Categories: Bitcoin Business

Bitcoin Hedge Fund: Scaling Resolution Could Double Price

Click here to view original web page at www.coindesk.com

Despite bitcoin's recent all-time highs, the digital asset could see bigger price gains if its scaling debate ultimately resolves, at least according to one major hedge fund centered on the technology.

In an email to investors this week, Global Advisors Bitcoin Investment Fund (GABI), a Jersey-based investment vehicle that buys and sells bitcoin on behalf of investors, touched on ongoing developments in the digital currency markets, putting a special emphasis on developments in litecoin and how they relate to the larger bitcoin market.

In the note, the firm pointed to the acceptance of Segregated Witness – a technical upgrade originally developed for bitcoin – by the litecoin community as one major factor behind that market's upward movement. The integration of SegWit on litecoin is a notable given the reticence by bitcoin miners to accept the upgrade on technical and political grounds.

Yet, should this kind of implementation be repeated for bitcoin, GABI argued, markets could have a similar reaction.

The firm wrote:

"Even though one can find no evidence whatsoever that there were scaling pressures in litecoin, this upgrade went ahead and if it is even slightly predictive of a path that can be taken in bitcoin, one that will at least show progress if not resolution, the price impact could be significant. A double up wouldn't be shocking."

The hedge fund also highlighted the broad increases observed across most cryptocurrency markets of late, which have increasingly diversified away from bitcoin.

As reported last week, markets outside of bitcoin have seen major trade activity in recent days, pushing the combined market capitalization of all cryptocurrencies above $50bn for the first time ever. Of that, bitcoin accounts for roughly $27bn, according to available data.

"This is a stunning progression and speaks to the thesis we've held for some time that the cryptocurrency landscape would become increasingly diverse in response to user demand," GABI said.

Trader image via Shutterstock

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Terrorists are turning to Bitcoin for funding, and they’re learning fast

Representational image of Bitcoin. (File: Bloomberg) By Nathaniel Popper Hamas, the militant Palestinian group, has been designated a terrorist organization… Read More

23 mins ago

Latest Faketoshi says he conveniently ‘lost the hard drive’ containing billions in Bitcoin

Just yesterday we told you how there was a new Faketoshi in town, staking a questionable claim to the Bitcoin… Read More

23 mins ago

Study Suggests Scarcity Could Drive Bitcoin Prices to $60,000 by May 2020

Share Tweet Send Share Bitcoin price predictions have been coming thick and fast in recent months as the world’s top… Read More

23 mins ago

“Bitcoin will never hit 50k” says crypto skeptic Peter Schiff

For a man that wants nothing to do with Bitcoin , economist and Euro Pacific Capital CEO Peter Schiff never… Read More

23 mins ago

Casa Releases Node Monitor Service to Improve Bitcoin Network Health

Casa, a crypto firm that provides a private key management service and Bitcoin node machine, has unveiled a node monitor… Read More

24 mins ago

ETC/ETH Technical Analysis: Ethereum Classic breaks higher

Ethereum Classic vs Ethereum: Classic is making a comeback today An important price level has been broken 0.037673 looks to… Read More

24 mins ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More