Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- Jack Dorsey holds only Bitcoin
- The number of Transactions for Bitcoin are Increasing
- P2P Bitcoin Trading Volumes on the rise in emerging markets
Jack Dorsey and His Love for Bitcoin
While playing a new bitcoin game called “pass the torch,” the torch was passed on to Jack Dorsey and his love and loyalty for the Top coin again came into limelight. Everyone who has looked at cryptos is well aware that Jack is a bitcoin advocate and over the weekend in an interview with Joe Rogan, Jack again stated that bitcoin will probably become the native currency of the Internet.
Engaging the community on Twitter yesterday he stated several times that the only coin he holds is bitcoin. He also said that he views it as a currency rather than an investment and that he wouldn’t consider holding any other coins, not even Ether. Its one of the reasons that The Square Cash App has recently become a major on-ramp for people buying bitcoin. When asked yesterday whether Square would add other cryptos to the Cash App, Jack replied with a simple “Nah”
Bitcoin is getting stronger Fundamentally
Unlike the stock markets which tend to adjust for underlying metrics rather quickly. The price of bitcoin remains characteristically detached from its own fundamentals, instead of remaining subservient to technical analysis. While everyone who looks at charts is aware that Bitcoin once again was coming to the point of a giant descending triangle. The nature of this particular pattern is that the flatline (psychological level) is usually the one that breaks first, as it has done six times over the last year. This could be why we’re seeing some losses this morning.
However, if one looks at the fundamentals of the Bitcoin blockchain, it’s actually quite strong!! the number of transactions being processed in bitcoin has been growing increasingly during the bear market and is now reaching levels that have previously been seen only during the 2017 bull run.
Also, A quick look at the volumes from the peer to peer bitcoin trading site local bitcoins, which is now back online, shows that usage is rising steadily in emerging market countries such as India, Kenya, Nigeria, and across Latin America. Of course, these metrics are difficult to evaluate over time due to the extreme volatility in bitcoin’s price. As one can see in the global graph often times more BTC will be traded when the cost per coin is lower. However, for those citing reduced volumes across crypto exchanges lately, it looks as if they are missing the big picture.
Mati Greenspan is the Senior Market Analyst at eToro, a global social trading and investment platform. Mati is a licensed portfolio manager in the European Union and his main focus is on macroeconomic analysis, portfolio diversification and cryptocurrencies. Follow him on Twitter at @matigreenspan