🤷♀️Where should I invest, crypto or crypto stocks?
When Ethereum will pass BTC in market cap?!
GM degens 🥸
If you read our newsletter from the prior day, we talked about BTC and the sell off positions which was related to the tax return deadline in US. Sure enough after the deadline, we see a lot of green stuff today as expected. 🤝
Our lunch menu for today
👊BTC vs Coinbase stock
👀 When Ethereum will pass BTC in market cap?
While I was browsing crypto news, I came across this interesting article from WSJ where it talks on how crypto returns have outperformed crypto stocks. You can read the article but basically the summary of it is that overall crypto have outperformed stocks whose underlying values is derived from crypto. Don’t believe me just yet?!
Fine. Let’s take an example. Coinbase vs BTC
If you would’ve bought Coinbase stock on Jan 3rd 2022 (remember markets open on Jan 3rd), you would’ve paid $251 per stock. Current stock price is $150, meaning that there was roughly a 40% decrease. That was not the case with BTC.
If you would’ve bought BTC on Jan 1st 2022, it would cost you $47.3k per BTC. Current price for BTC is $41.5k, meaning there was roughly a 12.3%.
I get it. Both of them are in the red zone compared to the beginning of the year, but I would rather loose 12.3% than 40% of my dough. Of course, this is not a representative of the entire market, the whole intent about this comparison is to make you think next time you invest in a particular crypto stock hoping to get the same rewards for less risk. Oh btw, did I mention somewhere that this is not a financial advice?! Never mind, just did.
👀 When Ethereum will pass BTC in market cap?
That’s a bold statement, I get it. That is not what I said though. This came from BitBoy Crypto. Ultimately, he believes that Ethereum will pass Bitcoin in market cap, probably sometime after Bitcoin halving happens in 2024. For those of you not familiar with the concept, here is an article about it. Basically, Bitcoin halving happens every four years where every time this process happens, rewards for bitcoin miners is cut in half.
Historically, every time there was a Bitcoin halving, that led to a price surge for BTC for a year or so and a huge drop afterwards. While I am definitely not going to invest based on other people’s judgment and predictions about the future, I do believe that in long run Ethereum will pas BTC in market cap. Btw, I have been wrong with my predications in the crypto space so many times that it is not even worth talking about it. Always do your own due diligence before investing.🧑🌾
🧶 Worth reading
👩🏽🎓 Degens Vocabulary
This will be a daily section where we will keep you updated with the web3 space vocabulary (will be using them more often once audience gets more familiar with them).
FLIP,- Yep, exactly. Getting into an NFT project with the hope to buy and sell it quickly. This was a flip as a matter of days back in 2021 in order to make it profitable. Today, it is a matter of minutes as people are getting more educated in the space.🗞️ Other news in the space
NFT collectors are clamoring for Moonbirds, digital owls with $281 million in sales
Secret Service seizes more than $102 million in crypto assets
Boston startup gets $50 million to uncover the most promising crypto projects
