Ah 2022. What joy you’ve brought into our lives. Omicron, stock market falls (not quite a crash yet), inflation out of control… And a sale on Bitcoin! Yay!?
When I wrote about El Salvador choosing Bitcoin as a currency, the price was around $65k. This current ‘crash’ has it hovering at around $60k. The annoying part is that in between, it peaked at about $92k in November. Wouldn’t that have been a great time to sell!
So will Bitcoin’s price fall further?
How’s your crystal-ball gazing? Anyone who tells you that they know what’s going to happen with Bitcoin pricing (or anything else really) is speculating.
This week I have read articles saying that the experiment has failed and Bitcoin will go to $0. I’ve also read an article that says that it will go to $500k USD. I think reality will be somewhere in the middle and I really hope it’s closer to $500K than $0!
Inflation protection
As inflation hits a 40 year high in the US, it makes sense to me that people would look for assets that are likely to protect them from inflation. Bitcoin should be able to be counted in that category, but it’s still so unpredictable nobody can say for sure. The same way that people in the past bought gold to secure against inflation, Bitcoin has been called Digital Gold (though I’m not sure that it’s earned that nickname as yet!).
And while its price dropping is a little depressing, the stock market hasn’t been looking great lately either – just saying!
Crypto countries
Fidelity Digital Assets just produced their research round-up report stating that if adoption continues, countries that secure some Bitcoin now will be better off than their peers. They seem to be saying that countries should buy some whether or not they believe in it, as insurance for what might come in the future. If it truly reaches worldwide adoption, those who didn’t grab any while it was ‘on sale’ might be left out in the cold!
Bitcoin adoption
At the end of the day, this is a totally new currency, and the world is still figuring out how to use it. The proliferation of so many other crypto coins doesn’t help matters.
With big businesses like Starbucks, Maccas and Wendy’s accepting Bitcoin in El Salvador, there is definitely an avenue emerging for it to be as simple to use as Apple Pay. Whether it gets there is anyone’s guess.
All I know is that I never could resist a sale 🙂
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