“I think there is a concurrence of circumstances leading to this historic high, both in cryptocurrencies and in the stock markets,” Assia told Cointelegraph on Thursday. “We are witnessing unprecedented monetary and fiscal reactions from federal governments around the world, leading to zero interest rates and, in some places, even negative interest rates.”
In March 2020, bitcoin (BTC) fell below $ 4,000 because the precautionary measures of COVID-19 have made headlines. Since then, however, the crypt market has grown, with bitcoins reaching milestone prices in excess of $ 60,000 and overall market capitalization over $ 1 trillion.
“We see an unprecedented amount of money being printed by governments around the world – some of them in a very unique and new concept of direct control of incentives for consumers,” said Assia. “It certainly sparked the biggest debate in human history about the value of money – a debate that started very passionately in crypto space,” he added, citing a lack of bitcoins.
Bitcoin has a maximum stock of 21 million coins, although not all have been distributed yet. Every approximately 10 minutes, a set number of new coins from this allocation are released into the ecosystem as a reward for the miners who contribute to the net. However, over time, the number of coins to be distributed will only decrease; over the past decade, block remuneration has dropped from 50 BTC to 6.5 BTC. In the end, no more coins will enter circulation, despite a strong and continuing precedent for increasing investor demand.
The innate lack of a network is an easy enough concept for Asia to understand, says Assia, who further noted that people are not blind to excessive money printing and low interest rates in traditional fiat markets. He also pointed out that purchases of cryptocurrencies and stocks are now more globally available to retail buyers, encouraging the mass involvement of people who previously did not have to participate.
He concluded that these factors also stimulated “renewed interest that has not met since December 2017, so since crypto rally 1.0 we have not seen as much interest in cryptocurrency as we see right now with crypto rally 2.0.”