Victor Ugochukwu · Dec 14, 2020 . 5min read
Bitcoin Price Breaks Through $11500 Since 1 year, Investors Typify it with Stocks like Amazon
Between March 12 and today, Bitcoin price has risen from $4,970 and trading at $11,760 as at reporting time
By Victor Ugochukwu · Aug 3, 2020 . 8min read
The bells of Summer for 2020 must be sounding sonorous to the ears, especially if you are among those who are taking profits from the recent pump in Bitcoin price. Bitcoin price sees a break from $11500 since one year, and investors, traders already typify it with stocks like Amazon and Apple.
If you know an early investor in these tech giants, the story has been nothing short of magical, especially within the last two decades. From becoming the most valuable companies in the world, they have become so powerful that even political gladiators fear them.
In fact, Cameron of the Winklevoss Twins even recently tweeted:
Bitcoin is the best performing asset in a decade
Bitcoin as an asset for 10 years compared with other asset classes leaves the rest in the dust. A Bloomberg article in December analyzed how Bitcoin price since July 2010 has appreciated by over 9,000,000%. Amazingly, Bitcoin in December 2019 was trading around $7,200.
Fast forward to the present day when Bitcoin price just breaks through the $11500 resistance. Breaking through this resistance, it shot up to $12200. It has seen a retracement since then.
Banks are actually failing upon critical assessment. One of the strongest reasons for this is their lack of innovation. And it’s also important not to lose sight of why Bitcoin came into existence. Ironically, the financial system upheld by banking thrives on facilitating transactions as a trusted party. But can we really trust the financial sector and their modus operandi?
Obviously, malpractices within the financial sector fueled the recession of 2008. Many Bitcoin maximalist would argue till death that this is why Bitcoin was created. To challenge the hegemony of the banking system in financial transactions. And this by extension for them means Bitcoin price is headed for the “moon”.
A look at the various currency indices shows just how weak most national banking system is. Raoul Pal, an Economist, lays this out in of his tweets:
Bitcoin and other cryptocurrency prices tanking in Black Thursday sparked up the Safe Haven debate
The infamous global market crash of March 12 due to the coronavirus scare brought up the Bitcoin as a Safe Haven debate. Bitcoin price fell by about 40% in the span of fewer than two days. Even though it rebounded and stabilized around $4,000, many were quick to call it out. They pointed out its correlation with other assets in the stock market, bashing it as no safe haven.
Between March 12 and today, Bitcoin price has risen from $4,970 and trading at $11,760 as at press time. This represents a gain of 136% within 4 months. Even Tesla which has defied stock shorting can’t match this within the same period.
Bitcoin Price could well see beyond $11500, even up to $20000 and beyond as adoption improves.
Big names like to speculate around Bitcoin price and the latest asides breaking $11500 is that it could touch even $20,000. Mike Novogratz, the billionaire Bitcoin investor, holds this view. In an article, he makes his points:
“Bitcoin is still hard to buy. If it was easier to buy, it would be a lot higher,”Mike Novogratz
He thinks Gold which has been around for about 3,000 years, it’s pretty easy to buy. Many more big names from Tudor Jones to Tim Draper holds an optimistic view of Bitcoin price in the future.
Perhaps Winklevoss Twins may be right after all in their Bitcoin price shill. Asides from being a vocal advocate of the digital gold, they continue to match words with actions in their investments within the industry. They have learnt to put their money where their mouth is.