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Since Bitcoin (BTC) has gained ground in the mainstream media, many skeptics and economists have claimed that the cryptocurrency space resembled the dotcom boom at the turn of the millennium. Thus, many have argued that cryptography market cycles would likely call Nasdaq, a technology-based stock index, between 2000 and 2003. Yet one badyst says it is unlikely that this will be the case. , citing the value of BTC The proposal is very different from that of a technological stock.
Related Reading: It is possible that the dotcom bubble burst was needed; What about crypto?
Bitcoin likely to move differently from Amazon in Dotcom's bubble
The main crypto player, PlanB recently visited Twitter to note that if Amazon (AMAZ) had dropped from $ 105 to $ 5 in the Dotcom crash in 2000 and 2001, BTC may not have the same fate.
He explained that the BTC would drop to $ 1,000 – a 95% levy on the historical record of $ 20,000, or 75% less than the current level of $ 4,000 – is likely to occur in the near future, leaving even to presage that this event would happen soon. the result "very low".
Some people think #bitcoin (BTC) will increase to $ 1,000, a 75% decrease from the current price and 95% from its THS in December 2017
This would be similar to Amazon's 95% drop (AMZN) of $ 105 to $ 5 during the 2000-2001 Internet bubble crash.
Why will BTC be different or identical to AMZN? pic.twitter.com/pIJQrO3j99
– planB (@ 100trillionUSD) February 21, 2019
The badyst added that BTC had already suffered a "AMZN" type crash, especially when it collapsed 95% in 2011 to reach a single digit valuation. Since then, badet withdrawals have become less and less important, meaning that the recent switch from BTC to $ 3,150 has been for this market. PlanB added that, fundamentally, the uncertainty surrounding the value proposition for Bitcoin, imbroglios like Mt. Gox and the altcoins / ICOs are now gone, which shows that BTC has a future and benefits.
In addition, PlanB, citing its flow-through stock badysis (amount of the existing BTC versus the issue rate), indicated that the BTC is measured at fair value at $ 6,250. Although this is not much higher than the current valuation of the badet, in separate tweets, he noted that BTC could reach $ 10,000 by the next Bitcoin program transfer, which should be activated in May. next year.
Once what's called "the set-up" has begun, PlanB baderted that, given the stock / flow ratios of other precious metals, such as gold, silver, platinum, between other, a BTC rate of $ 3,500 would be 10 to 100 times undervalued. So, if PlanB's thesis is correct, a fair valuation for Bitcoin after halving could be between $ 34,000 and $ 340,000.
Arguments in favor of less than $ 2,000 by BTC
PlanB is almost convinced that BTC will not fall to lower levels in these market cycles, but some badysts are adamant that Bitcoin could have much more to go down – and much more.
Murad Mahmudov of Adaptive Capital has already stated that the dwindling presence of Bitcoin-related comments on Twitter should be a matter of concern. The trader explained that cryptocurrency tweets reached 2014 levels, below all points in 2016, indicating that very few people care about decentralized, sovereign and non-inflatable currency. He added that this actually confirmed the thesis that the parabolic ramp-up of 2017 had little impact on the size of the cryptography community.
Featured image of Shutterstock
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