In today’s article I want to talk about Bitcoin. It seems like any kind of news are not affecting the price at all. The price continues to move sidewards. I think this is just the calmness before the storm and we should appreciate the time where we can buy this asset for this cheap of a price. This is why I want to talk about the current situation regarding BTC and take an outlook into the future.
Valkyrie ETF
In my opinion one of the biggest reasons why Bitcoin might explode soon is the Valkyrie ETF and Bitcoin’s push toward renewable energy. But wait, isn’t Bitcoin supposed to be this CO2-dirty thing that ruins the climate according to some anti crypto politicians? Yes and no, it all depends what energy source the individual miner is using. There are certainly cases where the miner is using “dirty” energy but there are more than enough examples of “clean” energy usages. This is also reflected in the Valkyrie ETF which shows that 77% of the ETF utilizes renewable energy.
Why is this so important? For this we need to look where this ETF can invest in? There are two types of companies that this ETF is allowed to invest int: first being mining companies. This is a big indicator towards BTC. This means that Bitcoin is indirectly providing the adoption of renewable energy since the ETF has over 77% of utilized renewable energy. The second type of company are these who are holding Bitcoin on their balance sheet. An example of such a company would be MicroStrategy which you certainly heard of.
The most important thing about this is that this ETF must be permitted by the SEC which is clearly the case. This means that the SEC is already allowing users to get exposure indirectly to Bitcoin. The clear incentive here is to push towards renewable energy which is clearly made possible by Bitcoin. And because this ETF is such a official investment vehicle and most and foremost a very green investment vehicle, it will not be targeted by any ESG concerns or criteria.
More Countries Adoption
All of this is important to the global adoption. While the US is certainly not the quickest one in this regard, it has probably the biggest impact. Once a clear regulation and product is on the US markets the European markets will quickly follow as the European market is heavily dependent on the US one. This will trigger the big bull run that crypto holders are hoping for. This event will be the big event that starts everything off.
Why this is inevitable we can already see in the further adoption in other “smaller” countries. This week was announced that Central African Republic announced to make Bitcoin legal tender. Furthermore, Panama is looking into the same procedure. Especially, smaller countries can start this movement since they are the once that can benefit the most from this transition. It will allow them to be more independent from the US Dollar and continue the decentralization of finance which is what the whole world is craving.
Conclusion
To conclude the article I want to say that there is clearly a big difference between all the Altcoins like Ethereum, Solana, etc. and Bitcoin. The main difference is decentralization. While the first ones are having foundations with clear CEOs Bitcoin is truly decentralized is very difficult to tackle by any authority. Not only that but now it is also incentivizing and encouraging the usage of renewable energies? It seems like the world can only get better with Bitcoin and it is only a matter of time that the people around the world will recognize it.
Published by ga38jem on
LeoFinance
On 30th April 2022