The Era of Bitcoin Supremacy Is Well and Truly Upon Us
It’s time to acknowledge the truth that’s been staring at us in the face, for a while now…
A year ago, this would have been impossible.
As indicated in the image below, which was screen shot from my laptop, Bitcoin was trading at $13,780, a decent sum, no question, but it certainly wasn’t a figure for which people were prepared to put their heads above the parapet.
Fast forward to the end of October 2021, the world’s preeminent cryptocurrency is trading at $62,200. If you have 20 bitcoins in my custody, I would be more than happy to lend you $1,000,000 without thinking twice.
In the event of the value of Bitcoin plummeting by 15%, and the borrower is unable to deliver extra collateral or cash margin, the lender would simply call margin and go ahead to sell the bitcoins.
So what does this tell us about the world of finance, which is increasingly dominated by Bitcoin?