Global Crypto Asset Descriptions and Categories Explained in Cambridge Study

 2019-09-ccaf-2nd-global-cryptoasset-benchmarking.pdf (unic.ac.cy)

The End of the Bitcion Bull? Where did all my Doge go? What price trends and current events suggest for the month of June of 2021 (by the author)

 Ok so if you have been on planet Earth this past year and your somehow interested or invested in cryptocurrency and blockchain industries, this article will definitely have some interest for you.

This month saw Bitcoin "correction" in the market. Which is trade talk for understating that an otherwise sound investment lost a reasonable amount of its value for logical and somewhat  predictable reasons.

Tell that to the millions of small investors whose holdings went down by 50% overall.  

So with that said what's happened this last month, and what's going to happen?

Bitcoin Bull or Bear?

Even this author, with my sources, research and networks has struggled to really make sense out of what is happening with Bitcoin.  By understanding this, we can better predict what changes will take place in the wider market.

So lets take the last six weeks in brief: 

The first point to understand is that Bitcoin has been trending down for the past two months.  Starting in April 14 Bitcoin began to a downward trend, from its highest of 63.6K to around 49k (its currently about 40k).

Then it rebounded briefly and erratically back up to around 59k and continued to have substantial volatility at a high level, losing 10% or so and gaining it back until May 9.

What happened on May 9?  Enter Mr. Elon Musk, aka the worlds other richest man... who seems to have taken to cryptocurrency as something of a pastime and hobby, as opposed to his more serious exploits such as GOING TO MARS. 

In this time he began releasing a series of tweets that ultimately cost investors up to 50% of their Bitcoin holdings!  

After his first tweet on May 7, he appeared on SNL as a cohost and made a couple more "questionable" comments (scripted no doubt) about Doge and crypto in general.

This had the immediate effect of Dropping Doge's overall price from its high of .75 cents to at one point .29 cents.  

Two of tokens most  widely held by young people and new investors, these tokens have yet to regain their momentum, although according to financial indicators the Bitcoin Bull is still "running". 

While price projections indicated last week that Bitcoin was still in a Bull Market, this weeks data has since began to dispelled this notion, however as a financial term, the concept of a Bull Market is defined by having at least two consecutive quarters of growth.

Translation: BITCOIN IS STILL GROWING. 

This in spite of several "perceived" problems investors have when forecasting markets and speculating about potential trends and high yield investments.  

While Bitcoins growth, as well as Doge, my be slower, it will continue to yield substantial dividends to any investor whose in it for the long haul of 90 or more days.  

Any strategy of short selling Bitcoin has substantial risks, as an investments growth is fueled by its practical adaptability and usage, which for Bitcoin and Doge, in spite of their popularity, is limited. 

In addition to the negative PR by Elon Musk Bitcoin, a market leader and standard, has significant fundamental investment issues:

It has limited adaptability to other purposes in the blockchain economy;

Mining of it is generally costly and to small operations completely unprofitable;

Regulations in the U.S. and in Asia are still pending which put fear into larger institutional investors and venture capitalists;

People's perceptions of this product are varied, with even less knowledge of the technology on which it is built, creating a vacuum in terms of how people expect its price and value to behave, this its volatility easily spooks investors.

There are many other competing and even less volatile, in terms of price, that are available for investors to move into, diverting those funds which would normally be held as Bitcoin.

So with these thoughts in mind, and Bitcoins price remaining below 40K, as well as recent chart projections, we believe that the Bitcion Bull Market is actually over.  

While Bitcion will continue to grow, it will be at a slower pace, with more measured increases.  So if you into Bitcoin for the long haul, six months to a year or more, then know that it does make sense to get into the market and hold.

If however your looking for a quick turn around or rapid growth, in Bitcion, you may be greatly disappointed. 

China and The U.S. Seek To Regulate Binance

Although Bitcoin and its clones are thought to be DECENTRALIZED, a vast majority of the worlds MINING is greatly centralized.  

Where?  The PRC of course.  The production of these digital ledgers and the accounting blocks which drive them called "Tokens"  have taken on a magical  life of their own, literally making money, almost out of thin air... or so it seems to the confused public and policy makers, still years behind understanding what a digital block, or digital ledger is.

The immediate response, accusations of money laundering, outright bad business, and a host of other financial crimes.  

These events have driven Asia's largest crypto conglomerate into hard times as investors (if they are smart) flee for more... predictable and regulated investments.

Research suggests that the while much of what Binance Exchange and Chain produces, will be under hard times for the next weeks going into summer.

The good news is that for speculators this makes a great opportunity for investment, particularly if your horizon is one to two years into the future.  

For short term yields, there's definitely a bumpy road ahead; 

The perpetual chaos continues with a growing  list of lawsuits, both in China and the U.S., with moves by both nations to introduce tougher crypto regulations.

The market output has translated into a  huge price drop across the board as investors start moving into markets with greater price and earnings stability.  In the crypto world this can happen in a matter of days.

Thus new and undeveloped chains are receiving a new injection of energy and price increase.  

Some of the benefactors include a host of altcoins which weren't as badly battered by the recent market volatility such as HNT, Kusama, Polywhale, Polygon and ADA.

The end result is a deflation in the market leaders token price, but not the market value overall.   

In other words the money is still IN THE MARKET, just not where some investors think it should be.

 Rarely do high yield earners leave crypto for traditional bank accounts IRA's, or other long term "stable" investments as the lack of liquidity in the market acts as a barrier to this.  Also there are many options in virtual currency which allows investors to shelter their investments.

Bitcoin Bull v. Bear

After all his publicity Mr. Elon Musk went from Bull to Bear on Bitcoin.  This translated in the markets as the beginning of bad times for Bitcoins market price dropping  from a high of around 62K to less than 30k at its lowest finally stablizing at around 36.5K,

The bad news?  This may not be the end of price woes for the crypto giant.  There are several fundamental problems in the Bitcoin playbook which limit its growth over the short term.  As this becomes more apparent in the market, particularly from institutional investors, it translates into a slow price drop.  

While the summer increase awaits, Bitcoin may still experience some new highs this year, but for now a 35.6K price tag would be considered cheap, and a worthy investment.

Why?  The price momentum of Bitcoin is still, in spite of its woes, on an upward projectory.  So while it may not grow quite as fast, it will grow, and , most likely will regain its former 59K value by the end of the year.  

Before that however, expect some bumps in the road. 

The Ethereum Problem

Traffic, traffic, traffic.  What good is all the computing and verification power in the world if you can't access it when you need to.  In a market where hours are like days, in terms of price volatility, getting trades executed ASAP is imperative.

The Ethereum network however remains clogged, and at capacity, with trades in limbo for hours if not days.  Combined with high fees and transaction costs crypto investors are seeking new and lesser known platforms which offer the same service at less the cost, and with quicker execution.

Another small but persistent concern for investors is that people still don't understand exactly what Ethereum is!  A simple perusal of the white paper will leave a person mystified, however the simple version is that Ethereum is ideally a WORLD COMPUTER. 

Its design was not intended to develop a token price of 50K one day , because Ethereum is the substance that powers its network.  Therefore if the price were to increase substantially, so too would the cost of using Etherum platforms and its gas (the internal fees that power the cost of transactions within the application).

Translation: we don't want the price of Ethereum to go up exponentially, even if you own the token, strictly for investment purposes.  Even that person may one day use other on or off chain applications which will then be much more expensive as a consequence of uncontrolled price growth.

That's a double edged sword for some of us.

Decentralized Finance

A growing trend which has pushed the development of these currencies are various platforms which allow you to lend or invest your tokens.

Platforms such as Pancake, Bunny, Venus, Alpaca, and around 1000 others give investors huge returns on the liquidity they provide to the application by means of lending pools.  Allowing deposits as small as the token price, these yield farms are powered by smart contracts which allow investors to receive their tokens directly back into their accounts at the end of the lending terms.

Savvy investors are cashing out their Bitcion and Ethereum and steering their capital toward these "yield farms" as ways of creating passive income.  There are however risks, which anyone looking to do this needs to understand before committing substantial sums.

We will go into yield farms further in this blog as they merit substantial time and detailed discussion.

CRYPTO CURRENCY PICKS FOR MAY 2021 (by the screening group)

 These are the top 10 crypto currencies which I we will be screening, discussing, researching, assessing as to its profitability and tracking their progress into next month:

1. 1. Bitcoin - Long Hold (3 months or more)
2. 2. Ethereum - Long Hold (3 months or more)
3. 3. ADA - Medium Hold (1 month or more)
4. 4. Cake - Medium Hold (15  days)
5. 5. Luna - Medium Hold (15 days)
6. 6. Binance - Long Hold (3 months or more)
7. 7. Dogecoin - Short Hold (1 - 15 days)
8. 8.  Bitcoin Cash (1 - 15 days)
9. 9 Ethereum Classic (1- 15 days)
10. 10.  Link ( 1-15 days or more)

These are just suggestions based on questions I hear from people starting out, and having no idea as to: 

• which cryptocurrency to buy, 
• in what amounts, and 
• for how long to hold it?

The above list is a WISH LIST  for any beginner which will help you to understand the market, the major players in this industry, and the inherent variety.

It mixes a couple of investment objectives which I will explain briefly.

The basic rules of Wealth are:

Build it 

Grow it 

Keep it 

Use it (preferably before death)

In order to begin growing your wealth you must have a strategy, the simpler, the better. 

This strategy is based on basic principles of financial planning needed to any well thought out approach to building wealth and earning a passive income.  

This does not change once you start investing into cryptocurrency.  What does change  are the instruments we are using to attain these goals, which in the past were: bonds, stocks, and real estate.  

This is still the case, however all of these instruments have been or are in the process of tokenization.

To prosper in this ecosystem you must begin to understand its principles.  This comes from actually owning these assets and in most cases that is as easy as spending the amount of a trip to the movies or dinner out... just to get it started. 

When prioritizing your investment money, think of it in terms of not putting all your eggs in one basket.

Out of all your investment income which you set aside for this purpose after satisfying all your other financial obligations (such as bills and household needs) you will begin by dividing the investment into three parts:

1/3 For saving (a token such as ADA/USDT/ DAI)

1/3 For Staking and Investing for growth (Bitcoin/Ethereum/Binance)

1/3 For High Yield which involves greater risk and attention (Cake/Luna/Dogecoin)

This allows many benefits, however the most important is lowering the risk, and allowing for a measured increase in income.

Depending upon what type of investor you are, these three sections will vary in proportion.  Everyone's risk tolerance is different, and depending upon your goals and understanding you may of course vary the proportions to fit your individual needs.

This is a highly flexible and adaptable industry which seems to have niches for even the most timid or unexperienced investors.  

As you go you will find those instruments that best fit the type of investor you are, and that of course is the part of  beauty of a decentralized and open financial system now known as defi and cryptocurrency exchange. 

I will include a list of stable coins, and an article to help expand this discussion.

Top 13 Stablecoins of 2020 List & Comparison (changelly.com)