Bitcoin (BTC) price, on February 10, 2021, broke the psychological barrier of $45,000 (24,323,949.55 CFA francs), to the great displeasure of central banks and the regret of those who, like most of us, are not investing in the future, in a nascent trend, but rather waiting for the wave to be sufficiently mature. At that moment, the curve, at the top of the peak, can no longer rise but falls back, dragging down those who joined the momentum at the last moment.
By Albert Savana*
The new millionaires, who are emerging from the world of the Internet following the dazzling 100% gain made by the queen of crypto-currencies within two months, had the foresight to bet on this virtual currency when it was subject to mockery and sufficient analysis from those who push small holders to invest in balance sheets and financial results. However, balance sheets have the unfortunate disadvantage of telling the past of listed companies rather than the future and the promise of cash flow.
“…you would have had a comfortable $10 million cushion today”
In short, if in 2010, against the advice of your account manager and orthodox financial analysts (the fundamentalists), you had invested $100 in bitcoin (BTC), you would have had a comfortable $10 million cushion today, safe from inflation but not from volatility. Obviously, the question one would ask to the holder of this bonanza is basic: will he wait and believe in digital gold on the basis of forecasts of a bitcoin at 60 or 100 dollars or, on the contrary, adopt the reptilian reflex of homo sapiens, which is to cash out his earnings?
$1.4 trillion has been invested worldwide in crypto-assets
With $836.8 billion in assets, Bitcoin continues to attract not only the general public, but also, and increasingly, institutional investors, large banks, funds such as BlackRock, the world’s largest asset manager, and tech companies such as Paypal, Tesla and Visa. How far will the madness go? To date, $1.4 trillion has been invested worldwide in crypto-assets, while platforms for selling crypto derivatives will soon be launched. In this gold rush, Africa, unperturbed, clinging to old moons, has yet to take a stand. Between the Central Bank of Nigeria (CBN) anathematizing and the Central Bank of Kenya crying hallelujah, it’s hard to know which way to turn…