With Bitcoin continuing its upward trend, it can be hard for crypto advocates to understand why there are still doubters.
Antoni Trenchev of Nexo recently told CNBC that that’s because crypto doubters are
having a really hard time continuing their cause.
The Bitcoin Doubter Is Having a Really Hard Time
As of last Tuesday, Bitcoin is back above US$11,000 for the first time since January 2018.
Bitcoin has been pronounced close to 300 times to be dead and it has risen from the ashes yet again, Trenchev told a CNBC reporter.
I think the doubter is having a really hard time continuing their cause.
The diehard doubter may suggest that this is just another bubble waiting to pop. However, the diehard doubters seem to be fewer and farther between than they used to be.
People are really starting to notice and appreciating the fact that Bitcoin is here to stay, said Trenchev.
We see hundreds and hundreds of people joining the space on a daily basis.
A Perfect Alignment of a Few Favorable Factors
Trenchev gave some familiar reasons for the current rally. He also stressed the significance of them all happening in rapid succession.
I think there has been an alignment, a perfect alignment, of a few favourable factors, said Trenchev.
We see the geopolitical turmoil – that certainly has helped the cause of Bitcoin – the bear market of 2018… I think it is really about institutional support and the implication that it has in terms of mass adoption.
Specifically, Trenchev mentioned the Libra project as well as the upcoming JP Morgan coin and Fidelity Investments’ digital assets service. The involvement of institutions helps to lend credibility to the idea of cryptocurrency, as well as giving more people easier access.
While he didn’t specify “geopolitical turmoil”, Trenchev was likely referencing a number of recent examples. Specifically, in Turkey and Venezuela, political unrest has led to local fiat currencies rapidly losing value. People in these areas have been increasingly turning to Bitcoin as a way to protect their finances. There is also speculation that crypto is being used as a “safe haven asset” by investors protecting their portfolios from trade disputes like the US-China trade war.
While crypto remains volatile compared to fiats like the US or Australian dollar, it is more stable than many other regional fiats. Further, because of crypto’s decentralised nature, it is not anchored to political events like stocks and some commodities are.
In some parts of the world, people face real obstacles to crypto adoption. For most of us, however, the only reason that those around us don’t adopt is a lack of faith. As that lack of faith dwindles, it makes room for a more crypto-friendly world.