For more than a year, Bitcoin has seemed pretty stuck as it seems to hold steady without making any major breakthrough. In fact, the all-time high price of $19,783.06 that the sector saw in December of 2017 is looked back upon with so much longing, leaving people wondering whether there’s any chance at all that the price could rise again to anything close.
Ever since that memorable December, the price has fallen so bad, it is estimated that the resultant bear market cost the sector as much as $400 billion in total. Regardless of the slump, many people are still quite interested in holding substantial amounts of the crypto in the hopes that it will rise again. This projected rise, it has now been predicted, might happen soon and could possibly originate from a player as unlikely as central banks from different countries, worldwide.
Central Banks and Bitcoin?
It is widely known that as much as there are a lot of people all over the world who are Bitcoin and crypto proponents, many governments as well as their central banks have had a less than excited approach to the cryptocurrency market in general. These apex banks have been very circumspect because of the unstable nature of the sector.
However, in recent times, governments have slowly been coming around and opening up to the idea of crypto especially as the Securities Exchange Commission in the United States seems to be loosening its hitherto tight grip on the market.
Furthermore, the European Central Bank and the Federal Reserve in the U.S., are currently considering the possibility of amassing considerable amounts of cryptocurrencies, especially Bitcoin.
If this trend continues, there will be more publicity for the sector, more trust in the market and adoption would definitely increase. At this stage, it is almost entirely certain that demand for crypto would skyrocket, driving the price very high. It is hoped that the price could even shoot up close to the current all-time high and maybe even higher.
Bitcoin as Digital Gold
Most people agree that apart for its volatility, Bitcoin is the perfect representation of digital gold and this might be another reason why central banks would be interested in accruing the crypto.
According to Garrick Hileman who is head of research at Blockchain and research associate at the London School of Economics
“The main use for Bitcoin today is as digital gold. The question is though, who will be buying digital gold? If central banks start to accumulate Bitcoin, that could be hugely impactful on Bitcoin’s price.”
It sure is something to think about if institutions, regulated as central banks, are starting to consider assets essentially unrelated as a cryptocurrency.