- When To Pull Out Of Bitcoin Exchanges
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- Can You Pull Your Money Out Of Bitcoin
- When To Pull Out Of Bitcoin
Satoshi Nakamoto, the creator of Bitcoin, has been shrouded in mystery ever since he invented the cryptocurrency in 2009. We take a look at the people who have been suspected ...
Satoshi Nakamoto, the creator of Bitcoin, has been shrouded in mystery ever since he invented the cryptocurrency in 2009. We take a look at the people who have been suspected to be Nakamoto over the years.
Bitcoin could plummet again or continue to rally as the cryptocurrency starts to drop. Picture: Ozan Kose / AFPSource:AFP
After surging past $42,000 per coin for the first time in history, Bitcoin has started to pull back.
Will the world’s most popular cryptocurrency plummet like it did in the past or continue to rally at high levels?
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Australian market analyst Kyle Rodda has been watching closely at its activity.
“Last night’s price action showed how wild trading Bitcoin can be in the short-term,” he said. “It shed as much as around 17 per cent yesterday after coming close to that US$35,000 (A$45,500) level, before bouncing back late in US trade once again.”
Mr Rodda is sceptical about how long this surge will last.
“We are still seeing price driven mostly by momentum and speculation,” he told news.com.au. “There’s a level of popular hysteria in the price at the moment, which I think suggests the rally we’ve seen in the past fortnight is on shaky ground.”
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Bitcoin dropped overnight but is still sitting in just below the $42,000 mark. Picture: Ozan Kose / AFPSource:AFP
Mr Rodda emphasised that it’s important to have a long-term view of any asset and not get caught up in the short-term mania.
“Like any asset in financial markets, and particularly ones driven so much by sentiment, Bitcoin can look overbought in the short-term, while still possessing a reasonable case to buy or hold onto it in the long-term,” he explained.
“These sorts of rallies tend to peter out when the mood of the market shifts, and speculators grow tired and either pull their profits or cut their losses,” he said.
“In saying that, in a financial universe where liquidity is ample, monetary policy loose, fiat [government-backed] currencies debased, and investors are looking for alternative stores of value, having some exposure to crypto currencies is not a bad bet.”
RELATED: ‘World has changed’: Bitcoin price surges
The cryptocurrency has surged since October and reached a peak in December 2019 and January 2020. Picture: Ozan Kose / AFPSource:AFP
SHORT-TERM VS LONG-TERM GAINS
Mr Rodda believes the recent surge we’ve seen will eventually flatline but maintains the view that Bitcoin is one to watch for the long-term.
“Are we heading for a crypto-crash a la 2018? My personal view is I think we’ll see a correction in price that will see Bitcoin back in the low 20,000s to mid-10,000s in the short-term, so in the next few weeks to months,” he said.
“In the longer-term, I see the outlook being constructive for Bitcoin.”
He added it’s important to understand the risk factors when investing.
“The key lesson for traders or investors is to understand the risks of a very volatile asset and exercise caution,” Mr Rodda said.
“If buying up here to hold for the long-term, then showing patience and a relatively high tolerance for pain is required. There’s also a lot of sense in waiting until the exuberance comes out of the market before making a foray into Bitcoin and other cryptos.”
RELATED: Cryptocurrency bitcoin hits record high
Bitcoin is one to watch in the long-term, according to Kyle Rodda. Picture: Ina Fassbender / AFPSource:AFP
IT COULD CONTINUE TO SURGE
Australia head of global cryptocurrency company Luno, Byron Goldberg, told news.com.au that the recent surge in Bitcoin could be just the beginning of a wild ride for cryptocurrency in 2021.
“Search trends for Bitcoin are only starting to rise, still only a fraction of what they were at the peak of the 2017 high, implying we are only at the beginning of the bull run,” he told news.com.au on Monday.
“This bullish news also relieves the tension that this rally is a momentum rally being lead by irrational speculators.”
He added Bitcoin isn’t the only cryptocurrency that’s surging, as he watches other cryptos such as Ethereum rally in the market.
“It seems like 2021 should be a good year for Ethereum too,” he said.
When To Pull Out Of Bitcoin Exchanges
Bitcoin has been dubbed the “21st century gold”. Picture: Chris Ratcliffe/ BloombergSource:Supplied
THE SURGE OF BITCOIN
Before the turn of the New Year, Bitcoin reached record highs of more than A$27,000 in early December 2020, surpassing 2017’s all-time high of A$26,500.
The digital coin has more than quadrupled in value since the start of 2020, with the currency’s total value now past $US600 billion ($A780 billion).
According to Forbes, the latest bull run began in October after PayPal announced it would begin offering Bitcoin and cryptocurrency support.
Meanwhile, Citibank and JPMorgan have also been making bullish Bitcoin forecasts.
Since mid-October, the Bitcoin price has been rapidly climbing from A$15,500 to its current price of around A$42,000.
Investors couldn’t contain their excitement when Bitcoin surged from $US32,0000 ($A43,000) to $US33,000 ($A44,200) in a less than 45 minute trading window this week.
Australian cryptocurrency exchange provider Binance Australia believes crypto becoming more mainstream is inevitable as the world continues to progress digitally.
Bitcoin was created by a mystery person or group under the name of Satoshi Nakamoto in 2009 and exists without a central bank. Picture: Ozan Kose / AFPSource:AFP
WHAT EXACTLY IS BITCOIN?
When To Pull Out Of Bitcoin Halving
Bitcoin was created by a mystery person or group under the name of Satoshi Nakamoto in 2009.
The cryptocurrency exists without a central bank and can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
There is speculation Bitcoin could become an alternative to gold – the traditional safe-haven investment.
A leaked report from Citi in December referred to the cryptocurrency as “21st century gold”.
“A large part of what we have seen for Bitcoin in the last 12 months is a market looking for alternative stores of value and new ways to diversify in a world of zero per cent interest rates and ultra-loose monetary policy – buying Bitcoin as if it were ‘digital gold’,” Mr Rodda had told news.com.au on Monday.
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Cryptocurrency fans were thrilled after a major buy-in from Tesla sent Bitcoin prices soaring. DW's Kristie Pladson writes that the hype shows why the digital coin will struggle to be more than an investment tool.
People won't want to spend Bitcoin to buy a Tesla as long as the cryptocurrency's value keeps rising
Since Bitcoin began its price rally last autumn, smashing record after record, crypto experts and enthusiasts have been saying that the tide has turned. After years of volatility, the digital currency has been on a mostly upward slope. Last October, PayPal announced that it would start accepting the digital coin, and many have predicted that Bitcoin would start gaining the long-term stability and institutional backing needed to become a widely used currency.
What to do, then, with the fact that an endorsement from Tesla sent prices soaring some 15%?
The US electric car manufacturer led by Elon Musk, one of the richest people on Earth, announced earlier this week that it had invested $1.5 billion (€1.24 billion) — 10% of Tesla's cash reserves — in Bitcoin and that it expects to start accepting purchases made with the digital currency.
![When to pull out of bitcoin instantly When to pull out of bitcoin instantly](/uploads/1/3/7/1/137140397/857533223.jpg)
The move marks the biggest corporate purchase of Bitcoin ever and cryptofans are understandably hopeful. But it also highlights the rocky road Bitcoin faces in trying to transform from a punk rock investment tool into the necessarily boring currency that many have claimed it will become.
Musk leans on his reputation
Musk's interest in cryptocurrencies is no secret. He frequently writes about Bitcoin and other digital currencies on Twitter and is popular among the cryptocrowd. The bigger question is why Tesla as a company would put over a billion dollars into Bitcoin when there are so many squeaky wheels going without grease at home. Tesla's vehicle production still lags behind demand, with customers sometimes waiting months for orders to be filled. And little has been done to address worker complaints of low wages and poor working conditions. Why not throw some of that 1.5 billion their way?
DW's Kristie Pladson
One reason might be that Tesla's Bitcoin investment is less about dabbling in exciting investments and more about enhancing the core of its brand.
Tesla and Musk have a reputation for being on the cutting edge of technology. This latest move is a smart way to pull sales from a demographic that is already sympathetic to him. Bitcoin fans are (once again) having their moment in the spotlight. Perhaps Musk felt it was the ideal moment to capitalize on their good will towards him. Tesla accepting Bitcoin payments is bound to boost the company's future-forward image and attract at least a few self-identifying visionaries who will be more than happy to pay for the car of the future with the currency of the future.
There's also the investment aspect. Musk is aware that the cryptocurrency is sensitive. He knew Bitcoin prices were likely to spike when Tesla announced it would start accepting Bitcoin. Now add a $1.5 billion Bitcoin buy-in on top. The 15% jump that followed means Tesla has already made a quarter of a billion dollars from the venture.
A deflation sensation
As exciting as the Tesla-induced surge in the price of Bitcoin might be, we're again looking at the type of volatility that doesn't bode well for the future of Bitcoin as an actual means of payment.
Steadily rising prices make Bitcoin an attractive investment tool. As a means of payment, however, they represent something rather more problematic: deflation. In a report from news agency Reuters, one Bitcoin enthusiast said he regretted using Bitcoin to buy a Tesla in 2016. At the time, the customer paid $130,000 worth of Bitcoin for the vehicle using a Bitcoin payment gateway, a service that allows merchants to accept Bitcoin transactions via a middleman.
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A tipping point for Bitcoin?
Can You Pull Your Money Out Of Bitcoin
The $130,000 he spent on the car would have been worth over $14 million today. The 'novelty' of paying with Bitcoin wasn't enough to make up for the lost value, he said.
When To Pull Out Of Bitcoin
If I snapped my fingers and suddenly the whole world was using Bitcoin, we would immediately face massive deflation, as people choose to hold on to the currency rather than spend it, driving down prices. For now, it's too good an investment tool to be a useful currency. Ironically, Tesla's move is only reenforcing that fact, at least in the short term.
Tesla's Bitcoin endorsement will likely bolster confidence in the cryptocurrency and other companies are likely to follow suit. If they don't invest themselves, they're still likely to move towards accepting Bitcoin as payment, out of fear of leaving money on the table.
As more institutions hop on board, there is every reason to believe Bitcoin's value will continue to rise. And with the prospect of everyone else spending it, no one will.