More than 10 Million bitcoin (BTC) could be bought for the current price of one bitcoin ($7,300), a decade ago. Since its first ever recorded price, bitcoin’s growth over the next ten years has been remarkable. With a market cap of more than $130 billion, bitcoin has shown 720,000,000% price surge since its inception. Whereas Gold witnessed a mere 64 times increase in price over a century, with $19.95/oz in 1919.
In this short span of time, bitcoin has managed to acquire a status that, previously, wasn’t easily achieved by gold. The decentralized digital currency has experienced speedy progress in the four stages of evolution of money. In contrast, fiat and gold took a long period of time to advance through the stages.
Collectible, store of value, medium of exchange and unit of account, are the four stages that need to be qualified by entities before they can be declared equivalent to money. The journey of stages has evolved many assets of today’s world. As per Stanely Jevons, a well-known economist, gold had gone through the same path to end up as a measure of value. He explained;
Historically speaking … gold seems to have served, firstly, as a commodity valuable for ornamental purposes; secondly, as stored wealth; thirdly, as a medium of exchange; and, lastly, as a measure of value.
A collectible is an item that has a worth far more than it used to have due to its demand or rarety. Shells, beads and gold, all were once a collectible before they attained a different form of money. On the other hand, the store of value is an asset that doesn’t undergo depreciation and maintains its value. A collectible transforms its status when it is sufficiently demanded by people. With an increase in demand, a good starts exhibiting traits of a suitable store of value and experiences a rise in its purchasing power. Items such as gold and other metals make a good store of value but perishable items such as milk incapable of following criterion to be a store of value.
Anything representing a standard of value, items used to express or measure the value of other items, and perceived as an acceptable mode of payment to both, buyer and seller, during a trade qualifies to be a medium of exchange. In this stage, the value of the good stabilizes. Unit of account is an important function of money. Any asset used as a monetary unit to other economic entity such as assets, liabilities, etc is accounted as a unit of account. This stage proceeds medium of exchange stage because only after an asset is widely used as a store of value, it can be used to price other goods.
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Bitcoin started out as a collectible in 2009 and later an exchange was set up to where bitcoin could be traded for U.S dollars. This shows that bitcoin along with its uncontrollable decentralized nature leapfrogged the evolutionary stages whereas gold took thousands of year to surpass the collectible and medium of exchange stages before gold coins were regarded as a unit of account.
Besides price, the performance and growth of bitcoin have been outperforming in many other aspects as well. Today, there is a mass of people, organizations and governments who are keen on adopting bitcoin. Now, buying and selling of bitcoin are made very convenient by several exchanges whereas, in the beginning, only a handful of small scale exchanges operated and allowed people to trade bitcoin. Moreover, the digital currency has disrupted the world with its digital and decentralized characteristics.
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Many financial institutions such as banks are directly threatened by bitcoin as it allows users to easily transfer payments over the internet. What sets bitcoin singular is the extremely low transaction fee in addition to the absence of central authority. In this way, bitcoin making peer-to-peer funds transfer completely decentralized is processing thousands of transactions of billions of dollars worth. In the past, even the head of IMF, Christine Lagarde, accepted the disruption brought by bitcoin as she stated:
I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system.
READ MORE: After Undermining Bitcoin, IMF and World Bank Launch Their Own ‘Crypto’
Although the progress of bitcoin is compared with that of gold’s, there are many counter-narratives suggesting bitcoin’s incompetence to match the likes of gold and money, fiat. Bitcoin due to its extreme volatility is not able to remain stable which is a prerequisite for items regarded as a medium of exchange. Furthermore, people also argue that bitcoin is not used to translate the value of other things in its own term which means that it doesn’t qualify of being a unit of account. Like if a coffee shop accepts bitcoin payments, in reality, it’s not the true bitcoin price. Instead, it is U.S dollar price translated into bitcoin terms.
This shows that bitcoin despite marking steady progress in several phases has a long way to go before it can be accepted as payment option irrespective to the bitcoin exchange rate against fiat currencies. Previously, Dr. Michael Yuan, Co-Founder of The CyberMiles Foundation, confirmed the same sentiment while talking to BlockPublisher. He stated:
TBD. Neither Bitcoin or any other cryptocurrency (ex. Ripple) is currently used as an everyday currency because they’re treated as a store of value” vs. a true utility token to pay for everyday goods and services.
While bitcoin is on the rise, in the future, it would be of interest to see how bitcoin continues its journey to become a unit of account
Bitcoin could hit $62k by end of October, claims trader
As Bitcoin (BTC) is testing new resistance levels above $9000, one trader has pointed out that the momentum could be even stronger than it looks. If a pattern from 2017 is anything to go by, the top crypto could rise well above its all-time high.
Crypto trader Galaxy (@GalaxyBTC) pointed out that the week preceding today has seen a similar candle set-up to one that occurred back in 2017, when the last big bull run was building up steam.
After that week’s price action, BTC then saw a price increase of 570 percent. This happened over the course of 147 days, just under 5 months. If this pattern happens again in the same way, BTC will be trading at around $62,000 by the end of October.
Opinions about this prediction on Twitter were divided. Some agreed with the assessment, with one observer pointed out that they made a similarly bullish claim not long ago. Others questioned the analysis, and suggested that the user was just making outlandish predictions to get followers.
Bitcoin: Third coming of the green Super Guppy buoys bulls as price consolidates over $9,000
Bitcoin broke out of its sluggish blues by breaking the $9,000 mark for the first time in 13 months, earlier this week. With several analysts pegging the rise of Bitcoin to be a consequence of the Facebook Libra pump, a more wholesome look at the charts indicates a more consolidated rally, rather than a myopic push.
A recent piece of analysis by Josh Rager, a cryptocurrency analyst and advisor for Token Bacon and Level Invest, revealed that the Bitcoin market was primed for an upswing that will mirror previous bullish rallies of 2012 and 2016. Facebook might have been the catalyst to push the market out of the June slump, but Libra cannot prolong the high, and by the looks of it, the market is likely to march forward on its own.
The Super Guppy indicator which indicates trader behavior based on sets of moving averages, has flipped from red to green on the weekly Bitcoin chart, indicating a sustained bullish swing to the market. As mentioned previously, this is the third coming of the green-switch on the weekly BTC chart; the first two saw the price of the cryptocurrency surge to $1,000 and then to nearly $20,000.
Rager posited the historical price movements of the cryptocurrency based on the first two occasions of the Super Guppy indicator flipping green. With reference to the recent flip, he stated that the market is likely to be “bountiful,” for “the next few years,” given the manifestation of the “flip,” in the month of June 2019.
His full tweet read,
It’s finally here…
The Bitcoin Super Guppy has flipped green on the 1-week chart
2012: 400-day uptrend followed a flip green
2016: 700-day uptrend followed a flip green
2019: the 1W Super Guppy has finally flipped green and it shall be a bountiful market the next few years pic.twitter.com/6zAn1qgtBy
— Josh Rager (@Josh_Rager) June 18, 2019
The price of the top cryptocurrency in the market has been on a rollercoaster ride since the beginning of April 2019. With the breach of the 200-day Moving Average on April 2, Bitcoin’s price took a turn for the better, which according to Fundstrat’s Thomas Lee, was the key trigger to the bullish market. Further, the king coin’s “Golden Cross” was realized in April, something that had previously taken the coin to an unprecedented high in December 2017, before switching to a “Death Cross” last year.
At a time when the likes of Fidelity, Facebook, and JP Morgan are veering towards the cryptocurrency market on the big-name side and at time when Bitcoin is trading within the Golden Cross and its Super Guppy has flipped green, the price can only consolidate from this point on and move higher.
Bitcoin (BTC/USD) forecast and analysis on June 18, 2019
Cryptocurrency Bitcoin (BTC/USD) is trading at 9096. 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 upper border of the Bollinger Bands indicator.
Bitcoin (BTC/USD) forecast and analysis on June 18, 2019
As part of the Bitcoin exchange rate forecast, the test level of 8950 is expected. Where should we expect an attempt to continue BTC/USD growth and further development of the upward trend. The purpose of this movement is the area near the level of 9820. The conservative area for buying of Bitcoin is located near the lower border of the Bollinger Bands indicator bars at the level of 8050.
Cancellation of the option to continue the growth rate of Bitcoin will be the breakdown of the lower border of the Bollinger Bands indicator. As well as the moving average with a period of 55 and closing of quotations of the pair below the 8020 area. This will indicate a change in the current trend in favor of a bearish for BTC/USD. In case of a breakdown of the upper border of the Bollinger Bands indicator bars, one should expect an acceleration of the fall of the cryptocurrency.
Bitcoin (BTC/USD) forecast and analysis on June 18, 2019 implies a test level of 8950. Further growth is expected to continue to the area above the level of 9820. The conservative area for buying Bitcoin is located area of 8050. Cancellation of the growth option of cryptocurrency will be a breakdown of the level of 8020. In this case, we can expect further the fall.