November 20th, 2017

In my humble opinion...

this is the first indicator of fear.

 

 

Coin of the Day Anyone can build a  blockchain-based business.

(CRYPTO: Lamden Tau) Lamden’s tagline is “building blocks” – that's exactly what the company hopes to create for blockchain-based business developers. Lamden helps blockchain-based businesses get started by providing open-source software that solves one of crypto's biggest problems: barrier to entry. Blockchain represents a whole new paradigm of possibilities and disruption to many of existing markets. However, the main issue in implementing blockchain to overcome inefficiencies is the difficulty and highly technical aspect of blockchain development. Lamden offers a suite of applications: Saffron, a blockchain generator, Flora, a community collaboration tools, and Clove, an application that facilitates blockchain-to-blockchain communications.

 

The hype machine is running full time now, as Bitcoin is expected to hit $10,000 by the end of the year. Surprise, surprise.

Bitcoin hit yet another new high yesterday, peaking at a glorious $8,200 on the Bitfinex exchange. The globally weighted average (using prices drawn from other exchanges) of yesterday's high was just under the $8,000 mark. What's to thank for Bitcoin's steadily increasing price? Well, Fall 2017 has been the season of piqued traditional investor interest. In October, 120 crypto hedge funds were in operation, with many more expected to pop up. Oh, and the whole Jamie Dimon ordeal has spurred a lot of financial interest on Wall Street. Who doesn't love a good underdog story? Another potential push over the edge was encouraged by Zimbabwe's continued economic and political chaos, with President Mugabe refusing to resign Sunday despite a "successful" military coup (ouch). Bitcoin's price in Zimbabwe currently runs at a cool $13k.

There's been an outpouring of support – not to mention opposition – for crypto, but supporters such as Overstock.com and the Chicago Mercantile Exchange's inclusion of Bitcoin futures in December sure help. Oh, and according to a CNBC survey, the majority of respondents think Bitcoin will likely hit $10,000 by 2018. This was backed up by billionaire and fund manager Mike Novogratz, which makes us pretty happy.

 

Wait, why was Bitcoin's price so much higher on the Bitfinex exchange?

If you read multiple articles about the price hike, you'll notice that all of the articles make note of Bitcoin's price on Bitfinex, the world's largest exchange by trading volume. They handle almost twice the volume of their closest competitors, like Kraken, Coinbase, and Bittrex. Our sources think that flight capital from China could also be a factor, as more Chinese crypto holders are doing business with Bitfinex, and more demand equals a higher price. The largest issue Bitfinex faces right now is its overwhelming support of Tether, the cryptocurrency whose price is directly tied to the value of the US dollar. Bitfinex and Poloniex have their cryptocurrencies listed in units of "USDT" (Tether) instead of USD. Tether has low volatility, but will probably face some legal and financial issues in the coming years; they sure have in the past.

Bitfinex has also recently had some struggle with money withdrawal (the classic liquidation problem), and historically have had some major financial scandals; the largest being a theft of 120,000 Bitcoins in April 2016 (valued at $69 million). Users' inability to withdraw is creating some PTSD in the crypto community after the MtGox attack, which was a security breach that lasted several years on the Japanese exchange, resulting in the shut down of the exchange and a total loss for exchange users. It had a dramatic impact on Bitcoin's price from 2012 until 2014...here's a relatively comprehensive timeline on the attack. It's an important turning point in crypto history, so read up. Side note – someone's trying to resurrect the MtGox exchange with an ICO. Hm.

 

SegWit2X was implemented and...nothing happened. A little anti-climactic, but maybe that's for the best?

If China cracks down on crypto mining, where will the miners move? There are actually a lot of strong options, but Russia's looking appealing right now.

The results are in: Alaska is crypto's most friendly state in the US. Delaware, Oregon, Hawaii are all close runner ups.

Coin to Watch

We still have our eyes on Bitcoin Cash (BCC/BCH), especially since China is likely to come into play once again.

 

Daily LOL

It's amateur hour, over here.