The Eccentric Investor: Crypto round-up week 2

*Check out my first article for tips on buying cryptocurrencies

My parents:" Who Elon Musk ah? Why he buy so much bitcoin?"

Well well, I must say I have written this at the best time, with crazy news from yesterday that even someone who cares a bit about cryptocurrency will know.

Tesla buys $1.5 BILLION worth of Bitcoin for transaction purposes

Everybody knew that Elon Musk is a supporter of Bitcoin but were confused by him when he tweeted "Dogecoin" last week. Here's what someone from our Seedly community had to say...

Source: Seedly FB

I do not agree with what was said unless Elon made a big miscalculation thinking that promoting Doge will somehow deflate the price of Bitcoin because that certainly did not happen.

Source: Walletinvestor

As you can see here, the ones I circled are points which Elon Musk either tweeted or made the news. when Dogecoin rose. BTC was just doing it's own thing. So I think that he was trying to profit from both at the same time while also promoting the use of cryptocurrency in the position of an early-adopter.

Yes, you heard right we are all early adopters.

Who else is in on this?

Besides Me, many countries are getting ready to accept cryptocurrency in their economy. Come Feb 12, G7’s financial leaders will discuss central bank digital currencies (CBDCs) during a meeting.

Hah? Simi is CBDC? I only know Bitcoin.

What is CBDC?

As the name suggests, it is digital currencies that are produced by the central banks. Although they already are printing money, central banks still want to do it because it is cheaper to transfer money like this and governments are able to implement monetary policies in a more efficient manner.

The downside is that people are new to this and might cause some imbalances in the economy. And also, cybersecurity risks which has the potential to cripple the economy.

What is Bitcoin in 30 years?

To be honest, I don't really know and it really depends on how many institutional investors get onboard. One of the theories I have in mind is that Bitcoin will eventually become the new gold and CBDCs become pegged to bitcoin just like the old days.

But if Bitcoin remains this volatile, it wouldn't be the smartest thing to do. Just imagine your chicken rice is $2 todays and could be $5 tomorrow. I will have to starve.

Market Greed and Fear Index

Source: Alternative.me

It is extreme greed, which also means the market is due for a correction. I think I will be selling what I have soon and wait for the next cycle.

What I have

Definitely do not listen to me because it is quite hard to predict crypto-currencies but what I want to prove is that it is not extremely dangerous as other people have said if you read crypto-news every week.

Format: Currency - Holdings - Buy price (SGD) - Current Price - Profit/Loss

• BTC - 77% - 51,934.35 - 61,289.22 - 18%

• UNI - 17.5% - 26.63 - 25.16 - (-6.6%)

• DAI (USD Stablecoin) - 5.5% - 1.33 - 1.34 - (-0.75%)

Also be sure to track my comments thread as I give daily updates on my performance.

The market never sleeps so read the news and see you next week!