Market Wrap-up November 3, 2018
A week does not go by in the world of cryptocurrency without some kind of drama. Examining the events of the past week and observing the trends of the crypto market, our weekly Market Wrap-up aims to keep you informed of the latest happenings in crypto, even if you’re not the type to peek at your Blockfolio on an hourly basis.
Markets woke Monday to finally arrive at the realization that more than half a billion dollars of formerly and once-again USD-pegged unstablecoin Tethers had been “redeemed” to the Tether treasury. The dip was inevitable considering the large quantity of USD funds that simply up and ran away from the market in a flash. Later in the week, in an effort to calm fears, Tether presented a letter from a Deltec bank in the Bahamas that somewhat resembled that note you once passed to your teacher signed by “Mom” in the hopes of getting away with missed homework. The letter claimed to be an assurance that Tether did indeed hold billions of dollars in its treasury, despite the clearly stated lack of any liability and a signature resembling an accidental scrawl with no attached name. This does not bode well for Tether. At all.
On Tuesday of the past week, a seemingly coordinated FUD attack was launched worldwide via a broad range of news outlets with strangely similar articles regarding the terrible impact Bitcoin mining could have on the world’s climate. Ignoring the reality that the current banking and fiat systems consume a thousand times more energy and are therefore arguably much greater threats to the global climate right now and for the foreseeable future, multiple articles aimed their sights at Bitcoin mining as the future scapegoat of global climate disaster.
Following this spat of bad news, Bitcoin’s tenth birthday was celebrated worldwide by crypto-enthusiasts, but not by Janet Yellen, who continues, unsurprisingly, to not be “a fan of Bitcoin”(source). As the former Fed chair, a central bank authority such as Yellen could hardly be expected to be supportive of a decentralized currency intent on disrupting the corrupt central bank monetary system. Despite this, Yellen is now a hodler of Bitcoin after receiving some via an unsolicited tip to her e-mail address. This just goes to show you the power of permissionless and trustless peer-to-peer digital cash.
A few major updates to market-movers took place during the week. ZCash enjoyed the “sapling” update, resulting in transaction and address “shielding” features and efficiency improvements for the privacy-centric coin. The Genesis Vision platform finally launched, but with the flat market conditions caused by larger forces, enthusiasm for the launch was not matched in terms of price movement. Along with this launch, the Ravencoin asset issuance system made steps toward implementation, resulting in some swings in volatility for the relatively small market-cap tech.
Over the past few days, Basic Attention Token (BAT) enjoyed a healthy jump in value following the announcement of its availability on the Coinbase platform, beginning with Coinbase Pro. Bitcoin Cash (BCH) similarly enjoyed a big boost following announcements by exchanges of support for its upcoming controversial fork expected to take place on November 15. It seems that BCH developers aren’t settled on the future vision of what they claim to be the true Bitcoin, with Bitcoin ABC and Craig Wright’s Bitcoin SV (Satoshi’s Vision) being the two bandied solutions for the upcoming upgrade. While a chain split is possible, it is more likely that Bitcoin ABC will simply create the newly dominant chain with the majority of mining support and thereby take over the job as the new, improved BCH chain. But, you never know… the camp could be further split into more tribes claiming to hold the one true currency, further diluting the BCH value pool.
It should be noted that all of these observations are just that — observations I have made about the market over the past week. This is not professional financial advice and is intended only to act as a quick wrap-up of the week’s events for you to enjoy. Please do your own research before doing any investing and never risk more than you can afford to lose.