Bitcoin is unlikely to become the world's single currency. - Kakiforex | Forex markets for the smart money. Bitcoin is unlikely to become the world's single currency. Bitcoin is unlikely to become the world's single currency.

May 3, 2021

Bitcoin is unlikely to become the world's single currency.

 All Saturday, the first cryptocurrency was pushed around the level of $ 58,000, which corresponds to 61.8% on the Fibonacci grid built on the last round of the downward correction. In other words, the "cue ball" has corrected by 61.8% against the last round of the downward correction. On Sunday, the bears make another attempt to resume the downward movement, which is still a more likely scenario. We remind traders that no asset in the world can grow continuously. If the growth is excessively strong, it already suggests a "bubble," and bitcoin is the most "bubbly bubble" that has ever existed. The main paradox is that if the whole world or a large part of it accepts bitcoin (and other cryptocurrencies) as a means of payment or a means of saving, then a piece of useless code that has no intrinsic value can cost as much as you want and become part of the global financial system for a long time. However, if gold will never be cheap because there is not much of it in the world and you need to spend a lot of effort to get it and overtake it into the usual form of coins or bullion, then bitcoin may well cost $ 0 since it does not cost anything in itself and does not bear any benefit. Also, all those who believe that bitcoin will always be in price are mistaken since there can be no more than 21 million coins in principle. It means that "digital gold" is protected from inflation or additional emissions. But this is not true since bitcoin has already had at least two forks. In simple words, other cryptocurrencies were separated from bitcoin: Bitcoin Cash and Bitcoin Gold. It turns out that a new fork can happen at any time. And how many cryptocurrencies exist in addition to the "cue ball"? Many experts are predicting the role of ethereum as a universal means of payment and not bitcoin. And there are hundreds of cryptocurrencies now. Thus, in parallel with the "cue ball" worldwide, another hundred or two other digital tokens can be used. That is, we will get a situation that exists now: a huge number of currencies. And there will be a huge number of digital currencies. And if central banks also join with their stablecoins, then in 10-20 years, there will be such a mess in the financial system that schools will need to introduce new disciplines about money to study. Thus, we are not set on the fact that bitcoin will become "digital gold."

In technical terms, the "cue ball" rose to the level of 61.8% by Fibonacci, which theoretically can restrain the further growth of the crypto tool. Thus, so far, the further growth of "digital gold" is still not obvious, given the lack of a supporting fundamental background and the technical exit of quotes beyond the ascending channel. We have already said that the upward trend is weakening and may end. At the moment, even taking into account the growth of the "cue ball" in recent days of $ 11.5 thousand, we still believe that there is a greater probability of a fall.