By CCN.com: McAfee has warned that the Bitcoin’s rally may not smooth and consequently offered hodlers tips on how to avoid the anxieties brought up by short-term price fluctuations. According to the cryptocurrency influencer, even with the rally prices could still drop at short notice.
In such a situation, McAfee urged investors not to panic ‘under any circumstances’. Per the crypto maverick and 2020 U.S. presidential candidate, ‘short term fluctuations have no meaning. The best way to avoid experiencing the anxieties caused by the volatility is to avoid obsessively checking cryptocurrency prices. Instead, McAfee advises, ‘just check the price once every two or three months’.
This comes amidst bitcoin shooting above $8,000 for the first time in 10 months causing excitement in the space. Since the start of the year, Bitcoin has appreciated by over 100 percent.
On the Google search engine, the bitcoin search term has also experienced a renewed surge in interest in the past 30 days.
Some analysts have attributed the rally to the growing acceptance by large investors. For instance, on May 13 Chicago Mercantile Exchange Bitcoin futures hit a record high of approximately 33.7 contracts. This amounted to 168,000 bitcoins which at current prices are worth over $1.3 billion.
The May Bitcoin futures record was an improvement of close to 50 percent from April when another record of 22.5 contracts was set.
Cryptocurrency asset management firm Grayscale also recently released a report which suggested that in the first quarter of 2019, hedge funds increased their exposure to Bitcoin by 2400 percent compared to the previous quarter.
Despite the rally, there are those who still remain unconvinced about Bitcoin’s future and sustainability. This includes Bloomberg’s columnist Lionel Laurent who has argued that the price of bitcoin is ‘driven by the madness of the crowds, not fundamental analysis.
Laurent also argues that it has ‘no cash flows backing it’ and that it is ‘uncorrelated to financial markets’. He also adds that it has ‘extremely limited real-world application’. This might seem a little harsh given that the adoption rate is growing gradually.
Just this week CCN.com reported that it will now be possible to pay for groceries using cryptocurrencies at Amazon-owned retailer Whole Foods. This was made possible by cryptocurrency exchange Gemini and payments firm Flexa.
Besides Whole Foods, Flexa has also inked partnerships with other retailers who will now accept crypto-based payments. This includes bookseller Barnes & Noble and domestic merchandise retailer Bed Bath & Beyond according to CBS News. Home improvement store Lowe’s, luxury department store Nordstrom and gaming store GameStop are also on the list.
Last modified: March 4, 2021 2:31 PM