- BTC/USD recovers from early losses.
- Goldman announces the decision to expand its crypto offering.
While Bitcoin managed to recover from early losses to trade at $6,763 at the time of writing. The second largest digital coin is mostly unchanged since the beginning of the day and 2.5% higher on daily basis.
The cryptocurrency market players are optimistic again as Goldman Sachs Group said that it may expand the list of digital assets traded on its cryptocurrency platform a renewed wave of positive sentiments overrode concerns
“We are clearing some futures around bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too,” Goldman’s COO David Solomon said in an interview with Bloomberg.
Goldman announced a cryptocurrency trading desk launch on May 3. Many crypto enthusiasts claimed that that was the turning point in the industry, but Bitcoin entered a new bearish trent and lost over 30% of its value since that time.
BTC/USD, the daily chart
Bitcoin (BTC/USD) forecast and analysis on January 24, 2020
Cryptocurrency Bitcoin (BTC/USD) is trading at 8563. Cryptocurrency quotes are trading above the moving average with a period of 55. This indicates a bullish trend on Bitcoin. At the moment, cryptocurrency quotes are moving near the lower border of the Bollinger Bands indicator stripes.
Bitcoin (BTC/USD) forecast and analysis on January 24, 2020
As part of the Bitcoin exchange rate forecast, a test level of 8420 is expected. Where can we expect an attempt to continue the growth of BTC/USD and the further development of the upward trend. The purpose of this movement is the area near the level of 9160. The conservative area for buying Bitcoin is located near the lower border of the Bollinger Bands indicator strip at 8400.
Cancellation of the
Bitcoin (BTC/USD) forecast and analysis on January 24, 2020 implies a test level of 8420. Further, growth is expected to continue to the area above the level of 9160. The conservative buying area is located near the area of 8400. The breakdown of the cryptocurrency growth option will be the breakdown of the level of 8320. In this case, we should expect further fall.
Billionaire investor advises people to stay away from Bitcoin
- Ray Dalio said that Bitcoin is too volatile to be a store of wealth, at present. Instead, he suggests a small allocation in gold.
- He also noted that currently, “cash is trash” and that investors must look for a well-diversified portfolio.
The founder of investment firm Bridgewater Associates, Ray Dalio, has warned people not to get involved with speculative currencies like Bitcoin in 2020. Appearing on CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland, Dalio said:
There’s two purposes of money, a medium of exchange and a store hold of wealth, and Bitcoin is not effective in either of those cases now.
He believes that Bitcoin is too volatile to be a
Because of the volatility, you can’t go next to it. Someday, you know, I would say Libra or something with more stable value has got more potential. But also, who is going to do the buying? Central bankers and others? What are they going to hold as reserves?
What has been tried and true? Are they going to hold digital Bitcoin? They are going to hold gold. That is a reserve currency, and it has been a reserve currency for 1,000 years… A bit of gold is a diversifier, and that’s the advice I can give.
He also noted that currently, “cash is trash” and that investors must look for a well-diversified portfolio.
Visa continues to dwarf Bitcoin in this important metric
Despite optimistic predictions, Bitcoin still has a long way to go before it can compete with companies such as Visa. The fiat currency giant reported transaction volume of over $11.2 trillion in 2018, while Bitcoin network only managed to transact around $2.2 trillion until 2019.
Visa dominates all payment processors with $11 trillion transaction volume
While the crypto industry as a whole seems confident that digital assets will ultimately replace traditional fiat currencies, the reality is that there’s a long way to go before the two can even compete in the same category.
The growing transaction volume of most high-market cap cryptocurrencies definitely shows that major improvements are made. However, most of that growth fades away when compared to the big players in the payment processing industry.
According to its annual performance report, Visa saw a total transaction volume of just over $11.2 trillion. The volume is the sum of both the payment volume and cash volume, with the payment volume being the total monetary value of transactions on Visa-branded cards and payment products, the company explained in the report.
This is a huge increase from the $10.3 trillion the company reported in 2017 and an even bigger increase from the $8.1 trillion in total volume
Bitcoin still has a long way to go to catch up with Visa
Bitcoin‘s numbers aren’t nearly as impressive as these. However, it’s worth noting that digital asset data can often be misleading and can never be taken at face value. As a Fidelity Digital Assets research put it, one of the most commonly overstated measures is Bitcoin’s transaction volume.
Most data providers use an unspent transaction output (UTXO) system, which doesn’t distinguish between economic and non-economic transactions. Because of that, the difference between the adjusted and unadjusted transaction value figures are often very significant.
According to the report, Bitcoin’s total adjusted transaction value from inception to Dec. 11, 2019, was approximately $2.2 trillion. It’s unadjusted transaction volume, however, stands at approximately $7.5 trillion.
While the $2.2 trillion is a significant achievement for a system as young and as novel as Bitcoin is, it’s still a long way behind Visa. Bitcoin’s transaction volume was amassed over a period of more than 10 years, while Visa recorded its $11.2 trillion from September 2017 to September 2018.