ForexMinute.com – Detractors never went away from the Bitcoin market. The ‘see-I-told-you-its-a-fake-investment’ attitude arises almost the moment Bitcoin charts display negative volatile behavior. And amusingly, such sentiments are arising even now, at this very moment, when Bitcoin is hinting to hit another low, twice within a month.
But rather than blaming a fresh cryptocurrency whose adoption is in the infant stage, one must also focus on the US Dollar strength over the last 6-12 months against other leading trading assets, such as oil. Certainly no one would call the great ‘Crude Oil Brent’ a fake investment, or a Ponzi scheme. The fingers are only reserved to point towards a decentralized commodity-currency Bitcoin. Look at these 6-month charts to have an in-depth analysis of both Bitcoin and Crude Oil rats against the US Dollar.
We can see how the USD is getting pumped against the two trading assets. Indeed, the scaling of both the charts are different but the core point here is that other commodities are losing their shine periodically. Oil, due to its wider adoption and applications, is still strong if compared to Bitcoin, whose adoption has just started to fruit results. Those who are trying their hopes with Bitcoin, just because it was overpriced sometime back, need to understand that the chances of it happening again simply depends on the strength of the USD.
In the meantime, Bitcoin growth rate is turning out to be exponential in the last few years. Around the launch of first Bitcoin exchange Mt. Gox in July 2010, the total amount of moved Bitcoins were recorded to be around 1 million. Now the number has increased to around 7.5 million. How could one possibly think that Bitcoin will be a worthless currency in the future, just because it is stumbling a bit due to technical reasons?
I think oil traders will agree with me on this.
To contact the reporter of the story: Yashu Gola at email@example.com