As Bitcoin continues to discover new prices, not all are on the side of BTC and its future. NYU economist Nouriel Roubini still believes Bitcoin “is a bubble”.
The Bitcoin price prediction analogies are no longer valid for long lately as the asset defies gravity by the day. The top digital asset by market capitalization set a new high yesterday of slightly above $52k. Moreover, BTC is on verge of entering the $1 trillion market cap level.
According to metrics provided by CoinMarketCap, Bitcoin was trading around $51,586.90 after dropping approximately 1.23% in the last 24-hours. Besides, the asset had a market capitalization of approximately $963 billion, whereby its fully diluted market capitalization was around $1.08 trillion.
BTC Market Cap Increasing amid Growing Interest of Institutional Investors
Institutional investors can no longer afford to assume the crypto industry in the name of a bubble. The real utility is driving the ongoing bull rally combined with speculation from retail traders. The competition is getting stiffer in the top ten digits assets by market capitalization with new projects popping up. One notable of such projects is the Binance with its BNB token that has rallied to the top three digital assets.
The decentralized nature of the crypto industry makes it difficult for any government to entirely control the market thus making most currencies inferior to digital assets. However, different central banks are working on developing a central bank-backed digital currency alias CBDC. China is already miles ahead of most countries as it has significantly rolled out its digital Yuan.
There are significant differences between the ongoing rally and the 2017/2018 one. First, the 2017/2018 Bitcoin rally was significantly fueled by retail speculation. Secondly, the initial momentum was slowly marred with high-level pullbacks. However, the ongoing bull rally has involved institutional investors who are buying Bitcoin mostly to add in their balance sheet. Led by MicroStrategy Inc (NASDAQ: MSTR), and Tesla Inc (NASDAQ: TSLA) that have already purchased billions worth of Bitcoin. Mind you, Tesla has already made more profits in Bitcoin investment than its core business in the past year.
As Bitcoin continues to discover new prices, not all are on the side of Bitcoin and its future. NYU economist Nouriel Roubini on Wednesday told Bloomberg that he thinks bitcoin “is a bubble” whose demise is imminent. “Fundamentally, bitcoin is not a currency. It’s not a unit of account, it’s not a scalable means of payment, and it’s not a stable store of value. The Flintstones had a better monetary system than bitcoin,” he noted.
On the other hand, Nicholas Pelecanos, head of trading at blockchain company NEM thinks we are just in the beginning of what will possibly take over the global economy.”This is just the start of a trend which could see billions of dollars flow into the crypto space over the course of 2021.”
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