- administration in the USA Biden It creates the framework for fully integrating Bitcoin and other digital assets into the wider financial system.
- This decentralization Bitcoin and its scarcity make it a hedge against central banks, politics, and inflation.
- According to technical analysis and Elliott wave theory (or Elliott Wave), Bitcoin’s price action looks positive going forward.
Bitcoin (BTC-USD) and other cryptocurrencies considered taboo by most of the market until recently. We soon have professional sports teams, hedge funds, and billionaires using and buying digital assets. President Biden is now released a Executive Decree coordinating financial regulators to regulate and understand digital assets. Less than a decade ago, it seemed like the US would probably have nothing to do with digital assets, as they operate like anarchy compared to traditional financial systems. With many countries exploring digital assets, the United States did not want to be left behind, which means Bitcoin and other digital assets are here to stay. As inflation continues to rise rapidly, Bitcoin is getting more and more attractive.
Biden’s Cryptocurrency Enforcement Order
Joe Biden’s executive order on digital assets is a huge plus for active crypto investors and those on the fence. This decree will establish a regulatory framework for digital assets and allow them to reduce the use of digital assets for illegal activities such as money laundering and tax evasion. A regulatory framework would create a much more stable and secure market for those involved in digital asset trading. Better still, digital assets will be taxed as standard investments based on long-term/short-term capital gains. This is great news, given that the government can easily assign its own tax bracket to digital assets.
Many crypto advocates argue that government regulation of digital assets removes the foundation on which they are built, namely decentralization. I’d say you can eat your cake and not have it. While the decentralized nature of digital assets is attractive, it has enabled money laundering, theft, tax evasion, human trafficking and many other illegal activities. Not to mention people who lost huge amounts of money due to lost account keys and passwords. The regulation of digital assets creates a framework for the market without breaking the principles on which they are built.
Bitcoin Value Considered As Inflation Rises
bitcoin has been shown to act as an unaffected store of value. Fed decisions or central banks. The price of Bitcoin is very volatile, but as regulations come into effect, I think more investors will feel comfortable investing in digital assets. Additionally, I believe regulation will significantly reduce the volatility seen in Bitcoin and other digital assets.
Bitcoin is particularly attractive for inflation as it is deflationary in nature. Inflation is a rise in the prices of consumer goods, often directly related to the devaluation of the dollar through the printing of money by the United States and, more recently, stimulus measures. A store of value like Bitcoin gets its value from market demand and scarcity. For example, gold is considered a store of value because it has a relatively high demand and is scarce.
However, there is 394 million pounds of mined gold (22.44% of the total estimated supply), with 114 million pounds of reserves. What I mean here is that gold is considered the norm for a store of value, but there is still a lot of gold to be mined. When it comes to Bitcoin, there are a total of 21 million Bitcoins, 19 million of which are in circulation. This means that there are only 2 million Bitcoins to be mined (9.52% of the total supply) and there will never be more than 21 million Bitcoins.
As the United States prints more dollars and mines more gold, Almost all of the Bitcoin supply is in circulation. Bitcoin’s blockchain does not allow splitting or printing. In short, Bitcoin is the rarest asset on the market, unaffected by centralized financial systems or politics, and is here to stay.
Bitcoin price prediction and advice
Bitcoin has dropped 7% in the last five days, which is a relatively big drop even for Bitcoin. I will use technical analysis, considering that it is not a basis to use when analyzing Bitcoin. I personally believe that the crypto market will go. Fifth wave of the “Elliott Wave” theory. Elliott wave theory consists of five waves. The first, third, and fifth waves act as an uptrend, while the second and fourth waves act as pullbacks. To validate the Elliot Wave Theory, each progressive bullish wave should create a new high and each progressive downtrend must create a higher low.
All in all, the outlook for Bitcoin is excellent. The Biden administration paves the way for the full integration of bitcoin and digital assets into financial markets, and bitcoin is proving to be as good a store of value as anything else. (as well as high volatility levels). Because Bitcoin is decentralized and supply is scarce, it can serve as a strong hedge against inflation, central banks and wider financial turmoil.
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Alm Maye has been a trader and analyst since 2013. He specializes in stock markets, Forex and cryptocurrencies. He is the creator of Almvest.com and Imveste.com, two sites dedicated to personal finance. He participates in the development of featured articles on specialized sites such as actions-boursieres.fr and the international network of Finixio.com.
Source From: Google News