Bitcoin: Fear of inflation plays fully in its favour

Bitcoin: Fear of inflation plays fully in its favour

By Rémy Demichelis |

investir.fr |
The 18/02/21 at 16:49
| Updated on 18/02/21 at 18:32@RemyDemichelis

Bitcoin surpassed $52,000 on Wednesday. Since the end of last year, it has been breaking all-time records.

Bitcoin surpassed $52,000 on Wednesday. Since the end of last year, it has been breaking all-time records.

How far will Bitcoin go? If it seems, this Thursday marks a pause, it remains at a very high altitude, at more than 50,000 dollars. A level never reached before, but that did not surprise Claire Balva, president of Blockchain Partner: « There are not many people in the cryptomoney ecosystem who are surprised that we have passed the $50,000 mark. When you’re convinced of the added value, the question is more a question of when the rises are going to take place; already when Bitcoin had passed the $10,000 mark, I heard that it couldn’t go any higher. »

According to her, this rise is consistent with Bitcoin’s promise to become « digital gold ». And that seems to be the shared view of several companies, such as Tesla, which was responsible for the latest rebound after a statement on Monday, February 8, that it had bet $1.5 billion on this asset. MicroStrategy, a Nasdaq-listed company, preceded Tesla by announcing in the summer of 2020 that it had invested part of its savings in Bitcoins. This initiative has since been reiterated.

Countering inflation

MicroStrategy CEO Michael Saylor compared his dollar cash flow to « an ice cube melting » to explain his action. The same motivation to protect against inflation was cited by SynBiotic, a listed German company that has been stockpiling bitcoin reserves: « Given the excessive increase in monetary production in the Euro and Dollar zones, there is a legitimate concern about a massive devaluation of currencies, » she wrote in a statement released this week.

Bitcoin prices in dollars on 18 February 2021 (over 6 months).

Despite its high volatility, the most famous of the cryptomoney is already being used in countries like Argentina as a stopgap measure in the face of the fall in the value of the national currency. There is no reason why the same phenomenon cannot also affect the United States and Europe.

According to a Gartner survey, published on 16 February, of 77 CFOs, 5% of respondents plan to invest part of their cash in bitcoins in 2021. A small percentage, but one that could represent colossal amounts if they go ahead and are followed by their peers.

Limited production

« The fact that there will never be more than 21 million Bitcoins makes it a safe haven, » says Clara Balva. Indeed, the computer code stipulates that production is limited « while the ECB [European Central Bank] can decide to turn the banknote printing press around ». Bitcoin, with 18 million units already issued, has become a rare and therefore expensive asset in the face of demand. It also has the added advantage of being practical and easy to use, for example for international money transfers.

According to Simon Polrot, president of the Association for the Development of Digital Assets (Adan, of which Blockchain Partner is also a co-founder), the current effervescence is causing some rather careless behaviour. The price of the ripple has thus risen sharply, pulled by Bitcoin, while the company that supervises it (it is not a decentralized currency like Bitcoin) is under investigation by the American regulator, who sees it not as a cryptomoney, but as a security. Ripple has even been removed from the main Coinbase trading platform. « This may be a sign that an unqualified and novice audience is entering the market, » says Polrot.

The ripple is now worth more than fifty cents: « One would tend to think that it’s cheaper than Bitcoin, so it’s more accessible, except that it’s not at all the same thing, » warns Simon Polrot. The value is extremely high for this type of asset. « Polrot concludes: « The world of cryptography remains an interesting sector, but one that needs to be looked at with caution. « The Autorité des Marchés Financiers (AMF) is constantly warning and has published a blacklist of dubious players. Those who wish to invest in cryptosurveillance can consult the list of players registered with the AMF.

Quel crypto acheter 2020 ?

Quel crypto acheter 2020 ?

How to invest in Bitcoin in 2020?

What is the future of Bitcoin?

What are the crypto currencies of the future?

What are the Cryptomonnages?

What are the Cryptomonnages?

What are the virtual currencies?

Where to buy crypto money?

Where to buy crypto money?

What is the most profitable crypto currency?

What is the most profitable crypto currency?

What currency should I buy now?

How does a Cryptomonnaie increase in value?

Bitcoin: Fear of inflation plays fully in its favour
4.9 (98%) 32 votes