A new report by cryptocurrency fund manager Grayscale Investments shows that the current market structure of Bitcoin (BTC) “is the same as it was in early 2016, before it began its historic uptrend”.
Grayscale predicts that the demand for Bitcoin will grow exponentially as inflation rises, underscoring the need for scarce money and backing up the arguments for using cryptocurrencies.
The report identifies several signs in the chain showing increased interest in cryptocurrencies, indicating an increase in long-term involvement in short-term speculation amid historical lows in the number of bitcoins held on exchanges.
Grayscale also notes that daily active stocks have hit an all-time high since 2017.
The report confirms that monetary easing following the US abandonment of the gold standard and beyond has led to cycles of debt-driven asset bubbles, followed by violent quantitative easing.
Grayscale indicates that the US economy is increasingly relying on quantitative easing (printing money) to stay afloat, and this story shows that it’s difficult to end addiction as the S&P reacts to the Confederation has fallen 20% in three months The reserve’s plans to reverse their monetary trend. Expansion in 2018.
While the US dollar remains “structurally strong” versus other currencies, the report confirms that investors worried about inflation in the face of “unprecedented fiscal and monetary stimulus” are looking for ways to stay ahead of the ever-increasing money supply to protect – what the status of Bitcoin as a store of value.
Grayscale cites a rating system used by hedge fund manager Paul Tudor Jones to rate the characteristics of Bitcoin based on money, gold and financial assets and to determine market growth potential.
Citing Jones, the report found:
“What surprised me was […] that Bitcoin achieved the highest number of points. Bitcoin had a total score of almost 60% of the financial score, but its market value was 1/1200 of that. It recorded 66% gold as a store of value. However, the market value is 1/60 of the outstanding gold value. “”
Jones concluded, “Something looks wrong and I believe in the price of bitcoin.”