the money printer is running in a permanent state. High inflation also exists in Turkey, which is a direct neighbour of the EU. The Turkish lira has been in free fall since the beginning of the year and has already lost around 27 per cent in value by 2020.
It is therefore not surprising that Bitcoin is very popular in the Mediterranean state.
In Turkey, the Philippines or Argentina they are flocking to the Bitcoin market. The Bitcoin value proposition is simply more obvious for people who have to live with a dysfunctional financial system,
summarizes Dan Morehead, founder of the crypto-fund Pantera Capital, the Bitcoin promise in episode 279 of What
BlackRock economist believes Bitcoin is a long-term trend
More and more institutional investors are jumping on the Bitcoin train. Recently the international head investor of BlackRock, Rick Rieder, also announced his interest in BTC. The CIO told CNBC:
„It’s hard to say whether it’s [#btc] worth the price it is trading at today. But do I think it is a durable mechanism that-do I think could replace gold to a large extent? Yeah I do, because it’s so much more functional,“ says BlackRock’s Rick Rieder. #bitcoin #cryptocurrency. pic.twitter.com/ipwr22xwZ1
– Squawk Box (@SquawkCNBC) November 20, 2020
Do I believe that this is a sustainable trend that could replace gold to a large extent? Yes, I do, because it is so much more functional.
Even short revelation silk like this is food for the Bitcoin bulls. After all, BlackRock is the world’s largest asset manager with seven trillion US dollars AUM. While a few years ago hardly a rooster crowed for Bitcoin, more and more well-known representatives from the traditional financial sector are now jumping on the crypto train. If BlackRock were to take BTC into its programme with the help of an investment product, the crypto market would immediately have the most well-funded audience of all.
What do the Halvings mean for the share price?
The role of Bitcoin Halvings, i.e. the periodic halving of the inflation rate, for the share price is controversial. Authors such as PlanB, creator of the stock-to-flow model, see the halving events as a dominant factor in the process of price recognition.
Bitcoin enthusiast and author Nic Carter takes a slightly different view. In an interview with Bloomberg TV, the Bitcoin author sees exogenous factors such as the extremely expansive monetary policy of central banks as the main price drivers.