Everyone in the virtual currency market is expecting a new bull run in the near future, but which characteristics will have is still a doubt. However, Tone Bays, an important crypto trader and Bitcoin proponent, talked about the popular virtual currency and its future.
During a Q&A session at the Tampa Meetup, he said that Bitcoin (BTC) could not only work as a store of value but also as a means of payment. He explained that the hard currency is the one that protects its value and the weakest is the one that is used for spending.
He put the example of Bitcoin Cash saying that nobody wants it because everyone is spending it. However, Bitcoin is different because there is less spending made with this cryptocurrency.
About it, he mentioned:
“Eventually you run out of the weak currency and you’re left with, while fine I’m a scrooge, I don’t want to spend any of my Bitcoin […] you’re driving around a ten-year-old car. Eventually, I will have to buy a new car, so I will have to spend that Bitcoin.”
Furthermore, he said that when the price goes up, people tend to spend more of their currency. However, when the price goes down, they sell the currency for fiat. For the next bull market, he said that there will be more people spending Bitcoin, something that will be much easier with scalability improvements, microtransactions and the Lightning Network (LN).
The Lightning Network is going to help Bitcoin scale and increase the number of transactions that the network is able to process. Moreover, it will be possible for Bitcoin to reduce its transaction fees as well.
In 2019 Bitcoin could see a new bull market if a Bitcoin ETF is approved by the SEC and if Bakkt is able to attract institutional investors to the market.