It is no question that it has been a volatile time for cryptocurrencies. In fact, it has been a volatile time for the overall market. It is normal to let day to day fluctuations take over your emotions, but remember, we are not trading crypto, we are investing in it. We see the long term efficiencies and potential of the assets we are invested in. Dan Held, a Bitcoin educator and Director of Growth Marketing at Kraken has a great tweet on this:
Investing in an asset as volatile at bitcoin and ether is not for everyone. We do not recommend it for all of our clients. You and your investment advisor should sit down and discuss the risks involved and your time horizon when considering.
Crypto news has been clouded with the fall of LUNA which we covered last week, and I’ll throw one more article in here that explains what happened well. Cryptocurrencies were already on a decline and the design flaws behind stable and pegged coins had a ripple effect throughout the market.Still, less than expected coverage has been on a much-anticipated move for one of our favorite networks: Ethereum.
Ethereum currently relies on a proof-of-work model which is highly energy demanding, but it is moving to a proof-of-stake method to be more efficient. The Ropsten test method is expected to happen on June 8th (which is closely approaching!) and it is a positive sign that developers are still committed to this merge.
Prices of goods and services become more expensive as time goes by. Do you remember how much it cost to go to the movies when you were a kid? Well, it cost me $34 for two tickets the other day. YIKES! That’s inflation. That’s why it is so important when putting together your financial plan that you take into account the effects of inflation.
Gold and commodities have been thought of as some of the best inflation hedges, so where does Bitcoin lie when it comes to inflation? Is it comparable?
Talks of further adoption of bitcoin continue. Nayib Bukele announced that 44 countries were meeting in El Salvador to discuss bitcoin this week. This doesn’t mean that all of these countries are going to adopt the currency as legal tender. The mix of countries attending was a range between dollarized countries and others with strong central banking systems, but it is fascinating nonetheless to see the peaking interest.
Crypto.com made headlines with its huge marketing campaigns. For us in LA, one of the biggest advertising moments was when Staples Center become the Crypto.com Arena. This name rights deal is something that I still haven’t been able to get used to, but what else is the company up to?