Sam discusses bad news in the cryptocurrency world, including the transfer of 10,000 ETH from a UOB account to Binance and OKEx, and crypto.com accidentally sending 320,000 ETH to gate.io. He encourages viewers to use hardware wallets and warns that exchanges are not completely safe. He also discusses the need for decentralized finance and decentralized currency, citing examples of government financial censorship and inflation. However, he highlights that Bitcoin fundamentals have not changed and that it is severely discounted, making it a good investment opportunity with a potential 300% rate of return, as it bounces off the 350-week moving average. He concludes that some metrics suggest that crypto is in a good place overall.
The Bad News: Shady Happenings at Crypto Exchanges
How’s it going everyone, it’s Sam. Yesterday we talked about the worst-case scenario for crypto and what could happen to prepare for the future in case it does happen. Now, I want to cover some more bad news.
Firstly, heebies just released an asset snapshot and 10,000 ETH was transferred from a UOB account to Binance and to OKX deposit. Crypto.com accidentally sent 320,000 ETH to gate.io, though they recovered the funds a few days later. Multiple exchanges performing this same type of transfer looks suspicious. It could look like these exchanges are working together and trying to stop the crypto contagion by exchanging crypto for money. There are ‘proof of reserves’, but the safest option is to pull money off and use a hardware wallet, and only move money when you want to do trading or something of the like.
The Best Case Scenario – Bringing Crypto Back to Where It Was
Now, let’s move on to talk about what could go right. We know FTX caused a massive contagion event, and other exchanges will probably have issues in the future. But, it doesn’t change the fundamentals of crypto. It makes it more obvious that we need decentralized finance since centralized exchanges and entities always fall as they get too greedy. It doesn’t change the use case for Bitcoin, cryptocurrency, or Ethereum; it makes it stronger.
We needed a decentralized currency since everything that has happened this year, from the Russia-Ukraine war, people being sent with nothing but crypto, the Canadian truckers movement, etc. It’s no secret that the government is willing and able to impose financial shackles on people. That imposes significance on crypto. For Bitcoin, the fundamentals are still strong amidst all these. There’s a fixed amount of it– unlike the United States that can print more money even though it’s severely in debt. Bitcoin doesn’t have any fundamental issues, making it a safe bet in the current era.
Investing in Crypto
Believing that investing in crypto is safe is still up for debate. Many have their own cryptocurrency horror stories, which can make it look like an impossible and wrong investment. Although there are some metrics that say that the risk is too high, there are still others that say we are in a significant position, given all that has happened. It is also important to do research before investing. Whether investing in crypto or other financial investment options, it’s essential to get acquainted with the investment before putting in any money. Remember, knowledge is power, especially in the fast-paced world of crypto.