Bitstamp Discusses BTC Value Drivers in New Report
As we all know by now, bitcoin’s popularity is heading for the mountains. It’s getting higher every day, and needs a new peak to sit atop to ensure it’s head doesn’t scrape the ceiling, but what are the factors that are driving bitcoin’s growth? We all speculate about these potential value drivers, assuming perhaps that COVID has something to do with it or the fact that bitcoin can be used as though it were gold, but the report seeks to ensure the facts are understood by all and that speculation is taken out of the equation.
Byte Tree has worked hard to gather all the data necessary to ensure users understand why bitcoin is surging in such a manner. The report is approximately 50 pages long and even goes so far as to try and debunk several of the common ideas running rampant through social media and other crypto chat platforms today.
Among some of the factors include the fact that bitcoin, while in correlation with the stock market, shares an even higher correlation with riskier assets. In addition, it also shares an intriguing relationship with real estate, suggesting that if the price of housing goes up, bitcoin is likely to follow suit.
Furthermore, bitcoin is ultimately the opposite of gold, according to the document. It’s been cited many times that bitcoin and gold are practically one and the same. That they are both tools designed to hedge one’s wealth against economic strife and inflation, but the report suggests otherwise. Bitcoin, by comparison to gold, is an asset that needs to be constantly rebalanced.
Lastly, the price of bitcoin does not depend on the activities of certain crypto miners or mining firms. Rather, these firms alter their behaviors depending on the price of bitcoin.
Miha Grcar, the global head of business development at Bitstamp, explained in a recent interview:
There are so many narratives floating around in crypto. The noise can sometimes drown out the core value drivers at work under the surface. Our goal with this report was to look deeper, figure out what drives bitcoin’s price on a fundamental level and provide novel models for evaluating the market. This isn’t about hype and narratives. It’s about real insights that can help investors form a solid thesis.
Why Write This Document?
James Bennett, who works with Byte Tree, further complemented:
Our aim is to use substantiated data to form novel views on how the bitcoin economy functions and present reliable strategies for traders and investors in the space. In this effort, the support of a trusted and reliable exchange like Bitstamp is indispensable.