Why isn't crypto (Bitcoin-BTC) surging after halving?
This is because BTC has not fundamental use except for speculation purposes. In other words, a buyer buys BTC with the hope to sell it to another buyer at a much higher price.
I will just highlight 3 main insurmountable points that cryptos face for their survival.
1. Carbon emission policies (Scope 1, 2 & 3) - Crypto miners can switch to renewable energy but they will compete with local residents for green energy. How will the residents react to this price competition?
2. Dedollarization – Cryptos that use USD as their anchored currency will be abandoned as part of derisking effort. BRICS, Middle East and ASEAN are abandoning USD in their international transactions.
3. Adoptions of worldwide CBDC systems – Since CBDC systems do not accept cryptos because of dedollarization and carbon emission policies, the popularization of CBDCs will decimate cryptos because many countries will be unwilling to keep cryptos as their reserves as they can’t be used for cross border transactions. For examples, the international CBDC systems such as the upcoming SWIFT digital platform and Project mBridge can’t accept cryptos for cross border transactions.
Do you still think Cryptos have a future?
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