10/01/2021
Watch and read: it'll be worth it 👇
If you watch the video, here's the plain English translation:
Bitcoin just hit $40,000 (that's forty-thousand dollars per Bitcoin). What does this mean, exactly? Is it going to go up? Is it gonna' crash? Is this where it lives, now? And should we be watching Ethereum now?
Right before the video was posted, Bitcoin "rejected" above the 40,000 mark. Basically that means the market said "that's enough", for now. They call this a "psychological level", because basically a lot of folks can't see it going much past that point (which is TWICE it's all time high), and then more people cash out than stay in, causing the price to drop.
And he's right: corrections are absolutely necessary ... like storms and rain. You need both for a healthy ecosystem, so to speak. They're nothing to be afraid of, and you should always expect it.
But things are different right now. Big money, like hedge funds and large, corporate investors, are way more into Bitcoin these days than before, and they're waiting to snap up more BTC when the price drops. What this guy's saying, is that this may affect the whole "rise / fall / rise again" cycle we always see with Bitcoin.
It's also hard to use technicals (like the charts and stuff he's looking at) when the market is full of super excited people following the new hype. This makes everything erratic and hard to read.
He mentions a HUGE development in the crypto space, where regulators basically let banks know that they could be involved in crypto, such as public blockchains and stablecoins. That means that banks can now, in a very "beginner's" way, get directly involved with crypto. This is part of the reason most believe that the price of BTC is basically going vertical: it's a new age and banks and big money (like PayPal) are now in the crypto space, making it way more legit. It also means that many banks might move over from old systems and start storing value in cryptocurrency blockchains, particularly stablecoins.
This guy has moved much of his holdings from Bitcoin over to Ethereum, which is another cryptocurrency and the 2nd most popular behind Bitcoin. Many people in the space love Ethereum for a lot of reasons, one of which is that unlike Bitcoin (which is just for spending or holding value, depending on who you ask), it's a crypto that *does* something. You can even create applications with it. It has great future potential, and in the minds of many, is still undervalued. In his case, while BTC has doubled during this time, he's technically made more profits in Ethereum.
He also points out that the smaller altcoins during a market like this have the potential to climb 100x, 200x, or more, while that's probably not going to happen with Bitcoin at this point. But interest in Bitcoin draws money towards the altcoins (like Ethereum, Cardano, Litecoin, and so on).
Then he backs it up talking about the previous relationship between Ethereum and Bitcoin, and how that's changing during this pump. He also then says that ETH is basically following Bitcoin's path (although a little faster), and he thinks there's no reason it shouldn't hit the same prices along the way.
He then talks about how the last big explosion in crypto (back when Bitcoin first hit 19k and everyone lost their minds) brought a lot of this to a new audience, and that audience has had crypto in the backs of their mind since then.
After talking about DeFi and Smart Contracts for a bit (too much to go into here just yet), and how that "locks" money into Ethereum which holds up the value, he then mentions that these same institutional investors that got their feet wet in Bitcoin are going to be looking for "the next Bitcoin". And Ethereum being the second most popular, that would likely be where their attention falls.
Then he goes on to compare the "leaps" that either one has to make to reach certain price levels. That if Bitcoin does something amazing, like reach $100k, that would only double an investment. But with Ethereum following close behind and hitting even 10k, that would be nearly 10x the value of that original investment.
End of translation.
This is why I keep saying:
+ Don't focus on trying to get a "whole" anything. $100 in any crypto is still $100 in that crypto. It doesn't need to be whole. Just like a mutual fund.
+ Don't sleep on the altcoins. It's easy to get lost in "Bitcoin", but I tend to treat Bitcoin as an index for the WHOLE crypto economy. I focus on the smaller altcoins.
Don't forget to join our group (liked below) for more discussions on this, and always remember to buy those dips.
https://www.facebook.com/groups/beginnercrypto
https://www.youtube.com/watch?v=b_KObMZ4blc&t=306s
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