Market cap of Bitcoin is currently hovering around $180 billion mark which is 2.1% of total market cap of Gold ( $8.3 trillion )
According to many analysts, Bitcoin is digital gold for new generation as they are looking forward to Bitcoin as a commodity and a replacement of Gold, but if we go with numbers, Bitcoin is actually no way near to the market capitalization of total gold in the world, according to an estimate, there is $8.3 trillion worth of gold in the world whereas according to current market cap and price there is only $180 billion worth of bitcoins in the world making it 2.1% of total value of gold in the world.
Gold is still the safe heaven
Gold is still the safe heaven for major countries and many countries are holding gold as a safe heaven asset for any economic crash or instability, making it the most valuable commodity in the world, if we are talking about bitcoin as digital gold or replacement for gold then potential of bitcoin is massive because if investors started pouring their money in bitcoin just like they did for gold then bitcoin would be a precious commodity with massive price tag.
If Bitcoin captures market cap of Gold
If bitcoin some day equals market cap of gold then one bitcoin would be worth around $500000
What is stopping Bitcoin to achieve that?
Acceptability, there is no doubt about the fact that Bitcoin is growing its acceptability by the time and many retailers and institutions around the world are now accepting Bitcoin, but its nit easy to use bitcoin in daily life, you just can’t go to a hotel and but food with bitcoin or you just can’t go to auto showroom and buy a new car by paying in Bitcoins, you have to convert Bitcoins in Fiat currency and then buy relevant things, but Imagine if you could buy anything through Bitcoins like you do with Fiat currency what would be the worth of Bitcoin, the answer is it could be worth hundred of thousands of dollars.
Bitcoin is the next super power for sure
Due to its nature of faster and cheaper transactions, Bitcoin is grabbing attention of many individuals from International Financial markets, recent announcement of CME is a prime example of that, future is looking great for bitcoin and there is no doubt about that fact that if it reaches market cap of Gold, it can reach to $500000 mark
6K support loosing strength
$6000 support level for Bitcoin is holding pretty well since Feb 2018, but every time price bounces off from 6K level it marks a lower top
Bitcoin support level is losing its strength day by day, traders expect a nice bounce from this level and strength in the rally to breach the $10000 mark but its not happening and now price is making lower tops every time there is a small rally.
Take a Look at the one week chart of Bitcoin at Bitfinex
According to many Technical analysts, weekly chart is looking scary and they are expecting as massive crash in prices if price breaks below the $6000 level and stays there.
Another alarming situation for Bitcoin is low volumes, Bitcoin ‘s trading volume has dropped significantly in the last few months , in fact this month has been the lowest in more than 1 year and that shows investors are taking a back seat in this market, institutions are not yet ready to jump into the market and without money from big investors, it is not possible for Bitcoin to rebound or reach All-Time-High levels in near future.
$6000 support history
$6K support for Bitcoin started in Feb 2018, when Bitcoin crashed from $12000 to $6000 within few days after a wild crash. But price rebounded once it touched the $6K level and then after that it started making lowers highs (lower tops) and price rejected from $10K level then $9K and then $8K , made it ever so difficult for Bitcoin to rebound, but one thing was there all the way through, $6000 support level, although price broke below this level 1 or 2 times but not for long, price stayed above $6000, but now as the time is passing by it is getting more and more difficult for Bitcoin to keep this level of support as there is massive pressure from the bears and they can take the price down anytime in near future and if that happens, there will be panic in the market and selling pressure can take price down to $5000 or even $4000 as well, on the other side Bulls must be hoping that $6000 support is protected once again.
Crypto Market cap reached $275 billion
Market cap of crypto currencies reached the level of $275 Billion after a spike on 4rth July 2018, Bitcoin maintaining its dominance at 42% , making it the biggest crypto currency in the world.
Bitcoin price currently trading at around $6700 after a 3% spike in the price , making it jump from $6500 to $6700 within minutes, analysts are predicting that this recent upside movement in crypto market in weak and need to sustain these levels in order to attract more buyers, otherwise overall bearish market is still in control.
$7000 is a key level for Bitcoin
$7000 is very important level for bitcoin according to many technical analysts, If it breaks above $7000 and stays there then chances are that upside move will be healthy, otherwise bear will look forward to take control of the situation again.
Switzerland merging Cryptocurrencies with conventional banking
Switzerland is on the right track to become a Crypto nation and country is making efforts to allow cryptcocurrencies to fully access conventional banking .
Bitcoin and other crypto currencies has taken a big hit in brutal bear market of 2018 but that’s not stopping Switzerland to allow cryptocurrencies to fully access conventional banking system within the country. Switzerland is currently in progress and drafting rules and regulations for such collaborations.
Heinz Tännler, Swiss expert & finance director of Zug canton, told media earlier that politicians were moving to allow crypto companies to work with banks, adding that Switzerland’s central bank, financial supervisor and federal government “are willing to help”.
He said: “We hope to clarify relationships by the end of the year at the latest.
“Time is pressing, other jurisdictions such as Malta and Singapore are very active and making a lot of effort to attract these companies. The lack of access to bank services is a significant competitive disadvantage.”
“We have to push certain national institutions to resolve this problem quickly and effectively, but that now seems to be going well.”
Blockchain becoming the global phenomenon
The concept of Blockchain is interesting and attractive for all the countries, many countries may disagree on the existence and usage of cryptocurrencies, but all of them agree with the fact concept of blockchain is not going anywhere and governments can benefit from this technology in various fields, but if you ask any expert of blockchain, he would tell you that success of Blockchain technology has to be linked with existence of crypto currencies, without crypto currencies, and ecosystem can’t exist, many governments around the world are slowly recognizing the fact and Switzerland is definitely on the right track if they allow crypto currencies to work in collaboration with the Banks, because many banks around the world are not allowing crypto currencies to offer services through them, but this initiative will open many doors in that regards.
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