Why BTC is a Good Investment: Higher Volatility, Equity Offerings, and Resistance to Regulatory Sanctions
There are several reasons why investors should keep an eye on BTC, including higher volatility, equity offerings and resistance to regulatory sanctions.
As we rewind the tape to the end of 2021, we can see that Bitcoin (BTC) was trading near $47,000, which was 32% lower than the all-time high. During that time, the tech-heavy Nasdaq stock market index held 15,650 points, just 3% below its highest ever mark. Looking back, we can see that this was a period of great opportunity for investors. Those who were brave enough to buy Bitcoin when it was trading 32% below its all-time high were rewarded handsomely as the
It is possible that Bitcoin's price could be more impacted than stocks in the event of a major correction or crisis. However, it is also worth noting that the Nasdaq has seen a significant gain of 75% between 2021 and 2022, which suggests that there is still potential for growth in the cryptocurrency market.
What we are seeing now is the result of macroeconomic tensions and crises that have been building for some time. Bitcoin's price plunging 57% to $20,250 is just one manifestation of this. The Nasdaq is down 24.4% as of Sept. 2, and investors must factor in that the index's historical 120-day volatility is 40% annualized. Bitcoin's volatility is roughly 80% higher, which means that it is more prone to large swings in price. This is something that investors must take into account when considering whether or not to invest in Bitcoin.
There are several reasons why investors should take a second look at investing in Bitcoin. First, the cryptocurrency's volatility could mean higher returns during a moderate market recovery. Secondly, Bitcoin companies are starting to offer equity to investors, which could provide another avenue for making money. Finally, Bitcoin's resistance to regulatory sanctions makes it a more attractive investment option for those looking to avoid government intervention.
It is clear that the market is in a bear trend and that there is no end in sight. However, it is important to remember that the market has been through similar periods before and has always recovered. The key now is to remain calm and patient, and to wait for the market to turn around.
The Fed's decision to raise interest rates and remove debt stabilization programs is tantamount to economic suicide. By increasing the cost of capital and contracting consumption, the Fed is effectively ensuring that a recession will occur. No sane investor will opt for credit-exposed and growth sectors when the cost of capital is increasing, and consumption is contracting. The only question now is how deep and long-lasting the recession will be.
Bitcoin Can Outperform Tech Stocks in a Moderate Recovery
It is true that volatility can be interpreted as negative, since prices can move up or down quickly. However, if an investor believes that there will be a recovery in the next 12-36 months, there is no reason to believe that Bitcoin will remain under pressure for that long.
There is no doubt that Bitcoin has taken a beating over the past year, losing over 25% of its value since its all-time high. However, there are many optimists out there who believe that Bitcoin will make a comeback, recovering all of its losses and then some. In fact, some even believe that Bitcoin could add another 40% to its value over the next 1-3 years. Only time will tell if this optimistic outlook is correct, but it certainly seems like a possibility.
Bitcoin's price is on the rise again, and experts are predicting it could reach $32,425 by November 2021. This would be a 53% increase from its current price, and would represent a 60% profit for those who purchased Bitcoin on September 2nd at $20,250. With Bitcoin's price continuing to trend upwards, now is a great time to invest in the popular cryptocurrency.
In a neutral market, the Nasdaq would reverse its losses and add 40%, reaching 19,563 points and totaling a 64.4% profit. This would be 21.6% higher than the current all-time high.
Bull markets may be good for stocks, but they can also create price ceilings.
As the most critical metric backing investors' optimism, earnings figures play a vital role in stock markets. The top 7 companies on Nasdaq are all well-known tech giants, and their strong earnings figures show that they are in a good position to continue growing and thriving. This is good news for shareholders, as it means that these companies are likely to continue generating strong returns.
The problem with bull markets is that they can create issues of their own, such as inflated valuations and buybacks that don't make sense. Companies have enormous incentives to issue more stock when earnings go up, which can lead to a situation where a tech company must constantly acquire emerging niche competitors to secure its leading position.
With Bitcoin, more miners, investors or infrastructure does not mean a higher offering, because the production schedule has been set from day one. The supply is fixed regardless of how the price fluctuates.
Bitcoin was designed to survive regulation and centralization.
The new export license requirement imposed by US officials on Nvidia's artificial intelligence chips is a major setback for the company. The move will likely cause a drop in sales to China and Russia, two major markets for Nvidia's products. In addition, the crackdown on mining facilities in China is expected to have a significant impact on Bitcoin's hashrate, which could fall by 50% in the next two months.
It's interesting to see how different countries are approaching the regulation of Bitcoin mining. In the United States, regulation is likely to impact Nvidia's exports. However, in other countries like Taiwan, South Korea, and China, there is no such regulation in place. This could allow for those countries' chipmakers and other companies to increase their market share in the global mining industry.
I believe that the decentralized nature of Bitcoin will allow it to survive even if governments try to ban crypto trading. The fact that multiple countries have tried to suppress foreign currency only creates a shadow market that only emphasizes the importance of Bitcoin.
Bitcoin is looking like a more attractive investment than tech stocks, according to a new analysis. The analysis looked at three different scenarios, ranging from total blockage to a generalized bull market, and found that Bitcoin was favored in all of them.Adjusted for its volatility, the risk-reward is strongly in favor of the cryptocurrency. This is good news for Bitcoin investors, as it suggests that the digital currency is a good bet regardless of the overall market conditions.
