With different currencies in different nations, there has always been a conversion problem. But with Bitcoin, the problem can be solved. Since it is decentralized, it could easily become the international currency for trade. If that happens, Kraken CEO says a $1 million price target for the next 10 years is “very reasonable”. Presently Bitcoin is trading at around $47,000, and could the fact that it could touch $1 million is simply mind-bending. The cryptocurrency received this status out of nowhere, and now everyone has been talking about it. Is it what history in the making seems like? Maybe! We have to wait and see.
Bitcoin’s acceptance as an international currency
As the price of Bitcoin is increasing, national currencies are getting weak, and this has made Bitcoin a hedge to inflation. Companies are investing in cryptocurreny for the sole reason that they want to preserve the value of their money and, in fact, grow it with time. Jesse Powell explicitly said that you have to assume that it will go to infinity. It is important to understand the fundamentals of its currency to believe that Bitcoin could touch $1 million.
Goldman Sachs resumed its cryptocurreny desk just a while back, and as that happened, the price of Bitcoin rallied past the $52,000 mark. But after it faced strong resistance at the price point, the price fell back below $50,000 again. Now it seems that in order to cross the $52k price, a strong push is required. Another important thing to consider for Bitcoin becoming an international currency is liquidity and fraud.
It is seen that the liquidity of the currency is decreasing. And hence small transactions in the market can lead to huge volatility in the market. Now coming to fraud, Gary Gensler said that it is challenging to track fraud in the market transactions. So, it is important to tackle both of these issues in order for Bitcoin to become an international currency.
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