Industry News & Trends: Market Cap Shifts, Dollar Store & Inflation, Digital Gold, And Crypto-Trading Hamsters
The crypto market can be a bizarre place sometimes; from unpredictable outcomes to unlikely candidates, the way the crypto world works and how it interacts with our own is both inspiring and intriguing. In this article, we take a look at some of the significant and unusual events that took place in the past few weeks for our latest series of articles titled ‘Industry News & Trends.
The Big 5 Reshuffle
The top 5 cryptocurrencies by market cap — Bitcoin, Ethereum, Binance Coin, Cardano and Tether — reshuffle their positions once more as the market enters another bull run. While the top two are firmly situated in their place, the following 3 exchanged positions; for a brief moment Cardano had held the 3rd spot, but it is currently occupied by Binance Coin.
And while Tether has fallen behind in terms of market cap, it is still the largest in terms of trading volume — and by far. Its 24-hour volume can only be beaten by the next 8 cryptocurrencies combined.
Dollar Store Increases Prices
The concept of The Dollar Store is rather basic and straightforward: every item on sale costs a mere dollar. That, however, is no longer the case as inflation has forced the store to adjust its prices, and it is not the only one. A wide range of imitations across the globe exists that sell, or rather used to sell, cheap products that used to cost the rough equivalent of a single dollar.
The problem however isn’t inflation in general, specifically, it is fiat inflation, which the vast majority of the world’s population uses and relies on. Proponents of Bitcoin argue that if a Dollar Store-like business existed that accepted BTC instead, prices of displayed goods would not only be safe from inflation but would actually cost less over time.
This is because Bitcoin has a max supply of 21,000,000 coins, making it inflation-proof; and as it gets more adopted, its value is more likely to increase. The concept of a max supply isn’t exclusive to Bitcoin, and even coins and tokens without one can have effective deflationary mechanisms that can suppress the loss of value.
Digital Metals
It should come as no surprise, thus, that Bitcoin is increasingly garnering the nickname “digital gold” from more and more financial firms and institutions. While the title is striking and straight to the point, Bitcoin has actually outperformed gold by a long shot.
Ethereum on the other hand is being referred to as “digital silver” by institutional investors, but it is unclear what the general consensus is for other cryptocurrencies and their real-life metal counterparts.
For Your Entertainment: Hamster Investors
Earlier last month a hamster was trending across cryptocurrency and investor forums and communities for outperforming most actual human institutional and professional investors.
Using a hamster wheel to choose its crypto, it has so far managed to gain around 20% in profits, beating the ~90% of day-traders who lose money attempting to perform the same thing — despite being armed with a higher level of intelligence and awareness.
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