A brief review of what were the highlights of the week so you don’t miss any details about what is happening in the world about bitcoin, blockchain and the crypto ecosystem.
As much as it’s said that the short-term price of Bitcoin shouldn’t cause an emotional reaction, it’s definitely true that birds are singing prettier today. And, for some reason, it’s much easier to smile. After all, it’s not every week that we make history. And with such a beautiful and spectacular breakout. Tasty! After all this time, we have finally crossed the rubicon. We’re on another level. Up Bitcoin!
Now, we’re talking about the most popular kryptonews of the week.
Imminent action on the price of XRP? A Closer Look at the Third Kryptonews on the Market
The big news is the institutional capital coming to the coasts of Bitcoin country. However, the altcoins have benefited from the general enthusiasm. At this point, it’s difficult to know how much is FOMO and how much are the fundamentals. Not in the case of Bitcoin. Maybe not in the case of Ethereum. But I am referring to the rest of the altcoins. During the last weeks, XRP has been on the rise. But its increase in 2020 has been modest in comparison. Eighty-five percent is not so much, if we make the comparison.
The case of XRP is special. Ripple, the company, is the largest holder of XRP and is particularly keen to sell the cryptoactive as if it were hot bread. It sells without mercy and at all times. He sells when the price is on the ground, proving that his interests are always more important than his investors. I don’t know how good an asset can be with such a massive sales policy. The problem, in my opinion, is management. Of course, they finally started a buyback program. Better late than never. However, these programs work much better during bearish seasons. But, well, after a long winter, XRP is finally coming up.
Definitely that crypto space is Wall Street on steroids. Greed here is on another level. It turns out that Bitcoin is the „conservative“ asset. So, after going up so much, a lot of investors get bored and go „diversify“ into the altcoins looking for higher returns. Holy cow! Incredible, but true. Bitcoin is investment and altcoins are speculation. That’s, more or less, the dynamic that one can see. But it’s true. Many of the altcoins in vogue today won’t survive the years. Of course, that doesn’t mean you can look for short-term gains.
A surprising survey suggests that most investors think that Bitcoin won’t exceed $50,000 by 2030
As a general rule, it is always better to take the conservative side when it comes to forecasting. That is, always start with low expectations. Of all the probabilities, choose the most conservative scenario. This attitude is very useful for the investor, because it means that surprises are usually pleasant. A couple of months ago, I thought that by this time we would be in the $15K band. However, things turned out differently. A pleasant surprise. The deluded suffer more. Always talking about big hikes and taking too many risks based on pure optimism.
Now, being conservative in our forecasts doesn’t mean that we should be irrational pessimists. Nor is it a matter of underestimating the probabilities. Let us remember that there is a lot of liquidity in the environment and almost everything is staying in the financial markets. Money is not circulating in the real economy with the required speed. This is the reason for low inflation and high unemployment. Inflation does not lie in goods and services. Consumer prices have still increased sufficiently. However, we cannot say the same for financial assets.
About this survey. The reality is that people usually don’t know what they’re talking about. In other words, the masses are not always wise. They are often wrong. Many people, at this time, are going through very difficult times and everything is viewed with great pessimism. In December 2017, everyone was crazy about Bitcoin. Now people talk about Bitcoin with a lot of mistrust. I’m talking about the person standing. However, this seems to me to be an excellent sign. Everything seems to indicate that this rise is being generated by Smart Money. This means that we still have a lot of room to grow.
In December 2017, the cab driver, the security guard and the hairdresser were very excited about Bitcoin, but the Smart Money was quite skeptical. Now, in December 2020, the Smart Money has its engines running and the public is not in a good mood, because the common one has emerged from the Covid-19 crisis. If I’m honest, that „surprising survey“ fell on me like a charm.
„All bets are uncertain“ now that Bitcoin has surpassed $20,000, says the trader
It is never healthy to fall into self-deception. That is, to create false expectations. Of course, all bets are uncertain. We still can’t sing victory. Because nothing is really safe with Bitcoin. Otherwise, it wouldn’t be so profitable. However, we must recognize that this rise is totally different from that of 2017. Reaching the $20K for a brief moment is not the same as having the 20K as a support and the big capitals showing quite a bit of interest. Today’s fundamentals are far superior to what was available in 2017. It cannot be ruled out that we should be cautious and not fall into greed. But it would be irrational to fall into pessimism. At least in the long run.
Five key metrics indicate that the price of Ethereum is poised to reach a new all-time high
Not everyone is a fan of the Ethereum. But that’s okay. One can have all the reservations in the world, but one must recognize that Ethereum is a very strong player in the crypto scene. Besides, he has formed a kind of duo with Bitcoin. Something like that with gold and oil. In fact, one could summarize the crypto universe as follows: Bitcoin, Ethereum, the stablecoins and everything else. The maxis see Ethereum as a rival. But I think that’s a mistake. Is oil a rival to gold?
Robert Kiyosaki explains why Bitcoin will reach USD 50,000 next year
For the Smart Money, Robert Kiyosaki is a simple showman. A celebrity who writes self-help/financial books. An influencer. It’s not a big deal, but it also has its merits. The subject explains very well. And, above all, he has quite a few followers who see him as a guru. A kind of Warren Buffett of the plain people. He’s a new member of the family. Welcome. It all adds up. A lot of people out there are probably buying Bitcoin, following Robert’s recommendation. His forecast is on the table. It’s certainly a probability. And he took the conservative side. Because others are talking about $100K.
A little note on the forecasts: Be careful when listening to the forecasts of influencers, CEOs of exchanges, and fund managers. They usually use forecasts to spark interest and create hype. In this way, they increase their clientele/followers. The best forecasts come from serious studies (research firms, etc.)