Bitcoin crashed! In a word of Musk, the digital currency plummeted!

Ethereum is thriving, what logic?

The world's second-largest digital currency, Ethereum, is continuing to challenge the influence of Bitcoin by its "functionality".

On the morning of May 13th, the price of Bitcoin plummeted by more than 13% and once fell below the $50,000 mark. As a challenger to Bitcoin, Ethereum fell by about 8% and continued to narrow its decline. The previous day, Ether The market rose by 6% during the intraday session, with a market value exceeding US$500 billion, and its price hitting a record high.

In the past 6 months, the price of Ethereum has risen by as much as 8 times, out of the independent market, has far outperformed the continued consolidation of Bitcoin. At present, the share of Ethereum in digital currencies' total global market value has risen to 18%, while the weight of Bitcoin's market value has been cut in the past two years, and the current market value has dropped to 38%.

On the morning of May 13, there was still a major negative in the currency circle, and Musk suddenly announced that Tesla would suspend support for Bitcoin payments. This caused Bitcoin to fall to 45,800 US dollars at one time, a plunge of more than 8,000 US dollars.

Some analysts believe that Bitcoin and Ethereum are currently leading the cryptocurrency market. It is predicted that in the next five years, Bitcoin's gains against gold may reach 10 times, and Ethereum may bring trillions of dollars in opportunities.

Unlike Bitcoin, which seems to lack practical functions, Ethereum is more like an operating system for smartphones. Many entrepreneurs develop medical, entertainment, news, finance, games, and other applications on the Ethereum network. These APP-like applications As their user activity increases, they increase the demand for Ethereum.

Digital currency differentiation, Ethereum becomes a market engine

The digital currency market is undergoing an astonishing divergence. On the one hand, the price of Bitcoin, the world’s largest market capitalization, has been consolidating for nearly two months at around $58,000; on the other hand, the world’s second-largest Ethereum is in, In the last two months, the price of Ethereum broke through $4,300 in intraday trading.

Ethereum has become the strongest price performance among mainstream blue-chip currencies in the last six months. It has risen by 8.2 times in 6 months, while Bitcoin has risen by 2.6 times in the same period. In the last 7 days, although Bitcoin has been weak, it has not affected the strength of Ethereum.

Ethereum has risen by 28% in a week. As of the evening of May 12, the market value of Ethereum exceeded US$500 billion, or RMB 3.2 trillion. It has surpassed the market value of Kweichow Moutai, JPMorgan Chase, and other companies, and its market value has ranked 14th in global assets.

It is worth mentioning that the main transaction volume of Ethereum may come from Chinese investors. The data shows that Ethereum's turnover in the last 24 hours is mainly concentrated on the following three exchanges-Binance, Huobi, and Coinbase. Among them, the transaction volume on Binance accounted for 11%, the transaction volume on Huobi accounted for 5%, and Coinbase accounted for 4%.

Binance and Huobi were mainly founded by teams in mainland China. Although they are globally oriented, a considerable proportion of users come from the Chinese market; while Coinbase Exchange is an American company.

Ethereum's weight rises rapidly, Bitcoin share is eroded

The strong rise of Ethereum has greatly impacted the weight and influence of Bitcoin in the digital currency market.

According to the data on the evening of May 12, the weight of Ethereum in the total market value of the global digital currency market has risen to 18% and is approaching 20%.

The market value weight of Bitcoin in the global digital currency has dropped to 38%. Two years ago, Bitcoin thrived. Its market value weight in the global digital currency market was once as high as 75%.

In other words, in just two years, Bitcoin's market value weight accounted for half of it. As the world's second-largest Ethereum, with the blessing of funds, its market value weight has risen by nearly 10 points.

The expected increase in the weight of the market value of Ethereum has therefore become a rising logic for the strong price of Ethereum.

Although the digital currency has always been regarded as a Ponzi scheme by mainstream people, according to incomplete statistics, more than 50 large companies around the world accept digital currency as a payment method.

However, there are still very few digital currencies that can be regarded as payment methods. Most companies only accept Bitcoin and Ethereum. This also provides conditions for Bitcoin and Ethereum to become strong and enter the mainstream.

Just recently, Arte, a high-end luxury apartment located in Miami, USA, announced that it will now accept cryptocurrency as a payment method for new residential development and purchase of exclusive apartments.

Charles F. Stewart, CEO of the well-known auction house Sotheby's, also announced that Sotheby’s will start accepting Bitcoin and Ethereum payments. Art lovers can bid for the works of famous street artist Banksy in cryptocurrency next week. Air". Cryptocurrency payments will be carried out in cooperation with Coinbase Commerce.

Tilman Fertitta, chairman, and CEO of Landry’s, a privately-owned restaurant, hotel, and entertainment chain in the United States, also said that most of his restaurant chain brands will soon accept Bitcoin as a payment. He called this move an "inevitable" step in the mainstreaming of cryptocurrencies.

"In the next 90 days, we may be able to achieve this function in about 80% to 90% of all our catering brands. You no longer need to use a MasterCard, Visa, or American Express credit card." "You can use it. Bitcoin or other digital currencies," Fertitta said.

Ethereum's "operating system" is more attractive than Bitcoin?

When Ethereum and Bitcoin became one of the few alternatives to cash payments, Ethereum, which has a low market value, found more reasons for its rise. At least Ethereum investors hope to benchmark against Bitcoin.

Yassine Elmandira, a cryptocurrency analyst at Ark Investments, said that despite Musk's efforts to turn Dogecoin into an actual means of payment, Dogecoin may be trumped and eliminated from the current high price. Bitcoin and Ethereum are currently leading the cryptocurrency market.

He predicts that Bitcoin's gains against gold may reach 10 times in the next five years, and Ethereum may bring trillions of dollars in opportunities.

Some cryptocurrency analysts even believe that the price of Ethereum still has 300% room to rise, that is, to reach $10,000. Cryptocurrency analyst Kaspar explained: “Using the proof-of-stake method for block verification can reduce carbon emissions by 99.9%, making Ethereum a green technology.

Therefore, these two updates alone can push Ethereum higher. To a market value of 1 trillion U.S. dollars, and today this is exactly the market value of Bitcoin, which will bring the price of Ethereum's coin to about 8,000 to 10,000 U.S. dollars."

Some analysts also pointed out that Ethereum has more practical significance than Bitcoin.

What is Ethereum? If Ethereum is regarded as a stock, then the "business" of Ethereum is more like a smartphone operating system that can use multiple applications for Bitcoin.

Unlike Bitcoin, people can build applications on Ethereum, and entrepreneurs can develop entertainment, news, games, lending, medical and other applications on the Ethereum network.

As more and more decentralized applications continue to be active on the Ethereum network, some analysts believe that the price potential of Ethereum can be estimated based on the activity of applications on the Ethereum network.

These are built on Ethereum. Most of the applications need to use Ethereum as a transaction method, which supports the price of Ethereum.

The competition between Ethereum and Bitcoin will continue, and Bitcoin investors will find it difficult to tolerate the influence of Ethereum stealing Bitcoin.

However, in terms of current miners' income, The Block data shows that the daily income of Ethereum mining is now higher than that of Bitcoin.

The daily income of Ethereum mining is $77.3 million, while the daily income of Bitcoin mining is 6730. Ten thousand U.S. dollars.

Comments

The signal that the stock market has peaked?

the stock market Although I know how to judge when the bear market is over and when I should buy at the bottom, I still don't know how to judge the selling at the top. I'm afraid I don't know when to leave the market after buying stocks in the future. If you have also tried to avoid the crash, stock market crash, and even bear market, or always hold stocks at these times. These four tricks are based on my experience in the stock market for more than 10 years. They help me hold cash early before many market declines, so I suggest that you must see the end. It is likely to help you invest in stocks. Raise to another level. Because knowing how to go is more important than knowing how to buy, and knowing how to go is an important factor in determining how much you can earn or lose. The first trick, everyone needs to learn to identify the Distribution Day. As the name implies, the shipping day is a day of huge selling pressure. On that day, it may be that large account...

NVDA Stock Forecast and Analysis: 3 opportunities and 2 risks

What are the 3 opportunities and 2 risks for NVIDIA? How to invest in NVIDIA stock? NVIDIA(NVDA) stock buy or sell？ NVIDIA Stock Forecast and Analysis 2021 First, because in the third quarter of 2020, NVIDIA's revenue and profit have set record highs. Among them, revenue was 4.73 billion U.S. dollars, an increase of 57% year-on-year, and analysts expected it to be 4.41 billion U.S. dollars. NVIDIA's revenue Earnings per share were 2.91 US dollars, analysts expected to be 2.57 US dollars. It can be seen that both revenue and profit have exceeded analysts’ expectations. NVIDIA expects its fourth-quarter revenue to be US$4.8 billion, in line with analysts’ expectations of US$4.42 billion. Second, the current market value of NVIDIA is much higher than the combined market value of Intel and AMD. From the beginning of the year to now, NVIDIA has risen by 123%, AMD has risen by 87%, Intel has fallen by 24%, TSMC has risen by 64%, and the Nasdaq has risen by 33%. It can be seen that bo...

PDD stock forecast 2025: 2021 Q1 financial report analysis

PDD released the financial report for the first quarter of 2021. According to the financial report, as of March 31, 2021, Pinduoduo's annual active buyers reached 823.8 million, a net increase of 195.7 million over the same period of the previous year, leading China's other domestic e-commerce platforms for the second consecutive quarter. In terms of revenue, Pinduoduo’s revenue in the first quarter was 22.167 billion yuan, a year-on-year increase of 239% from 6.541 billion yuan in the same period last year. Under non-general accounting standards, the platform’s net loss attributable to ordinary shareholders in the first quarter was RMB 1,890.3 billion, compared with a net loss of RMB 3.169 billion in the same period last year, and the net loss was significantly narrowed. PDD officially enters a new era of 800 million users The financial report shows that as of March 31, 2021, the number of active buyers on the Pinduoduo platform reached 823.8 m...

FB stock forecast 2022: Facebook’s latest earnings report analysis

Today I will interpret its just-announced financial report for the second quarter of 2021. combined with the digital advertising industry's general development direction and competitive landscape. First, let’s summarize Facebook’s latest earnings report. I think Facebook’s second-quarter earnings report is very, very good. We can see how good it is from year-on-year and quarter-on-quarter. Revenue in the second quarter increased by 56% year-on-year, while it increased by 48% year-on-year in the first quarter. Operating profit in the second quarter increased by 107% year-on-year, while the first quarter increased by 93% year-on-year. Net profit increased by 101% in the second quarter, compared with a year-on-year growth of 94% in the first quarter. Earnings per share in the second quarter increased by 101% year-on-year, while the first quarter increased by 93% year-on-year. The operating margin in the second quarter was 43%, compared to 32% in the same period last year. The perform...

AMZN stock forecast 2025： Amazon's main advantages

On July 6, after the US stock market opened, Amazon broke through $3,600, a record high. Amazon has been oscillating between 3000-3500 US dollars in the past year, and the stock price finally broke through. Amazon is a stock that has a high valuation from PE but is seriously undervalued by the market from the perspective of its development prospects. It is one of my favorite technology stocks. Amazon's main advantages are: 1. Amazon's current GMV is only half that of Alibaba. Looking at the current penetration rate of e-commerce in China and the future penetration rate of e-commerce in the United States, we will find that Amazon e-commerce has huge growth potential in the United States. Amazon e-commerce is far from saturated in the United States. 2. Cloud computing has unlimited potential. As the industry leader, Amazon's cloud computing can maintain a growth rate of 20%-30% for many years in the future. 3. The international ...

ASML stock forecast 2025: is it time to buy now?

Hello everyone, recently, because the market has a lot of fears about rising interest rates and shrinking the balance sheet, the Nasdaq as a whole has fallen a lot, and each support has basically been broken one after another. The general price has also broken, so there is no good signal to increase positions in the short term. It may be safer to hold cash first and wait until the decline begins to slow down a little or see a really cost-effective price before considering adding positions. However, the long-term bull market in the future will not end because of this year's interest rate hike, and cash will only become more and more worthless in the long run. In the short-term continuous decline of the stock market, we must put our minds in a positive state. At the same time, we must properly organize our thoughts and positions, prepare bullets, and use this time to do our homework for the stocks we are interested in. In this way, when a good price appears in the future, you will be...

PLTR stock forecast 2025： Cathie Woods increased Palantir stock position

Software company Palantir (PLTR) released the latest quarterly earnings report, which performed very well. After the financial report, Palantir's stock price soared to 14.64% at the highest point. At the same time, the keen Cathie Woods also bought $140 million in Palantir stock. I won't talk about Palantir's specific business. If you don't know much about it, you can go back to my previous article. Let's talk back to the financial report. Benefiting from the benefits of the US government’s contract renewal, Palantir’s earnings per share and total revenue both beat expectations for this quarter’s earnings report. Among them, earnings per share were $0.04, beating the expected $0.01; total revenue was 376 million, an increase of 49% from the same period last year, slightly higher than the expected $361 million. Although the extent of beating expectations is not very large, the biggest highlight of the financial report is to broaden the business. ...

Teladoc stock forecast 2025: Is it time to buy TDOC?

TDOC's performance exceeded expectations. Why did the performance decline after the announcement? Teladoc (TDOC) reported quarterly earnings of US$0.13 per share, which exceeded the consensus estimate of a loss of US$0.57 per share. In the same period last year, it had a loss of US$0.4 per share. The earnings of this financial report far exceeded expectations. In the last quarter, people expected this telemedicine service company to lose 0.25 US dollars per share, but the actual loss per share was 0.27 US dollars, which was not as good as expected at the time. In the past four quarters, TDOC exceeded expectations twice. The management stated that the company's current momentum in various channels and regions should not be underestimated in the conference call. It has raised its annual revenue guidance to 20 million U.S. dollars, which is expected to be between 1.97 billion and 2.02 billion U.S. dollars. In the first quarter, the comp...

NIO stock forecast 2025: 2021 Q1 report analysis

April 30, NIO announced the first quarter of the 2021 financial report. Revenue reached 7.98 billion yuan, a year-on-year increase of 481.8%, and a month-on-month increase of 20.2%; gross profit was 1.5548 billion yuan, a month-on-month increase of 36.2%, and last year was -167.5 million yuan; a net loss of 350 million yuan was significantly narrowed year-on-year and month-on-month. Various indicators show that NIO's performance in the first quarter of this year is very impressive. Gross profit margin exceeds 20% for the first time NIO’s Q1 car sales were 7.40058 billion yuan, a year-on-year increase of 489.8% and a month-on-month increase of 20.0%. The gross profit margin of automobile sales was 21.2%, exceeding 20% for the first time, a significant increase from -7.4% in Q1 of 2020 and 17.2% in Q4 of 2020. In addition, Weilai's Q1 comprehensive gross profit margin in 2021 will also reach 19.5%. The founder, chairman, and CEO of NIO sai...

Cloudflare's 4Q 2021 earnings report

Just took a look at Cloudflare's (NET) 4Q 2021 earnings report. Cloudflare is in an area that covers several hot spots, including content delivery networks, i.e. CDNs, cloud computing, and cybersecurity. For the Cloudflare quarterly report, here is a summary: 1) Revenue of $194 million (then expected 4Q revenue in the range of $184 to $185 million), up 52% year-over-year ($172 million in 2021, up 51% year-over-year). 2) The number of customers continues to grow rapidly, with the total number of customers has reached 1416 (1260 in the previous quarter). 3) Non-GAAP gross margin was 79.2% vs. 78.1% in the same quarter last year (vs. 79.2% in 3Q vs. 77.3% in the same quarter last year.) Non-GAAP net income has started to turn around, meaning it has started to be profitable. 4) Revenue is expected to be in the range of $205 to $206 million in 4Q. That works out to about 6% YoY growth. Cloudflare had good results this time, beating its previous guidance. Revenues are still growing at a...

FinanceLinkway

Search This Blog