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Bitcoin is the largest “cryptocurrency” in the world right now.
Until it is expected “Bitcoin” will become a new safe haven for investors alongside “gold.”
In fact, in 2021 Bitcoin will certainly play a bigger role in the world of mainstream finance.
What will the address be like?
And what level will the future touch?
Let’s go back first to the root cause of this hike …
:: “Bitcoin” a new attractive bunker
One of the main sources would not have escaped the “gold” that was the epidemic. Covid-19 (Covid-19) Causing every government to announce a shutdown Affecting growth Caused an economic recession around the world. And the central bank has to take action to help urgently
For example, in the United States, the central bank, or “Fed” (Fed), immediately cut short-term interest rates by almost 0% and printed notes worth more than a trillion US dollars. Hoping to help keep the economy from crashing at the same time, CARES ACT or health insurance legislation. He also paid large sums to help the bond market and jumpstart the stock market.
Of course, when the “stock market” was badly affected and traumatized. Investors are sure to find a new place to hide. First of all, it is inevitable that the “gold” that has reached a record in the last year as well. And an interesting new option is “Bitcoin”.
Because of the changes that occur Analysts think that “Bitcoin” will likely hit US $ 318,000, or around 9.5 million baht by the end of 2021.
Like the heyday of the gold market
In the early 1970s, the price of gold was about $ 35 an ounce. (* Compared to inflation ~ 1,048 baht), but now the price of gold is over 1,900 US dollars or around 57,000 baht, some reaching 2,000 US dollars an ounce. In Thailand, it fetches a price of 30,000 baht.
The simple reason for the “increase in prices” is that The “value of gold” can be a hedge against inflation (inflation hedge).
Bitcoin is also playing a role in this decade.
Price charts like playing a roller coaster showed that How much money did investors spend here lately? It is possible that in the future, bitcoin could replace “gold” and become a new “haven”.
Currently, bitcoins are stored more than 350 billion US dollars, or around 11 trillion baht, while gold is stored more than trillion US dollars. What if comparing the value already Bitcoin is still very small.
However, Bitcoin’s growth is still in a positive direction. And there is a possibility that Bitcoin has a higher probability of growth than gold. And it can attract even larger sums of money from investors seeking high returns.
:: The future of Bitcoin is rising in 2021
As of October 2020, online payment giant PayPal enables its customers to buy, hold and sell cryptocurrencies. (cryptocurrency) can include bitcoins. And it also allows Bitcoin to be traded with more than 26 million companies.
In early 2020, Fidelity submitted a letter to the Securities and Exchange Commission (SEC) to launch a new bitcoin fund called Wise Origin Bitcoin Index Fund I. Non-retail investors will have access to bitcoins and other cryptocurrencies can be obtained through from Grayscale Investments, whose flagship fund Grayscale Bitcoin Trust, according to the Wall Street Journal, has found over the past few months. Assets under management of the company Rising over US $ 4 billion or about 1.2 billion baht to US $ 10 billion or around 3 billion baht
That shows the growth and role played by Bitcoin and other cryptocurrencies. According to the survey, more than 36% of institutional investors in the United States and Europe. They all own cryptocurrencies and another 60% believe they will be among the investment securities.
This indicates that this real currency will soon become a permanent fixture in the financial world.
But wait !! Even though bitcoin has ended up replacing the role of “gold” and has become a new safe haven, caution must be exercised.
Therefore, normal investors should take gentle steps on risky assets. And there should at least be some basic assets in reserve, like an emergency fund and a retirement fund.
Thairath Online News Team Report
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