Blogmates. weekly post – 12 February 2021
What a week! Again… There is nothing that surprises me in the crypto world anymore. It really is the wild west of the financial industry.
This week saw Ethereum futures being traded on the CME. What that means in basic human language is that people can effectively bet on the price of ETH going up or going down over the course of an agreed-upon time.
On the first day of the month, ETH $1600. So I bet you ETH will go up over the course of the next month. You are pessimistic about ETH, as the high-fees and increasing competition from Binance may cause it to go down in price. It is called futures as you are betting on the future price of the asset, in this situation ETH.
So whoever is right, gets paid the difference between the starting price and the ending price. But, the caveat to this is the minimum ‘future’ contract is 50 ETH.
So if the price of ETH goes up to $2000 from $1600 then to work out my profit, I would take 50 (number of ETH in the contract) x $2000 (end of month price of ETH) = 100,000. The original cost of the future was 50 x $1600 = $80,000. You pay the difference to me.
If it were to drop, then I would pay the difference to you.
This futures trading on CME on the first day lead to over $30 million in volume. At the time of writing, ETH is currently sat at its all-time high of $1844… I don’t think it is stopping any time soon.
As with a lot of things in cryptocurrency, they may seem ridiculous and completely outrageous at times, but somethings just make you laugh. When we signed in to app.beefy.finance to check how our double-digit APYs were doing we had to double-take at the vault below.
Yes, you are reading that correctly.
The annual percentage yearly rate on the NYAS-USDT at the point of its launch was 1.47 QUADRILLION. Or 8.66% PER DAY.
Now, the way that is reached is the daily yields are effectively compounded when using beefy. So if you had $100, the next day you would have $108.66 then the next day you would have 8.66% x $108.66. This compounding effect gets you to a very large number very quickly.
Now there is a slight catch and it goes by the name of impermanent loss, which I will write a full article about. But, that being said the Beefy Finance team are doing a truly truly amazing job and I think they have absolutely nailed the user experience of yield farming. Big respect to the team they have brought an amazing product to the Binance Smart Chain.
Segwaying from BSC to another Binance product now… The safe pal hardware wallet. This hardware wallet has recently been released from Binance and has a token SFP attached to it. On the day of the SFP airdrop, it traded at over 1000% increase in 24 hours with such a high demand to own, the Binance attached token.
The market cap of SFP is now sat at a whopping $239 million in less than a week. The hardware wallets themself are sold out and are said to be restocked at the end of February. Please don’t try to buy these second hand there will be scams always buy from approved suppliers.
We are going to start sounding like Binance maxis but they have been killing it recently and there is no better indicator of that than BNB reaching $100. It is no surprise at all. Their consistent innovation and diving headfirst into new uncharted areas are a breath of fresh air. In this space, if you stand still you get left behind and fast.
There are a few reasons why it could have increased so much.
1) New people signing up and taking advantage of the discounted fees if traded in BNB on their exchange.
2) The Binance Smart Chain (BSC), this and the increasingly popular Pancake swap is driving people to buy and use BNB, tying up a lot of the supply.
3) It’s a good asset to hold and that is becoming increasingly more obvious. Binance isn’t going anywhere any time soon.
4) BSC daily transactions, for the first time, were higher than ETH. This is huge. ETH and ERC-20 tokens built on Ethereum are all well and good but it is increasingly becoming a playground for whales or people who are stupid enough to pay the transaction fees. On the recent Option Room ICO which I was waiting for, I punched in my amount in Uniswap, only to be met by fees greater than the amount of ROOM that I wanted.
The congestion and queue jumping for high gas fees (transaction fees paid to ETH miners on the network) are making the Ethereum main net, an exclusionary place. Let’s hope ETH2.0 solves this.
But, as always, if there is a problem, someone will solve it and this time it was Binance. They have managed to create effectively the same environment but on BSC. Low fees and extremely quick transactions on decentralised exchanges like Pancake swap are quickly becoming a hive of activity for people searching for the next 100X coin. And there are a load of them.
I will be releasing a how to use Pancake swap tutorial tomorrow so stay tuned and put the notifications on so you are the first to know and first to get in before the crowd.
What else? Well, Tesla Motors decided it would be a good idea to buy $1.5 billion worth of Bitcoin. No biggie. The electric car company are also going to accept BTC for payment. More reason to stack those Sats.
This has much much much wider implications for Bitcoin adoption as a whole. I guarantee there will be another top 10 company this following week that will adopt Bitcoin as a currency. The first movers in this space will benefit the most. Those who don’t will struggle. Get yourself in before the big boys come to play. Not financial advice just common sense.
MasterCard also said they will be following suit and allowing its merchants to accept crypto payments later in the year. This is the start for wider everyday use and getting the average person using and comfortable with cryptocurrency.
Finally, Bitcoin reached its all-time high this week. Is this even newsworthy anymore? The crypto-king reigns supreme with an overall market cap of $890 billion (yes, billion with a B). Can it push a trillion dollars this week? $50K BTC seems like a nice round number.
This week on blocmates.
9 new referrals
7 x online one-to-ones
All-time high portfolios across the board
30+ active member Telegram and growing by the hour
1900+ website views
We released our $50 BTC giveaway which finishes this Sunday.
Head to our socials to find out how you can win.
If you liked this article and want to learn more, we offer free one-to-one support online to help you set up and get involved in the cryptocurrency space. Hit the ‘book for free button’ at the top of this page to get started.
We operate on a donation basis. So if you liked what you just read or what we are doing here at blocmates then you can buy us a pint or a cup of coffee below.
Equally, we offer guaranteed slots and exclusive content to our Patrons which you can sign up to below. This will include our own portfolio updates as and when they happen. These will not be available anywhere else but through our Patreon link below.
Alternatively, you can follow our group on Telegram for our side thoughts on the market. – @blocmates on Telegram.
Again, this service is completely free so if you don’t feel like it, that’s cool too!