Right now bitcoin has been in this kind of stagnate area between $95,000 to $110,000 and just bouncing around in this area for the last few months. But what many don't see happening is just how much wealth accumulation is currently happening on the backend by people you might not be expecting.
One of the great things about crypto is you can actully tell who is doing what and connect the dots to give you a clear picture (aka ledger) of the actions they have taken.
Major players on the backend and I would say countries or people are buying up massive amounts of bitcoin which put a lot of us to shame at the moment. In a recent buy Abu Dhabi sovereign wealth fund just bought $436 million dollar worth of bitcoin ETFs so far in Q1 of this year. Now I personally think the USA is already stock piling their crypto assets and they do hold a decent amount as well event though they were recently trying to sell it off.
The major player in all of this is of course Blackrock who holds a serious stake in the asset now and is primed and motivated for a massive hike in BTC prices. You don't have the worlds largest fund buying up bitcoin just for the fun of it.
Part of their talks recently have been to countries and how much exposure their assets should have in it. For example most countries have various stockpiles which gives them value and world dominance this goes with oil, gold, silver and other resources called strategic reserves. Well now bitcoin is looked at as a strategic reserve and allocating just 2% of the worlds markets to it would sky rocket BTC to around $500,000 in value!
But is bitcoin the only asset that people and countries are buying?
Now let's be clear the alt coin markets have been getting beat up like crazy over the last few months. What felt like a bull run alt coin season quickly got crushed in a few days and we have pretty much reset to where we where a year ago this time when ETFs where speculated to be release for bitcoin which took us up to $70,000 BTC price point.
But alt coins have struggles and we see that mainly in core assets such as Ethereum which currently continue to struggle. But will that change?
The answer I think is yes and it will profoundly change in the next year but be limited to legit decent sized projects that continue to grow and build.
Now as for other projects that will most likely do well over the next few years I think Ethereum is a rather safe bet plus you can earn some decent interest on that token unlike bitcoin.
A big push for that which I think will be a very cool addition is the ETF sector in which they are talking about offer a APR on the asset. This will mainly focus around your staking tokens like Ethereum, Solona etc which I think will make them attractive options to people who are looking to build passive income streams.
Why Stablecoins Are Focus
Stablecoins like the USDT and USDC are primary factors that are also pushing this market. That's because the crypto markets are a 24/7/365 trading system while the stock market and banking sectors are still a slow sluggish 5 day weeks 8 hour days and roughly only 254 days out of the 365 that the banks are even open! It's wild that in the fast paced world we live in today that these old systems are still in place.
This is why many are now turning to stablecoins in order to build faster transactions. Take Robinhood for example that trades 24/7/365 (or at least on crypto transactions) In order to move Fiat funds to crypto you either have to wait days for a bank to do it or you can use stablecoins and get near instant trusted transactions happening.
When you start to see use cases like this you can see why more and more companies are stockpiling stablecoins as well which overall helps the general liquidity in the crypto sector thus increasing values across the board.
The big reason why we will see stablecoin pushed in the next few months is because the USD wants to rebuild it's dominance once again. Doing this move will allow it to easily be transacted around the world and once again become to go to payment system and value capture for other countries. The worst thing the last administration could have done was weaponize the SWIFT banking system which let's be honest didn't work out well at all. However it's now sparked a furry for the USD and a major wake up call about how the USA was losing world dominance.
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