The coronavirus continues to wreak havoc. Unfortunately, we cannot claim victory yet, because the virus is still among us. Despite the existence of vaccines, many refuse to be vaccinated, appealing for all kinds of reasons. It could be said that many appeal for the right to infect others. “It is my body.” Good too It is our pandemic for a while. Contagions continue to increase, in what could be wave number -I already lost count-.
Countries like Germany are studying the possibility of implementing new containment measures. God! We already have the vaccines. But, paradoxically, we have a fairly postmodern phenomenon on our hands that makes matters worse: Now any ignorant think he knows more than the scientific community. Because now everything is a great conspiracy against the people. We will have to invent a vaccine for stupidity. Oh right, no one will want to put that vaccine thinking it’s a Bill Gates scam.
Of course the markets worry. The prolongation of the pandemic means economic delay. It is very difficult to have a full recovery with the virus still with us. Thanksgiving in the United States, Black Friday, inflation, geopolitical tensions, and logistical failures added to create a pessimistic current.
The crypto market took a heavy hit this week. I fear that when investors panic Bitcoin falls and the dollar rebounds. Good week for the dollar due to that new nervousness. Altcoins imitated their king. I mean, they also fell. But altcoins are going down big. They collapsed making a great scandal. Greed and FOMO were through the roof. A touch of reality was already needed.
Now, let’s talk about the most popular crypto news of the week.
What goes up a lot, goes down a lot. Of course the fall was known to be spectacular. It is the nature of volatility. We are talking about a high risk “meme coin”. It can make you a millionaire in a couple of weeks, but it can also bankrupt you in a couple of days. I recently wrote two articles on Shiba Inu. Talk about the risks. The pros and cons. More than one was offended by my opinions. Apparently, Shiba Inu was the eighth wonder. According to its White Paper and its promoters, the coin is a dream.
Now, we know that paper holds everything. Anyone can make promises. And, in today’s world, it’s relatively easy to get a weapon from loyal fans who believe lies. My argument: Shiba Inu can be a good (short-term) speculative opportunity, but beware of its high volatility. Goat’s mouth. Within days the price plummeted. However, I still hold my position. It can still be a great opportunity. Sure, watch out for volatility.
The evils do not come alone. They arrive together. Cardano does catch on from time to time, but fashions don’t last long. First of all, Ethereum’s successes inspire optimism across the smart platform industry. Especially (ironically) on so-called Ethereum killers. Second, Cardano is a very innovative project with a great team of developers. That gives the project a lot of credibility. Whenever we have a technological advance, the price of Cardano shoots up. That credibility has led to adoption. Yes things have been built on Cardano. However, despite its high capitalization, it is still a minor player compared to Ethereum. Overbought?
This is not an attack by the Establishment against the people of El Salvador and its beloved president for adopting Bitcoin as legal tender. It is not a political issue. They are business. People who lend money want their money paid back. It is sensible for El Salvador’s creditors to worry about the risks that Bukele is taking in such an improvised way. In three days, the Bitcoin law was passed. We can imagine the quality of that debate. We all know that decisions are made by Bukele as a Latin American strongman. That screams risk of default.
Monetary stability is vital to obtaining credit. Bitcoin is one of the most volatile assets in circulation. The debt is sinking, because the country does not inspire confidence among international investors. Is El Salvador free and sovereign? Sure. But investors are also free to choose where they place their capital. Is it a good idea to buy Salvadoran bonds? Apparently, the big capitals have said no. What a problem means to a country that wants to do and undo at will, but, at the same time, borrows abroad.
Last week I wrote that I was noticing some pretty extreme fanaticism among the minorities active on the networks and it worried me. Why? I was worried because fanaticism is usually an indicator of a high level of greed. And when the level of greed is very high, that usually implies an eventual drop in price. The aggressiveness of the comments and blind faith in some projects can be interpreted as a bad omen. Now, let’s hope we find ourselves in an exceptional week. Fingers crossed. There is no reason to think that the market will not recover. Hopefully the panic doesn’t last long. Let’s go December!
NFTs games and the metaverse on everyone’s lips. To study, gentlemen. We are early. We are talking about entire universes. The opportunities to make money can be many. Who are the main players in the metaverse sector? You have to do your homework. It’s always the same. People always complain that they missed great opportunities by being too late. However, they are too distracted in their wailing to be aware of new trends. You have to be an opportunity hunter. Always in vigil. Eye!