Since late 2017, digital currency prices have fallen, but the interest in digital currency has remained steady, pointing to an upward trend in price. 2019 is the year for the next Bitcoin bull cycle. The past few months, the price of Bitcoin has been increasing, and more people are becoming interested in it.
CEO of US Global investors, Frank Holmes, told Kitco News:
What’s important during this whole year is that even though the price fell 80% to 90% depending on the coins, you had an increase of wallets out of people buying Bitcoin, and that’s a sign that we’re ready for the next Bitcoin bull cycle,
He also said that the last correction in the crypto space was caused by overleveraging, which caused housing market collapse in 2018, and Bitcoin has the potential to recover much quicker from the housing market collapse.
Bitcoin is slowly coming up and it’s about to experience the next Bitcoin bull cycle as it’s becoming an alternative asset class like gold.
This comes as Bitcoin rebounded more than 110% compared to 2019 lows, but gold has relatively stayed flat in 2019.
Even though people are ready for the next Bitcoin bull cycle, Bitcoin can’t replace gold. Holmes added that the younger generation could not understand why gold is fundamentally vital to any economy.
He noted that gold quantitative easing from central banks around the world, like Europe, would deflate the value of major currencies and heighten the need for gold and deflate the value of major currencies.
He said: “It’s a fear trade right now, because of the trade war, but I think rates are going to fall, I think we’re going to have these negative rates.”
Cryptocurrencies are on track trading higher, but it will change with the entrance of a Facebook coin and other digital assets from other influential companies
Bitcoin holds some advantages over gold. For instance, it can invisibly cross borders in an instant unlike gold that must pass through border regulations.
Do you think the next Bitcoin bull cycle is already here?
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