Central Banks Buying Bitcoin?

China


Everyone knows that Bitcoin (cryptos in general) had a terrible 2018 dropping over 80%. Now, investors still following Bitcoin (yes, there still are long term bulls) realize that there needs to be a new catalyst to push prices to higher highs. So, what could be the BIG catalyst? Institutions? New uses and adaption? Regulatory guidelines? Oh, how about CENTRAL BANKS? Don’t count them out. The head of research at Blockchain and research associate at the London School of Economics (Garrick Hileman) speculates that the main use for bitcoin today is as a store of value, better known as digital gold.

So, what would happen (and where would bitcoin’s price be) if, in fact, central bankers began hoarding “digital gold?” Easy answer; higher. But, before anyone scoffs or dismisses the possibilities, it is well known Russia has already dumped U.S. treasuries AND bought bitcoin. over the past year or two. What if a couple other central banks (South Korea, Japan, China, etc) decide to buy “digital gold” as well? Again don’t dismiss it. Just think…..”what if?” See below.

Bill Taylor/ Fintek Capital


“…Most central banks currently have a fractious relationship with bitcoin and cryptocurrencies, with many of them distrustful of the nascent technology and worried that overly-keen investors could create unmanageable bubbles.

The bitcoin and wider cryptocurrency market has had some $400 billion in value wiped from it over the past 14 months after the huge 2017 bull run, which was largely attributed to expectations institutional investment and big bank support for bitcoin would soon arrive. As 2018 dragged on and that investment failed to appear many investors and traders got cold feet, bailing out of their bitcoin and cryptocurrency positions.

Hileman added that recent regulatory developments have been positive for bitcoin and cryptocurrency market.

“When regulation tightens, we’ve seen the bitcoin price respond positively more often than not. It’s helped legitimize bitcoin … regulator have, by and large, not sought to ban bitcoin and other cryptocurrencies. In the early years of bitcoin there was a fear that bitcoin would simply be outlawed.”…”


Full Story at Forbes.com