Top crypto news of the week: Cryptocurrencies on Mars ?, rejection of the price of Bitcoin in the 20K dollars and much more
A brief review of which were the most outstanding crypto news of the week so that you do not miss any details about what is happening in the world about bitcoin, blockchain and the crypto ecosystem.
I get the impression that the boom is calming down a bit and we are already entering a period of consolidation that will surely last for some time. The big advantage is that we are close to the top, despite the significant rejection found at $ 20K. Well, I don’t know. Because Bitcoin is unpredictable. But if, in December and January, the movement remains lateral, the first half of the year would be great. With solid floors, we can jump to the moon.
Now, let’s talk about the most popular crypto news of the week.
“End of the State”: Mars will have its own currency and will not follow the laws of the land, says Elon Musk
I don’t know the details of the law in outer space. But I assume that the Earth authorities will have the last word on the legal status of Mars. Otherwise, Elon Musk would be the de facto dictator of an entire planet. What will happen in the event of a crime? A murder, for example. Are contracts made on Earth valid on Mars? What is the role of the SpaceX company? Will Musk have enough power to create a Rebel Planet?
Elon Musk is a showman. In my opinion, this whole “Free Mars” thing is just one more propaganda show. It would be interesting to know NASA’s opinion on this. In the future, we will surely have more clarity on the subject. Do the laws of the Earth apply on the Moon? Do they apply in space? In mars? I assume that, in places like Antarctica, the International Space Station or in international waters, certain rules are followed. I dont know. That is a field that he did not handle very well. But as tempting as his anarcho-capitalist utopia might seem, I would say from now on that Mars should not be the property of Elon Musk.
North Korea executes trader in scene of repression of foreign transactions
The stability of the currency is vital to any economy. And this involves some control over the flow of capital. If too much capital comes in, this could be a problem. And if a lot of capital comes out, it could also be a problem. Of course, when we talk about the North Korean economy we are talking about extremes. There the control is total. And we know that criminal convictions are drastic. Due to all the international sanctions, the North Korean economy, be it by obligation or strategy, is quite autarkic. However, it seems that lately the closure has intensified and that has brought implications for citizens.
Bitcoin tends to become very popular in countries with strict currency controls. If we review the list of countries with the highest volume of transactions in Localbitcoins, we will notice that exchange rate friction is an extremely relevant factor. Inflation is usually mentioned as a decisive factor in the adoption of Bitcoin in certain countries. However, this is not the whole story. In many cases, the dollar is the desired asset. And Bitcoin serves as a bridge when dollars cannot be obtained through official channels. The difference is that in the first narrative, Bitcoin is presented as a competitor to the dollar, while in the second narrative, Bitcoin is presented as an ally of the dollar in the black market of currencies.
This metric suggests that the price of Bitcoin may hit $ 590,000 on this bullish rise.
I must confess that I am somewhat skeptical of models that do not take into account future demand considering the available capital. If we are guided by the history of Bitcoin and exclusively use the past patterns to make our projections, Bitcoin in a couple of decades will be bigger than the economy of the entire planet. The stock / flow model and the Unrealized Profit and Loss index are excellent indicators. But they work much better when used with other indicators.
The scarcity of Bitcoin is very relevant as is its historical behavior. But there are other equally relevant factors. We must take into consideration the money supply, the Gross Domestic Product, and the capital available for investment. Bitcoin may be the scarcest asset on the planet, but without demand it is not worth much. And to determine demand it is important to consider circulating liquidity. Bitcoin is traded in pairs. And a pair has two parts. The supply of fiat is not infinite and that imposes a natural limit on the exchange rate of the pair.
Paul Tudor Jones Fractal Chart for Bitcoin Price Hints Possible Explosive Rebound
The headline mentions Paul Tuder Jones, but the text speaks almost exclusively of the Winklevoss brothers. Here, as usual, we return the literal comparison between Bitcoin and gold. All this Bitcoin’s narrative as a “safe haven” from inflation due to its scarcity. So in no time, Bitcoin will hit $ 500k per unit, because that would put us in the same capitalization of the gold market.
Personally, I think this narrative is extremely irresponsible. Let’s think about a loved one for a moment. Say, our dear 93-year-old granny. Let’s say you just sold your house to move into a small room. In this way, you can spend your last days without financial worries. She just got some good money and asks her favorite grandson for advice. Inflation is a concern, because let’s say you live in Venezuela.
Her grandson tells her, “Grandma, put all your money in Bitcoin. It is a “safe haven” and the best way to combat inflation. ” Really?
Another option would be to tell you to put your dollar money in a fixed income fund so that you can receive income periodically. Of course, you could also put 1-5% of your money in Bitcoin for exploration considering that Bitcoin is a highly volatile asset. With your hand on your heart, which of the two recommendations is more sensible?
Dear crypto friends. We must remember that we are all stakeholders when it comes to Bitcoin. A rise in price suits us all. And the Winklevoss brothers must offer villas and castles, because this is the way they use to attract clients. However, we cannot be innocent. It is one thing to create “hype” to try to raise the price with propaganda. And another thing is very different is to blindly believe all the nonsense that is said during the creation of this hype.
3 reasons why the price of Bitcoin violently rejected the $ 20,000 level.
I think rejection is natural. This is the mother of resistance. The psychological burden is obviously very strong. Because buying at $ 20K is not easy. It’s easier to sell something to get money during the holidays. I dont know. But 20K feels expensive for investors who have been at it for a few years. We still have to get used to the new supports to buy again in the same spirit that we did when Bitcoin was below $ 10K. It takes time and several tests. But I think an eventual breakup will be inevitable. Sooner or later, we will break that resistance.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.