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What is the purpose of cryptocurrency? Young folks discuss what pulls them to fictitious money

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Cryptocurrency has had a bit of a renaissance recently. But how does it stack up against more traditional investment strategies, and why are so many young people interested in it?

What exactly is cryptocurrency?

Cryptocurrency has had a bit of a renaissance.

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Over the last decade, digital currency has progressed from being something solely discussed in the shadows of the internet to a major market mover and viable payment alternative. But what exactly is it? Why is it important to sell bitcoin in Dubai.

In a nutshell, Bitcoin is just another way to save money and pay for goods. “Cryptocurrency is a type of payment that can be exchanged online for products and services,” according to Nerd Wallet.

Seems fairly straightforward, doesn’t it?

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Blockchain technology is used to power cryptocurrency. This system is distributed and decentralized, with computers all around the world recording and managing transactions. Unlike typical banking systems, these transactions may be performed anonymously, which adds to their allure.

This year, in particular, has pushed digital money to the forefront of the public’s consciousness. After shocking the investment world in January by successfully raising GameStop’s stock to 10 times its expert value, Reddit stock traders went on to a new project: making a joke turned cryptocurrency soar.

Dogecoin, a digital token designed as a joke, has attracted a large number of traders and supporters, owing in part to Tesla Founder Elon Musk’s frequent tweets about it. People became aware of a digital currency depicting a Shiba Inu dog with strange inscriptions and phrases around its head.

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So, despite the fact that cryptocurrency has gained some popularity since, say, Bitcoin’s inception in 2009, people just began talking about it this year. Despite the debate, many people are still perplexed as to why anybody would use, let alone invest in, this new money. This is why four local young individuals chose to discuss what makes them interested in fictitious money.

Bitcoin mania has returned

Bitcoin reached a new high in early January, reaching over $42,000. According to Coin Desk, the price of the famously volatile cryptocurrency was at 32,500 on Friday morning.

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Even traditional financial organizations are warming up to the idea: In a January report, JP Morgan predicted that if bitcoin’s market value grows large enough to compete with gold, the price might reach $146,000 in the long run. (Bitcoin presently has a market capitalization of more than $600 billion.)

However, bitcoin has become more than simply a cryptocurrency for many people. Here are several behavioral and psychological explanations behind this.

Bitcoin becomes an extension of your identity

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In December, millionaire Mark Cuban told Forbes that bitcoin is “more religion than a solution to any problem.”

In reality, bitcoin enthusiasts have their own language consisting of acronyms and words ranging from “HODL” to “whale,” and (pre-Covid) bitcoin conferences drew hundreds of registrants. The crypto crow even has a favorite automobile to purchase with their bitcoin: the Lamborghini (aka Lamborghini).

“Part of the appeal is the culture surrounding bitcoin,” says Finn Breton, professor of science and technology at the University of California, Davis, and author of “Digital Cash: The Unknown History of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency.”

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“When you purchase bitcoin, you’re essentially investing into an entire scene,” explains Breton. “And it’s a scene that may become a part of you.”

Though bitcoin is gaining traction among serious investors and major financial institutions, it remains a rather subversive notion, and those who engage in it may regard themselves as radicals or counterculture participants, according to Breton.

It is influenced by social media

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From celebrities investing in bitcoin to a vibrant bitcoin community on Twitter, TikTok, and Reddit, social media plays a role in bitcoin’s popularity.

Lana Swartz, associate professor of media studies at the University of Virginia and author of “New Money: How Payment Became Social Media,” tells CNBC Make It, “Suddenly, there’s like a new way to perceive, fund, and have an identity of oneself as a player in like the financial arena.”

According to Utpal Dholakia, a Rice University professor of marketing who researches consumer financial decision-making, these social networks can also influence habits. According to him, research has shown that when individuals talk about their investments in online social spaces, they tend to become more risk-seeking in the sorts of investments they make.

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“The same dynamic applies to a lot of investment decisions that are now being made,” Dholakia adds.

Volatility may be thrilling.

Many savvy investors, like Kevin O’Leary of CNBC and Jim Cramer of CNBC, have compared buying bitcoin to going to Vegas. Warren Buffett, CEO and chairman of Berkshire Hathaway, has long been a sceptic of bitcoin, claiming that “cryptocurrencies fundamentally have no value” and are a “gambling instrument.”

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Conclusion

“Money is a technology that permits us to envisage different possibilities,” Swartz adds.

The enthusiasm surrounding bitcoin, particularly among young people, demonstrates that individuals feel “locked out of the capacity to hold the type of assets that would allow them to produce any form of wealth,” according to Breton. According to Federal Reserve figures, millennials, those born between 1981 and 1996, held only 4.6 percent of U.S. wealth in the first half of 2020 and willing to sell bitcoin in Dubai.

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“When we look at the bitcoin craze, we really need to consider it as a manifestation of the reality that this is happening because there are no dependable, non-speculative means by which individuals who don’t already have access to a piece of capital might generate wealth over time,” he adds. “And it’s a terrible criticism of how things are now set up for young people.”

Ethereum

Top Trader Says Ethereum Looks Exceptionally Bullish, Unveils Targets for Bitcoin and Explosive Altcoin Terra

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A popular crypto analyst believes Ethereum (ETH), Bitcoin (BTC) and one altcoin are about to blast off and leave the recent market-wide slump in the dust.

The pseudonymous crypto strategist and trader Kaleo tells his 454,000 Twitter followers that ETH’s time to shine has arrived as the “king” of the layer-1 blockchain protocols.

The analyst says,

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“ETH is so bullish after the most recent flush it’s not even funny.

We’ve seen a major rotation play among the alt [Layer-1s] the past few months.

It only makes sense that the king of the L1s finally has a chance to suck liquidity from the rest of the market and have a run of its own.”

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Ethereum is about even on the day, trading for $4,346 at time of writing.

Kaleo next looks at Bitcoin and says he still believes the top crypto will reach at least $100,000 during the current cycle.

“I’ve said it before and I’ll say it again – I still expect to see Bitcoin have a parabolic move to top out at $100K+ this cycle.

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I’ll gladly start scaling out around $150K. I expect it to go higher, but I’m not concerned with nailing the top. Until then, just keep stacking.”

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Source: Kaleo/Twitter

BTC currently sits at $50,900 after having battled back from a flash-crash low around the $43,500 level on December 3rd.

Lastly, the crypto analyst lays out his price prediction for the Terra (LUNA) protocol, whose native token LUNA underpins a suite of decentralized stablecoins.

Kaleo tells his followers that Terra reaching the $100 threshold is inevitable.

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“LUNA going to $100 from here is only a matter of time.”

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Source: Kaleo/Twitter

LUNA has seen some wild price action in recent days, with the altcoin tumbling from $69.66 to $53.64 late last week before surging to $77.37 on Sunday.

The 10th-ranked crypto has since corrected but is back up 5% on the day to $70.74.

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Bitcoin

Bitcoin SV Coin Struggling Near Vital DMA lines, In Sideways Consolidation

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  • Bitcoin SV coin is trading sideways over the larger time frame, with a substantial consolidation over the past few months. 
  • The crypto asset is currently placed under the narrow range of $100 to $200 while trying to suppress its 20, 50, 100, and 200-day lines.
  • The pair of BTC/BTC is trading at 0.003027 BTC with an intraday gain of +3.21%, and the ratio of BTC/ETH is CMP at 0.03489 ETH with a minor 24-hour change of +1.91%.  
Chart of BSV/USD by Tradingview

Bitcoin SV coin at the monthly chart is trading sideways, with solid consolidation. Currently, the coin is trying to suppress its all vital moving averages of 20, 50, 100, and 200-day lines. The overall short to long-term trend is still neutral, as it is struggling near all vital moving averages. Volume activity over the chart increases and needs to grow strongly for the breakout from the sideways pattern. The breakout from the sideways pattern will create a substantial upside in upcoming trading sessions, which needs supportive volume activity to grow. The sustainability above the breakout level of $200, with supportive volume activity, will boost more upside to $240 to $270. Support on the lower side is $125 and $100, whereas resistance on the higher side is $180 and $200.

Bitcoin SV coin is trading under the roller coaster at the 4-hour time frame

Chart of BSV/USD by Tradingview

Bitcoin SV coin is trading under the roller coaster at the 4-hour time frame. Meanwhile, the technical parameters presently showcase substantial volatility, with good volume activity. Volume activity at the weekly chart is higher and needs to maintain above its average volume activity. BSV price is trading at $149 with an intraday drop of -1.84%, and the volume to market cap ratio is 0.2866.

relative Strength Index (CAUTION): Bitcoin SV coin RSI is heading lower, after testing the overbought zone. The coin moves lower with a substantial upsurge from the lower levels and RSI at 54. 

Moving Average Convergence Divergence (CAUTION): The daily chart projects a caution trend with a bearish crossover at the 4-hour time frame. The buyer’s signal line (green) is heading towards the seller’s line (red) for the upcoming negative crossover.  

Support levels: $125 and $100

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Resistance levels: $180 and $200.

DISCLAIMER

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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Bitcoin and Ethereum Correct Lower, Key Supports Nearby

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  • Bitcoin price could revisit the USD 48,000 support zone.
  • Ethereum might find bids near USD 4,200, XRP is struggling to stay above USD 0.80.
  • XTZ is up over 25% and trading above USD 5.20.

Bitcoin price attempted an upside break above USD 52,000 but failed. BTC started a fresh decline and traded below USD 50,500. It is currently (12:07 PM UTC) declining towards USD 49,000 and it could even test the key USD 48,000 support zone.

Besides, most major altcoins are also moving lower. ETH topped near USD 4,420 and declined below USD 4,300. XRP could accelerate lower if it settles below USD 0.80. ADA might find support near the USD 1.30 level.

Total market capitalization

Source: tradingview.com

Bitcoin price

After a failed attempt near USD 52,000, bitcoin price started a fresh decline. BTC traded below the USD 51,200 and USD 50,500 support levels. It even broke the USD 50,000 level and is now down by 4% in a day. An immediate support is near USD 49,000. The next major support is near the USD 48,000 level, below which the price could move into a bearish zone.

On the upside, the price could struggle to climb above USD 50,500. The main resistance is now forming near USD 53,200.

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Ethereum price

Ethereum price also followed a similar pattern after it failed to clear the USD 4,420 resistance. ETH is down 3% and traded below the USD 4,300 support. It even spiked towards USD 4,250. On the downside, an initial support is near the USD 4,220 level. The next key support is near the USD 4,200 level, below which the bears might gain strength.

On the upside, the bulls may perhaps struggle above USD 4,350. The next key barrier is now forming near the USD 4,400 level.

ADA, BNB, SOL, SHIB, and XRP price

Cardano (ADA) is down 6% and is trading near the USD 1.355 support level. If ADA slips below USD 1.32, it could move into a negative zone. The next major support could be USD 1.30 or USD 1.288.

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Binance coin (BNB) is moving lower towards the USD 565 support. If the bears remain active, the price could decline towards the USD 550 support. If not, there might be a move towards the USD 580 and USD 585 levels.

Solana (SOL) is down 8% and there was a break below USD 190. The price is now testing the USD 185 support. If there is a downside break, the price could decline towards the USD 175 level.

SHIB is also moving lower and trading below the USD 0.0000365 level. The next key support is near the USD 0.0000350 level. Any more losses may perhaps lead the price towards the USD 0.0000335 level.

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XRP price struggled to stay above the USD 0.832 level. It is moving lower and testing the USD 0.800 support. If there are more downsides, the price could decline towards the USD 0.780 level. On the upside, the price might face resistance near USD 0.835.

Other altcoins market today

Many altcoins are down over 8%, including LRC, KDA, HNT, MANA, EGLD, BAT, LUNA, QNT, IOTX, GALA, NEXO, and SAND. Out of these, KDA declined 16%, dropping towards USD 10.00. Meanwhile, EOS and XTZ are up 10% and 25%, respectively. EOS is still down 10% in a week, while XTZ trimmed its weekly losses to 5%. 

To sum up, bitcoin price is moving lower below the USD 50,000 level. If BTC slides further, the key USD 48,000 support might come into play in the coming sessions.

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