Who Are Bitcoin’s Friends And Foes?

It is always important to identify friends, and family as well as foes in life. Likewise, bitcoin too has its friends and enemies. However, in this full case, recognizing who a detailed friend is and who a foe is, is difficult quite. For transparency, let’s dig in more and find out what works in the best interest of the spearheaded cryptocurrency and what does not. HODLers are the people who hold on to their cryptocurrency investment for a long period irrespective of the price graph heading down.

There are some who hang on until the value of the cryptocurrency they committed to reaches their focus on price and they choose to sell out. On the other hand, the rest hold on no matter what. Hence, this course forms an essential area of the crypto community. This bunch of people drives balance in the price tag on cryptocurrencies. If you want to know how they do this, then let me clarify that they usually concentrate on buying cryptocurrency when there is a price drop. However, when there is a price spike with a great extent, they sell off their assets to avoid the market from getting overheated. Thus, HODLers keep the market in control.

When we reached away to a renowned cryptocurrency influencer hailing from India, he added that the duty of HODLers will not end here. They also contribute to maintaining the supply of bitcoin. Therefore, HODLers are the friends of bitcoin undoubtedly. Speculators will be the controversial participants in the crypto space. They can either influence the market favorably or adversely. The credits for the volatility of the crypto market go to speculators. Whenever there is a bull run, it is mostly fueled by these people. Again, when the marketplace goes bearish, it’s mostly because of the speculators who initiate the sell-offs.

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Speculators will be the people who trigger uncertainty in the market by screaming out ‘bubble’ when the bitcoin price rises at a rapid rate and are also the ones shouting out ‘bitcoin is inactive’ when the price goes down quickly. Therefore, speculators are the people who can be referred to as enemies of bitcoin.

They do cause harm to the market. Conversely, they generate liquidity in the crypto market and create the much-needed buzz and buzz required on the market. Bitcoin is a digital asset that does not require any intermediary trade it even across the borders unlike fiat money. Fiat money necessitates the need for banking services for transactions.

When it comes to the position of banking institutions on bitcoin, there are three different categories. Some banking institutions are least suffering from the living of cryptocurrency or do not acknowledge the existence at all. Some are positively hostile towards cryptocurrency and go beyond their way to term bitcoin as bubble or fraud in a move to mislead people. The 3rd category includes the banks that are crypto loving. They will be ready to expand their services to the crypto industry and openly claim that they support crypto.

Considering the fact that bitcoin gets the potential to disrupt the entire financial system internationally, it is apparent that banks would remain anxious or worried quite. Thus, banks are bitcoin’s foes. The fiat currency in circulation in every country is released by the particular government. These currencies compete keenly against one another while seeking dominance and relevance. Bitcoin may also be regarded as one of the currencies that has been seeking relevance but it isn’t backed by any government or its designated bank.