Cryptocurrencies have a good start to the week (and the month) – and why wouldn’t they? According to a well-known cryptocurrency source, November is the #CryptoLiteracyMonth!
At 11 a.m., here’s what the prices of several of the biggest names in cryptocurrency look like:
- Bitcoin (CRYPTO: BTC) is up a modest 2.5% in the past 24 hours.
- Ethereum (CRYPTO: ETH) is up a little more – 3.5%.
- And Dogecoin (CRYPTO: DOGE) increased by 5.3%.
In part, traders’ enthusiasm for cryptocurrencies this morning appears to be boosted by a surprise announcement from cryptocurrency exchange Coinme, declaring November to be crypto literacy month (and attaching a hashtag to the term to boot. , hoping to make it trendy).
As CoinDesk reports today (the parent company of CoinDesk is an investor in Coinme, by the way), throughout the month, CryptoLiteracy.org, a subsidiary of Coinme, will promote “basic crypto knowledge … to promote better consumer education about crypto and bitcoin, the concepts behind them and the ways that investors of all types can integrate digital assets into their financial planning, âhighlighting and publishing articles on a different facet of the crypto phenomenon every week.
Meanwhile, Bloomberg reports today that PayPal co-founder Peter Thiel regrets not buying more cryptocurrency himself when the price was lower. Speaking at the National Conservatism Conference in Orlando, Fla., On Sunday, Thiel attributed the surge in cryptocurrency prices from all sides to investor fears that inflation could create a “crisis moment” for the economy. .
In Thiel’s view, therefore, there is more than just dynamic trading going on here. Instead, investors invest in cryptocurrencies on the assumption that inflation will eat away at the value of ‘real’ money – dollars, for example – and that cryptocurrencies will be a better store of value. .
If he’s right about this, then logically, investors should avoid cryptocurrencies that can be produced in unlimited quantities, and instead invest in Bitcoin, for which the supply has been capped at 21 million coins – after which, in theory at least, all Bitcoin in the world will have been mined and the value of what exists then can only increase. A coin like Ethereum, for which the supply is unlimited but the amount of annual production is capped at ETH 18 million, would be the second in terms of holding value, while a coin like Dogecoin with a production rate much higher (5 billion coins per year) would constitute an even worse store of value and therefore a less effective hedge against inflation.
This article represents the opinion of the author, who may disagree with the âofficialâ recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.