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Bitcoin: The Return of Volume

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"Everything Happens As I Expected" is probably one of the most epic lines I remember, not only because these words were uttered by the black overlord who ruled the galaxy because it reflects so many brilliant human minds, when they express their opinions on areas of which they are experts; Of course, bitcoin is no different:

"I'm sure of something, so (insert any prediction you think is right)"

– This article should not be considered as financial advice as it represents my opinion and my personal opinions. I have savings invested in cryptocurrency, so take everything I write with a grain of salt. Do not invest what you can not afford to lose and always read as much as possible about a project before investing. You are still responsible for your own money-

Most of you have seen this small, tiny, tiny, almost invisible volume jump that took place on April 2018. So far, it has been the highest jump in volume ever seen market capitalization has gone from ~ $ 270 billion to ~ $ 300 billion. That means that about $ 30 billion was added to the market in less than 3 hours.

Bitcoin's dominant position remains above 40% and I suspect it will continue to increase as most of the funds that come to market should be institutional. There are serious competitors, like Ripple, because of the nature of the lenders (mainly banks and financial institutions).

Nevertheless, there are two ways of looking at this, in my personal opinion:

  • Either the money that just entered the market remains with the king, ie
  • It is distributed among preferential projects (top-10 on which I would bet).

Because there is currently a huge time lag between technological developments and prices, which means that price movements are due to pure speculation rather than to technological progress or to problems that arise. If you think differently, look at the examples of IOTA or Verge that were hacked, but prices for both coins continued to rise after. Heck, think about bitcoin: when did the price reach its maximum value? At the same time, the fees were the highest ever recorded.

The price is dictated by the volume and what happened is a big spike in smart money coming to the market . Maybe some of the money that left at the end of January is coming back.

Should we expect the price to continue to rise?

Some technical analysts think the price will continue to rise. Again, the opposite could happen depending on many factors:

  1. The geopolitical tensions between Russia and the United States will certainly upset the traditional markets. This will undoubtedly influence the amount of money available to invest in the cryptocurrency market. I'm not sure how this will affect all markets because in the end, there could be a surprising change; People could start to trust bitcoin more because of its security, resilience and the fact that it is independent of governments and economies.
  2. Investors missing bitcoin were destroyed and probably lost a lot of money. What can counter this, it is the futures price of CME Bitcoin contracts, because I expect the volume of futures contracts to grow exponentially. Why? It's easy: because it's profitable for those who invest in both markets.

  1. Sources of news. When many positive news begins to arrive, we generally see increasing euphoria and hype (check google trends) of stupid money entering the market leading to massive prices. I see no reason for it to be different this time. If history has taught us anything, it is that she "repeats herself" herself, circling around him.
  2. Small technological leaps (pun intended) will play an important role in the long-term future, as bitcoin and other cryptocurrencies have time to prepare for adoption around the world. Hope that the exchanges will not need to block new hordes of users who subscribe, the bitcoin flash network will be fully operational and adopted by most mining agents and trading platforms.

We can not forget the price is crucial to attract new people to the market, but to keep these users the technology has to meet the problems of today. People do not care whether the money is centralized, decentralized, distributed, digital or physical; People care about:

  • How can I get this money?
  • How much do I have to pay to store and transfer this money?

For a really massive adoption, be the bitcoin team think of a way to easily distribute it where it's needed, in countries where the bank is limited for example, or a group Benin develops a way to distribute the currency directly to people in exchange for something other than money (time, attention, services, etc.). I understand those who think that this currency is used by companies around the world, it's a joke. I understand, but if the purpose of this cryptocurrency is to bank the unbanked and succeed in connecting communities around the world by allowing anyone to transfer and store value over the Internet, then maybe the right way would be to simply find ways to exchange bitcoin for time and services in these places.

-Note: I have not mentioned the question "How long does it take to get another account?" because the current banking system needs 3-5 business days for international transfers to takes place. When the bitcoin network is clogged, I personally waited 24 hours for a bitcoin transfer to be approved. He still beats the banking system for personal transactions, which is the ultimate purpose of this cryptocurrency (in my opinion) –

Easier to say than to do

The reality, of course, is that acceptance dictates the rules of the game; companies must start pushing cryptocurrencies by accepting them. At the end of the day, for cryptocurrency to be used, all responding officers must participate.

We must not forget that there will always be two faces to the same coin:

  • Should we focus only on price and volume, to control our gains? Or
  • Should we focus on improving the scalability and marketing of technology for global adoption?

Doing one would be reckless, because balancing the two seems to be the right way for the market to develop. My only hope is that the whole community continues to improve the consensus in bitcoin (and other crypto-currencies), without ever forgetting its true purpose:

To empower those who are financially invisible.

Image from Shutterstock.

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