BTC and ETH June 2021 Updates

Bitcoin

Last month, Bitcoin (BTC) price was at its peak but it has since crashed to as low as US$33K before stabilizing at the levels between US$35K to US$40K.

I sold off BTC when it peaked and bought in tranches when prices started falling. However, I am still making a loss since prices have not recovered.

Bitcoin crashed badly as much as 40% from its peak. The reason for the crash was a slewed of bad news whereby speculators sold down Bitcoin.

Bitcoin BTC Price 7 June 2021

Tesla will no longer accept Bitcoin as payment over climate concerns, Elon Musk

We all know every twitter that Elon Musk makes either bring the Cyptocurrency over the moon or down the valleys. The prices of Bitcoin fell 10% after he made that comment on 12th May 2021.

Chinese government crackdown

Perhaps a bubble has already appeared in Cryptocurrency and therefore the Chinese government decided to step in. On 21st May 2021, the Chinese authorities vowed to crack down on mining and trading of the Cryptocurrency.

China is known for its large Cryptocurrency mining farms which in turn hinders its green energy goals since we all know what mining consumes a lot of electricity and produces a lot of heat which is bad for the environment.

Chinese microblogging platform has banned several influential cryptocurrency accounts for its support for the Chinese government.

Is investing in Cryptocurrency such a bad idea?

The big issue for Cryptocurrency is really the lack of real world adoption and utility.

Having said that, payment giants such as Visa and Mastercard are partnering with Crypto exchanges to issue cards that rewards you with crypto such as the MCO card and Coinbase card.

S&P has recently launched three indexes to track the prices of Bitcoin and Ethereum. They are SPBTC, SPETH and SPCMC. SPBTC tracks the prices of Bitcoin and SPETH tracks the prices of Ethereum. SPCMC is a “Megacap” combo of Bitcoin and Ethereum.

If investing in Cryptocurrency is such a bad idea, why is S&P tracking them?

Too Many Coins

In my opinion, there are too many Cryptocurrency coins in the market. Not all of them can take off like Dodgecoin.

For myself, I still believe in Bitcoin and Ethereum as these are the forefathers of the rest of the coins.

My Last Words

In summary, I believe there is still potential for Bitcoin and Ethereum. Prices could go upwards or downwards and being volatile is just the nature for Cryptocurrencies.

Ethereum ETH Price 7 June 2021

I shall continue to accumulate BTC and ETH in small tranches while waiting for the next bull run.

If you wish to jump onto the Cryptocurrency bandwagon, Coinbase where I first got started with Crypto. You can occasionally learn to earn free coins.

Sign up using my Coinbase affiliate link and once you complete a buy or sell of $100 USD or more (or 100 USD equivalent of your domestic currency), you and I will receive 10 USD (or 10 USD equivalent of your domestic currency).

How I Made 13% Profit On Ethereum In 5 Days

Ethereum

Last month, the price of Ethereum rose 43.77%. I bought in at S$4,079.52 on 2nd May and sold it off at S$4,594 today on 8th May. Exactly 5 days, I made a nifty profit of 13% on Ethereum.

For those that are not familiar with Ethereum, it is the blockchain network in which decentralized applications are embedded. The token or currency that enables or drives these decentralized applications is known as Ether (ETH).

Ethereum has the second largest market capitalization after bitcoin. Will Ethereum continue to rise? Let us look at its potential and problems Ethereum currently is facing.

Ethereum Potential #1: Smart Contracts

Ethereum is a blockchain like Bitcoin. The difference is that it is programmable. A “Smart contract” a piece of code that is running on Ethereum. It is because of its programmable feature that makes Ethereum possible for a wide range of purposes such as payment and financial services.

Ethereum Potential #2: DeFi

DeFi is known as decentralized finance and I believe many financial bloggers have thrown their money into it. I have also used Crypto.com DeFi Wallet to stake and earn crypto.

Since Ethereum is programmable, it creates opportunities for creating financial products that are completely new.

Ethereum Potential #3: NFT

NFT stands for Non-Fungible Tokens. “Smart contracts” are pieces of code that are stored on the blockchain but they are actually worthless. NFT is a way to represent anything unique as an Ethereum-based asset. For example, NFTs provide a unique ID for a piece of digital art.

You can explore more of NFT on Crypto.com here.

Ethereum Problem #1: Slow Execution of Transactions

Ethereum has been plagued by the network inability to scale to meet growing demands. This resulted in high transaction fees and slow execution of transactions.

Ethereum Problem #2: Slow Migration to Ethereum 2.0

Ethereum 2.0 refers to a set of interconnected upgrades that will make Ethereum more scalable, more secure, and more sustainable. Personally, I felt the upgrades are slow and may lose out to competitors out there that are scaling faster then Ethereum.

Summary

There is a huge potential for Ethereum and we can see the prices reach new heights if it is able to solve its current problems. Having said this, investors should be caution that cryptocurrency is highly volatile and you need to be able to stomach the risks involved.

If you are keen to purchase Ethereum (ETH), Crypto.com Exchange is a good way to start for buying and selling Ether.

Sign up using my Crypto.com Exchange referral link and if you stake 5,000 CRO, you and I will each receive $50 in CRO.