Just as the entire market seems to stabilize and get in the green zone, rumors that the market will be shaken, are in the crypto news again because the Finance Minister of Germany, Olaf Scholz claims that cryptocurrencies aren’t eligible to replace traditional fiat currencies.
Mr. Olaf briefly said:
‘’ I would doubt today, whether it has a perspective as a currency model.’’
He also made a comparison between cryptocurrencies and the tulip fever bubble that happened in the Netherlands back in the 17th century said that this is a much bigger stake in the game and that the danger of such tulip inflation is far greater.
He addressed that the main issue is the incredible amount of energy computers use to process crypto transactions and also the costs that occur with that spending. The process is highly energy-intensive, but as a matter of fact, he was not happy to explain his views about this issue in 10-20 years time.
According to Scholz, regulators should be over their heads with work trying to regulate and observe cryptocurrencies since they are the perfect tool for money laundering and financing terrorism. He also noted that cryptocurrencies don’t really have any kind of economic significance today.
Just a few weeks ago, European legislators met in order to share their concerns over cryptocurrencies and also the possible solutions that can be applied to problems with digital currencies. They also discussed the possible regulation of ICOs saying that they are a very interesting instrument for raising capital. They all agreed that crypto needs further regulation and that regulation is in the best interest of cryptocurrencies.
Bitcoin Bounces Back Near $10k, Analysts Aren’t Convinced Of A Run
“Bitcoin had a nice bounce that tapped the previous 4hr chart low and I honestly think it needs to push up more before continuation down,” investor and trader Josh Rager wrote in his Bitcoin price update on Twitter late Wednesday.In the altcoin news, we can see that the increased momentum and the fact that Bitcoin bounces back has made a lot of altcoins wake up. It seems like Bitcoin's move to the upside has a more profound impact on the altcoin markets which had long failed to halt their declines. A lot of tokens in the top 20 cryptocurrencies by market cap showed improved performance on Thursday, with Ethereum (ETH) gaining 6.1% to hit $217. Litecoin (LTC) has also been growing as Bitcoin bounces back - it managed to post 15% gains while the embattled Bitcoin SV (BSV) also achieved double-figure growth. Previously, the bearish warnings had appeared - specifically from Brandt - suggesting that altcoin markets would not recover at all after the Bitcoin gains eclipsed them in 2019. The price of Bitcoin is stormy and its dominance sits at 65.3%. The total market cap has also regained a bit, and is currently at $268 billion.
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Bridgewater Founder Ray Dalio Makes A Bullish Prediction For BTC
“Additionally, for reasons I will explain in the near future, most investors are underweighted in such assets, meaning that if they just wanted to have a better balanced portfolio to reduce risk, they would have more of this sort of asset. For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.”The Bridgewater founder advocated that gold is the only right option to choose for everyone that is looking to diversify their portfolio just in a time where most of the world seems to be investing in equities. This is not the only reason why Dalio believes that gold will witness a major surge in inflows. According to him, the global conflicts and the depreciating value of money will force them to go on the way back to safety. Gold will be the only asset to choose from for all the investors that are looking to store their wealth at a time when the central banks are trying to keep the interest rates low. Dalio’s comments could make sense a decade ago when bitcoin was first launched. Gold is universally considered to be a safe-haven asset that the investors buy in order to protect their wealth in difficult times. Bitcoin, on the other hand, is gaining the confidence of institutional investors and there are only a few people who believe that the cryptocurrency will replace the gold. Dalio somehow forgot that the times have changed and bitcoin is now considered as the perfect replacement for gold as noted in the coming altcoin news previously.
Bear Euphoria Continues As Bitcoin Plummets Below $10,000
“Bull market corrections are unavoidable and should be welcome. Assets that go too far up too fast tend to crash the hardest. As everyone who speculated with the price of bitcoin during 2017 and 2018 well knows.”We can also see the Bitcoin hater Nouriel Roubini who is featured on many best cryptocurrency news sites for his pessimistic statement towards BTC and optimistic towards the Trump-Congress hearings. He said:
“Bitcoin has crashed by almost 30% in the last week and over 15% in the last day. As Congress, Mnuchin, Trump and myself point out that the criminal scams of crypto shitcoins-land will be cracked down on, the scammers and criminals know their days of unregulated casinos are gone!”As a reminder, the bear euphoria has made BTC correct more than eight times during the previous bull run - and Bitcoin lost more than 30% in the same period before reaching the all time high close to $20,000 at the end of 2017.
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