Move over Bitcoin. These days…it’s all about Ethereum.
Okay. I still like bitcoin. Though, I’m beginning to feel a bit dated even saying such a thing! The kids these days care about NFTs — and with good reason. More on that in a bit…
In the meantime, most crypto fans I speak these days keep telling me that Ethereum may be (ultimately) the more usable, currency-like, crypto…of all cryptos. With no finite cap, it’s less like gold and a lot more like dollars.
For crypto to go mainstream, it needs that kind of liquidity — and also, stability.
Ether has officially made a billionaire out of the crypto currency’s 27 year-old founder, a Russian-Canadian programmer named Vitalik Buterin.
Mr. Buterin created the currency when he was just 19.
He also founded Bitcoin Magazine, a publication that specializes in coverage of cryptos.
Not a bad run for a 27 year old.
Ethereum at $3400+
It all comes as Ether reaches a new peak of $3,455 on Tuesday, and still climbing. The cryptocurrency surging over 1500% in the past year and may still have room to go.
You see, the digital token is used in the Ethereum blockchain contracts is effectively the infrastructure behind the growing NFT markets.
And, NFTs these days are the bomb.
Indeed, NFTs are seen as a new kind a future — a future in which content creators can be rewarded forever for their content via this technology that creates a permanent record, or a digital footprint–ie, an NFT–of their creations.
Many investors now see Ether as inherently undervalued, predicting it could go to $5,000 or $10,000 by 2022. (Others worry about the “stimulus-fueled mania” in crypto.)
But, what’s clear to me is that the creative world is searching for a way to ensure authenticity…and NFTs, via Ethereum, are there to meet that demand.
Tech Stocks Lower Amid Semi Conductor Shortage
As great as Ether performed on Tuesday, the rest of the market — especially tech — took a significant hit and may continue taking a hit for the foreseeable future, especially in light of the Biden administration’s extraordinary tax proposals. The doubling of cap gains, the massive increase in income tax for individuals, and corporate taxes for businesses — that’s the kind of stuff that can catch up with a market! (Just don’t tell Treasury Secretary Janet Yellen who’s living in a fictional universe where inflation could never possibly happen.)
The Nasdaq Composite Index lost 1.88% Tuesday, closing at 13,633.50 as investors worried not only about frothy valuations but also about the growing shortage of semiconductors, a component needed in every kind of computer.
The German semiconductor firm Infineon announced more bottlenecks in semiconductor production.
In other tech news, Fortnite maker Epic Games accused Apple of engaging in monopolistic practices in its lawsuit. Stay tuned.
Bill and Melinda Gates To Divorce
I hate seeing news like this:
Bill and Melinda Gates announced to the world that they would end their marriage of 27 years. But, apparently, they still will make it work for charity. They announced they will continue working together at the Bill and Melinda Gates Foundation.
Investors will closely watch how they split their wealth, estimated at over $100 billion. The couple reportedly did not sign a prenup.
I’m STILL Predicting Oil at $75-100 per Barrel
Oil was the big winner today, with Saudi Aramco’s profit reports beating estimates and allowing the company to maintain its dividend at $18.8 billion. Brent crude jumped 1.8% to $68.79 a barrel.
I said months ago it could hit $75 or $100 a barrel by end of summer and I stand by that call. Oil will continue moving higher as demand improves. And demand WILL improve because DESPITE what Biden, Yellen, and the rest of the Cassandras in the White House want you to think.
Things are getting better! Invest accordingly.