The price of bitcoin (BTC) is a volatile animal and can show huge fluctuations on a daily basis. Determining the correct exit time is crucial if you don’t intend to keep your bitcoin forever. Unfortunately, we don’t have a crystal ball at Crypto Insiders and can’t tell you for sure what the best times are to buy or sell bitcoin. To help you on your way, today we will discuss three reasons not to sell your bitcoin (now).
The great Bitcoin battle between Terra and MicroStrategy
No doubt you have already seen it in the bitcoin news. Founder Do Kwon’s Terra stablecoin platform plans to buy at least $10 billion worth of bitcoin in the coming months or years. That bitcoin wants to be used to back the value of TerraUSD (UST), the digital equivalent of the US dollar, with decentralized currency reserves.
With this strategy, Terra wants to become the largest bitcoin holder in the world after Satoshi Nakamoto, who is rumored to have more than 1 million bitcoins. At the time of writing, Terra already has 39,897 bitcoins in her balance. Good for a value of about 1,700 million dollars. Almost daily, founder Do Kwon’s stablecoin platform makes large purchases to replenish its cash reserves.
If the project continues like this, it’s only a matter of time before Michael Saylor’s MicroStrategy catches up. MicroStrategy has 129,218 bitcoins on its balance sheet at the time of writing this article. Can Terra outperform MicroStrategy? So you still have to buy a large amount of bitcoin, which undoubtedly has a positive influence on the price of bitcoin.
BTC Lightning Network Development
Bitcoin’s limited scalability of 7 transactions per second means we need alternative ways to turn Bitcoin into a global currency. Lightning Network is a solution that has enormous traction today. In El Salvador, among other places, the Lightning Network plays an important role in the adoption of bitcoin. The Lightning Network enables fast and cheap payments and can theoretically scale up to the level of major payment networks like Visa and PayPal.
On April 6, 2022, developer Lightning Labs announced that it had raised $70 million in capital to enable stablecoins on the Lightning Network. Major investors who were also initially with Tesla and SpaceX joined the investment round. In theory, stablecoins on the Lightning Network could make Bitcoin the world’s leading payment network. With the idea of Lightning Labs, people without a bank will soon be able to store, send and receive fiat money very easily and cheaply. The Lightning Network is still in its infancy, but it has huge potential to take Bitcoin to the next level.
Listed companies and bitcoin
Finally, of course, we cannot ignore the trend of listed companies and bitcoin. More and more companies are choosing to keep part of their reserves in bitcoin. MicroStrategy is extreme about this, putting almost all reserves in bitcoin and even borrowing money to buy more bitcoin. But there are also parties like Tesla and Block that have large amounts of bitcoins in their balance.
There is a possibility that in the coming months or years we will also get more companies and, after El Salvador, also new countries that will use bitcoin as their main means of saving. Bitcoin seems to have definitely conquered a place on the world financial stage and can benefit considerably from it in the coming years in terms of price. Of course, past results offer no guarantees for the future.
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