January Halftime Thoughts
FUD (Fear. Uncertainty. Doubt)
FUD is a tactic used by individuals or groups to spread misinformation or negative sentiment about a particular cryptocurrency or the larger cryptocurrency industry as a whole. Crypto is at its bottom, there has been a lot of FUD being typed on the internet. Crypto was at its bottom at least but recently pumped up, pushing Bitcoin over $21k per coin. Could be a pump fake and drop but for now, it’s been a major pump starting off 2023. One common form of crypto FUD is the spread of false or exaggerated news or rumors. FUD can create fear and uncertainty among investors, causing them to sell their holdings and potentially driving the price down. Bitcoin price will most likely trend sideways and maybe slightly up if it goes how history has been of the previous halving cycles. Halving events are when the amount of reward for Bitcoin mined gets cut in half. It tends to launch the price of Bitcoin so it is very odd holding crypto, if you want a profit, you would need to hold for at least 4 years to see a spike in the price of your assets. We are at the time frame of where a bear market low bottom price for Bitcoin would be. It has to go up eventually and when it does then people will wish they were scooping up satoshis under $20k.
Looking like the SEC and government wants Binance to fall apart, probably because CZ, the guy who owns Binance, played a part in FTX's failure. From what I know, CZ, or Changpeng Zhao, held a lot of the FTT which is the FTX stablecoin. Most exchanges have their own stablecoin and CZ held a bunch of FTX’s stablecoin. When CZ decided to sell it all, he caused FTT to fall and somehow end FTX. We cannot forget SBF, Sam Bankman Fried also moved funds around on FTX. He may have just failed at separating what funds were his and what funds were customers. Binance was founded in 2017 and has a lot of money invested in its exchange. You can buy the cryptocurrency called XRP by Ripple, but you can buy XRP on crypto.com; just not Coinbase or Robinhood.
Binance offers futures trading on their platform where you can speculate on the future price of cryptos and just overall is a large exchange. Overall, this exchange lasted, it didn’t gamble away customers' funds or donate the money people put onto the exchange politicians. It could also show going further that stablecoins will fade away, there is nothing wrong with USDC or dollars. According to Forbes, as of January 4th, 2023, Binance has a total of 55 billion in assets compared to crypto.com having just 3 billion. And crypto.com is a large exchange but just nothing compared to Binance.
Crypto Ponders Of The Week
Daniel Friedberg is going to be a government witness in the SBF trial that won’t even start until October of this year. It was Bitcoin’s 14th birthday on the 3rd of January and since then the crypto market has been going up. There was a dude on Joe Rogan Podcast that said some very interesting things about China but also said crypto is a big scam. Peter Zaihan is the dude that was talking on Joe Rogan saying crypto is a Ponzi scheme and then with Jim Cramer on CNBC saying to dump crypto, the market was about time to pump. Bitcoin was flat as can be for about half a day and that is a big signal for the bottom. I guess Jim Cramer has a long history of people doing the opposite of what he suggests. Cramer has to know people are doing that, so all the negative things he is saying about crypto are making the price go up.
Crypto has become something that when it has its worse year, it’s still at higher prices than just 3 years ago, at least for Bitcoin. Satoshis aren't in stores yet though, and when that happens people will finally see the movement. When your soda is either $2.50 or 15,000 sats; that’ll be the sign we aren't early anymore. Coinbase has been around for years and will probably come out as the main exchange to buy crypto. Robinhood is nice too and I don’t have much experience with crypto.com or Binance. There are so many defi staking places now too, defi is short for decentralized finance. People load real dollars onto a website and the website basically just pays you for how long you keep your money on there. It doesn’t work out that well from what we have seen unless you’re a major exchange like crypto.com or Coinbase. One thing that sucks about Coinbase is that when crypto goes up, the website goes down.
Be a nice human.