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Why Ripple’s Problem Means Huge Bitcoin Profits

Do you remember the story of the two blindfolded boys standing around an elephant? One has his hand on the elephant’s leg and swears it is a tree, but the other has his hand on the elephant’s trunk and insists that he has a snake on his hands. They couldn’t argue anymore.

This is a little too easy, but that’s basically the result of the great controversy that’s swirling around Ripple (XRP) – an argument that’s getting hotter and more urgent now that the holidays are over.

Ripple insists it’s a cryptocurrency, but the U.S. Securities and Exchange Commission doesn’t see it that way.

Market regulators say Ripple is a security – stocks – just like Microsoft Corp. (NASDAQ: MSFT) or Walmart Inc. (NYSE: WMT). The SEC claims that Ripple is an unregistered security and that executives have benefited from $ 1.3 billion.

And now Ripple owners who have filed their own petition on this case are concerned because crypto platforms around the world, including US hitters like Coinbase, are suspending or delisting XRP or have announced they will delist XRP to the end of month. This is really bad news if you happen to own Ripple.

I mean, what is the use in the markets that cannot be bought or sold?

Ripple had been on a good run in November and December, but news of the SEC lawsuit and efforts to get it off the exchanges dropped XRP about 70% to the mid-range of $ 0.20.

This is like some scenario he said, she said, with billions at stake and it could take years to find out. It would be pointless to speculate about the outcome.

Speaking of speculation, people who still have the ability or access to trade Ripple (and have a bottomless appetite for risk) helped bring it to $ 0.25 yesterday, the first day of trading of the New Year.

To be clear, I really don’t expect these Ripple gains to continue. Even if you are speculating, it is an extremely sensitive position. In fact, I think Ripple will come under more and more pressure as more and more exchanges pull on the ripcord.

“20X BIGGER THAN BITCOIN”: For every $ 1,000 you could make Bitcoin, you could instead make up to $ 20,040 through this particular trade. Details…

Honestly, I’m surprised that it took Ripple so long to bump into a wall. The really cool thing about crypto is the total lack of centralization. Ripple never quite fit that bill; It’s always been pretty centralized, and by 2018 around 100 major banks were using it. The blockchain applications – the other really cool thing about crypto – were barely used there. I have to say that in this case I know where the SEC is from.

And that brings us to Bitcoin – the coin I expect to be a great beneficiary of all of this …

The world is coming to Bitcoin

To say Bitcoin had a tear is a real understatement. During its massive and memorable run in 2017, Bitcoin soared more than 1,852% to just under $ 20,000 before crashing and bottoming out in the $ 3,400 region in February 2019.

The 2020 Bitcoin surge wasn’t that dramatic – “only” 363% or so – but it was much healthier and more sustainable. it looks like it has legs. A year ago, a BTC would have bought $ 7,347, and just recently it topped $ 34,450.

In 2017, Mania and FOMO – the “fear of missing out” – took Bitcoin to these highs. These are the two main ingredients for a bubble.

But over the past year we’ve seen some of the largest and most important payment platforms in the world, such as: PayPal Holdings Inc. (NASDAQ: PYPL) and Square Inc. (NYSE: SQ), are taking over Bitcoin options and offering them to their customers, opening the crypto market to millions more people. These are fundamental, positive changes that add real strength and persistence to Bitcoin’s position.

Now it’s true, Bitcoin has come very far, very quickly. The steep drop to below $ 30,000 yesterday underscores this point, and many analysts can’t help but say that the “grandfather of crypto” might be a bit overwhelmed.

CRYPTO TRADER’S HUGE PREDICTION: Bitcoin could reach $ 50,000 by the end of 2021 and $ 500,000 by 2030 – Here’s what you need to know …

But a correction in this case is healthy and as volatile cryptos as Bitcoin can sometimes be, the market bottomed out in a matter of hours, rising to nearly $ 32,000. If the $ 34,000 decline had really been a “bursting bubble”, BTC would have basically fallen through the bottom.

I expect the rally in Bitcoin to remain pretty strong as the fundamentals are pretty strong. I think there’s a lot of room to run higher, and not just because more companies will adopt Bitcoin in 2021.

There are fiscal incentives for cash accounts now, and the last time that happened, much of it found its way into stocks – and bitcoin. With the new government there is also the prospect of further impulses.

We will see “Ripple Money” arrive in BTC as well. What is not bound in frozen accounts is now just sitting on the sidelines looking for opportunities. Bitcoin is a smart, wise bet for this because it is viewed as a kind of safe haven. In that way, it’s not too different from gold.

The smart move here: buy Bitcoin on every dip now, but be prepared for those dips. Bitcoin is a volatile stuff, but it will smooth out over time. Hold your nerve.

Another smart move – take a look at my colleague Tom Gentile’s cryptocurrency and micro-currency trading research. The profit potential of Bitcoin and other cryptography in 2021 could potentially be extreme, and Tom’s research has given its readers the opportunity to make some good profits. Look over here …

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About the author

Andrew Keene, editor of 1450 Club, Super Options, and Project 303 at Money Map Press, is a world renown trader and a renowned expert on all options.

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