Bitcoin has made history again yesterday when it made the biggest hourly gain of 10% with price trading at 8.1k at the time of writing. There are a few factors for this bull run that we will look into and we will also look into some historic predictions where Professor Milton predicted the emergence of cryptocurrencies way back in 1999.
Bitcoin Makes Its Biggest Hourly Gain
Bitcoin recorded its biggest hourly volume in history by climbing up by $1200 and it is currently sitting at 8100 at the time of writing. The price was very bearish for many months and everyone expected it to go down further, but to nearly everyone’s surprise, the price climbed so quickly and we can say that the bulls are back again.
Investors/Traders confused over BTC price
Investors and traders were very much confused over the sudden bull run of BTC. The reason is that there was no major announcements or developments related to the surge. There are times when the price just surges without any solid reasons and the investors get a pleasant surprise. There was a prolonged bear market for a few months and investors and traders got a welcome gift by this price rise.
The hidden reason behind this surge
It is widely believed that there is no particular reason for their price surge and it might be some Institutional Investors buying at the backend. But the likely reason has come out recently: someone revealed in a Reddit that the OTC for Hedge funds is approved and it happened between midnight and 8 AM Chicago time. That was the exact time the surge happened, so we can come to a conclusion that the price increase was due the above-said reasons and that was not made public to anyone. Only the people following the hedge funds closely were able to get the above information and were expecting the price increase.
Also, the price rose today possibly due to American President Trump declaring a war on Syria and the US started bombing the country. Usually, War will help in the price surge due to the uncertainty and Bitcoin can help in times of uncertainty, since other currencies will probably go down due to pressure from war spending.
Historic Prediction of Bitcoin’s Emergence
Like the above price prediction of Bitcoin, there are many cases where people were able to predict the future of Bitcoin and they were able to visualize that the future money would be peer-to-peer using the internet. Notably, Professor Milton Friedman nailed it by saying that internet will play a major role in reducing the role of government in controlling the financial system.
In his video that was recorded in 1999, he predicted that in the future there would be reliable e-cash that can be used to transfer funds from Person A to Person B without A knowing B and B knowing A. He went on to explain that Person A would be able to take a $20 bill electronically and “hand it over” to Person B and Person B would not know where it came from. He further added that this would be developed on top of the internet and it would thus make it easier for people to use the internet to transact.
Milton’s Brilliant Prediction of Future Money
It is really mind-boggling to know that someone in 1999 has rightly predicted the emergence of Bitcoin and it is truly amazing that he explained the technical details exactly as they are in the present form of Bitcoin and other cryptocurrencies. So 20 years ago, Professor Milton basically predicted the rise of Bitcoin in that video. Bitcoin or cryptocurrency name was not mentioned by him; other than that, everything else was so perfect in his future prediction of digital money.
There are many Technical Analysts who make price prediction on a daily basis, but most of them fail miserably. But there are few people, like the person on Reddit, who can predict the price rise perfectly by watching the important events closely. Also, we need to appreciate Profession Milton for predicting the emergence of Bitcoin and other cryptocurrencies way back in 1999 when nobody would have thought that our Internet would be used as a bank.