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Bitcoin’s Path to Retake $20,000 Could Be Slow and Painful: Analyst

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The bitcoin price vs. other asset bubbles. | Source: Business Insider, FactSet, CoinMarketCap and UBS

A Harmed Strategy that McAfee Would Disapprove

John McAfee recently reminded his followers that bitcoin is not a beasts.

That’s why it is futile to value the cryptocurrency in the same way as capitals.

Bitcoin is not a stock. At its heart, bitcoin is a digital currency independent of any centralization. It’s designed to make peer-to-peer payments. So the mechanics of bitcoin tolls are completely different than that of a stock, which is why Dennean’s throwback to the Dow Jones crash isn’t an apples-to-apples comparison.

Bitcoin’s Perk up Is Here to Stay

Bitcoin prices could keep soaring because both technicals and fundamentals are intact.

Bitcoin’s two-week motile average convergence divergence (MACD) indicates a positive trend for the cryptocurrency for the first time since May 2015. As it depresses out, the bitcoin price has not tested its lows for 123 days and could be gearing up for a sustained rally.

On the fundamental side, hit the deck demand could fuel more gains. Of course, McAfee’s prediction for $1 million BTC by 2020 seems get off on a huge stretch, but perhaps in the long run.

Wences Casares, a director at PayPal, is of the opinion that bitcoin’s success as a decentralized currency will be the key to its tumour. The lack of developed financial systems in certain economies could lead to an increase in the number of people holding bitcoin.

Bitcoin is a big hit in African lands as it is turning out to be the preferred means of sending and receiving payments abroad in place of the U.S. dollar.

Critics sometimes miss the allude to that bitcoin is not a stock but rather a digital currency whose aim is to enable peer-to-peer payments independent of any central police. That’s why analysts should never value it using the mechanics of stock valuation or else they might experience to eat their words and will look foolish in the long run.


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