Crypto Prices

There are several reasons why crypto prices have been growing more bullish recently, one being that it seems governments around the world are to embark on further rounds of extreme quantitative easing .

Despite rising interest rates, it appears that (as one may have expected) the temptation to give in to the Cantillon Effect is too strong, and the politicisation of money always demands more when society is in a crisis.

Crypto prices may already have bottomed

It is quite possible that crypto markets have already bottomed, and that the bearish macro outlook out not be a concern for the industry more widely.

Bitcoin in particular may prove to be an asset that is treated as a risk-off asset, meaning that even with a wider downturn in markets, the Bitcoin price could remain positive and appreciate over the coming months and years.

In previous cycles, the time from peak to trough has lasted approximately one year, meaning that the market has already bottomed out or will have bottom out soon – assuming that the cycles don’t deviate from the norm, one could expect that market will have bottom by the end of 2022, unless there are further black swan events.

Bitcoin is a safe haven asset

When one compares Bitcoin with other popular assets, it is a clear winner in terms of predictability over the long term.

There may be some upgrades to Bitcoin in the future, such as the former introductions of Segwit and Taproot, but these upgrades are not likely to be controversial.

Compared with assets such as real estate or stocks, Bitcoin is incredibly simple and suffers from a very low degree of volatility on a protocol level, with investors able to have a high degree of confidence in proof of work.

The price is volatile, but that is only to be expected for a new asset that has yet to reach market saturation.

More regulatory clarity is coming

As more time passes, there is more regulatory clarity in the industry; although it may seem to some that crypto is a relatively unregulated space, there are in fact very strict and very clear rules regarding what is legal and what isn’t.

However, the trend still appears to be a movement towards even stricter regulation, which will stifle innovation somewhat, but will also allow for coins and tokens to achieve further price discovery.

More countries adopting a Bitcoin Standard

So far, there are two countries that have adopted a Bitcoin standard; El Salvador and the Central African Republic both declared Bitcoin as legal tender, alongside the Swiss canton of Lugano.

This is a trend that is very clear, and it appears that there will be further countries adopting Bitcoin in the future.

Honduras and Guatemala are both rumoured to be exploring the possibility, but it is something that larger countries will eventually have to look at as well, given the fact that Bitcoin is a more attractive proposition to many than Central Bank Digital Currrencies.

Over the coming years, there will be a lot of geopolitical change: Xi Jinping has his mission to control the world by 2030, and the WEF have their own agenda for what they hope to have achieved by 2030.

The changing state of the global superpowers will inevitably mean that crypto prices rise further, given that their growth is often exponential rather than linear in nature. One may expect that Bitcoin could be worth more than gold, or perhaps replace a lot of the bond market. If so, crypto prices over the next few years have plenty of room to go parabolic.

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