HomeMarketingBitcoin follows US stock market trough, experts predict price level

Bitcoin follows US stock market trough, experts predict price level

- Advertisement -
- Advertisement -
- Advertisement -

Bitcoin, the largest digital currency in the world by market cap, recently reached a price level of $3,000 USD. The volatility is still significantly higher than that of the US stock market. But there are some experts who predict Bitcoin will surpass it as an investment.

The price-to-earnings ratio for Bitcoin is currently at approximately 300x. In contrast to other major currencies like gold and oil. Which have a P/E ratio 20x or less than 1x respectively; Bitcoin’s P/E ratio is increasing exponentially due to its lack of intrinsic use and scarcity in supply.

Some speculators believe that this rally may be the result of a possible bubble, and that the price may actually drop after reaching $3,000. However, some experts argue that Bitcoin has been around since 2009 (as early as 7 years ago), and there’s been several price spikes in the past.

“Bitcoin is following the same pattern of price movements we’ve seen during all financial bubbles,” said Dr. Samuel Johnson, an economics professor at Cambridge University in England. Bitcoin’s value skyrocketed during late 2013 when it went from $100 to $1,000 per token by mid-December. And then it dropped to less than half of its peak value by January 2014.

What is bitcoin?

Bitcoin is a digital currency designed to work as a medium of exchange and store of value. It currently is the largest cryptocurrency in terms of market capitalization or total value, which will most likely change with the release of Ethereum, another popular digital currency. It is possible to purchase Bitcoin through various exchanges and online services. Once purchased, it can be held like any other coin or token, or even exchanged for fiat currencies like the US dollar through specific services available online.

See also  Chiliz Price Prediction: Will CHZ double in 2023? Time to Buy?

Does the US government accept bitcoin as legal currency?

The answer to this is always changing. However, yes, you can legally buy goods and services with Bitcoin in the United States. Many large companies including WordPress, Reddit, and TigerDirect accept Bitcoin as an instant method of payment. In fact, many experts believe that major international investment firms will begin to use Bitcoin as an investment vehicle over stocks in the upcoming years.

Is bitcoin legal?

Bitcoin is legal in most of the world (the exceptions are always changing). As a digital currency it exists independent of any governmental institution and cannot be controlled by any single entity such as a central bank or monetary authority. This has made it a hot topic for regulators and legislators around the globe.

Is there a tax on bitcoin?

Because Bitcoin does not currently have federal government backing, there is no official way to determine what percentage of taxes citizens pay when spending it. Adding to the confusion is that each exchange may handle Bitcoin differently. Some exchanges will automatically convert your purchase into cash, while others do not. Some exchanges are owned by foreign companies and operate outside of the US (i.e., Coinbase is headquartered in San Francisco).

What is the difference between Bitcoin and Ethereum?

Bitcoin is a currency, while Ethereum is a platform. As a platform, Ethereum’s blockchain has many additional features that make it more than just an alternative form of payment. Developers can create applications using Ethereum’s blockchain, which can eliminate third parties and centralized servers entirely. In theory, these applications could also be built without any middleman whatsoever. Thus, this could dramatically cut down on fees for users and website owners alike.

See also  BNB To Retest The Binance Coin Price Prediction

Additionally, since it’s a network rather than a single entity controlling it there is no longer any threat of downtime or unavailability. This has enormous implications for keeping large networks like the Internet up to date and fully running at all times.

What is the US government’s stance on bitcoin?

The US government has been fairly reserved regarding digital currency. The IRS released a warning to Bitcoin users in 2013, stating that it is essentially a currency, so it is subject to taxation. However, they have not yet promulgated any further laws concerning the topic and are currently working with state governments and Congress to define digital currency regulations to help clear up some of the confusion surrounding the topic.

- Advertisement -

Latest articles