Is Bitcoin going to plummet down owing to the departure of US president? We have developed the article to answer the question. Even though the name of Bitcoin has been crushed down in front of other issues, the recent increase in price raises question in mind what if it is going to be a strong alternative.
A high degree of excitement is existing surrounding forthcoming US election in US. There is a question in everyone’s mind regarding the election result. What would be Bitcoin market situation after the election result? Some people think election result won’t affect the Bitcoin market where Bitcoin hovers around its 12-month high of $14,000. Bitcoin has gained its price over the last few years.
Some top row researchers have been seen in favor of Bitcoin’s bullish trend. An acknowledgement from some reliable places has given the most important shift in recent week giving weight to Bitcoin’s credibility as a viable digital asset. Jamie Dimon, CEO of JPMorgan Chase, called bitcoin a fraud when Bitcoin was at bull trend in 2017. But the interesting fact is that JPMorgan changed his mind the same month seeing the uptrend of Bitcoin expressing his will to up its own dedicated business unit.
The recent announcement of incorporating crytocurrencies for buying, selling and holding by PayPal is really lighting the lamp of crypto industry. Square, which is an American financial services, merchant service aggregator, and mobile payment company, also invested $50 million in Bitcoin.
What will be a change in Bitcoin space for Biden or Trump’s arrival?
Actually it little depends on the shift in attitude that how both of them think of Bitcoin. It also relies on how Bitcoin behaves in the economy whereas volatility is also a great factor indeed. There is also uncertainty if there will be any riot providing any of the party takes office.
Expectation for Government Stimulus
Trump has announced to bring a big stimulus package after the election but no such commitment has yet come from Biden. Some speculators think there won’t be any big change irrespective of any of the presidents comes. But people are highly worried about the issue that even if Trump loses, he will remain in the president’s chair until mid-January 2021. Now the doubt is what if he changes his commitment that leads to a pathetic scenario damaging the Bitcoin’s market.
Appearance of Bitcoin
Established investment community has started embracing crypto as a strong alternative solution and the world has become highly accustomed with the central banking system which prints an endless stream of money, but on the other hand Bitcoin is benefial to investors for portfolio.
Thinking investing in Bitcoin to be similar to investing in the early days of Apple Inc and Google, Paul Tudor, Billionaire investor and hedge fund manager, has been addressing the advantages of bitcoin to clients.
Investing is amplifying
If we consider the overall situation without taking the pandemic issue into account, investing has taken a growth like you can see Millennials and Generation Z-ers can now buy fractional shares at the click of a button from their mobile devices. For investing in crypto, their digital savviness serves them well.
When people need to settle international trade, they immediately think of US dollar as it is known as a reliable store of value and global reserve currency of choice. But a drop in demand for dollar is being seen in 2020. To keep the unstable economy stable, the stimulus can play a vital role.
While the commodities like oil, has been hammered by crisis during pandemic, bitcoin can be felt as a viable long-term hedge against inflation. Verbalizing the inherent features of Bitcoin, it is being given the place as an alternative store of value. Whereas bitcoin has a fixed and determined supply, gold can be subject to supply shocks. If you make a valuation of bitcoin and gold according to the market cap and global valuable, you will see bitcoin with its more than $200 market cap is 45 times ahead of Gold with nearly $9 trillion. Analysts around the world are expecting bitcoin’s market cap to go as high as $500,000 US dollar per coin. Maybe a more delighted scenario is waiting once the cryptocurrency ETF is mainstream.