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
Bitcoin extends correction below the $60,000 level
Bitcoin extends correction and erases Friday’s gains after being unable to hold above the psychologically important $60,000 level over the weekend. Since Saturday’s opening, BTC erased nearly 3% of its value and trades near $58,500 at the time of writing on Monday.
PEPE slides as whales lose interest, traders engage in profit-taking
PEPE (PEPE) posts losses for a third consecutive session on Monday as on-chain metrics show a sharp decline in large-volume transactions from whales and a spike in profit-taking in the last six days.
European crypto fund founder calls Tether $118 billion scam
Founder of Cyber Capital, Europe’s oldest crypto fund, criticized Tether for their reserves and said there has been no audit since 2021. In a tweet thread on X, Justin Bons supports his stance on the stablecoin firm with statistics.
XRP re-listing on Robinhood could fuel double-digit price rally, push XRP to $0.66
Ripple (XRP) is back on the commission-free exchange Robinhood per the official website of the platform. Users can currently watch XRP price chart, the altcoin is yet to be listed for trading.
Bitcoin: On the road to $60,000
Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.