Focus of April: Cryptocurrency drops shock bombs on the stock market.
May 14, 2021by Steaker
Cryptocurrency drops shock bombs on the stock market. Tesla’s net profit reached a new high record. The mining craze challenges Taiwan’s hard drive supply chain!
Focus of the month
- Goldman Sachs Says Blockchain Stocks on Average Outperform S&P 500 (But Not Bitcoin)
- Canada Approves Two Ethereum ETFs in One Day CoinDesk
- Taiwan set to rollout new AML regulations for crypto exchanges
Last week was exciting for the stock market, and cryptocurrencies might play a significant role in that! Since late April, corporations have reported record net profits. Tesla reported earnings of $438 million, with $1 million of that coming from selling 10% of its bitcoin holdings. Digital payment giant PayPal had a record-setting quarter, with a net profit of $1.455 billion and YoY 85%; the chief executive said the key growth momentum came from cryptocurrency trading. Square, founded by the founder of Twitter, has earned 266% YoY and purchased $170 million in bitcoin.
In addition to these companies, many others were buying large amounts of bitcoin in Q1. Goldman Sachs assembled 19 “cryptocurrency concept stocks” with an impressive average YTD performance growth rate of 46%, far higher than the S&P 500 growth rate of 12%.
Besides these, the buzz of Dogecoin and Chia has triggered a heated discussion in mainstream media. Dogecoin’s value grew more than tenfold in just one month, and it successfully attracted many Taiwanese YouTubers’ participation. Chia, known as “green bitcoin,” has been causing a shortage of hard drives, driving up suppliers’ share prices. Compared with bitcoin’s Proof of Work mechanism consuming a lot of electricity, hard drive mining uses “Proof of Space and Time,” which can mine directly with unused hard drives. Therefore, it drops the cost of mining dramatically, allowing more people to join the ranks of Chia miners.
Let’s also talk about Ethereum, which has defied Bitcoin’s consolidation to hit a new high of over $4,000. In addition to Gas Fee finally dropping, the Canadian Ethereum ETF listing is even more creditable. The Toronto Stock Exchange has a total of three Ethernet ETFs. As many capital inflows led to a new wave of currency price rises, many DeFi projects have also become more lively.
The Monetary Management Association in Taiwan has recently announced the proposal of “Measures for Preventing and Controlling Money Laundering on Virtual Currency Platforms.” In addition to implementing more detailed KYC verification, the future regulatory direction was also discussed at the recent public hearing. It is hoped that in the future, as the laws and regulations will become more comprehensive, they can enhance protection for both businesses and consumers and enable the whole industry to develop and prosper sustainably.
Focus of April: Cryptocurrency drops shock bombs on the stock market. was originally published in Steaker on Medium, where people are continuing the conversation by highlighting and responding to this story.