Bitcoin is rising and rising in the last weeks
Dan hero, the growth manager of the US crypto stock exchange Kraken, made a positive statement about the Bitcoin (BTC) price in an interview. Further it explained the correlation of Bitcoin with the stock market and pointed the current largest risk out for the crypto currency.
In the interview, Held explained that he assumed that the US Federal Reserve would continue to “print” large amounts of US dollars even under the presidency of Joe Biden. This would push up the price of Bitcoin, which is known to be limited to 21 million. Held assumed that the king of the crypto-currencies would reach the mark of 100,000 US dollars per coin in 2021.
So he said:
At present only 0.1 per cent of the world (…) really believe [in Bitcoin]. What if it is 10% in the future? (…) That changes the course (…). I believe that in 2021 we will see how Bitcoin and Gold will eclipse everything else.
Why has Bitcoin crashed with the stock market?
At the beginning of the Corona crisis, stock prices fell dramatically. To the astonishment of many cryptanalysts, who had previously always claimed that Bitcoin was a “safe haven” and did not correlate with the stock market, the Bitcoin price also fell at that time.
Dan Held explained in an interview that the market still considers Bitcoin a risk asset. Bitcoin is not yet as recognized as gold and therefore rather like a share. Besides there was a liquidity crisis at the time of the course fall. In order to have fast money available, many investors would have sold assets, to which also Bitcoin belonged. That let the course sink fast.
The greatest risk for Bitcoin
When asked by the moderator, Held saw “paperization” as the greatest risk for Bitcoin. According to this, large companies could buy up considerable quantities of Bitcoin and simply keep it in their ecosystem. The Bitcoins would then only circulate there. This in turn would result in all these transactions no longer being listed on the block chain.
This was said:
Large companies could decide that they are not interested in Bitcoin Layer-1 or Bitcoin’s settlement processes and that they only want to settle among themselves. That’s where the whole thing gets pretty scary.
But Held also explains that he considers the Bitcoin system to be good and that, in his opinion, a very substantial reason is needed to give it up.