According to Mike McGlone, an analyst at Bloomberg, there is nothing that can stop the appreciation of Bitcoin’s value. The statements were offered during an interview with Kitko News last Thursday. In addition, he assured that the cryptocurrency increasingly resembles gold.
This last point generates heated debates between Bitcoin enthusiasts on the one hand and those of gold, on the other. However, it is quite clear to the analyst that Bitcoin’s maturity will lead to it being a store of value for widespread use.
It should be noted that since its appearance a decade ago, the value of Bitcoin has moved in constant appreciation. Taking this behavior as a reference, plus the level of adoption and current importance of this cryptocurrency, for the analyst the price will continue to exceed its own limits over time.
Nothing will stop the appreciation of the value of Bitcoin
Bitcoin’s appreciation, in McGlone’s judgment, is practically difficult to stop due to many factors. Among the most common, there is a limited supply of coins, which, together with a growing adoption for hoarding, will help to permanently increase your price.
“The key issue about Bitcoin is that I do not see anything that is capable of preventing him from continuing to do what he has done since he appeared, appreciate”, Stressed the analyst.
At the same time, it highlights the qualities of the most popular cryptocurrency of “add zeros”To its value. First, he asserts, 100 to 1,000, then 10,000. It also highlights that during the last three years, its price has consolidated to a level that has considerably lowered the danger of its volatility.
On the other hand, McGlone assures that, as Bitcoin matures, it will more closely resemble gold. His statements coincide with those of Mike Novogratz, CEO of Galaxy, who claims that this cryptocurrency is digital gold and as such is being used by large investors in increasing numbers.
A very close relationship
The fact that, in its appreciation and consolidation trajectory, Bitcoin is becoming more similar to gold than to stocks is, according to the analyst, a positive thing. This affirms it, taking into account that the latter are high risk assets, while gold is a store of value..
In the same way, it highlights that the similarities in behavior between gold and Bitcoin are many. The correlation between the two during this year has been closer than ever before, he stresses, since the same forces that push gold higher are those that reinforce Bitcoin’s appreciation.
Consequently, it ensures that factors such as unprecedented debt on GDP, quantitative easing and negative rates are influencing this. “All of this makes both gold and Bitcoin extremely attractive to investors.”.
Finally, the Bloomberg analyst finished off, ensuring that the current high price, at the same time increases demand. However, the supply of Bitcoin is not increasing or limited, which creates a circle of greater appreciation of its value.
So far, it is believed that Bitcoin could reach resistance at $ 14,000, but McGlone claims that if Joe Biden wins the US election, the price could go much further in the short term.
Data to take into consideration
- According to analyst McGlone, Bitcoin’s signs of maturity make it look more and more like gold.
- Explain that the same forces that push up the price of gold are the same that do the same with the value of Bitcoin.
- Considering the growing adoption, as well as the historical behavior of its price, McGlone does not see possible that the appreciation of Bitcoin can be stopped.
- To the same extent that it resembles gold, the pioneering cryptocurrency distances itself further from stocks, which are high-risk assets.