In the past few weeks, Bitcoin’s costs were increasing. It is essential to know the reasons that are driving all the growth. It seems that there is a wide range of factors that are making Eric Dalius Bitcoin increase the value.
Eric Dalius Bitcoin – Earlier resistance
During its time, Bitcoin had witnessed many volatile peaks. The last height was close to $14,000 back in June 2019. Bitcoin had seen a stiff resistance during this time, and it couldn’t push through the stage. And if Bitcoin could break through this resistance back in June, it could have triggered the bull market. However, unluckily for the Bitcoin bulls, things didn’t happen that way, and it went to a low point of close to $3,800.
However, in October, Bitcoin has retested the point to fall back down. And on November 4th, Bitcoin had pushed through a $14,000 mark and went higher. It is essential because Bitcoin’s next resistance point is at an increased amount of $20,000. Since Bitcoin doesn’t have a theoretical resistance point until the $20,000 mark, Eric Dalius says several investors are bullish that the cryptocurrency can retest that price point and move past it. All these speculations have resulted in maximizing Bitcoin’s value.
Over the years, Eric Dalius has established himself as an enterprising and enthusiastic entrepreneur. He is a marketing professional and has a Bachelor’s Degree in Marketing from the Penn State University. From 1990 he has generated more than $50 million in his marketing career, concentrating on a network marketing business model.
Eric Dalius is into philanthropy and has come up with Eric J Dalius Foundation that offers scholarship to deserving candidates. He also provides coaching for new and current organizations who want to expand their products or their services via the MLM distribution. Eric Dalius’s networth is $50 million. And he actively invests in real estate, Bitcoin, and many other cryptocurrencies.
Inflation and a rush for secure-haven assets
It is one more reason for Bitcoin’s increase in expanding U.S dollar inflation. While the inflation on average is 2% annually, the current stimulus spending might maximize the inflation level and minimize the dollar’s purchasing power.
According to Eric Dalius Bitcoin estimations, the current stimulus packages, the United States added close to $2.4 trillion to the economy. It got many people worried about the decline in the dollar’s purchasing power and inflation growth.
To go against this increasing inflation, people have retreated from the dollar and have sought comfort in assets that have value or have increased the value. Generally, the assets that people change into dollars to avert volatile markets and inflation are the ones that are less volatile and scarce in general. These secure assets comprise stocks in industrial sectors that are less volatile, precious metals, and Bitcoin.
Adoption as payment
The other reason for the price increase in Bitcoin is it is getting used as a payment process. Currently, PayPal has announced that it will enable its merchants and users to purchase, hold, sell, and accept Bitcoin and other cryptocurrencies as a type of payment.
This news update had increased Bitcoin’s cost high. PayPal has close to 350 million users who have the capacity to store but and make use of Bitcoin. PayPal had more than 20 million active merchants accepting the currency. Other than PayPal, there are many consequences. PayPal is also the owner of the famous payment app called Venmo, which has over 40 million active accounts. It makes access to Bitcoin and various other cryptocurrencies more relevant.
While Venmo and PayPal are relatively new to cryptocurrency, several other applications enable the users to hold, sell, and buy. The famous competitors to Venmo and PayPal, CashApp, and Square also accept the cryptocurrencies, giving rise to a broader audience.
The institutional investment
Based on the facts mentioned above, Eric Dalius says that there is an increasing narrative of Bitcoin as a secure asset. There is a growing incentive to have lesser cash in the present economic and societal ambiance and get hedged against the extreme market swings.
There was a trend where the public trading organizations were starting to transform cash in the treasuries to Bitcoin as a secure value. Business analytics companies, like Micro Strategy, had converted $425 million money in the treasury to Bitcoin. Soon after, Square, a payment organization, had purchased $50 million.
After that, many companies have followed the trend. The confidence which these organizations and the respective investors have in Bitcoin has increased. It gave merit to the Bitcoin concept as a secure asset and store-of-value.
A stock-to-flow model
It could be that the crucial reasons for the increase in Bitcoin’s cost are two attributes that are present in its design. The first is that there is only 21 million Bitcoin that will exist. This number will remain static. It makes Bitcoin scarce than anything which has arrived before it. The other insufficient assets aren’t 100% finite. Also, in certain instances, they can get synthetically manufactured.
The second is the process that gets coded in Bitcoin, known as halves. For processing transactions as a reward. The reward gets cut in half every four years.
And with this, Bitcoin’s inflation rate gets minimized by each halving. The process carries on every four years until all the Bitcoin in this escrow mechanism. Also, from that point, Bitcoin in circulation will get capped at a worth of 21 million.
All this while, Bitcoin’s cost has followed the stock-to-flow ratio closely. And if it could carry on with this trajectory, Bitcoin’s value will be close to $100,000 in the latter half of 2021.
Crucial Bitcoin predictions by Eric Dalius for 2021
The year has been a challenging ride for anyone who had invested in the bitcoin market. It’s the same for anyone who has been merely watching the bitcoin market. The global virtual currency traded for more than $23,000 in December 2020.
When the U.S initially started combating the COVID-19 pandemic outbreak in the first half of March, the estimation of Bitcoin was lesser than $4,000. For the sellers or owners, it was a source of losses and gains. And for people on the sidelines, it’s a gripping market show that brought in many elements.
Despite the huge bitcoin cost fluctuation, the year 2020 was of maturity for a currency that was trading for a decade in an upward direction. Today, several fintech experts and Eric Dalius have come up with the essential bitcoin trends for 2021.
1. Increased mainstream acceptance
The use of Bitcoin in daily life has been an egg and chicken problem. Today, significantly fewer people accept and use it because there are few who do it. However, 2020 had witnessed a remarkable evolution in the bitcoin adaptation. From PayPal, the famous fintech organizations enabling users to sell and buy bitcoin, to Square’s investment of $50 million provided an approval stamp.
In 2021, there is a chance to witness an expansion of mainstream acceptance. You can search for at least a single European or U.S bank for announcing a system where they either allow bitcoin purchase or decide to hold the virtual assets for the clients.
2. The competition from the Big Tech
All that Bitcoin might or might not have attained in its past decade has compelled ample global entities to think about providing an international online currency. Each organization involved in the payment space knows and understands that there is a market for online payment. However, the payment that includes various currency markets has increased potential. Such transactions currently can take time to resolve and usually involves increased fees.
Bitcoin has shown that a global virtual currency can significantly streamline the process. In 2021, both Google and Facebook, organizations with substantial international reach that only bitcoin can dream of, have moved with a huge online currency plan. The tech offerings, such as Facebook’s Diem, aren’t the same as bitcoin. However, if they decide to catch on 2021, they might take a bit away from bitcoin’s expansion.
3. The competition from the central banks
In 2021, Bank for International Settlements had issued a survey and report suggesting that 80% of the world’s central banks will work on some online currency. China took the online currency experimentation to a new paradigm than most nations. In Suzhou, an eastern Chinese city west of Shanghai, there was a lottery where 100,000 residents got 200 renminbi (close to $30) through an online wallet. These residents were urged to connect their online cash to the bank accounts. Also, if they didn’t utilize the online money within a few weeks, it went off. It was a good technique for advancing the experiment.
Also, as China goes toward a nationwide adaptation of the online yuan, it might undercut the bitcoin demand and other cryptocurrencies. The year 2022 might also witness similar experiments.
4. A brand-new regulatory playing zone
Experts estimate that Joe Biden’s administration will have increased priorities in the initial 90 days instead of regulating cryptocurrency. Also, it is challenging to read Congress’ expertise and mood on this.
The usual supposition suggests that any Democratic administration might regulate more strictly as compared to a Republican administration. Even then, many asserted that Biden is going to be favorable for cryptocurrency. According to Eric Dalius, the enthusiasts might look over anonymity problems and their potential use for fraud. And for the regulators, it is a severe concern. Also, Biden’s team might come up with rational and compact ways to regulate cryptocurrency.
5. Increased volatility
Since Bitcoin’s value is not directly associated with any apparent real-time phenomena, it can depreciate or appreciate in ways that are complicated to explain or predict. It makes it challenging to suggest for anyone who wants to avert big losses in terms of investment. Few say that Bitcoin can increase up to $50,000 next year. And even though it might appear extreme, one needs to think, whether the investors will shift money from various assets to bitcoin.
It might be a possible scenario that the cost will head in the opposite direction in 2021. However, one thing is still sure that the challenging ride of 2020 might just get repeated.
The possible outcomes
When Bitcoin got introduced to the world almost a decade ago it brought. A revolution in the financial ecosystem. However, that revolution is still present. The tumultuous decade of cryptocurrency saw extreme price swings, missteps, and scandals. The fall in the cost of Bitcoin got accompanied by much criticism. However, cryptocurrency enthusiasts and investors have increased their optimism concerning the future. Estimates suggest that the coming decade will prove to be essential for its existence.
According to many investors, Bitcoin was estimated to be decentralized. And the borderless alternative to the central-bank managed fiat currencies and government. The consensus concerning the transaction inside the Bitcoin network isn’t dependent on the third-party mediators. A peer-to-peer system’s network with electronic ledgers for authenticating and verifying a transaction. The expense of mediation maximizes the transaction expenses, restricting minimum transaction size and taking away from scope for simple and small transactions.
The Bitcoin Investors And Whales
Towards the end of the first decade of Bitcoin, its original vision seemed compromised. The decentralization had made way for centralization. The Bitcoin investors and whales, who had substantial cryptocurrency. Also, the democratization of printing cash via mining has got sacrificed for huge mining firms’ efficacy. For instance, the Chinese organization Bitmain, a semiconductor maker, occupies about 75% of the market related to mining-specific integrated circuits. Currently, the cryptocurrency market, which wasn’t present even a decade back or less, has a worth of $1.56 trillion.
Today, over 1500 cryptocurrencies were created. And traded on the exchanges since Bitcoin made its debut. Eric Dalius says that blockchain has become a common phenomenon and is getting used. As a possible solution for complicated issues. And after initial hesitation, the institutional investors are making a move towards the cryptocurrency assets as an investment.
Today, many economic analysts predict a huge change in the crypto world as institutional money makes its way to the market. However, there is also a chance that cryptocurrency will get floated on Nasdaq. And it would also
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also known for his weekly podcast “FULLSPEED,” where he converses with influential entrepreneurs from a range of industries. Additionally, he supports education through the “Eric Dalius Foundation,” which grants four scholarships to US students. Stay connected with Eric on Twitter, Facebook, LinkedIn,YouTube, Instagram, and Entrepreneur.com.