Bitcoin VS Gold ETF Will History Repeat ? Will Alt coin Moon In 2018 ?
Hello Friends,
In This Post I would like Talk About 2 main Topics Related our Crypto filds I am damm sure You would like to hear as well;
We Well Descissing hear;
- Bitcoin vs Gold ETF will History repeat ?
- Will Alt coin moon in 2018 ?
An ETF works by buying the underlying asset in bulk, then dividing the ownership of that asset into shares. This makes it easier for investors to buy into the underlying asset at a lower expense ratio, and in a less complicated process. It also reduces risk exposure since investors can get in and out of the asset at any time, and can even short it.
That’s why a CBOE bitcoin ETF would work magic to the market. The CBOE would have to buy bitcoins in bulk, and hold them in cold storage. While this will most likely take place in the OTC market, it will eventually have an impact on the price of BTC. That’s because there are only so many bitcoins to go around. Bitcoin has a capped supply, which means a surge in demand from the CBOE would over time thin out the supply. On top of that, the CBOE would bring in institutional investors and the older/wealthier generation into bitcoin, since the process of buying and selling bitcoin would now be easier. This would add to the overall demand of BTC. Many analysts postulate that a CBOE Bitcoin ETF could push the value of bitcoin to as high as $50,000. That’s a realistic figure, when you factor in the capped supply of bitcoin.
So how does all this affect the price of your favorite altcoin? Well, as much as investors would like the altcoin market to decouple from bitcoin, this market is very much tied to bitcoin (BTC). When bitcoin drops, altcoins tend to drop harder. In the last 6 months when bitcoin has been on a bear run, most altcoins have dropped by as much as 90% from their all-time highs. On the flip side, these coins were rising harder than bitcoin during the 2017 bitcoin (BTC) bull rally. Some altcoins like XRP (XRP) recorded up to 4000% gains in 2017.
Following this logic, it then follows that if a CBOE bitcoin ETF pushes up the price of bitcoin to $50k, most altcoins would rally harder, and many would surpass their December highs. Altcoins will also be supported by the fact that many of them have now reached development stage. In 2017, most altcoins were mere white papers, yet they rallied hard. Today, a good number of them have functional projects. Projects like EOS (EOS), Tron (TRX) already have their own main nets, and are now ready for Dapps development. Others like IOTA (MIOTA), Vechain (VEN) and XRP (XRP) have made huge strides in terms of partnerships with global corporations. As such, if they were to rally, it would be more massive than in 2017.