It is true that we are stagnating, but it is good at the moment. The fact that Wall Street is fluctuating and Bitcoin being repaired as The Mona Lisa is great news. Of course, the 10K was a very difficult roof to break. But there we have our current support that gives the fight. The more time passes and this support does not break, the stronger it becomes. Despite the laterality of our situation in a burning world, this stability is a sign of great strength.
Now let’s talk about the week’s most read crypto messages.
There is no doubt that Ethereum has become an important step. It’s often compared to Bitcoin, but it’s actually two very different animals. You could say Bitcoin is digital gold and Ethereum is the supercomputer. Although they are usually placed as rivals of the same bag, in practice this doesn’t seem to be the case. People buy Bitcoin as an investment and build things on Ethereum. Instead of competition, they are leaders deep inside in various markets. That is, although in controversial theory, in practice what you see. They are systems that work in parallel / complementary. You can see that.
Many intelligent platforms have emerged that try to dethrone Ethereum with “better” technologies. In these “intelligent platforms” we can incorporate second level Bitcoin solutions like RSK. But the truth is that Ethereum continues to occupy the sector’s throne and its fief is growing. Many criticize Ethereum, but Ethereum has to do something right. Because developers continue to prefer this platform to others when developing their projects.
This whole Ethereum 2.0 affair with its new PoS and sharding is certainly a brave step. It is a reckless act with many risks, but with great potential. The rise of the Defi and DApps has shown whether critics like it or not that Ethereum is not a promise. There are fruits of years of development. That things can also be built on Bitcoin. Well, power isn’t done. It can, but it has not been done. The Ethereum is uncertain. Which is centralized. Maybe, but we can’t deny that their bread is being sold.
I have to admit that I was one of those who read this heading with great curiosity. But then I was disappointed because these are pyramids from the past. I thought that today’s pyramids would be discussed. Because it is obvious that there are many pyramids out there. The problem is that there is no good information about it. In fact, separating opportunities from fraud is very difficult because there are people who call everything fraud. For example, if you set up a hedge fund in this area, you will almost certainly be called a scam on Twitter. And when it appears on Twitter or on a blog, the public begins to say, “They say it’s a scam.” But who says that? Well, that’s in it. Damn it!
WhyIn this area, what is not a scam is a bubble, but it is said by billionaires who bought Bitcoin when everyone said it was a scam and a bubble. The truth is that there are legitimate and very profitable companies that are not scams. But what are they? This market urgently needs reputable companies to carry out studies, rankings, evaluations and recommendations.
When it comes to fraud, I find it suspicious when a new company talks to strangers about big profits, but never about the risks. AND In a way, that could extend to Bitcoin. I mean people who make extremely optimistic price predictions. And they’re upset when you adopt a more conservative stance. It is our responsibility to also talk about the risks. There are people who sell Bitcoin to grandmas, and half the world says it’s a safe investment. Recommend your purchase left and right. Be careful with it. It seems to me that in these cases he is playing with fire.
The Government of Japan Pension Fund fell 11%. I mean, practically nothing. Obviously, this is a fund with a very conservative strategy. If the fund declined only 11% during the worst crisis since the Great Depression, we are facing a big win. This number is, of course, misleading as the markets have improved a lot due to the liquidity available, but there may be another crash. It remains to be seen whether this 11% will remain until the end of the year. This doesn’t end until the fat woman sings.
I’m a little over 5 years old in this area, and I’ve always been told that in the next crisis, the dollar would collapse and Bitcoin would go to the moon. I have to admit that I was always impressed. How would a new and volatile asset like Bitcoin be attractive in times of panic? Also,Why should the dollar collapse in a recession? Crises are deflationary. However, this idea is more dominant than any other in the crypto community. Everyone thinks so. It’s honestly surprising.
But now came the first global crisis in Bitcoin’s history and our beloved morneda correlates with the S P 500. Something that I think is extremely logical. I have always written about this possibility, but it has always been one of my most unpopular opinions. The volatility screams in your face. Risk! The other is the dollar question. Everything collapsed in this crisis. The only one that has strengthened is the dollar. The high unemployment rate is closely related to this strength. Deflation is our main problem. We have it, whether we like it or not. Disagree with the opinions of the crypto community or not. It is a mistake to analyze this evidence with prejudice or dogma. Live on illusions. For what? Let us study the facts without prejudice. We will be better investors if we do that.
Buyers and sellers have been in the same place for weeks. This long consolidation phase has practically eliminated the volatility of a particularly volatile asset. It is obvious that the market is of the opinion that this is the price of Bitcoin at the moment, and there is not much indecision about it. Volatility is a sign of nervousness and indecisiveness, and at the moment we all seem to agree.
I assume that we all expect what’s going on in the world. This means that Bitcoin is caught between two contradicting realities. One pulls one arm and the other pulls the other. So we’re suspended in midair. I mean the street crisis on the one hand and the Wall Street party due to the rain of stimuli on the other.
If my reading turns out to be true, it means that the fate of the Bitcoin price is related in the short term to what is happening in the world. A second market crash would certainly harm us. On the other hand, new impulses and an accelerated recovery would benefit us enormously. Since we are at an intersection, we are frozen. But soon we will have no choice but to take one.
Today’s optimism is understandable because everyone is optimistic by 2021. And that’s because almost all investors have solved the equation in their heads. This happens on Wall Street and on the Bitcoin market.
The story is as follows: Suddenly we stagnate somewhat in summer. Suddenly we fell a little in the last quarter of the year. But then we start climbing. Things are going well until mid-2021 and in the end we win the lottery. That sounds nice and nice. And surely many will place all of their chips in this scenario. But that remains to be seen. Experience shows us that things are never that easy.