The world’s most successful asset of the previous decade received a lot of limelight in 2020. We saw the currency reach its 2020 record as it climbed to $9,609 resistance against the US Dollar. Every time Bitcoin shows growth, there is plenty of speculation on why this is happening, despite other assets suffering – such as crude oil, which declined over the last two weeks.
Despite what skeptics say, the cryptocurrency has grown by 9,000,000% in the last decade and has been dubbed ‘digital gold.’ But sometimes, BTC terminology can be exhausting and hard to follow. In the recent BTC news, we hear the reference’ bull market’ often, but what does that mean?
A cryptocurrency whale is an individual who has a large amount of cryptocurrencies (either one currency or multiple). Bitcoin whales are often anonymous, be that high-net-worth individuals, family offices, hedge funds, exchanges, etc. Famous whales included the Winklevoss twins, who owned the BTC payment processor BitInstant. The twins stated they own nearly “1% of all Bitcoin in the existence of all time”, which is currently worth over $1 billion.
Bitcoin whales are feared in the world of cryptocurrencies because they can easily influence price fluctuations by selling large amounts rapidly. With a cryptocurrency that is already extremely volatile – we have seen a leap of $20,000 to $1 in the past years – smaller players fear that should the coin stop displaying significant growth, Bitcoin Whales will lose their patience and abandon the coin.
It is considered ‘problematic’ for several individuals to own large sums of Bitcoin as they can influence the market in the direction they please, which in essence defeats the purpose of Bitcoin’s decentralized blockchain.
Bitcoin bears are those individuals that are cautious and pessimistic about cryptocurrency. A cryptocurrency bear market refers to the time when traders are much more likely to sell rather than buy.
Notable Bitcoin bears are representatives of the financial world, such as American business magnate and CEO of the multi-industry holdings company Berkshire Hathaway – Warren Buffet. Bears often show no hesitation in expressing their dislike of BTC and cryptocurrencies in general and call it a ‘fraud’ or ‘scam.’ Bitcoin bears reject the idea of a decentralized currency and view it as an idea to elude government regulations. Bitcoin bears commonly bankers and economists who strongly support fiat currencies and existing financial systems.
Bitcoin bulls are the exact opposites of bears – they are supporters of the cryptocurrency. Therefore, if we witness an upward trend in the price of Bitcoin, we refer to it as a bull market. In this instance, we see investor positivity and confidence around the cryptocurrency, which is when its price can grow immensely.
Famous BTC bulls include open-minded tech entrepreneurs, like Twitter CEO Jack Dorsey, who actively participates in the promotion of cryptocurrency. Elon Musk is another prominent Bitcoin bull who considers the coin to be a “quite brilliant innovation” and considers cryptocurrencies to be a “far better way to transfer value than pieces of paper.”
To understand and trade cryptocurrencies, it’s essential to be familiar with the ‘lingo’ of the crypto community. The closer you follow the price fluctuations and behavioural trends of the cryptocurrency, the easier it is to speculate the coin. Stay tuned for our next cryptocurrency slang lesson.