Chart for BTC/USD (1W)
The price of Bitcoin (BTC) does not matter. One Bitcoin (BTC) will always be one Bitcoin (BTC). Some of you will say, “What if eventually another coin takes the place of Bitcoin (BTC)?” The answer to that is, “It’s not going to happen”. It is funny that some traditional investors say that they like blockchain but they do not like Bitcoin (BTC). Like it or not, Bitcoin (BTC) is here to stay. The question whether some other cryptocurrency could ultimately replace Bitcoin (BTC) was supposed to be asked way before 82% of Bitcoin (BTC) were mined. Now, it is on its way to ultimate adoption and acceptance as the one true store of value.
So, why does the price of Bitcoin (BTC) not matter? The fact of the matter is that the world is heading towards a currency crisis. People across the globe are losing faith in governments and central banks and why should not they? The British pound is the world’s oldest fiat currency. If you had bought a British pound since its inception, it would have lost 98% of its value today, in 2018. It is even worse for the US Dollar (USD) so let’s accept that this is a major problem. Now, when the world heads towards a global currency crisis, what do you think investors are going to do? Are they going to invest in a government issued cryptocurrency? Are they going to issue their own currencies? Or are they going to invest in the one that is by then accepted by most as the one true store of value and medium of exchange for goods and services.
Prospects may not look as bright today amid all the negativity and fud that surround us. There have been a lot of scams in the crypto market as there have been in any developing market. However, this time the anger and frustration is even louder because the major stake holders who have been working with the central banks and governments to keep the people enslaved financially now fear that cryptocurrencies are going to destroy their monopolies.
The price of Bitcoin (BTC) does not matter because ultimately there will be only one cryptocurrency, Bitcoin (BTC). All this volatility in price and the big 10% daily swings will be gone in five to six years from now. The quick buck artists will leave as the market matures and moves towards stability. That is when we will actually see rapid adoption and large scale use. By then, one Bitcoin (BTC) will still be one Bitcoin (BTC) but fiat currencies like the US Dollar (USD) or British Pound (GBP) may not even exist.
If you look at the monthly chart above for BTC/USD, you will see that the Accumulation/Distribution ratio is on a rise. The trend for Bitcoin (BTC) accumulation is on a continued rise. Professionals are not concerned what the price of Bitcoin (BTC) is in dollars. Their only concern is how to increase the number of Bitcoin (BTC) they have for the long haul.