Why Buy Bitcoin Now and Sell It Later?
Cryptocurrency 1. Bitcoin (BTC) 2. Ethereum (ETH) 3. Tether (USDT) 4. U.S. Dollar Coin (USDC) 5. Binance Coin (BNB) 6. Ripple (XRP) 7. Binance USD (BUSD) 8. Cardano (ADA) 9. Solana (SOL) 10. Dogecoin (DOGE) | Market Cap (US $ - in billion) 377 165 67 47 46 24 21 14 12 8 |
Why?
Because of the U.S. central bank's hawkish actions to rein in inflation ...
To clarify, let's remember how Bitcoin and the other cryptocurrencies are generated: they are generated by solving some mathematical cryptographic equations.
This has the effect that they cannot appear either more or less, but in a well-determined number.
So, inflation of cryptocurrencies cannot be generated, even if inflation occurs in the case of dollars, euros or other fiat currencies. This was and still is one of the main purposes of the generation of cryptocurrencies.
In conclusion, even if there is war, famine, pandemic, cryptocurrencies are generated absolutely the same. Logically, this means that their price should not be influenced by these events.
The fact that it does happen is due to the way cryptocurrencies are viewed on financial exchanges: they are viewed like a fiat currency - and this is not correct!
Banks of the world can issue new dollars, euros, pounds, etc. - that means more paper BUT they cannot issue cryptocurrencies!
Considering the above, our opinion is that the course of cryptocurrencies can only have one meaning in the medium and long term: the meaning of growth.
Whoever buys Bitcoin today at the rate of 19,293.56 USD will be able to sell it in a few months at double the price. The big Bitcoin holders know this - that's why they're buying now!