In the last two weeks, Bitcoin has traded between 30,000 and 40,000, nothing fundamental to the Bitcoin valuation is anchored. Large swings, larger or catastrophic losses show a highly speculative asset class. Investors need to ask themselves whether or not they can hedge against the dollar, and Bitcoin tests support for around 30,000 and perhaps significantly lower to complete a 5-wave cycle.
Encryption has been amazing, but speculators can finally recognize that the deal is over. Bitcoin generates nothing, clearly has no store of value or stability, and offers no dividends.
Crypto Crash: Fasten your seat belt
Encryption prices disappeared; a repricing process is taking place. Let’s reach BTC$20,000 and ETH$1,000. When all bulls double and prices plummet, surrender is an old phase of the boom, the bubble, the cycle of collapse. If you employed the classic bubble trading strategies of the 1960s and 1970s, you would have placed this box around this diagram.
HODLers are correct in their bid to prevent encryption from crashing, but Bitcoin should not be reduced. The idea should be to let the dust settle and then, slowly but surely, make things easier. Rarible is a strange “canary in a coal mine”, quickly boosted by the market’s slump in bear dynamics.
Bitcoin: there is money in the mud, but watch your step
Bitcoin is a clever deception that inevitably causes a lot of damage. Bitcoin price tracks the cost of manufacturing, but the cost of production is not linked to real-world costs. As it was presented as a speculative asset (including at the CME), there is currently no way to transform it into a legal offer in any jurisdiction. CEO Jamie Dimon called Bitcoin a scam that will explode in September 2017.
Dimon claimed he was “not a Bitcoin supporter” and had no interest in virtual currency in May. Since then, he has rejected their comments, but still believes Bitcoin is a “scam”. Bitcoin’s idea of ”digital gold” can lead to a false perception of high value. It reminds me of the old saying that people would be drawn to wherever the mess was made. Goldman Sachs is expected to start selling Bitcoin investing in the second quarter, the report adds. David Frum David Even if Bitcoin was extracted with animal manure, as the expression goes, there is money in the mud. He said that, in the first decade of this century, he reminded him of CDOs when large institutions were drawn to commercial CDOs. Frum sees history repeating itself that banks are attracted to Bitcoin, no matter how complicated they are.
Bitcoin advocates believe that fiat money will be replaced. Bitcoin value is virtually widely accepted IBM and others such as China have just declared an important quantum computing milestone in Google (NASDAQ: GOOG) CEO Sundar Pichai. The following ScienceDaily May 5 Top Headlines contain some of the best stories of the past few days. In her article “Bitcoin Security Modeling”, Lyn Alden Schwartzer recently published about the risk of Bitcoin. She claims that a 51 percent attack that allows coins to be stolen by a miner or group of miners is not uncommon.
In the not-too-distant future, quantum computers could easily undermine Bitcoin’s supposed security. The role of rating agencies and banks in Bitcoin development must be taken into account. S&P Global Ratings claims that Bitcoin is a marginal risk for conventional finance and its main players. S&P is joining a growing number of Wall Street firms that are evaluating Bitcoin after cryptocurrency prices doubled in 2020, sparking new interest among major institutional investors. Even the largest cryptocurrencies, such as Bitcoin, are not considered by the agency to be a viable means of commerce or an asset class.
Bitcoin is just a set of digital characters created by a handful of dodgy characters. As countries gradually establish their own digital currencies, it becomes clear that Bitcoin is nothing more than a counterfeit.
Bitcoin as an ESG Investment: Accelerating a Renewable Future
Fear of Bitcoin’s environmental impact dampened investor enthusiasm, but those fears can be exaggerated and short-sighted. Bitcoin has the ability to accelerate the future of green energy by stimulating sustainable next generation networks. If it can position itself as the forerunner of a greener future, adoption will increase investment opportunities. Bitcoin employs a large number of non-renewable energy sources, but remains progressive in terms of world energy use, if the cost of energy use is less than the value of the bitcoin created, the miner is encouraged to use it.
Bitcoin and renewable energy
Bitcoin produces about 300 times more energy than the average American household consumes, this energy consumption can translate into massive cost savings for large energy consumers, which can lead to a paradigm shift in the use of renewable energy. As a means of solving the problem of non-renewable energy consumption, Blockchain technology has the potential to lead a greener future. Bitcoin’s extremely efficient use of electricity is achieved through “Proof of Work” mining. According to Green Energy Consensus, a sustainable energy market analysis firm, approximately 50% of Bitcoin mining is done in China, where coal is the main component of energy production.
Bitcoin and sustainable grids
Although the grid has been in place since the 1970s, the cost of electricity has only risen to the point where the relative cost of energy for Bitcoin mining (also known as “network capital cost”) has surpassed traditional and carbon intensive . As Bitcoin becomes more popular, so does the amount of energy needed to process all transactions. More than 70% of Bitcoin transactions are done in kilowatt-hours (kWh) each year, leading to an explosive growth in the cost of energy use. The challenge for grid operators is how they can make the most efficient use of their limited energy supply. In a perfect world, one would have the option of getting off the grid, avoiding it entirely for the benefit of fossil fuels.
Bitcoin and investment
Sustainable Investment Strategy Funds do not invest directly in cryptocurrencies, but work with various sectors, such as energy and the environment. Some of the sustainability principles must be reflected in every transaction. Bitcoin must be consistent with its values, including Sustainability, Safety, Comfort, Transparency, Respect for others and Ethics. The value of Bitcoin and other cryptocurrencies could be significantly affected by volatile changes in the markets, consistent growth would allow cryptocurrency to meet the needs of its growing user base and reward early investors.
The green revolution was a major driver of large corporate investments and a key driver of future economic growth. A similar effect would be catalyzed if cryptocurrencies were used as part of an inclusive future for clean, decentralized energy networks. If Bitcoin usage normalizes, it will gain momentum quickly and have the same effect on clean energy networks that the Green Revolution had on overall production. This could be a big ‘green light’ for renewable energy around the world.