The Thanksgiving crash hit Bitcoin too. We had many weeks of climbing without stopping and needed a break. In this case a correction. Is that our support? Is it the $ 15K? The $ 12K? That is the big question of the moment. Are we going to keep descending or is it enough? Further corrections are certainly possible
However, we are unlikely to be in a bubble. I mean, this is not a bullish trap. Our current situation is very different from our situation in December 2017. Personally, I think Bitcoin is poised to reach a market capitalization of close to 10% of the market capitalization of gold. Let’s say $ 50,000 per unit. There is a lot of interest and a lot of money floating around. 2021! Here we go.
Now let’s talk about the week’s most popular crypto news.
The relationship between Bitcoin and Altcoins is always strange. It is obvious that the correlation is positive. However, when we go into the specific, it seems positive on two levels. That is, the two markets tend to move together in the general trend. In the short term, however, this movement does not always occur simultaneously. There is some kind of change. Bitcoin is the king of cryptocurrencies. And ironically, the most stable currency in the system. You could say that it is the “conservative” good. And altcoins are the “speculative” capital.
In practice, we can see with some clarity that investors usually invest in Bitcoin first and then, once Bitcoin loses momentum, Investors are starting to sell their bitcoin profits and get them into the altcoin sector in search of adrenaline. After the altcoin rally everything falls and the process starts again. In a way, this relationship reminds me a bit of the relationship between “Value” stocks and “Growth” stocks in the SP 500. Personally, I prefer to invest in Bitcoin. But I also see (partially) basics in Ethereum.
Regarding the rest of the altcoins, a more detailed analysis of each project would need to be done. In general, however, I would say that these altcoin rallies are only speculative. They say nothing about the projects as such or about their future. They are short term trading opportunities after the Bitcoin rally. They don’t necessarily reflect the robustness of the projects.
PayPal has never been my saint. My PayPal account is just a necessary evil. I got it because some items are easier to pay with PayPal. However, I have always restricted my use of PayPal because the service is specifically designed for restrictions. It’s a big bureaucracy. And the commissions are extremely high. I would say it’s a robbery. But sometimes we have to swallow our pride and use the service.
Now you have to be sensible too. PayPal is not an exchange like Binance or Coinbase. When we start rampaging cryptocurrency trading transactions on PayPal, we should know that at some point we will be raising some red flags from bots. Sooner or later they’ll ask us to justify the transactions. Of course, they will keep the balance in the account if amounts in excess of $ 10,000 per transaction are moved for no reason. They are the system’s security mechanisms. No, “PayPal Crypto” is not a justification.
I fully understand that PayPal is irritating. But setting up a drama on Reddit to use PayPal as an exchange for trading and not expect to pull a red flag out of the system seems excessive to me. PayPal is like that. Once I received money in PayPal and made a withdrawal within seconds. The system has classified this action as suspicious and blocked my account for security reasons. Then justify the action by explaining the source of the funds and the purpose of the payment. And they activated my account after a few days. End of the story.
To be honest, this message strikes me as an absurd melodrama. Do not use PayPal to trade Binance style. And if you do, “PayPal Crypto” listing may not be the best justification in the world. Before you start trading with PayPal, you should study the terms and conditions of the place very well.
The Ripple company is incredibly shameless. They make massive sales during the bear season. And during the bull cycle, they start buying. This beauty! At the moment they have decided to implement a buyback program. With the fiat of their sales they are now buying XRP. Now XRP is going up and they’re making millions of dollars doing it. The house always wins.
Of course, Ripple is manipulating the price of XRP. But it is fraudulent manipulation because it benefits the company and harms the investor. The ethical task would have been to stop sales during the downturn and then implement the buyback program. Then use the rise to sell. That is, only sell in the bull season. Don’t sell on the bearish. This way the prize will strengthen over time and everyone will win. But Ripple is acting like a trader. In other words, another speculator. Buy in the rally to sell in the rally. This way you will make a short term profit. As simple as that. For Ripple, XRP investors don’t play a big role.
We may or may not like the PayPal service personally, but now we need to remember that PayPal is part of the family. And it becomes one of the main customers of the system. In other words, we all want PayPal to do well. In particular, we want PayPal’s crypto project to be a complete success. PayPal is now an ally. In general, bitcoiners are more anti-establishment and large corporations are always viewed with suspicion. Millennials are generally somewhat anarchists. Always complain about anything. Angry and upset at all authority.
However, the bitcoin community is changing. And a lot of the “bad guys” are now “family”. This change will be very difficult to digest for the most radical, but I fear that you will have to adapt. PayPal, welcome!
The stock / flow model is extremely popular in the crypto space mainly because of its simplicity. This model is based solely on the scarcity of Bitcoin. Hence it is very easy to calculate. However, this model is very misleading. On the surface, it seems to explain Bitcoin’s price behavior in the past. But it has one big flaw. The available capital and the degree of acquisition are not taken into account. In other words, demand is not taken into account. And we know that the demand is not infinite. Infinite exponential growth in a finite system is impossible. A 100K Bitcoin is quite possible in the next five years. Because there is money for it. However, a million or 10 million is a different matter. And the stock / flow model doesn’t do much at these levels.