Bloomberg editor Joe Weisenthal put forward 6 arguments, saying that 2020 was a disappointing year for Bitcoin, the biggest cryptocurrency with its market value.
With the coronavirus epidemic seriously affecting the world, many experts stated that Bitcoin’s time is about to come. Mike Novogratz, CEO of Galaxy Digital, was also among those who made this comment. According to the comments made; Bitcoin started 1-0 ahead in this period. In addition to the US Federal Reserve’s FED pressing and creating inflation, inflation in Bitcoin was decreasing as block rewards halved. Bitcoin is seen as a precaution against uncertainty occurring all over the world and wanted to remain a digital version of gold in the chaos experienced. According to Bloomberg’s famous editor, Bitcoin has missed this opportunity.
Bloomberg editor Joe Weisenthal suggests the following arguments in a market briefing on the subject:
1- Comments that he was going to fly in crisis
“Despite all market volatility and turmoil, Bitcoin failed to break its general falling trend and go to regions where it will reach new records. In this case, it frustrates the comments that BTC will “fly” in an economic crisis. ”
2- Portfolio is not good at diversification
Weisenthal also mentioned that the correlation between Bitcoin and traditional markets in recent months was very clear. As you can remember, on March 12, all markets in the world had a great collapse with the crisis and Bitcoin followed the markets. The price dropped from $ 9,000 to $ 4100 in two days. Later, with the recovery of the markets, things got in the way of Bitcoin. Due to this situation, Weisenthal states that the arguments that Bitcoin diversified its portfolio also weakened.
3- “Digital gold” narrative did not work
Weisenthal claimed that Bitcoin’s digital gold narrative was weakened during the crisis, as it did not display any safe haven features. “Despite the digital gold narrative, it basically acted the same as Ethereum during the crisis,” said Bloomberg editor. It did not display any private secure ports. ” says.
4 – Bitcoin half-flop was fiasco
As it is known, one of the biggest arguments for Bitcoin is that it has a steady rate of inflation that decreases over time until it effectively reaches zero. BTC is generally viewed as an asset that opposes high inflation, such as the US dollar, and, in some cases, to hyper-inflationary money. A symbolically important moment of this monetary policy of Bitcoin was ‘halving’, where block rewards on May 11 were halved. This situation, which halved the supply and took place every four years, has had no effect on the price increase until now.
Regarding ‘halving’, Weisenthal said, “Many Bitcoin investors saw the halfway as the igniter of the price hike, but nothing happened. Even Bitcoin has outperformed Ethereum since halving. ” used expressions.
5- Money printing did not create inflation, money did not collapse
Weisenthal said that although the FED went to print and expand a lot of money, Bitcoin players did not have huge inflation as expected: “The FED went to print and expand a lot of money. The states in the world are in debt, however, as many Bitcoin players expected, there was not much inflation, the money did not collapse. So the popular stories of Bitcoin have not been realized. ”
6- Young people discover exchanges much easier
Weisenthal recently pointed out that young people have begun to discover popular apps that can trade on traditional exchanges such as Robinhood. In other words, we can say that a new competitor has appeared in Bitcoin where people invest due to its volatility and market movements. ”