The Bitcoin crash shook traders, especially when China banned financial institutions from using the token. This measure was followed after the announcement by Elon Musk, Tesla CEO, where he clarified that he would not accept cryptocurrency as a payment method.
But Miller Opportunity co-director Samantha Mclemore said this token drop lends itself to new buying opportunities. McLemore discusses the $2.7 billion Miller Opportunity fund with manager Bill Miller, an investment titan. The McLemore-guarded fund relies on Bitcoin and its future stake as “digital gold.”
Bitcoin drops in 2021
This price drop in Bitcoin is not the only one that occurs this year because it had a significant crash in February. The value of the cryptocurrency has been falling since February, which occurs due to the liquidation of speculative tokens. McLemore recalls that cryptocurrency is volatile, and therefore, it is capitalizing in that way.
That volatility in its value has been present in recent weeks due to the news around cryptocurrency. Tesla and its proposal not to accept Bitcoins as payment have been a reason for it to lose value. These speculations have always been present, but in 2021 they have increased their effectiveness.
However, McLemore clarifies that neither news has caused a real impact on cryptocurrency. While bitcoin needs to be revamped in mining, the token consumes less energy than gold mining. Musk’s speculations about the case will increase the value of the cryptocurrency because a renewal in that aspect is expected.
But China is an authoritarian country, and it does not surprise the measures it takes on cryptocurrency. China will not control the token, but it will regulate it as India has been trying to do for years.
The largest-cap cryptocurrency has a good future ahead
According to McLemore, Bitcoin has a great future ahead of it, although for now, the road looks dark. Cryptocurrency attacks have been around since it was created more than a decade ago. Although the token is capitalizing to less than $40 billion, its price will rise when new investors arrive.
There is a lot of speculation about cryptocurrency and gold, where various investors are changing the way they protect their money. McLemore points out there is no objective evidence of this move, and it is nothing more than the news that seeks to affect the cryptocurrency.
But there is also a rumor that Tesla sold its shares of the cryptocurrency after Musk’s announcement. The car company sold a small part of its shares at the beginning of the quarter, but they have not done it again. Elon Musk spoke on the news to clarify that his company has not sold the shares that concern him.
