WHAT IS GOING ON IN THE CRYPTO WORLD?
In the middle of 2021, the crypto market made people unimaginable gains and made billions for the people who took their risky position in the market.
Make no doubt the crypto market is a gamble still now, it is unlike other markets which are government regulated rather it is a decentralized entity that runs 24/7 with massive volatility. You can easily see a change of over 10% within a span of few seconds because the large portion of these cryptocurrencies stays with very few people and if they were to sell their positions then it would not take even a fraction of a second before that crypto crashes.
People without knowing anything about crypto are investing their life savings into it, this is not a good idea because legendary investors like Warren Buffett and Bill Gates, who made so much money and has so much experience are still not investing in these cryptos, you may call them old fashioned or whatnot but they have proven themselves with large amounts of money. History has proven if you want to make quick money, then that money doesn’t stay for a very long time and quickly vanishes into our expenses and liabilities, without the proper financial knowledge one can never stay rich. financial literacy only comes with time and with becoming rich slowly.
Anyone with an idea and a vision can create their own crypto, and solve a major issue in society. Everything is in this world has two sides and so does crypto, if you are making crypto with the intention to make a dent in the world then it is well and good but if you are making cryptos solely to earn money then you are going to make others lose a lot of money in the long run.
HOW ELON MUSK IS MANIPULATING THE MARKET AND IS HE A GENIUS TO DO SO?
First of all, we all know that Elon musk is a meme lover and he also is one of the greatest minds the world has ever seen. He has created enormous wealth for himself which made him the richest person on the planet for the first time at the start of the third decade of the 21st century.
First of all, seeing what the booming crypto market had to offer, Elon musk saw a massive way to make money, he started with his beloved crypto the Dogecoin and tweeted about it which caught the eyes of the people and not just Dogecoin but the crypto market as a whole took off. Before he tweeted about the crypto he made a massive investment in dogecoin and started to make it a worldwide phenomenon through his online presence.
As a matter of fact, the price of Dogecoin soon took off and it came in the top 10 very quickly. Simply through this and his tweets, he made a massive amount with enormous percentage gains. He made sure he tweeted periodically about the crypto so that people keep on thinking about it and keep on buying it periodically.
He then proceeded to take dogecoin into the mainstream by offering the coin as a form of payment in his company SpaceX.
The next chapter involves taking on Bitcoin and he did it with his other company Tesla, earlier Tesla used to accept Bitcoin as a form of payment for their cars but soon and I suppose by Elon musk’s decision, they ended accepting Bitcoin. He then proceeded with another tweet by making a poll for the people asking them whether tesla should accept Dogecoin as a form of payment, which put the prices of those coins on the roofs. Initially, this decision was met with a depreciation in the market but sooner the market went up and made Dogecoin a forefront in the crypto world.
He made sure wherever he went he talked about Dogecoin and its implications, he even made sure to talk about dogecoin in his first-ever SNL skit to make it the talk of the town. All in all, he ended up making a lot more than he must have anticipated and made us prove once again that he’s a genius after all.
But if you see deep into the matter this is a prime case of market manipulation which people have been doing for the past century, it is not regarded as a good thing to do but big institutions like hedge funds and big companies have been doing it ever since. Another example of market manipulation is the case of Gamestop stock and how and Reddit users shook the hedge fund world and as a result, the retail investors made a lot of money.
I strongly believe Elon musk is not going behind earning profits from crypto, rather I think he’s on to something very big and only time will tell if he changes the world for the betterment of humanity. History tells us that he has proven his worth as a revolutionary person and has transformed many industries into progressive thinking.
THE REALITY BEHIND DOGECOIN
- 28% of dogecoin is in a single wallet.
- Just five wallets control 40% of the coin’s supply.
- 90% of funds are held in only a hundred wallets.
If the above-mentioned figure were to crash then millions of people would be losing a lot during the process, this is the reason why these cryptocurrencies are so volatile.
This is a sad reality of many cryptocurrencies as stated earlier, anyone can make their own crypto and can even decide what percentage of holding one should get in the beginning. This results in many of these cryptos end up being concentrated into many a small number of wallets which ultimately results in high volatility for this market. Many retail investors fail to understand this and address this at the same time and they end up losing money at the unfortunate end.
Beliefs and Futures of these Cryptos
Although people have strongly believed that cryptos are the future of the world and it will transform the way we think what money is, earlier it used to be a centralized entity that was controlled by the central government and was monitored all the time but these cryptos are made just opposite to these fiats and are a heartache on these currencies. The only obstacle we have to cross is volatility to make it a mainstream currency from an idea literally a decade ago.