Giles Coghlan LLB, Lth, MA
Financial Source
One of the tests for the longevity of Bitcoin’s long term viability is how usable it is? The more places that BTC can be used, the more point there is in owning it. In short, BTC needs to go from the realm of ‘techno-savvy only’ to ‘Mr & Mrs Smith’.
That tipping point looks like it is about to be reached. The news that helped push it over the edge was that Amazon might soon start accepting BTC payments. People may be able to use BTC to buy things on Amazon; this is big news. This builds on a number of important news stories. Ecuador has made Bitcoin legal tender and citizens have been using mobile phones to trade small fractions of Bitcoins for payments. PayPal allows users to buy, sell, and hold Bitcoin.
There are also other signs that cryptocurrencies are becoming part of the fabric of the world around us. Travala, the world’s biggest blockchain-based online travel agency, allow users to pay for flights and hotels with various cryptocurrencies. Pavilions Hotels and Resorts from Hong Kong announced this month that guests would be able to book a stay at its 14 properties worldwide and pay by cryptocurrency.
So, the longevity of BTC seems pretty stable now as the critical mass for adoption has shifted. Does this mean that BTC should just be purchased like any other currency? No. The volatility of BTC means that huge variations in price will hammer those who are using leverage. So, if you are relatively new to trading, you must always be aware of what your total ‘at risk’ amount is. Remember that BTC can move double-digit percentage-wise across a few days. So, although BTC looks like it is here to stay, it comes at the price of significant volatility.
The seasonal pattern for BTC is also quite interesting. The average return by month shows that the only two months when BTC typically loses value are coming up in August and September. The strongest month is in November. The reasons for this seasonal bias are unclear and should not unnecessarily sway investors.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Recommended Content
Editors’ Picks
Tether mints another $1,000,000,000 USDT on Justin Sun’s Tron blockchain: TRX traders could profit
Tether, the world’s largest stablecoin issuer, has minted another $1 billion worth of USDT on the Tron blockchain according to Whale Alert data published Friday.
XRP Price Prediction: XRP back above $2 liquidating $18M in short positions, will the rally continue?
Ripple (XRP) seeks support above $2.0020 on Thursday after gaining 14% in the past 24 hours. The token trades at $2.0007 at the time of writing, reflecting growing bullish sentiment across global markets.
Avalanche Octane update goes live on mainnet, slashes transaction fees significantly
Avalanche (AVAX) Octane update, live on mainnet on Thursday, introduces a dynamic fee mechanism to the C-Chain. This mechanism reduces transaction costs during high network activity by adjusting real-time fees, as per ACP-176.
Dogecoin soars as 21Shares files S-1 for DOGE ETF
Dogecoin (DOGE) rallied nearly 12% on Wednesday after asset manager 21Shares filed an S-1 application with the Securities & Exchange Commission (SEC) to launch the 21Shares Dogecoin exchange-traded fund (ETF).
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.