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Monday, September 20, 2021

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Cryptocurrencies meme, Cardano going up, investors buying NFT from rocks and much more

Another positive week in the investment world. The main stock indices hit all-time highs in the last seven days. Why? A solid economic recovery. Almost 88% of S&P 500 companies have reported revenue above expectations. Furthermore, inflation (US) is giving subtle signals of a possible moderation, jobless claims (US) have decreased and the price of oil is falling. The Delta variant of the coronavirus and anti-vaccines continue to cause cause for concern. But the sales have been such that investors have forgotten all the bad stuff.

Meanwhile in the crypto world, optimism continues to overflow. And Bitcoin continues to fight heroically on its way to $ 50K. Altcoins seem to be waking up from their slumber. The flowers are smiling, the sky is full of colors, and the little birds are singing Barry Manilow songs. Apocalyptic theories about a global economic collapse, due to poor monetary management by the authorities, are losing steam and investors are believing in the future. Next fall is raising a lot of expectations.

Now, let’s talk about the most popular crypto news this week.

It is not advisable to buy for tips. As simple as that. It is true that some small and unknown projects have the ability to upload multiple Xs in a short time. But that does not mean that we should buy for tips. Pump and Dump schemes work like this: “Currency X will go up 7,000% next week.” That’s like saying “Princess” will finish first at the weekend horse races. You have to be serious in this life.

Buy projects with substance. Be part of a movement. If you’re investing in a small, unfamiliar project, at least do your homework. Go beyond your recent increases. It would be wise to investigate its usefulness, its community, and its differentiator. There is nothing wrong with speculating looking to profit from the volatility of small projects. But understand what you are doing. These are short-term movements and very high risk. There is a lot to be gained. But there is also a lot to be gained. Anyway, if you’re going to get into that nitty-gritty, shop wisely. Not with tips.

Well, we are in a bull cycle. There is a lot of liquidity in circulation, and in such circumstances, greed overflows. The Federal Reserve injected historic amounts of new currency and now any stamp can be worth millions. Memes coins are a phenomenon of greed. These are crypto assets from speculators for speculators. I mean, there is not much substance here. There is not much utility, community, or development. This is speculation at its finest. Of course, all cryptocurrencies are speculative. But these definitely hit the jackpot in the comparison chart.

Speculating is bad? Of course not. Inverts to see the cheese on the toast. But we must take into account the level of risk of these assets. Bitcoin is the most stable asset of the group. Then come the more established altcoins like Ethereum and Binance Coin. Meme coins are in the penultimate place on the risk scale. Only declared scams can claim the title of riskiest. Do you want to invest in a meme coin? You can do it. But consider the risk. There is no mercy here for the deluded and naive at heart.

Cardano always reminds me of the person who was right, but he still went to jail. In other words, in this life you have to be right and you have to be strong. No one denies the great effort that Cardano has put into creating good code. That’s not the problem. The problem is, Cardano is a one-man show. In other words, it has no community. It’s about an academic giving (boring) talks around the world talking about great cryptography, but with empty chairs. That is the difference with Ethereum. Ethereum has people.

The big question: Is there room for two smart supercomputers? For now, everything seems to indicate that Ethereum’s network effect is more important than its cryptography. Ethereum can learn from the Cardano code. But Cardano cannot prosper without community.

The law of diminishing returns. If you are small, you can grow faster. But, as you get bigger, the growth rate slows down. Beating Bitcoin is not easy. Because the cryptocurrency that approaches will lose power along the way. Why? It is not the same to grow in millions than in billions. We must remember that the available capital is not unlimited. While it is true that there is currently a lot of liquidity in circulation, the capital is not infinite. I notice that many analysts add numbers to their predictions indiscriminately, but forget to take into account that it is not blow and bottle. There are limitations to growth.

It follows the rise of NFTs in a non-correlated way. Bitcoin goes up. Bitcoin goes down. But the NFTs continue their meteorite journey to the stars in an interrupted manner. Games of this type are the latest rage in fashion. During the last few weeks, the growth has been exponential. It’s like the Beatles coming to the new continent for the first time. As long as money continues to enter these systems, we will continue to see news like this. 6-figure pets.

As is often the case in these cases, time is the key. The people who got in first are the first to reap the rewards of their investment. The early and patient investor is the great champion of this story. We will have the problem later. During the overbought period, we will have rivers of blood. When will that be? Well, it is not yet known. The market is still small and the enthusiasm is still very great. Apparently, the party will continue for a longer time. Let the game continue.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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