Bitcoin Reaches Another All-Time-High
Bitcoin has achieved another all-time-high of $4,473 dollars to the coin. Demand continues to rise thanks to market instability worldwide.
On August 16th, when Bitcoin’s price suddenly fell from $4400 to $4050, investors predicted a steady midterm decline in value. Their predictions proved false. Instead, trade quickly rallied, hit an all-time-high and then established strong momentum for the upcoming weeks.
Following the high, Bitcoin saw a slight decline back to $4300. However, it immediately demonstrated signs of recovery; before the close of the markets it rose to $4330. Many agree that the $5,000 mark predicted by Goldman Sachs, JPMorgan, Max Keiser and other prominent analysts is becoming increasingly likely.
In some regions, the Bitcoin demand is so overwhelming that the exchange has exceeded the BTC/USD high. In China, for example, the cryptocurrency’s exchange surpassed 30,000 Yuan to the coin. This is equivalent to USD $4,495 to one.
Bitcoin exchange markets have matured significantly over the past few years. This is thanks to Know Your Customer (KYC) and Anti-Money Laundering (AML) systems, as well as the legalization of bitcoin by many governments. These measures, coupled with the improved liquidity of cryptocurrencies into global currencies, have quickly increased crypto’s adoption by general consumers.
Tom Lee, a Wall Street strategist, gave an interview on CNBC. He said: “Bitcoin will likely become the best performing asset and currency by the end of 2017.” Even if it suffered a 50% decline in value, it would still be considered the best performing asset on a yearly basis.
Bitcoin safer than gold?
Investment banking company Morgan Stanley has noted that an increasing number of investors, professional traders and portfolio managers have started to prefer bitcoin over gold as a safe haven asset. It’s high-return, highly portable and highly liquid attributes make Bitcoin the preferred long-term investment for many.
In a note to investors, Morgan Stanley Equity Strategist Tom Price emphasized that Bitcoin may be a better safe haven asset for value storage than gold.
“Some claim that the protocol limiting Bitcoin’s supply growth rate underpins its value. But if Bitcoin is successful long term, we should continue to see competitor cryptocurrencies and market strategies emerge to exploit the new economic rent — a bearish risk for Bitcoin’s price. [Bitcoin is] the latest money to offer gold’s long standing capabilities plus some other unique benefits. While it too may somehow undermine gold’s demand outlook, the rate/scale of the shift depends on the willingness of investors to engage bitcoin/cryptocurrencies.
Price went on to promote caution amongst investors. He said: “The popular view that this immature currency is superior to gold as a hedge against inflation/uncertainty, still needs to be tested.”