I have the impression that the boom is calming down a bit and that we are already entering a phase of consolidation that will certainly last for some time. The big upside is that despite the significant rejection, we’re close to the top at $ 20,000. Well i don’t know Because bitcoin is unpredictable. But if the move stays sideways in December and January, the first half of the year would be great. With solid floors we can jump to the moon.
Now let’s talk about the week’s most popular crypto news.
I don’t know the details of the law in space. However, I assume that the Earth authorities will have the final say on the legal status of Mars. Otherwise Elon Musk would de facto be the dictator of an entire planet. What if there is a crime? Murder, for example. ¿Contracts on Earth are valid on Mars? What role does SpaceX play? Will Musk have enough strength to create a rebel planet?
Elon Musk is a showman. In my opinion, this whole Free Mars thing is just another propaganda show. It would be interesting to know what NASA thinks about it. In the future we will certainly have more clarity on this topic. Do the laws of the earth apply to the moon? Do they apply in space? In Mars? I assume that certain rules are followed in places like Antarctica, the International Space Station or in international waters. I dont know. This is an area he hasn’t handled very well. But as tempting as its anarcho-capitalist utopia may seem, I would say from now on that Mars should not be the property of Elon Musk.
The stability of the currency is vital to any economy. And that includes some control over the flow of capital. If too much capital is coming in this could be a problem. And if a lot of capital comes out, it could be a problem too. When we talk about the North Korean economy, of course, we are talking about extremes. There is total control. And we know that criminal convictions are harsh. Because of all international sanctions, the North Korean economy is pretty self-sufficient, be it out of commitment or strategy. However, it seems that the closure has tightened recently and this is having an impact on citizens.
Bitcoin is becoming increasingly popular in countries with strict currency controls. If we check the list of countries with the highest volume of transactions in Localbitcoins, we will find that exchange rate friction is an extremely relevant factor. Inflation is usually cited as the deciding factor behind Bitcoin adoption in certain countries. However, this is not the whole story. In many cases, the desired asset is the dollar. And bitcoin serves as a bridge when dollars are not available through official channels. The difference is that in the first narrative, Bitcoin is portrayed as a competitor to the dollar, while in the second one, Bitcoin is portrayed as an ally of the dollar on the black market of currencies.
I have to admit that I am somewhat skeptical of models that do not take into account future demand given the available capital. If we are guided by the history of Bitcoin and solely use the patterns of the past to make our predictions, in a few decades Bitcoin will be bigger than the economy of the entire planet. The Stock / Flow model and the Unrealized Profit and Loss Index are excellent indicators. But they work much better when used with other indicators.
Bitcoin’s scarcity is as relevant as its historical behavior. But there are other equally relevant factors. We have to take into account the money supply, the gross domestic product and the capital available for investment. Bitcoin may be the scarcest commodity on the planet, but it’s not worth much without demand. To determine demand, it is important to consider circulating liquidity. Bitcoin is traded in pairs. And a pair consists of two parts. The supply of fiat is not infinite and that places a natural limit on the pair’s exchange rate.
Paul Tuder Jones is mentioned in the headline, but the text speaks almost exclusively of the Winklevoss brothers. Here, as usual, we return the literal comparison between Bitcoin and gold. All of this narrative of Bitcoin as a “safe haven” against inflation due to its scarcity. So Bitcoin will hit $ 500,000 per unit in no time as that would put us in the same capitalization of the gold market.
Personally, I find this narrative extremely irresponsible. Let’s think about a loved one for a moment. Let’s say our dear 93 year old grandma. Let’s say you just sold your house to move into a small room. This way you can pass your final days without any financial worries. He’s just got good money and asks his favorite grandson for advice. Inflation is a problem because let’s say you live in Venezuela.
Her grandson says to her: “Grandma, put all your money in Bitcoin. It’s a “safe haven” and the best way to fight inflation. ” “Really?”
Another option would be to tell you to put your dollar money into a retirement fund so that you can receive regular income. Of course, you can also invest 1-5% of your money in Bitcoin for exploration purposes as Bitcoin is a very volatile asset. Which of the two recommendations makes more sense with the hand on the heart?
Dear crypto friends. We need to remember that we are all stakeholders when it comes to Bitcoin. A price hike suits us all. And the Winklevoss brothers have to offer villas and castles, because that’s how they attract customers. However, we cannot be innocent. It is one thing to create “hype” to try and raise the price with propaganda. And another thing is very different, blindly believing all the nonsense that is being said during the creation of this hype.
I think rejection is natural. This is the mother of resistance. The psychological burden is obviously very strong. Because at $ 20,000, buying isn’t easy. During the holidays, it is easier to sell something to make money. I dont know. But 20,000 feels expensive for investors who have been around for a few years. We still have to get used to the new supports to buy again in the same vein as we did when Bitcoin was below $ 10,000. It takes time and multiple tests. But I think an eventual breakup will be inevitable. T.burn or sooner we will break this resistance.