Crypto Blockchain and Challenge Review for the week of December 21, 2020

In a world of upheaval, Bitcoin found its place in 2020 and institutional investor adoption has grown at a rapid pace. This has resulted in an exceptional year on the returns side. Best of all, we now look like the beginning of a new bull market. The hopes for 2021 are high!

MicroStrategy may have been the first company to move its cash from US dollars to Bitcoin. She stands around this week, signing and announcing that she has bought an additional 29,646 bitcoins for $ 650 million. The average purchase price was $ 21,925 each. “As of December 21, 2020, the company owns approximately 70,470 bitcoins in total, which were purchased for a total purchase price of approximately $ 1.125 billion and an average purchase price of approximately $ 15,964 (including fees and expenses). We can read in the press release.

Perhaps it was the conversation between CEO Michael Saylor and Elon Musk that drew most of the community’s attention. Musk questioned the feasibility of converting large amounts of money into Bitcoin. Saylor wrote to Musk, “If you want to do your $ 100 billion stockholders a favor, convert the TSLA balance sheet from USD to #BTC. Other companies in the S&P 500 will follow suit, becoming a $ 1,000 billion favor over time. « 

« Are such large transactions even possible? » Musk said? « Yes, I have bought over $ 1.3 billion worth of #BTC in the past few months and I would love to share my guide with you offline – from rocket scientist to rocket scientist. » Is it necessary to explain the monster effect that such a transaction on the part of TESLA would have on the price of Bitcoin in addition to the general interest in it?

It is often argued that Bitcoin looks like gold because of its limited supply. If the general concept is correct, this week we had a good example of how Bitcoin is superior to gold in this regard. In fact, a gold reserve valued at $ 6 billion has been discovered in a Turkish mine. Just like that, the overall offer changes. On the Bitcoin side, however, we know exactly how much the total supply will be to the hour, with an accuracy of eight zeros after the decimal point.

However, the news of the week was not about Bitcoin, but about the American company Ripple Labs. Recall that the latter is behind the XRP token, a more or less decentralized cryptocurrency (although even that name is wrong) that has long been rejected by industry purists. It doesn’t surprise us, but the news is like a bomb. The SEC accuses Ripple of selling unregistered digital financial assets valued at $ 1.3 billion. If you doubted the risk of having a central company behind a cryptocurrency, you will find your answer here!

« We claim that Ripple, Larsen and Garlinghouse have failed to register their ongoing offering and sales of billions of XRP to retail investors, thereby depriving potential buyers of adequate information about XRP and Ripple’s business and other important long-term protections that are important to our strength public market systems are fundamental, ”said Stephanie Avakian, director of the SEC’s enforcement department on Tuesday.

The effect was immediately noticeable, and the price of the token then lost 63% within 4 days. The partners, who feared they were involved, left the ship. Galaxy Digital and Jump Trading have claimed to have cut ties. Bitwise liquidated its token positions in its index fund. MoneyGram distances itself from the company, saying it doesn’t use RippleNet. The exchange removes the possibility of exchanging the token. The giant Coinbase is currently looking into this possibility.

While there are still investors who see such a massacre as an opportunity to enter the market at a discount, we are not one of them. The picture is bleak for XRP, with both fundamental and technical indexes suggesting the decline could worsen.

Let’s close with Bitcoin’s technical portrait, which is always dark green. After making new highs last week, the price has consolidated on either side of the $ 23,000 mark. Daily candles show us progressively higher lows and their reversals, creating a triangle that should force another significant move by the end of the year. Such a triangle is mostly broken in the direction of the previous trend. We therefore continue to have full confidence in new highs in the short and medium term.

This article was made available to you by the Rivemont Fund. The Rivemont Crypto Fund is the first and only actively managed cryptocurrency fund in Canada. RRSP and TFSA eligible. Qualified investors can find out more here.

Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and does not constitute investment advice or trading instruction.

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Crypto Blockchain and Challenge Review for the week of December 21, 2020
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