For a long time now, bitcoin has seemed quite stuck as it seems to be holding steady without making any major breakthrough. After the leading cryptocurrency reached its all-time high of $20,000 in December 2017, a lot of investors have been left wondering when this energy will come flooding back into the market.
Ever since the highs of cryptocurrency, the price has fallen on quite a significant level. It is estimated that the resultant bear market cost the sector as much as $400 billion in total. Regardless of the current market state, a lot of people are still quite interested in holding big sums of cryptocurrency in the hopes that it will return to its highs once more.
Central banks
A lot of people are aware of the influx of investors that are getting into bitcoin and other crypto proponents, several governments, as well as their central banks, haven’t had a very exciting approach to the crypto market in general. These apex banks have been very “circumspect” because of the unstable nature of the sector.
In recent times, governments have been slowly coming around and opening up to the idea of cryptocurrency. Especially when it comes to the Securities and Exchange Commission in the US which seems to be loosening up to the idea of bitcoin.
As reported by ZyCrypto “the European Central Bank and the Federal Reserve in the U.S., are currently considering the possibility of amassing considerable amounts of cryptocurrencies, especially bitcoin.”
They explain:
If this trend continues, there will be more publicity for the sector, more trust in the market and adoption would definitely increase. At this stage, it is almost entirely certain that demand for crypto would skyrocket, driving the price very high. It is hoped that the price could even shoot up close to the current all-time high and maybe even higher.”
Digital Gold
Most people agree that apart for its volatility, bitcoin is the perfect representation of digital gold and this could be another reason as to why central banks would have a keen interest in getting stuck in with cryptocurrency.
Garrick Hileman is the head of research at blockchain and research associate at the London School of Economics who has said, “the main use for bitcoin today is as digital gold. The question is though, who will be buying digital gold? If central banks start to accumulate bitcoin, that could be hugely impactful on bitcoin’s price.”
Published at Sat, 30 Mar 2019 09:14:49 +0000
