It ruled out replacing paper currencies
"ICM Capital": "Millennials" drive demand for "Bitcoin"
Bitcoin rose to record levels of over $ 46,000.
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Wael Hammad: "Stability is the primary factor in building confidence in any financial asset and a prerequisite for acceptance."
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ICM Capital stated that the success of Bitcoin is based on the fact that investors from the "millennial generation" prefer "digital currencies" to traditional gold, and they are the same category that drives the demand for cryptocurrencies at the present time, noting that The goal of replacing Bitcoin with fiat currencies appears to be far-fetched, at least for the time being.
In detail, the regional director of ACM Capital, the financial expert Wael Hammad, said that “Bitcoin’s rise to record levels during the current period, exceeding $ 46,000, has led to the resumption of talk about the promising and dramatic future of cryptocurrencies, as some believe that Bitcoin currency as if it threatens the status of assets or traditional currencies such as gold and the dollar ».
He added that «these views came based on justified views on what cryptocurrencies provide in terms of the possibility of hedging against inflation and the weakness of the dollar, in a world full of cheap cash, which is pumped from central banks, while Bitcoin has the advantage of a limited supply of them (21 million units). .
He pointed out that some believe that the success of "Bitcoin" is based on the fact that investors from the "millennial generation" prefer "digital currencies" to traditional gold, and they are the same category that drives the demand for cryptocurrencies at the present time, indicating that with the recent fluctuations that We have seen the price of Bitcoin over the past two weeks, up to nearly 20%. The goal of replacing Bitcoin with fiat currencies seems to be a bit far fetched, for the time being at least, as these fluctuations and others are a reminder of what happened to the currencies. Encoded in 2013 and 2017.
Hammad said, "The survival of Bitcoin mainly depends on the institutions' satisfaction with the fluctuations related to the origin of the cryptocurrency, as it occupies a place in their investment portfolios, for the purposes of risk management or to benefit from its advantages," adding that the less volatile Bitcoin currency is likely to increase dependence on it from Before institutions in the future.
He added: “Given the fluctuations in the short and medium terms, it is unlikely and illogical to see Bitcoin increasing in size in investment portfolios, to equal or converge with gold holdings, although we may witness violent waves of speculation on it in the short term, which may lead Prices to new records ».
He continued, "But stability is the primary factor in building confidence in any financial asset and a prerequisite for acceptance."
Hammad explained that these price levels may lead regulators and financial supervisory bodies to another campaign, such as the one we witnessed in 2017, to try to regulate the cryptocurrency market.
High level
Bitcoin price settled at about 46,500 dollars, after reaching a new high of 48 thousand and 216 dollars recently, after Tesla revealed an investment of 1.5 billion dollars in the leading cryptocurrency.
The rival virtual currency, Ethereum, which usually moves in conjunction with Bitcoin, reached a record high of $ 1,826, before trading up 1.1% to $ 1,791.
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