Leading digital assets management firm in the UK, Coinshares, published its report on Crypto trends to analyze the markets. The report analyzes global historical trends and suggests why Bitcoin and crypto fit into the future.
The four Forces
One of the leading causes of optimism around Bitcoin is the all-around pessimistic view of the Governments. According to the report, more than 90% of people around the world suspect some form of corruption in their governments.
While Bitcoin faces risk from anti-crypto laws from Governments all around the world, people seem to be losing faith in their Governments.
The report highlights that bitcoin and cryptocurrencies provide secure value propositions on the internet. The rising four powerful forces, namely, political, economic, social, and technical forces, are in favor of a decentralized currency.
Over the last ten years, which coincides with the existence of Bitcoin as well, the number of atheists has nearly doubled.
Moreover, it falls in line with the pessimism around the improvement of living and economic standards. The increasing wealth gap among individuals is likewise not adding to the distress.
Millennials Choose Bitcoin
Hence, the rising trend shifts one’s belief in science and technology. Millennials are likely to choose Bitcoin over other forms of investments.
The rising digital trend is a phenomenon forming 15% of the S&P 500 stocks as well. It includes Microsoft, Amazon, Facebook, Google, and so on.
Amazon also went through a price bubble in the late 90s. It took around seven years for the price to recover the losses for people who bought at the high. Nevertheless, there is a lot of competition and uncertainty in the future of crypto markets.
The area controlled and regulated by Central Banks and Governments is facing resistance as well as competition.
This is just the tip of the ice-berg. The report outlines the price trend that Bitcoin is following on a log scale. Moreover, it also attempts to focus on the comparisons between the bubbles and prices of Bitcoin with other traditional assets like gold, equity markets, currencies, and commodities and their derivatives.
Last but not least, one of the most starking evaluations was the rise in the quantity of US dollars. Quantitative easing past 2008 has increased the amount by four times. On the other hand, the Bitcoin supply will reach saturation soon.
You can view the complete report here.
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Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com