2020 sucks for almost everyone. If you don’t have Bitcoin (BTC).
Bitcoin is up 125% since the start of the year, making it the top performer again, as it has been in the past decade.
Oddly enough, the audience seems to be completely unaware of this fact. But not everyone ignores Bitcoin’s recent rally of over $ 16,000. Currently the price is only 20% of full employment.
Wall Street not yet
Given Bitcoin’s impressive years, it should come as no surprise that Wall Street is now beginning to realize that the world’s first decentralized cryptocurrency is not going anywhere.
Do you remember 2017? This historic rise in bitcoin prices was largely driven by traders – the average Joe – who were expecting a Wall Street fight alongside a new ICO coin miner.
Meanwhile, the Chicago Mercantile Exchange unveiled bitcoin futures contracts with cash settlements peaking in December 2017 and …
The BTC price plummeted in the following months and the syringe did not work in a bear market for several years. The media obituary made the average Joe eat the loss and wrote a lot of bitcoins like another bubble burst.
A Google search for “bitcoin” pretty much explains the whole story.
But by 2020, public bitcoin searches will no longer reflect BTC because the price has been “untied”.
Most interestingly, even Wall Street is still on the sidelines, indicating that BTC could be undervalued to $ 16,000 at a market value of $ 297 billion. However, recent data show that this has already begun to change.
“Wall Street hasn’t arrived yet,” said Cameron Winklevoss, co-founder of the Gemini Stock Exchange. Winklevoss added:
“Institutions are not using Bitcoin at this time. This is a retail phenomenon over the past decade. So Wall Street talked about it. They are familiar with Bitcoin, but they are not really in our point of view, but this is starting to happen. ”
Rich postcodes in New York and Silicon Valley pay for BTC
As Cointelegraph reported earlier this month, most of the current interest in bitcoin is seen primarily in the wealthy neighborhoods of New York and Silicon Valley, where many valuable people live.
But while the public is largely unaware, many wealthy investors are warning of BTC as a new asset class. Paul Tudor Jones, Michael Sailor, and Stanley Druckenmiller made a splash in 2020 and revealed their bitcoins.
Are they aware of what the public didn’t understand in 2017? Was the common man too early then?
Jones said investing in BTC is like investing early in Apple stock. Sailor said his company MicroStrategy, which bought a total of $ 425 million in bitcoin, will hold it for 100 years, calling it “the world’s best defense.”
Meanwhile, Druckenmiller, the latest major bitcoin transfer, now argues that “if the gold bet works, the bitcoin bet will probably perform better.”
Together, smart money investors are starting to understand one thing. As Tyler Winklewos said:
“Bitcoin is better than gold.”
Gold is up just 23% in 2020 in a year of global economic turmoil, when this safe metal is supposed to shine (pun intended).
But Bitcoin, or “digital gold,” has caught public attention, hitting 125% this year and nearly 300% from its March low. In addition, the market value of BTC for gold is only 2.36%, which some long-term investors consider to be the best, as opposed to the risk-reward ratio in history.
People who bought bitcoin ten or five years ago are likely to agree.
The end of Bitcoin’s stealth phase
Due to the stable supply, Bitcoin has become especially attractive as an inflation hedge guaranteed by the US Federal Reserve.
But unlike gold, bitcoin is quite rare. The proposal has been settled mathematically and cannot be changed by any authorities.
In addition, the frequency of new bitcoin mining every four years is dropping by 50%, which analysts say is one of the main catalysts for new beef market cycles. This event is called halving, the last one will take place in May 2020.
Cryptocurrency trader Mikael van de Poppe believes that the bitcoin market is now out of cover and awareness. BTC is no longer just digital money to buy drugs on the dark web.
According to Van de Pope:
“Stan Druckmiller, Michael Sailor and several companies are entering the bitcoin market and it is clear that we are in the early stages of a new rally.”