Bitcoin (BTC) price ticks $28,378, market worth over $500 billion
The bitcoin price today ticks the price of $28,378, a new record for the crypto currency. The total market value is also making history with ~$527 billion.
Are we going to see the $30,000 on the boards next week?
Bitcoin (BTC) rate
During Christmas, bitcoin knows how to surprise (or not) everyone again, with this unprecedented racing sprint. Less than a week ago the price stood at $21,865, but in the meantime another $30,000 is in sight. A week’s score of almost 18%, return that some fund managers liked.
The dominance of bitcoin on the crypto market is now over 70%, which has not occurred in 14 months.
Now private investors also seem not to want to miss out (fear of missing out) and are entering the market again. But 2020 is above all the year of the large companies that see bitcoin as a long-term investment.
To put it simply: governments and central banks are printing new Immediate Bitcoin money at the expense of government bonds that no longer yield anything. Private individuals and companies have had to look for alternatives. The retail market jumped on the stock market, as a result of which shares such as Tesla and Zoom grew even faster than bitcoin in 2020.
Bitcoin as an insurance policy
Institutions such as hedge funds and insurers also counted their knots this year: initially, gold rose faster than bitcoin, but gradually some funds exchanged part of their gold (ETFs) for bitcoin. This can be seen as the real transition: bitcoin competing with gold as a safe haven.
They started in 2020 with a modest position (1 to 5% of a specific fund, for example). But given the current price action, that tastes like more.
According to the latest figures, 1.15 million bitcoin is now parked with listed companies. That is about 5.5% of the final 21 million. A clear difference with gold and shares and fiat money that can be made indefinitely and has no ceiling.
The fact that companies literally determine the price of bitcoin is a real shift in the financial world. As more and more companies, millionaires, developers and node-owners have an interest in a good future for bitcoin, its say, including political, is growing.
Bitcoin can thus emerge as the insurance policy of the future, for both companies and citizens. It is a hedge against a degenerate fiat system that kicks the can even further down the alley and thus puts the problems off.
Bitcoin has a clear and well-defined monetary system, with a maximum issue of 21 million.
For the time being, the price action will determine the news headlines in the coming months, but fundamentally, the community is working hard on the next stages of this payment – and savings technology and weapon against further surveillance from above.
After all, a large number of the bitcoiners of the first hour attach great importance to privacy and also see bitcoin as a means of payment. This is already the case in some countries, albeit in small communities. Think of a village in El Salvador where villagers pay each other via the Lightning Network.
In 2021, the integration of Taproot is planned at protocol level, which will give the crypto coin an extra layer of privacy.
This will be welcomed by the cypherpunks, one of the original sources from which Satoshi Nakamoto has drawn, both technologically and philosophically.