A Week in Crypto
Founder and CEO
30 November, 2020 | 5 MIN
This week in price news: Prices consolidate at record highs.
Crypto prices went sideways this week, as the reality of November’s 40% growth and Bitcoin’s near-record high sank into the market.
Not only has there been a firm focus on Bitcoin and its ‘Blue Chip’ coins, but many of the other ‘Alt’ coins have seen prices rocket too, as traders seek to maximise the mega-return hype. But as we said in our webinars this week, play in the Alts with absolute caution. Alts are like a casino where only the Blue Chip coins have a confident future – and for every Alt coin that booms, another out there flops.
There’s endless amount of talk about the future and reasons for growth. Frankly, I think it’s all hot air, as the reason for growth is simple: there are more buyers than sellers. The long-awaited buying power of large investment funds has arrived – which, combined with a new wave of retail buyers, means prices must inevitably go up.
Expect the market to take a breath, maybe even track down another 10-20%, and then continue its upwards trajectory. Dacxi’s view has always been that the market potential remains up 500%; we just know that the journey will be a volatile one (i.e. prices will jump up and down). And of course, no-one knows the exact time frame when prices will hit their peak.
This week in market news: Libra, Paypal, and government crypto.
1. The Libra Revolution starts in January
This week’s biggest crypto leak was the rumour that the Facebook-driven Libra coin system will kick-start its global rollout in January. When this happens, it’ll be a major signal that the concept of crypto is accepted around the globe – and the crypto-currency world will change forever.
2. Paypal’s CEO goes all-in on crypto
Paypal CEO Dan Schulman has said that the platform will significantly bolster the use of crypto currencies. In 2021, they plan to allow all 28million Paypal merchants and 350million accountholders to use crypto to complete transactions. There are also claims that Paypal bought 70% of Bitcoin’s supply in November, which has only added more fuel to the price increase fire.
3. Japan, Singapore, and UK governments signal crypto acceleration
From this week’s CBDC-related news, it’s easy to see that the crypto wave is picking up steam. The Japanese central bank is putting plans in motion to test a crypto yen concept in 2021. Singapore central bank’s Chief Fintech Officer was quoted saying that crypto will drive financial payments of major organisations. And Bank of England’s chief economist also threw their hat in the ring, stating that crypto will be part of ‘new monetary order’ and therefore the ‘traditional model of banking would be disrupted’.
A few final thoughts…
In 2018, I presented my ‘Second Crypto Boom’ vision for the future – laid out in this graph. As I see it, this second boom will be driven by financial institutions and major consumer organisations. The graph was updated in 2019 – not because the vision had changed, but rather because the market has been slower to develop than initially expected.
Looking at it today, the graph is surprisingly accurate in terms of the size of the crypto market measured against time. The crypto market cap today is about $525billion, and just think of the growth that’s predicted for 2021. It’s exciting times ahead for those that act today, and great news for Dacxi customers who’ve been on their crypto journey for months or years already.
See our website to hear from some of those Dacxi customers. Their stories are truly inspiring.