Bitcoin is the market leader, the cryptocurrency best associated with cryptocurrency and of course, the one to watch for the future. Not necessarily in investment terms, but in terms of its ability to reflect what could happen in the future.
What we mean by this is that Bitcoin can be used to tell us how the markets will perform. By monitoring how Bitcoin responds to certain events, we can make better estimations on how the altcoins will perform too. Therefore, it is just as important to look at Bitcoin when prices are low, as well as when prices are high. One expert, the Founder of Miller Value partners, Bill Miller has done just this, stating that the current price of Bitcoin allows more money to flow into the system, which in turn means Bitcoin will rack up value in the future.
According to CCN, Miller told Bloomberg:
“Every day that it doesn’t blow up or go to zero or get regulated out of existence, more money flows into the ecosystem.”
Here, Miller is referring to the depleted price of Bitcoin. Granted, of late Bitcoin, has made somewhat of a recovery, beating the $8,000.00 threshold on a number of occasions, however we can’t forget that even $8,000.00 is way off the $20,000.00 target for Bitcoin. Because of this, every day that Bitcoin doesn’t surge up to $20,000.00, Miller believes that it in encourages more money to flow into the markets. Moreover, every day that Bitcoin doesn’t hit zero and every day Bitcoin doesn’t get hit with regulations, the same thing happens.
In essence, Miller believes that the ‘boring’ and ‘bland’ market we see at the moment, is a good thing in the long run for the price of Bitcoin.
Moreover, according to CCN:
“Miller notes that the best way to think about bitcoin at this moment is as a non-correlated asset most similar to gold. Other potentials of bitcoin that he points out include its possibility to become a payment system, a viable currency, and the likelihood of central banks around the world to think of it as another potential asset. These are factors that he notes will open the market up significantly.”
Within this Miller is also referring to a second possibility for Bitcoin, one in which volatility decreases and Bitcoin becomes less of an investment, but more of a viable currency. This is the view of the cryptocurrency adoption camp, many of whom believe that Bitcoin is more beneficial as a means of currency with a store value. It is this potential and this possibility that is still encouraging people to pump money into the markets, thus, eventually moving the price of Bitcoin up dramatically.
Miller believes that as it stands, the markets are static and un-entertaining. This, is a good thing. The low price, lack of regulation and the fact Bitcoin is not worth $0.00 means people are pumping money into the markets. Moreover, the possibility of adoption and a world built around cryptocurrency also means investors are keen to buy now before it’s too late. This flow of money, is encouraged by today’s boring markets, therefore today’s bland values will contribute to tomorrow’s bull runs and market surges.
On a final note, please remember that Miller is not a financial advisor, therefore this is not investment advice, though Miller’s words do ring true in some sense. It’s easier to buy now so people are doing so. These low values won’t last forever.