Digital Gold Bitcoin!

A question that has long been preoccupied with Bitcoin followers is how to value it. The answer was already given by, as we've seen lately, influential people like Elon Musk and star-exchange expert Cathie Wood. The leading crypto asset took a big leap this month as influencers step in. BTC has hit a record high after Tesla announced that it was converting $ 1.5 billion of cash into Bitcoin. Tesla CEO Musk then suggested that prices "looked high" and Bitcoin took a downward pull. Prices rose again after Wood Bloomberg, the investment star and founder of ARK Investment Management, said in an interview with Bitcoin that his outlook on Bitcoin was “very positive” and that he would be pleased to see a price correction. The interview with Wood came after Square reported that it purchased $ 170 million worth of Bitcoin this month and that nearly half of its revenue in the last quarter came from Bitcoin. In an interview with Twitter and Square's founder Jack Dorsey Quartz, he reiterated his comments that the crypto asset has the potential to become the internet's local currency. ARK owns large shares of Tesla, Square and Bitcoin in the funds it manages..

Valuing Bitcoin is very difficult when it comes to speculation!

The original crypto asset does not generate cash flow, this is an important metric for calculating the value. Bitcoin is generally not dependent on a fluctuating government based on interest rates, economic growth or inflation. As Nobel Prize winner Robert Shiller told Quartz during the Bitcoin boom in 2017, "Big things will happen if someone invent the right story and spread it." The supply of crypto assets is constant, unlike fiat currencies, Wood added to Bloomberg, adding that Bitcoin is a better shield against inflation than gold. In June, ARK analyst Yassine Elmandjra said, "We believe that Bitcoin, often referred to as digital gold, has many features of gold, as well as enhancing these features." So, the future of Bitcoin, created in 2009, may depend on whether it can gain some kind of reputation as gold has developed over thousands of years of value protection. More than 3 million customers bought or sold Bitcoins last year on Square's Cash App alone. In January, more than 1 million bought Bitcoin for the first time. Now everyone knows Tesla, Square and MicroStrategy have allocated some of their cash assets to Bitcoin. However, other CFOs may not think this is such a smart idea. Naresh Aggarwal of the Association of Corporate Treasurers in London said in an interview with the New York Times that doing this is more like “putting money in a horse race” than being cautious about cash reserves. Source: https://qz.com/ You may also be interested in this:

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