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Investing in Crypto is ‘Almost Insane’

CryptoGlobe Weekly Summary
CryptoGlobe Weekly Summary
Cryptocurrency prices were muted over the past week but experienced a significant upward movement during the weekend. Over the last few days, the flagship cryptocurrency Bitcoin increased 7.8%, while Ethereum increased 29%.
The S&P 500, the stock market’s flagship index, rose 3.5% during the same period, while gold saw its value drop 1.17% as investors are seemingly slowly moving back into risk assets after a sell-off that saw markets enter bear market territory this year.
CryptoCompare’s latest Exchange Review report has shown that cryptocurrency investors had been moving away from BTC and into leading stablecoin USDT as crypto prices plunged. The report detailed that in June, BTC recorded its largest monthly drop since February 2014, while Ethereum experienced its worst drop since March 2018.
These drops have seen Bitcoin spot trading into stablecoin rise last month as “investors remained cautious amid fear of a liquidity crisis in striking crypto lending companies.” Per the report, BTC trading into USDT rose 24.3% last month to 6.67 million BTC, allowing it to remain the dominant stablecoin and fiat currency pair in the market, with a 67.2% market share.
 

Investing in Crypto Is ‘Almost Insane,’ Says Berkshire Hathaway’s Charlie Munger
Over the week Berkshire Hathaway’s vice chairman, Charlie Munger, has said investing in cryptocurrencies is “almost insane” after suggesting that the cryptocurrency space is a “mass folly” and that the only correct approach to it is “total avoidance.”
Warren Buffett’s long-time collaborator Munger said that investors should “never touch” cryptocurrencies and instead should let them “pass by” while focusing on purchasing shares in companies that have “real interest in real businesses.”
Explaining his reasoning, Munger said:
“Crypto is an investment in nothing, and the guy who’s trying to sell you an investment in nothing says, ‘I have a special kind of nothing that’s difficult to make more of.” (…) I regard it as almost insane to buy this stuff or to trade in it.”
The 98-year-old billionaire added that he believes the cryptocurrency industry is full of bad actors selling worthless tokens to investors, and added that anyone buying and selling these assets was undermining the existing monetary system.
Crypto Analyst Predicts Bitcoin Could Reach $100,000 by 2023
A popular cryptocurrency trader has predicted that the flagship cryptocurrency Bitcoin will hit a new all-time high next year after an unexpected rally helps it surpass the six-figure mark, before the bear market returns in 2024 and 2025.
According to the pseudonymous analyst known as Credible Crypto, Bitcoin could reach $100,000 by next year amid an unexpected rally. The trader did not elaborate too much on their predictions, but did note that a bear market is expected after such a rally.
CrediBULL Crypto
Still expecting a new ATH and six figure $BTC by 2023 and believe we are likely back on our way down in 2024-2025 and in the depths of a bigger bear market than most have ever seen at that point. Kudos to Kaleo if he is right and I am wrong- time will tell 🤝 https://t.co/iULuaL1oc6
Credible Crypto compared cryptocurrency adoption nowadays to that of the internet in its early days, quoting a Morgan Stanley report noting that the internet had 77 million users in 1996 and 412 million in 2000. By 2010, the report added, the internet had 1.98 billion users, and is now at 4.9 billion. As of June 2021, the report said the number of global cryptocurrency users reached 221 million.
MicroStrategy CEO: ‘Pretty Obvious’ Cardano Is a Security
Michael J. Saylor, Co-Founder, Chairman, and CEO of Nasdaq-listed business intelligence company  (NASDAQ: MSTR), says that it’s “pretty obvious” that $ADA, the native token of proof-of-stake (PoS) blockchain, is a security. 
Saylor noted during an interview with a crypto market commentary show that he believes the native tokens of Proof-of-Stake networks are securities and therefore “very risky.” In comparison, Saylor argued that Bitcoin is a “digital commodity,” and could therefore be treated differently from a PoS coin such as $ADA. He said:
“To be a commodity network, there has to be no issuer, no initial coin offering (ICO), no central organization and if you study the history of Cardano, it’s pretty obvious it’s a security. It checks all the boxes, so I don’t know how you actually get around intellectually to convincing yourself that it’s anything other than a security.“
He warned that selling unregistered securities could lead to legal consequences, and that developers would not be able to hide behind their technology.
Shiba Inu Holders Grow Past 1.2 Million
The meme-inspired cryptocurrency Shiba Inu (SHIB) has kept on seeing its holder count grow even during the ongoing bear market, to the point now over 1.2 million Ethereum addresses hold SHIB, up from around one million eight months ago.
Back in November of last year, the meme-inspired cryptocurrency saw its number of holders move past the 1 million mark even as its price started dropping from a bull market that saw it outperform numerous other assets as its community grew.
Its new milestone past the 1.2 million holder markets comes as the on-chain transactions volume for SHIB dropped to a 15-month low. In April 2022, there were around 213,000 SHIB transactions recorded on-chain, down from an all-time high of 1.38 million in October last year, as CryptoGlobe reported. That figure has, in June, dropped to 157,889.
It’s worth noting that the number of addresses holding SHIB does not necessarily correspond to the cryptocurrency’s total user numbers, as anyone can create as many addresses as they want to. On the other hand, exchanges and other services custodying users’ funds gather the SHIB of many in a single address.
What Else is Going On?
Cryptocurrency investor sentiment is remaining low as its Fear & Greed index, which serves as an aggregate for investor confidence and attitude towards the market, dropped from 22 last week to 20, remaining in a state of “extreme fear.” The index has risen from 6 when BTC dropped below $18,000.
The index, it’s worth noting, is based on emotional behavior in the market. When fear sets in, some investors may see a buying opportunity, while greed may be a sign the market is due for a correction.
Total value locked in the decentralized finance (DeFi) space has meanwhile risen to $83.5 billion, according to data from DeFiLlama. MakerDAO, the entity behind the DAI stablecoin, makes up 10 % of the TVL with little over $8.35 billion on its protocol.
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CryptoGlobe Weekly Summary
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