The Mayor of Colorado city plans to use 20% of his city capital to increase the Bitcoin’s reserve and other cryptocurrencies, many terming it as “A City of Coins”. According to a tweet by Neil Jacobs, the city is a small town with about 269 communities with only one gas station. This amount is about $50000, which will be invested every year from the city’s budget.
This tweet has taken many by surprise especially considering the population in the city- about 800 people. Some also gave their opinions saying that the 269 communities will receive protection from the currency debasing by the government. They, however, encourage them to stack as much BTC as possible.
To many people, Bitcoin is an investment and a reserve to shield them from inflation. The central city is not much of a town. However, many prefer to have a volatile appreciating asset like Bitcoin. They say that it gives them hope and freedom.
However, other people mentioned that they would wish that all states would begin doing a similar thing to free themselves from Federal government manipulation.
But this might take a long time, considering that many governments holding power will not allow it. If more people agree to do this, then they might force the government’s hand.
Many are celebrating this move, saying that even though the city is a small casino town, it will buy a significant amount of Bitcoin even though the 20% is a lot of sacrifice.
Is Colorados Move Timely?
Bitcoin and Ethereum have been experiencing a dip in the last few weeks after hitting their all-time highs, with Bitcoin sliding back to $58000 at writing.
These latest price falls are partly due to president Joe Biden’s admin reports proposing a new bill that will regulate Stablecoins and cryptocurrencies by giving crypto guidance to banks.
However, the market has been bouncing back, and many see that Colorado’s move is so timely. Buying BTC’s dip will surely raise the economy of the city.
Moreover, there is a huge sign showing BTC will pick up on its trails again. In the meantime, MicroStrategy is busy adding Bitcoin worth over $400 million to its portfolio. This is in expectation of a huge significant bull run for the crypto market. Therefore buying Bitcoin’s dip is the best option for Colorado city.
Bitcoin’s Dip: What Does It Translate?
Bitcoin price has dipped from its all-time high of $68000 to its current price of $58000. This is a 165 decrease in only the month of November. What does this translate to?
To know where BTC is heading, we need to look at what happens during the yearly bull runs around this month in the past years.
In 2013, before the massive bull run in December, Bitcoin dropped by 12%. After the BTC price surge, a similar incident also took place in 2017 November where the market dips by 16%. The price then takes off, hitting the $20000 mark.
When you take the average percentages of both bull runs, they give you a 16.5% drop. This is almost similar to this year’s November 16% drop. The decline indicates that the BTC price will be taking off to the moon at any moment.