The Tunji Letter, Edition #47
Have a Good Perspective on History || Tesla Stops Accepting Bitcoin || Ether's Bullish Run
Welcome to the Tunji Letter, Edition #47.
// Quote of the Week
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
History is not a guarantee of what will occur in the future, but it does help in guiding future decisions. When it comes to investing, it is important to understand history. Whether it is for a specific company or the stock market as a whole, it is key to understand history and use it to guide your investment strategy further.
I have been recently reading up on key stock market crashes and bear markets in history. Wikipedia has a list of the majority of them. In understanding historic stock market crashes and bear markets, I am further preparing myself in the case of another major stock market downturn occurring.
// Tesla Stops Accepting Bitcoin
On May 12th, 2021, Elon Musk sent out a tweet stating that Tesla has suspended vehicle purchases using Bitcoin. The company is concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions. Tesla still believes that cryptocurrency is promising for the future, but it cannot come at a great cost to the environment. The company will not sell any of the Bitcoin they still hold.
I believe that is a fair statement from Tesla since they are considered a clean energy company. According to a Citigroup report, Bitcoin is consuming 66 times more electricity than it did in late 2015. The efficiency of cryptocurrencies such as Bitcoin and Ethereum is a tough discussion. Sure, they are inefficient now, but it is difficult to say they will still be inefficient over the next ten years with further developments in mining and blockchain technologies. As of the last five days at 7 PM EST on May 14th, 2021, Bitcoin has dropped approximately 12% to $49,990.09.
//Ether's Bullish Run
Ether, the cryptocurrency behind Ethereum, which is the go-to open-source blockchain system for decentralized applications, has been on a bullish run over the last year, increasing over 1,750%. During the past month, Ether reached an all-time high of 4,362.35. What led to Ether reaching its all-time high? The three key reasons are Ether's core concept, institutional acceptance, and the maturity of Bitcoin's bullish run.
As stated earlier, Ether is the cryptocurrency behind Ethereum. Ethereum has been on the rise in fueling NFT marketplaces, decentralized cryptocurrency exchanges, and decentralized social networks. Ether has started to be accepted by institutions such as Galaxy Digital's institutional-grade Ether fund and the CME Group's Ether futures. With Bitcoin's bullish dying down slightly, investors have moved their focus into other cryptocurrencies, with Ether being one of the main ones.
According to FundStrat, Ether is expected to hit $10,000 before the end of this year. Will that happen? We will have to wait and see. Based on history, it seems likely, but due to the cryptocurrency market's volatility, it can be extremely hard to make a prediction. As of 7 PM EST on May 14th, 2021, Ether is at $4,097.61.
// Latest Articles
Check out my latest articles:
· An IPO Focused ETF to Know About
· What Is the Difference Between a Sector and Industry?
· What to Know About the Space ETF Race
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Thank you for reading!
Tunji
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