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  • Can Bitcoin become like Gold?
  • Crypto has a lot of potential in third world countries

Ever since the birth of Bitcoin ten years ago, it has been established as a digital currency that has the potential to change the way we live. The digital asset can be used as a form of payment in order to send money across the globe, trade other cryptos and so much more.

But there’s another use for Bitcoin, it could be used as a store of value.

Store of Value

Now you may not know what I mean when we use the term ‘store of value’ so let me explain.

A store of value is worth what people are willing to pay for it. If we take a look at gold, it has always been considered a store of value because it is very valuable and not unlimited. You can be sure that there will someone out there that would be very willing to pay you a lot for your gold (if you have any).

But gold isn’t money, it has a lot of value and so it is more of an asset than actually currency i.e. you can’t go and buy your groceries with a bar of gold.

For cryptocurrencies, the debate about whether they were created as a store of value or a medium of exchange is something that doesn’t seem to end.

At the end of the day, Bitcoin isn’t cash. It isn’t money. It’s a protocol that can’t be used in the majority of shops around the world. But the potential is there.

Gold or BTC?

People typically go to invest in gold to protect their wealth against inflation. Gold isn’t easy to liquidate trough and finding a place to keep it safe is just another thing you need to think of. In the crypto space, people are trying to use digital currency to fix this issue. Blockchain technology is always getting improved and cryptocurrencies are so much easier to secure than gold.

But you can’t hack gold.


In third-world countries like Zimbabwe and Venezuela, cryptocurrencies have a lot of potentials to help those in need. In places where the locals experience hyperinflation on a yearly basis is the perfect example of where cryptocurrencies would thrive.

Of course, Bitcoin sill faces inflation but people would have more secured money holding crypto than fiat. The yearly inflation rate for Bitcoin is just under four percent.

Robert Johnson , 2019-11-19 21:30:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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