Most analysts think that bitcoin has not lost its shine yet, because the main point is that the ownership of bitcoin is highly concentrated in very few hands. 95% of bitcoins are in 2.4% of addresses. 5% of the bitcoin shares are owned by 97.6% of the addresses.
I would like to know who is behind the 2.4%. I do not rule out that China invented bitcoin to harm the United States hegemony provided with the USD Dollar power. Bitcoin has a problem with the excessive concentration of property in few hands.
If we look at the weekly bitcoin chart, it maintains a bullish route. Recently it has lost a bit of shine because it has been in a wide lateral trend since April, but its trend seems to be still bullish. Only the perforation of 50,600 would warn us of the continuation of the fall. But at 42,000 it has a very important support. That is, as long as it maintains 42,000, bullish trend would be expected to be continuing.
ETHEREUM Gains Great Interest
The ethereum is gaining great interest. Bitcoin represents dominace with 59.42% of all cryptocurrencies and Ethereum has already exceeded 10%. It is still quite far from bitcoin but it is increasing. Ethereum is trending stronger than bitcoin recently. Its uptrend is strong and has broken highs. The trend of ethereum is stronger than that of bitcoin. It has an important support in the area of 2,000.
Currency battle before the launch of the digital yuan
The launch of the digital yuan is going to be the main threat against the monetary capacity of the United States . As its GDP and China’s role in world trade grow, we should naturally expect that neighboring countries in Asia and Africa, as well as Russia, use the digital yuan as their billing and financing currency. We have to think that Chinese digital demand will increase. If it increases, that of the dollar would decrease. And when someone reduces the monetary capacity of the United States, they also reduce its fiscal capacity.
If China damage the US’s monetary capacity, It would be damaging its fiscal capacity and therefore, its growth capacity as well. The fundamental problem is that the digital yuan will threaten the power of the dollar. Because USA will no longer be able to control its deficit and debts.
The role of the dollar as a reserve currency is gradually decreasing. The dollar is still very important. It will not happen overnight, but the launch the digital yuan is another way of gradually eroding the role of the dollar as a reserve currency.
The digital yuan should be included in the long term the portfolios. Governments and central banks are going to attack bitcoin by sea, land and air mostly by utilizing the tax issue. Most of the analysts believe that bitcoin is going to remain becausethey believe that not all the countries will prohibit it as a means of payment. And also it is very difficult for the US to agree with China on bitcoin ban.
We are living the monetary battle between bitcoin, fiat currencies and gold. This is what we are witnessing, a money battle.