So much has been said about cryptocurrency and Bitcoin has been basking in the glory over the last 10 years. Critics have sat on the fence waiting for the market leader coin bubble to burst but nothing has happened. The current market bull-run is sending different signals.
In a recent video posted on YouTube by Bloomberg, it appears that Bitcoin is just more than a digital asset but the new stock market. Tim Draper during the interview argues:
“The number of Bitcoin in the market will not exceed the maximum supply of 21million. One bitcoin is just one Bitcoin and [what we are seeing happening is the rise in its value since the supply remains constant”
Crypto Market Volatility
On the issue of market volatility Draper goes on to say that it is not a new phenomenon since all currencies are exposed to it. The only difference is that Bitcoin is decentralized and the traditional currency is controlled by an authority.
According to Draper, Bitcoin and blockchain is transforming the world, however, the digital currency independence cannot be compared to fiat currencies that are controlled for the sake of influence.
Bitcoin Performance Surpassing the Stock Market
It is clear the Bitcoin performance this has shaken the fiat economy after outperforming the stock market ten times. According to a tweet by Morgan Creek Digital CEO, Anthony Pompliano last Friday when the BTC price hit the $8,662.85 mark, it reflected a spike of 111% compared to the stock market which grew by 12% since the beginning of the year.
Mati Greenspan of eToro added that April and May alone have seen BTC add over $2,000 surpassing the expectations of many. The same sentiments were also expressed by Draper adding that the investor fatigue could be behind the spike.
Draper added that renowned brands that are going public will not experience the massive growth by BTC and the stock market can only grow between 10 to 20%. This might shift focus on Bitcoin as the alternative investment choice.