Bitcoin investments may pose a real threat to the dollar

  • The conversion of cash to Bitcoin is a threat to traditional currencies.
  • The U.S. may impose a ban on cryptocurrencies if a threat is seen. 

Recently, the rate of Bitcoin investments in the U.S. has become increasingly worrying for its administration, with reports suggesting that a decision to ban the use of cryptocurrencies may arise. A famous analyst in the U.S. said that the government might have no option other than to regulate the digital currency once seen as a threat to the nation’s fiat currency, the dollar.

Bitcoin investments dominating markets

After Elon Musk’s Dogecoin tweets, Tesla is the recent top name to show interest in cryptocurrency. Presently, Tesla’s Bitcoin purchase is topping the charts as per Bitcoin investments. Now, every crypto investor is looking to convert cash into BTC. However, the cash conversion may have a negative effect on the value of the dollar. 

Last year, an analyst from JP Morgan spoke about Bitcoin investments. He claimed Grayscale’s GBTC investment dominated Gold ETF distribution in two years, thereby predicting that Bitcoin’s value will dominate the digital market and Gold will only come close. 

Bitcoin investments a real source of insurance for organizations

The recent investments in BTC by top companies like MicroStrategy and Tesla are a good source of insurance. However, these investments are threatening to destroy the value of the dollar. In contrast to the value of USD, Bitcoin is looking to hit $50000. If the trend of converting BTC to cash continues, the value of the dollar may yet decrease. 

Presently, the value of BTC is rising at a high rate, and it is expected that the quality of Bitcoin investments will increase as well. Tesla’s BTC acquisition is just a start as the world should expect more companies to follow suit. With more billionaires looking to add Bitcoin to their portfolios, the fiat system may be at the brink of extinction. One question that persists will be when or if cryptocurrencies may eventually end the reign of fiat currencies. 

Read more: Cryptopolitan

Bitcoin price to hit $100,000 Novogratz predicts

  • Mike Novogratz makes new Bitcoin price prediction.
  • Novogratz’s previous Bitcoin price prediction.

Popular Hedge investor and founder of crypto firm Galaxy Digital Michael Novogratz has said that Bitcoin price would hit $100,000 this year. He predicts that every company in the U.S would invest in Bitcoin this year.

The investor who said this in a Bloomberg interview reacted to Tesla’s recent Bitcoin investment. He said Tesla CEO, Elon Musk, is a genius for listening to people and investing in Bitcoin. “You’re going to see every company in America do the same thing. It doesn’t have to be a lot. It’s the messaging that matters, you’re seeing the herd here, and it’s coming, he said.

Why firms would invest in Bitcoin

The investor said that U.S firms would invest in Bitcoin as a Hedge investment and because of a falling dollar. He noted that a rising generation includes cryptocurrencies, Tesla, Solar stocks, and ESG investing. Novogratz said that young people are buying into the future as they see crypto as their currency.

He revealed that his firm’s coins are now worth over $760 million after they invested $134 million to buy 71,079 coins. He also said the richest man in the world has now invested in cryptocurrency, which he predicts has seen CEOs’ and CFOs’ thinking about investing in the crypto asset.

Bitcoin split (Image: MaxPixel)
Bitcoin split (Image: MaxPixel)

Michael Novogratz previous Bitcoin price prediction

Last year, the hedge investor predicted that the price of Bitcoin was going to hit $65,000 as he advised Maisie Williams to invest in the crypto asset. While responding to Maisie’s poll on Twitter on if she should buy Bitcoin, Novogratz said he expected the price to hit $20,000 before getting to $65,000 because of a “network effect” in which there are a ton of new buyers and low supply.

“So YES, buy it,” he said.

Back then, Bitcoin was priced around $18,480. Bitcoin began to surge in October when PayPal announced it would allow its users to buy, sell, and hold the cryptocurrency on its network. The price gained 70 percent in August alone last year. Novogratz has long advocated Bitcoin and said he expected its price to keep increasing as more people warm up to the idea of adding it to their portfolio.

Read more: Cryptopolitan