Cryptocurrency enthusiasts, blockchain experts, Bitcoin investors and everyone in between will have noticed a significant spike in the value of Bitcoin this week, in like with what looks to be a very positive market indeed. Major cryptocurrencies such as IOTA and Ethereum have also taken on significant gains over the past few days, giving us investors a far more refreshing outlook as we enter the second half of 2019. Yep, we’re half way through the year already, can you believe that?
A theory is currently circulating that aims to pinpoint a reason for Bitcoins recent spike. The theory is a simple one, yet does offer some insight into what could be going on in the markets. Billionaires are buying Bitcoin en masse, pumping their billions into the markets. These things work by supply and demand, so as supply decreases, demand goes up, with demand comes a rise in price - bad for those that are currently buying but good for those who bought at an earlier time. So, you might ask exactly how are these billionaires now starting to get into Bitcoin? Forbes have an excellent theory that goes some way towards explaining this:
“The Dadiani Syndicate was set up by art dealer Eleesa Dadiani who first began using bitcoin and cryptocurrencies a few years ago in response to investor demand and is operated out of the same office as Dadiani Fine Art. Last year, Dadiani Fine Art, in partnership with blockchain platform Maecenas Fine Art, made headlines after putting 49% of Andy Warhol’s 1980 work 14 Small Electric Chairs up for sale for bitcoin and other cryptocurrencies via the ethereum blockchain.”
Billionaires are creating syndicate networks that allow for the purchase of Bitcoin as a medium of value transfer. In the same way art networks are set up to allow art collectors to swap and trade their art pieces, networks are being set up to allow very rich people to trade cryptocurrencies with each other:
“The Dadiani Syndicate is described as a peer to peer network, with people trading between each other; Dadiani claims her role is to put together people who want to sell and those who want to buy, just as she does in the art world.”
By creating such networks, exclusive loops are set up that allows billionaires to trade directly with each other, away from exchanges, giving them a far more exclusive service and in turn, encouraging the trade of large amounts of cryptocurrency. When this happens, more money flows into the markets and we see spikes in the markets value. So perhaps this is what’s pushing the markets along this week - or, is there something even more exciting that we’re yet to find out about?