Bitcoin has exploded since October, rising from its long-standing support level of $ 10,000 per bitcoin to all-time highs of nearly $ 35,000.
The price of bitcoin rose more than 300% through 2020, a rally that included a 50% crash in March amid the coronavirus collapse. Meanwhile, ethereum, the world’s second largest cryptocurrency, rallied even stronger – climbing 600% in the past 12 months.
Now, as bitcoin and cryptocurrency investors try to call out exactly how far this already huge rally will go, Ethereum co-founder Vitalik Buterin has revealed what he believes is an “underrated” deal. for crypto.
“One of the most underrated cases for cryptocurrency that I have always believed is simply the fact that gold is lame, the younger generations are realizing that it is lame and that $ 9 trillion have to go somewhere, ”Buterin wrote in a recent 2020 wrap-up blog post, referring to the total value of gold mined around the world.
Bitcoin’s reputation as ‘digital gold’ has grown in recent months, supported by a wave of high profile investors who have pointed to bitcoin as a hedge of emerging inflation.
“If the gold bet works, the bitcoin bet will probably work better because it is thinner, more illiquid and contains a lot more beta,” said billionaire investor Stanley Druckenmiller, who, along with fellow investor George Soros, bet against the British pound in 1992 and made huge profits, said in November.
During this time, repeated inquiries (as well as interminable and often hilarious anecdotes) found that younger people are much more inclined to buy bitcoin, ethereum, and other cryptocurrencies than older groups. And most of those investigations predate the coronavirus pandemic forcing governments around the world to rack up even more debt on the shoulders of young people.
We are now in “a world where blockchains and cryptocurrencies are well positioned to play an important role, albeit for reasons far more complex than many realize, and having as much to do with cultural forces as anything financial, ”Buterin wrote, arguing. “solutions based on public blockchain [will] Just keep taking it easy and getting real adoption. “
Elsewhere, other influential voices in tech and cryptocurrency echoed Buterin’s comments.
“I think governments will respond to all of these economic challenges by continuing to print unrestricted fiat currency and tax and regulate new innovative companies to protect old and dying companies,” wrote Fred Wilson, a venture capitalist. , in a blog post outlining his forecast for the coming year.
“This will lead investors to continue to allocate capital to new forms of currency (crypto) and new ways of creating and funding innovation (decentralized projects and organizations).”
After an explosive start to the year in which the vast bitcoin and cryptocurrency market added $ 100 billion in just a few days, 2021 is shaping up to be a big one for crypto.