Major Dippage, Bitcoin's Environmental Impact, Staff Shortage
May 12th, 2021 | Sign Up
Happy Friday. If the big dip across all global markets in the past two days has you stressed out, take a break from the charts and learn something new or go for a nice walk.
7 Day Price Changes🩸
⬇️ Bitcoin: $49,290 ( -12.8%)
⬆️ Ethereum: $3,812 ( +9.1%)
⬇️ Dogecoin: $0.5211 ( -9.6%)
⬇️ Chainlink: $44.05 ( -6.9%)
⬇️ SushiSwap: $14.99 ( -8.9%)
Prices as of 11 PM EST 05/13, data from Coingecko
Markets: A lot has happened since Wednesday. Some events that spooked or excited investors:
Elon tweeted that Tesla is halting the acceptance of Bitcoin as payment for Teslas
Creator of Ethereum, Vitalik Buterin donated all of the doge-inspired tokens sent to his public crypto wallet, crashing the dog money market—more details in today’s story
Stock futures dipped after the Department of Labor’s report came out highlighting the steepest rise in the cost of consumer goods since 2008. The Consumer Price Index (CPI) rose 4.2% from this time last year
AMC shares jumped 24% yesterday on the news that the company raised $428 million in a stock sale
Covid: An announcement from the CDC on mask-wearing guidance came out Thursday, stating that fully vaccinated people can stop wearing masks in most indoor places, subject to local laws and mandates of course.
Tweets Move Markets 🐣
This week, Mr. Musk sent Bitcoin on a wild ride that probably won’t be forgotten for a while. Do you think Elon knew the events that would unfold after this tweet?
Elon, sure. But who is this Vitalik guy?
If you’ve been getting into crypto and didn't know the name Vitalik Buterin before this week, you definitely know now.
Vitalik, the 27-year-old programmer known among the crypto community as the founder of Ethereum, dumped $1 Billion in Shiba Inu tokens and another $0.5 Billion of various other “dog coins” that had surfaced during Dogecoin’s historic rally, such as Akita Inu and the very memey Dogelon Mars. Vitalik was given these tokens as a gesture of respect, but the developers of the dog-themed tokens may have been expecting validation for their projects in return.
Vitalik turned the tables with a gesture of his own and sent the dog coins to the India Covid Crypto Relief Fund. India has been hit hard with 4,000 Covid deaths a day for the third straight day, with 350,000 new infections in the past 24 hours. Critics of Vitalik can say he did it for personal or tax reasons, or that the coins were “free” to him and therefore his actions were not strictly philanthropic, but what cannot be denied is the fact that India will receive help that it desperately needs.
A couple non-Elon related factors that contributed to the downturn:
Bloomberg reports the biggest crypto exchange in the world, Binance, is under investigation by the justice department
Investors panicked at the Vitalik news and the overall negative sentiment caused an avalanche of selling across not only dog coins, but the entire crypto market
When in doubt, zoom out. Ethereum is still up 1,800% in just 12 months. Seasoned investors would call this a correction and tell you a dip like this is healthy and normal for sustained growth. Did Elon’s tweets bring the bull run to an end—or is this another event that will be forgotten in a couple of weeks? When we find out, Zoomer Money has got you covered. 😉
The Elephant in the Room 🐘
Crypto’s energy consumption has been a hot topic this week. We want to share different perspectives and arguments with our audience in the most objective way, so you can be as informed as possible on this situation that heavily influences the future of crypto.
The argument against Bitcoin is that it consumes more energy than entire countries without yet being a viable way to pay for essential goods, and only harms the environment for the sake of gambling.
But supporters say that’s an unfair comparison because Bitcoin and crypto are meant to replace many of the traditional systems consuming energy today, and Bitcoin mining actually incentivizes green energy demand because it is otherwise unsustainably cost-prohibitive to generate through coal and fossil fuels.
Everyone can agree that Bitcoin and other cryptocurrencies require a lot of energy to mine, but whether or not the amount of energy used to power blockchain networks will decrease and if it will be worth it, is still a topic of debate. Nobody said the future of finance would come easy!
What about Proof of Stake? (POS)
If cryptocurrency mining is the problem, proof of stake is the solution. With proof of stake, instead of using large amounts of energy and hardware to solve increasingly complex math problems (as in the current system), miners can “stake” their funds to prove ownership in order to mine a percentage of tokens relative to the amount staked—without additional hardware or energy costs. Ethereum’s plans to move to a proof of stake system are already in motion.
While we aim to stay as neutral and informational as possible in this market of unknowns, we at Zoomer Money are most excited about Ethereum’s transition to Proof of Stake and the evolution of Decentralized Autonomous Organizations that aim to make the token allocation in a proof of stake system fair.
Animals to be formally recognized as sentient beings under UK Law
Target to stop selling Pokemon cards in stores
Lottery ticket winner throws $26M winning ticket in the laundry
“Sorry We’re Closed” 🚫
There were high hopes for hiring in April, but only 266,000 jobs were filled last month, missing the projected 1 million by a long shot. Big oof. Businesses, especially those with low-pay hourly positions such as restaurants, retail, and the travel industry, are having trouble filling jobs as the economy begins to re-open.
Some companies are trying to solve this with very slightly higher pay and incentives for employees. Chipotle, Target, Walmart, Costco, and others have announced higher wages to attract workers in a post-pandemic world. Chipotle implemented a raise of $2 per employee, although the average entry level wage for Chipotle employees still stands around $11.
Small businesses are feeling the effect too. Government data reports last week that 44% of small businesses said they had job openings that they couldn't fill in April. Chief global economist at the Economic Outlook Group, Bernard Baumohl said:
If it turns out that if you cannot meet demand….the economy cannot grow as rapidly as people had anticipated.
Some economists cite “reallocation friction” as a factor, saying that the type of jobs in the economy are changing so much that workers are still figuring out what jobs match their skillset and how to acquire the skills for these new roles.
The Bottom Line
A big re-thinking of what it means to work is happening around the world with more people than ever considering changing their field of work and/or course in life. There’s always money in the banana stand!
Thanks for reading! 👋
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