Will the central bank include Bitcoin as a reserve currency?


 134 total views

There is a recent article on Newsbtc “Whales Dump Ahead Of Bitcoin ATH, More Than 93K BTC Sold Since Peak”. The article mentions such events:

Just when the price of Bitcoin was just one step away from creating a historical peak, the giant whale holding Bitcoin began to transfer BTC to centralized exchanges like Coinbase on a large scale.

The giant whales began to sell up to 93,000 bitcoins when the bitcoin price reached 19,600. As of writing, the price of bitcoin was about $17,700, a 9.7% drop from the peak.

The release of such selling pressure will indeed put a lot of pressure on the currency price. I am afraid that the market cannot recover in a short time. Because other big players are likely to have similar ideas to join the sell-off, coupled with the shortage of funds at the end of the year, the market will be in a sideways or even continue to fall in the short term.

In terms of this selling alone, I think it is not worth it, because the current price is obviously still in the early stage of the big market. Losing the bargaining chip so early is undoubtedly equivalent to giving up the greater gains that may come later. And for the giant whale, it is difficult to buy back these coins at a suitable price in the short term. Because of the huge whales’ buying, their size can easily cause prices to soar in the short term. I am afraid that if you want to buy back quietly, you will have to wait for the big bear market to come again a few years later.

READ  Crypto Market Analysis: 17th August 2020

Jiang Zhuoer mentioned this view in a recent sharing: Central banks of various countries will eventually include Bitcoin in their reserves. It is only a matter of time.

I very much agree with this view, and even think that this point in time may come sooner than we thought. Because the consensus and value recognition of Bitcoin has gradually spread from hackers and ordinary people to traditional investors and institutional investors.

One of the most important reasons why everyone is so active in buying Bitcoin is to combat the actual shrinking of wealth caused by the abuse of legal currency. The central banks of various countries who are the initiators of the abuse of legal currency are more aware of the harm of their actions and are more concerned about the risk dispersion of their reserves. Therefore, when Bitcoin enters the investment range of institutional investors, it will not be far from entering the reserves of central banks.

In fact, the Iranian government has already begun to hold Bitcoin. Of course, it is not for the wealth effect of Bitcoin, but to circumvent the financial sanctions imposed by the US government. I believe there will be more and more such governments and central banks. Bitcoin has truly entered the mainstream financial circle, and the time required to establish its status as the king of the digital age will definitely come faster than we think.

In the past two days, PlusToken was finally sentenced and became a hot topic in many currency circles. A lot of details about the trial have been disclosed online, but what I am concerned about is the final whereabouts of the Bitcoin held by the gang.

READ  Here’s How Bitcoin’s Uptrend Will Likely Translate into the Next “Altseason”

According to relatively convincing news on the Internet, the 194,000 bitcoins held by the gang were nationalized, but what is interesting is that these bitcoins were finally entrusted to “Beijing Zhifan Technology” and sold. What’s more interesting is that the second shareholder of this “Beijing Zhifan Technology” was found to be a Huobi shareholder.

So judging from this news, it is very likely that these 194,000 bitcoins were sold out through the exchange. According to reports, the price of these 194,000 bitcoins is probably between $7,000 and $11,000.

All collected coins may be handed over to the state treasury, and the state treasury may still have to go through the exchange to release these coins. This can also prove from the side that the exchange will still exist for a long time in the future. This is the biggest point in this information that I think.