Cryptocurrency Market Analysis【 June 8 】
Cryptocurrency Practical Investment Newsletter June 7
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Here is the ranking of domestic and international exchanges I choose
↓↓
http://bitcoin-newstart.com/exchange-japan-bitcoin
【Bitcoin Market Analysis】
From last week, the price movements of cryptocurrencies
over the past week are summarized as follows
Summary: current price (change from one week ago)
Bitcoin
4,000,000 yen (-％）
Ethereum
300,000 yen(15%）
Ripple104 yen（-％）
Polkadot2,700 yen（20%）
Binance Coin43,000 yen（21％）
Cardano187 yen（7.7%）
Uniswap2,900 yen（3%）
ICP 11,300 yen（-％）
Bitcoin is at the same price range as last week’s4,000,000 yen.
Bitcoin daily chart
Since last week3,300,000 yen～4,300,000 yen
price range, a range-bound market has been forming
as I mentioned, and prices are still moving within that range.
However, those prices are gradually
converging, and when prices converge further, the question is
whether they move up or down?
That is one key point.
Looking at the cryptocurrency market this week,
Bitcoin’s price remains the same as last week’s
4,000,000 yen,
20%
Among altcoins, Solana has recently shown strong momentum.
Solana is a blockchain capable of fast processing,
and it has increased influence by establishing funds for Korea and listing on major US exchange Coinbase.
Of course, fast is not always good;
how to buildDeFiandNFTecosystems using it is important.
(Reference) What is Solana in cryptocurrency
https://bitcoin-newstart.com/solana-sol
【Bitcoin to be adopted in the world’s first country】
A news story has been circulating that a small country in Central America, El Salvador, will adopt Bitcoin as legal tender.
El Salvador is located south of Mexico,
with a population6 million or so.
Many people appear to be working as immigrants in the United States and sending money back home.
El Salvador previously did not have its own currency, but now uses the US dollar as legal tender.
And now there is talk of adding Bitcoin as legal tender as well.
Last year, MicroStrategy declared Bitcoin investment, and with institutional investors entering, it became big news, but I’m personally surprised that it could be adopted as a national currency as early as 2021.
I had felt that day would come someday, but the speed is remarkable.
Remittances from the homeland (El Salvador) account forGDP of about 20%.
Many people are sending funds back home, and the fees are reportedly
between 10% and 20%.
Using Bitcoin could greatly reduce these fees, and I’m very curious about what will happen to existing financial institutions.
In the future, as with El Salvador, countries may adopt Bitcoin as legal tender, but
in such a case, if the state holds Bitcoin as a reserve and citizens hold it as well, how the country will transform in the medium to long term will be an important topic.
Robert Kiyosaki, author of Rich Dad Poor Dad, has said that “Bitcoin is people’s currency,” and this is becoming more plausible.
（Reference）World’s first: El Salvador adopts Bitcoin as legal tender
https://bitcoin-newstart.com/elsalvador-bitcoin
【Is Bitcoin’s bubble ending?】
A professor from Teikyo University wrote an article that I saw in today’s media.
His opinion includes
・Bitcoin’s price has risen too much.
・Future tightening of monetary policy will make it harder for funds to flow in.
・Bitcoin is bad for the environment.
This is the gist.
Bitcoin is currently around 4,000,000 yen,
which is about four times higher than last year’s price.
It briefly rose to 7,000,000 yen,
so roughly 40% has fallen from that peak.
This is said to be due to financial tightening in many countries.
Of course, that might have some effect.
(In reality, I don’t know. He is speculating.)
And Bitcoin’s base price is said to be unmeasurable, but Bitcoin’s price is determined by supply and demand,
and with a limited supply, institutional investors have been buying since last year,
leading to a strong rise in price.
Bitcoin has a total issued supply of 210,000,
a market capitalization of 70 trillion yen, 24-hour trading volume, etc.,
and there is a lot of data and transparency. And all transaction histories are visible to everyone.
Some say it is opaque and that the base price is not known, but…
What I want to say is that whether it’s a bubble or not, Bitcoin has shown remarkable inflation resistance compared with unlimitedly printed fiat
money, which is why El Salvador adopted Bitcoin as well. It’s hedge against the dollar’s inflation.
Even if monetary tightening occurs,
the unlimited printing of money and the decline in the value of paper currency
are said to be coming.
Therefore, just because the price has risen too much
and people claim a bubble collapse (loss of value) is premature.
Rather, even if a bubble collapses,
if the value can rise again in the future,
there is no particular problem, right?
Bitcoin has risen in price in that way in the past.
And with each phase of experiencing a bubble,
major financial institutions’ Bitcoin handling
institutional investors’ participation, and now state participation
are happening.
Then environmental issues come next; Tesla’s Bitcoin
payment halt led to CO2emissions having a significant impact, and Bitcoin has been said to be bad for the environment.
Bitcoin’s electricity usage is now publicly available in real time on sites like
Cambridge University, etc.
Bitcoin’s electricity usage is publicly accessible in real time and is highly transparent.
In Galaxy Digital’s reports, for gold mining—considered a safe asset—CO2 emissions aren’t disclosed.
And for banks conducting international transfers, their CO2 emissions aren’t disclosed either. Banks have large data centers that consume significant electricity.
However, Galaxy’s report estimating CO2 emissions for the gold industry and banks shows that Bitcoin’s emissions are actually double that amount.
Bitcoin is bad for the environment. While mining currently relies on fossil fuels in some cases, it is not simply appropriate to say “the environment is bad” without comparing to other industries and considering the potential for mining with green energy in the future.
If he could accumulate assets in Bitcoin, wouldn’t he research more deeply and understand the long-term outlook… naturally his interest would grow as his assets rise in value.
This time it’s getting long, so I’ll stop this topic here.
（Reference）Bitcoin bubble collapse has begun
https://gendai.ismedia.jp/articles/-/83691?imp=0
