According to a number of analysts, in the near future, primacy among reserve financial assets may be behind the number one cryptocurrency. At the same time, the yellow metal will retain its value, but will give way to Bitcoin. Currently, the leading digital currency is competing with gold in terms of popularity, analysts say.
Many participants of the cryptocurrency market are supporters of the replacement of central banks with a new system, based on the blockchain technology. One of the options for its implementation are operations with Bitcoin. An important advantage of the number one cryptocurrency is that analysts consider the fact that Bitcoin allows you to avoid hyperinflation. In the case of gold, which is provided in US dollars, this is not always possible.
At the moment, the leading virtual currency has the least correlation with traditional asset classes, such as fiat currencies and the yellow metal. According to analysts, in the near future, it will be more profitable for central banks to use Bitcoin. The advantages of this implementation are to obtain clean and efficient energy, waste minimization and sustainable economic growth. Analysts believe that the lack of Bitcoin is its high volatility, which is about 10 times higher than that of gold. However, the yellow metal, more than a digital asset, is at risk of counterfeiting.
In the long run, Bitcoin may win, but it loses to gold at a short distance. The number one cryptocurrency completes July with a noticeable decline after five months of growth.
Most analysts believe that in August, the price of Bitcoin will continue to fall, since the cryptocurrency has almost exhausted its growth potential. Analysts believe that the reason for the fall is the criticism from the largest market players and leading central banks, the uncertainty in the issue of regulation of the number one cryptocurrency and the negative news about hacking wallets and robbery cryptoforge.
According to Mike Novograts, the head of the company Galaxy Digital, the rate of BTC may fall to $8500, but in the future we can expect a rise to $20,000. According to the calculations of Gennady Nikolaev, an analyst at the Academy of Financial and Investment Management, Bitcoin moves towards the range of $3000– $ 6000 - the level at which it lasted in the second half of 2018 and in early 2019.
Closer to autumn, the leading digital asset will fall in price to $5,000 and lower, which is why many market players are now actively selling BTC, analysts say. The updated "bottom" of the cryptocurrency asset will be a mark of $7,000, and the resumption of its rally should be expected in September this year.
According to analysts, by the beginning of October, Bitcoin is able to give a surprise in the form of price increases, and the $16000 mark may be the limit of the number one cryptocurrency's breakthrough.
Many analysts believe that a number of factors are needed for Bitcoin's new growth pulse. First, the most impatient players must leave the market - those who decided to consolidate the losses. Secondly, the current rate of BTC should reach the local bottom. Thirdly, the market should consolidate at the time near the occupied levels, and only then a new wave of increase is possible, analysts conclude.
The number one cryptocurrency is considered a revolutionary asset for existing financial, monetary and auditing systems. This is the undoubted advantage of BTC over traditional defensive assets such as gold and currencies. The traditional yellow metal reduces its popularity among the younger generation. New market players believe the future is for more modern digital assets. According to Nate Gerasi, president of the ETF Store and leading investment consultant, the lion's share of millennial investors (about 90%) prefers Bitcoin to popular hedging assets, such as gold. "Sooner or later, the yellow metal will lose its luster and yield to bitcoin," summarizes N. Gerasi.
Bitcoin exchange rate on 07/29/19. Price for 1 BTC - $9503.
