The father of cryptocurrency is still trading for over $6,600, which is where it’s been since the weekend. The currency is managing to retain its ground despite a few ups and downs in the market.
ETFs are Coming …
One source lists several reasons as to why bitcoin is becoming more mainstream, and why its price could climb significantly in the coming weeks. The first is that bitcoin ETFs continue to expand and take precedence in the financial market, and while the Securities and Exchange Commission (SEC) has been slow to accept the idea of an ETF behind bitcoin, they’ve spent time looking into how it could come about.
The recent news stemming from the VanEck SolidX Bitcoin Trust is proof of that. Yes, the decision was slated for the end of the week on September 30, but the SEC has chosen to postpone this decision and move things to December. This isn’t necessarily the wrong move to make. Creating an exchange traded fund based on what has thus far been a relatively volatile currency is a risky thing to do.
The SEC isn’t necessarily saying “no,” but it has stated that it seeks to receive more information and opinions from industry professionals before it can officially decide how best to approach such an ETF and the circumstances surrounding its creation.
Even Credit Cards See Its Benefits
The second reason is because credit card companies like Mastercard have developed patents on items and products designed to hasten cryptocurrency payments. These ventures probably realize by now that a large majority of their customers are turning to crypto either for investment or everyday spending purposes. They realize digital assets are growing in power and appeal to most customers, and they’re doing something to capitalize on this and give their clientele what they want.
Thirdly, institutional investors have flocked to cryptocurrency like sheep over the past few months. For example, Goldman Sachs announced in May that it was developing plans for a new bitcoin and cryptocurrency trading desk, though it has yet to solidify a formal timeline or due date on the project. In addition, as the reality of a bitcoin ETF begins to grow stronger, more Wall Street players may find themselves more attracted to the crypto arena.
Lastly, momentum for bitcoin and its crypto-cousins is building daily. For example, day-to-day transactions surpassed 230,000 in July, the highest it’s been since the beginning of 2018. More on-chain transactions suggest that the demand for cryptocurrency is continuing to grow, and decentralized technology is experiencing higher levels of popularity and necessity in people’s eyes.
The Price – It’s Going to Grow, People
Another source is suggesting that even stronger, higher jumps are in store for everyone’s favorite cryptocurrency due to what’s known as a “parabolic super trend” that bitcoin tends to follow consistently. Eventually, it states that not only will bitcoin surpass its all-time high of nearly $20,000, but it could potentially spike to $50,000, $250,000, or even $1 million in the future. Apparently, men like Tim Draper aren’t that far off.
As one of the world’s most prominent venture capitalists, Draper has been explaining for months how bitcoin is set to reach $250,000 by the year 2022. Despite consistent fluctuations (i.e. falling from $8,000 to $6,000 in July and $7,000 to $6,000 in August), Draper has stuck by his words and believes that blockchain technology will soon replace the software one typically finds with standard financial institutions.
Big Predictions for Bitcoin
In a recent interview, he states:
“I am more confident in my bitcoin than I am in the U.S. dollars in Wells Fargo… [Blockchain] is so important for everyone. This is the beginning of something that’s bigger than the internet ever was. The internet went after information, communication, gaming and entertainment. They are all $10 billion to $100 billion-dollar industries. Maybe [one or two are] trillion-dollar industries.”