Cointelegraph says that in a post from the day before, Kiyosaki said that this “shift” could happen as soon as January 2023, with the US dollar “crashing” as the British pound did recently. Check out how Bitcoin facilitates financial stability. This was based on Kiyosaki’s post from the day before, which said that this “shift” could happen as early as January 2023.
Kiyosaki has been pushing for asset classes that the Federal Reserve can’t change directly since May 2020. In response to the COVID-19 outbreak, the Fed quickly made a lot of money, so he told investors, “Get Bitcoin and save yourself.”
Trading Economics says that the value of the US dollar has been going up over the past year compared to other major world currencies. During this time, the British pound, the euro, and the Japanese yen lost 18.24%, 15.54 %, and 23.33% of their value against the US dollar.
Why is the price of Bitcoin skyrocketing?
Bitcoin’s price increases because more people want it when fewer units are available. Even though the total amount of Bitcoin grows daily as more are mined, the amount that can be bought depends on whether or not people who already have Bitcoin decide to trade or sell it. At Chainalysis, we measure this by tracking how much Bitcoin is in wallets that have sent less than 25% of the Bitcoin they’ve ever received.
We compare this to the amount of Bitcoin held in “liquid” or “trader-held” wallets that can send more than that amount. The following graph shows how the price of Bitcoin and the number of Bitcoin in each category have changed since January 2017. This number shows how the market worked during the recent price increase and the price spike in 2017.
During the bull run in 2017, when the price of Bitcoin went up, there was about the same amount of liquid Bitcoin as there is now. But people keep a lot more money in wallets that can’t be used to get cash. Currently, it’s worth 77% of the 14.8 million Bitcoins that have been made and aren’t thought to be lost.
This means that the cryptocurrency has been at its current address for at least five years and has not been moved. Because of this, only 3.4 million Bitcoins are left in circulation, even though more and more people want them. Demand is growing because more money is going into exchanges and more activity.
What is different about this surge from the one in 2017?
The most important difference is who buys Bitcoin and why. In 2017, most individual investors were the ones who bought bitcoin with their own money. Many of these buyers had different levels of knowledge and experience with cryptocurrency. Anyone who keeps up with the news knows that big money will start to flow into Bitcoin in 2020.
Bitcoin is used by both big businesses and big financial institutions. Square, for example, has put $50 million, or 1% of all its assets, into bitcoin. Paul Tudor Jones, who runs a hedge fund, has said that buying Bitcoin is like investing in Apple or Google when they were just starting.
Institutions seem to be rushing to buy cryptocurrencies because they want to protect themselves from macroeconomic uncertainty, which has been easy to find this year. Jones said it best when asked about it: “In March and April, it was clear that we were living in a time that had never happened before. This was because of the Fed’s monetary policy and the amazing quantitative easing of it and other central banks. People had to think about how to keep from being hurt by inflation.”
The bitcoin market should be happy to hear this
Even though we don’t know if prices will keep going up or not, Bitcoin’s recent price increase is good news for all cryptocurrencies. This is true not just because prices are rising but also because of why they are going up. Since the last bull run in 2017, investors have become more innovative and better at planning. People don’t buy Bitcoin anymore just to bet on the newest and best asset.
