It’s nice to see bitcoin’s price above $50,000.
While that’s a relief for some, I would suggest we not get ahead of ourselves. In other markets, you rarely see prices go up 8% in one week. In this market, 8% upswings happen often enough that you can’t read too much into them.
From the data I look at, nothing about this market has substantially changed in the past few months, only the price.
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Last week’s poll asked “do you believe in trading charts and technical analysis?”
60% of you said yes.
My answer?
It has its place but too many people use it as a predictive tool. I have only a very basic understanding of some simple TA concepts. I don’t trade. Price can always go up or down, the range of outcomes is normally very wide, and TA can provide some perspective on how wide that range realistically is and whether it’s worth worrying or getting excited about any particular move.
For the 6% who didn’t know what TA means, I’m referring to the analysis of price movements and various formulas traders use to identify entries, exits, stop-losses, and profit-taking opportunities.
No poll this week. Next week for sure! Read below for some interesting tidbits. Light issue because of holidays here in the US.
Arsenal adverts for cryptocurrency ‘fan tokens’ banned
Bottom line: the British government banned an English football team from advertising its NFTs. Regulators felt the team should have warned buyers that the NFTs constituted an investment in crypto assets.
My take: no good deed goes unpunished. Seems like regulators do not understand what an “NFT” is, but I don’t know whether Arsenal had an obligation to disclaim any financial consequences. If it’s any consolation, regulators also zapped a cider company for making alcohol seem cool and several influencers for not telling people they get paid to influence. Rules are rules!
Why we care: no matter how popular crypto gets, it’s not mainstream until the Boomers start using it. At that point, the rules will swing in our favor. In the US, marijuana was illegal everywhere until Boomers got political and economic power. Now it’s legal in almost every state. Some say the laws changed from scientific discovery, criminal justice reform, or the need for new sources of tax revenue. I’m pretty sure the laws changed because Boomers like doing weed.
The Biggest Threat to Trust in Cryptocurrency: Rug Pulls Put 2021 Scam Revenue Close to All-time Highs
Bottom line: 2021 was a good year for rug pulls and ponzi schemes.
My take: I’m surprised 2019 topped 2021. From researching altcoins, I can assure you scams abound and there are terrible people associated with some of the biggest, most successful projects (and a lot of the little ones, too). I would have thought the amount would be higher than $8 billion.
Why we care: this is a dangerous market. Yes, the report says *only* about $8 billion worth of scams, but those scams all target you.
For those who celebrate Christmas, a heartwarming story to leave you with. Watch this video:
Relax and enjoy the ride!
Weekly Rundown - December 26, 2021