Investing in Cryptocurrency is extremely high risk and complex. The Motley Fool has provided this article for the sole purpose of education and not to help you decide whether or not to invest in Cryptocurrency. Should you decide to invest in Cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.
With Bitcoin ‘mining’ and Chia ‘farming’, cryptocurrency terms can be baffling to say the least. You might also hear about crypto ‘going to the moon’ or that the price of something is ‘mooning’. But what on earth does it mean? Let’s find out.
What does it mean when cryptocurrency is ‘mooning’?
The good news is that mooning in cryptocurrency has nothing to do with seeing anyone’s peachy bottom. It’s actually a verb that describes the rising price of a cryptocurrency.
More specifically, when a cryptocurrency is mooning, it means its price is skyrocketing – literally heading to the moon.
Like other verbs, ‘to moon’ can be conjugated in all sorts of other ways and can apply to any type of cryptocurrency. Examples of phrases you might stumble across include:
- “Bitcoin is going to the moon” (the price of Bitcoin is soaring)
- “When moon?” (when is the best time to sell the crypto I have before prices start to fall)
- “Prices are mooning” (prices are going through the roof)
Where does ‘going to the moon’ come from?
As it is with slang, it’s not always clear exactly how words or phrases come to mean specific things. The general consensus about cryptocurrency going to the moon is that it refers to 2017 when the price of Bitcoin hit unprecedented highs.
Up until then, the price of Bitcoin (the very first cryptocurrency) wasn’t anything to shout about. After all, at its launch in 2009, it was literally worthless. When it started trading in 2010, it was initially valued at a fraction of a penny (a teeny, tiny fraction).
Over the years, its value has fluctuated. Then, in 2017, something extraordinary happened and the price of Bitcoin started to rise exponentially. By December that year, one Bitcoin was worth just shy of $20,000 (around £14,100 at today’s exchange).
Naturally, Bitcoin investors watched in delight as Bitcoin started soaring, as if ‘to the moon’.
Is Bitcoin still mooning?
At the time of writing, one Bitcoin is worth just over £26,000. Earlier this year in April, the price rose to £43,680.
These big changes illustrate just how volatile cryptocurrencies can be. Unless you have a crystal ball, there’s simply no way of accurately predicting what will happen next.
Despite its volatility, it’s spawned an entirely new lexicon which is utterly fascinating. For example, every italicised word in this sentence is a specific crypto slang term: Prices can be rekt, and if a whale comes along and chooses to pump and dump, you could quite easily become a bagholder.
What does it all mean? Well, that’s for another time.
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