The world of Cryptocurrencies changes constantly. The graphs are hard to read, the coins are volatile, and almost no one can predict what’ll happen next with your investments. But with enough research and a bit of luck, all of us can get a bit of understanding to help us get started.
Here are all the major events happening in the Crypto world that you need to know.
Tesla Puts A Ban On Bitcoin
After making Bitcoin a legal form of payment for its electric cars, Tesla put a hold on their offer citing environmental concerns. Bitcoin is difficult to mine and uses a lot of computational power, which uses a lot of electricity. Most of the time, this electricity is not generated using renewable resources.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future but this cannot come at a great cost to the environment.” the company said in an official statement.
Tesla CEO Elon Musk broke the news on Twitter, which sent Bitcoin plummeting to Rs 41 lakh after maintaining a steady line at Rs. 45 lakh since last week. However, Tesla does not plan to sell the remaining of its Bitcoin. It acquired $1.5 billion worth of cryptocurrency in February 2021.
Recently, Tesla sold 10% of its total crypto holdings by reaping millions of dollars worth of profit. Elon Musk reiterates that he remains supportive of cryptocurrencies and is currently looking forward to a greener solution than Bitcoin.
Following his Saturday Night Live appearance, Elon put out a poll asking people whether Tesla should accept Dogecoin or not. For the uninitiated, Dogecoin is a meme cryptocurrency that spiked more than 16,000% since the start of this year, thanks to popular support from celebrities and the general public.
Will Bitcoin continue its reign following this announcement? It is hard to tell, but people are already advocating for Tesla to convert its Bitcoin holdings into DOGE. If that happens, the price of Dogecoin will Skyrocket.
Rise of Meme Cryptocurrencies
Following the rise of Dogecoin, several other meme-based cryptocurrencies have popped up on the crypto market. Unlike Dogecoin, these have yet to gain mainstream popularity, but some seem to be on the same path only. Some of the new meme-based cryptocurrencies include the “Shiba Inu Coin,” “Safemoon,” “Hoge Finance,” “Bonano,” and the “Loser Coin.” As their name suggests, these cryptocurrencies are mainly made to poke fun at the mainstream coins. And you don’t need us to warn you from investing in a cryptocurrency called “Loser Coin.”
However, among all these, the Shiba Inu coin rose 1040.7% in the last 7 days. It currently has the highest market cap of any cryptocurrency on the market, around $7 billion as of writing this article, around Rs. 1,000 buys you 600,000 Shiba Inu coins.
Still, investing in such cryptocurrencies comes with a big fat warning. So do not invest even a single rupee beyond what you can afford to lose.
Ethereum Smashing New Records
If Bitcoin is gold, then Ethereum is the silver of the crypto world. This cryptocurrency grew from Rs. 18,000 last year to a whopping Rs. 1.69 lakh in February this year. However, the biggest price surge in Ethereum happened recently when the cryptocurrency touched Rs. 3.41 lakh for a single Ethereum coin.
For the uninitiated, Etereum is a smart contract cryptocurrency that eliminates the need for a third party in sending or receiving funds. Other cryptocurrencies like ADA, EOS, and XRP are also based on the same format.
Ethereum is in a free-falling stage as of writing this article, which means people are in a buying frenzy right now. The biggest contributor to the rise of Ethereum is the increased number of transactions on Uniswap, which is a decentralised token exchange.
It charges Ethereum as fees and therefore caused the price of Ethereum to increase rapidly. Peter Chen, a lead trader at the OneBit Quant, told Coindesk that trading on Uniswap costs more than $200 per transaction.
In the past month, Uniswap has generated $2 million in transaction fees from its users. This is why Ethereum rose 100% from Rs. 1.69 lakh at the starting of May.
Yearn Finance Becomes The Most Expensive Token Ever
While Bitcoin may have the biggest market share, Yearn Finance overtook it in terms of price. It touched a maximum price of Rs. 77 lakh this week, smashing Bitcoin’s previous record. YFI is a lending and yield service which allows users to hold their cryptocurrencies to make gains.
The ease of use of YFI is its main USP. In an interview with Coindesk, Rich Rosenblum labelled YFI as the Tesla of self-driving investment management. He also compared the CEO of Tesla, Elon Musk, with YFI’s founder Andre Cronje.
As of 13 May 2021, around 63% of total activity related to the YFI token remained in “Buy” while the rest comprised selling. Helping the buying frenzy could be the fact that it plunged to Rs. 56 lakh after its growing streak.
The YFI token has a circulating supply of 36,635 and a market cap of around Rs. 18,453 crore.