Bitcoin price stalls despite positive news of adoption across the globe

Posted: 10 September 2021 3:52 pm
News
Bitcoinpricegraph_1800x1000_finder

After having scaled up to a 4-month high of AUD$70+K recently, Bitcoin is now showcasing monthly gains of just over 2%.

  • Twitter is reportedly working on incorporating a BTC tipping feature into its existing UI.
  • Billionaire Lee Cooperman recently stated in an interview that he is still not sure of what's driving Bitcoin's recent surge.
  • In light of El Salvador's Bitcoin adoption experiment, Honduras and Guatemala have deployed their very own Central Bank Digital Currencies (CBDC) projects.

After having rallied beyond the AUD$68K threshold, the world's largest cryptocurrency, Bitcoin, has continued to showcase increasing volatility – as is made evident by the fact that over the last week, the flagship crypto has exhibited an average loss of 5%. At press time, BTC is trading at AUD$63,236.

In this regard, it bears mentioning that despite the recent turbulence, adoption has continued to grow, with rumours currently running amuck that social media behemoth Twitter is all set to incorporate a "Bitcoin tipping" option for its content creators. In fact, reports claim that the upcoming iOS version of Twitter's native app will incorporate BTC as part of its much-anticipated Tip Jar module.

It goes without saying that if a company like Twitter were to back Bitcoin, the move will most likely have some serious implications on the crypto landscape, as it could help provide the necessary impetus for other players operating within the space to follow suit and start adopting digital assets.

How to buy Bitcoin

Bitcoin continues to "confuse" billionaire Lee Cooperman

Despite recording mammoth gains of over 300% since Q4 2017, Omega Advisors chairman and CEO Lee Cooperman was recently quoted as saying that he is still not entirely sure of what's driving the digital currency's success, adding:

"I'd be very careful with Bitcoin; I don't think it makes a great deal of sense and if you are nervous about the world, gold — to me — would be a better place to store value."

It is worth highlighting that Cooperman's confused stance regarding BTC has not wavered since 2017, a time when the asset was surging exponentially. Not only that, earlier this year he spoke with Bloomberg Surveillance, telling an interviewer that he was too old to understand about "NFTs, bitcoin, stuff like that" at this point in his life. "It's crazy to me. It makes no sense. I'm a meat-and-potatoes guy, a stocks guy," he noted.

El Salvador's adoption of BTC is "overhyped", expert claims

While El Salvador's legalisation of Bitcoin as legal tender within its borders has been viewed as a watershed moment by many crypto enthusiasts across the globe, Fidelity Investments' Jurrien Timmer believes that the move has been a "bit overplayed" and that the importance of the rollout has been exaggerated to a large degree. In a recent interview, he stated:

"Because it's not like El Salvador has dropped the US dollar as its peg – it's not like it switched from dollars as its currency peg to Bitcoin... Although, it's in reverse because gold went from being money to being an asset class in the 70s. Bitcoin is kind of going from being asset class to also being a currency or being money"

Lastly, in light of El Salvador's move to adopt BTC, it appears as though 2 of its Central American neighbours – namely Honduras and Guatemala – are also looking to explore the power of CBDCs.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Get into cryptocurrency

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site