October 11th, 2017
In my humble opinion...
Give the people what they want!
Ex-J. P. Morgan trader says Dimon needs to stop talking ‘like a fool’ about bitcoin https://t.co/Fr2jclBSET
— MarketWatch (@MarketWatch) October 10, 2017
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A lot of stuff happened today that impacted Bitcoin's price. First is Russia: it can't seem to make up it's mind, but strict regulation is on the table.
Let's begin with the obvious offender: Russia's government made a series of statements that freaked a lot of people out and gave them déjà vu to China's crypto ban. A Russian media outlet RBU claims that the Bank of Russia and the Prosecutor General's Office are going to try and jointly block access to cryptocurrency exchanges within Russia. The Governor of Russia's Central Bank apparently thinks that crypto and blockchain are a "pyramid scheme". At a separate conference across the country, Vladimir Putin, Russia's #1 bear rider, suggested a more balanced approach. Though he warned that using crypto carries "serious risks", it's also be important to have barriers that weren't too strict.
This statement comes a few days after the same news outlet announced that the Russian Association of Cryptocurrency and Blockchain had begun drafting a law legalizing ICOs. It's too bad that it doesn't seem to be working out as we'd have liked. Even though Russia has been doing research for a while as to how blockchain can be integrated into the government, it appears they've run into a central ideology that just doesn't vibe well with the communist powerhouse: deregulation and decentralization. Oops.
So, there was a "flash crash" today, and boy oh boy the theories are a commin'.
On Monday, Bitcoin's price dropped from $4,800 to $4,200, then back up to $4,787 in a matter of minutes. Talk about volativity. No one's really sure what caused it, and oddly enough only one exchange, CoinDesk, logged the massive move. Here are the current theories:
CoinDesk's index was incorrect: unlikely, but still possible. CoinDesk's prices are an average of four exchanges, so we doubt it failed yesterday morning. If anything, it's probably a little more accurate.
Russia's announcement about possibly banning crypto: though it feels likely, the odds of the market reacting that drastically and quickly from the news doesn't seem like it adds up.
Reaction Catalan leader Puigdemont's speech: Catalonia was on the brink of declaring independence (a move that could have seriously been assisted by bitcoin) but the movement's leader asked to delay the result of the referendum vote in order to talk to Spain's Prime Minister. So close, yet so far.
At this point, the only thing holding Bitcoin back from hitting $5,000 is the mental barrier many people feel regarding this number. It's a bold and exciting development for the currency, but there will always be a struggle to pull up the price past an all-time-high ceiling.
You may think you're all in, but wait until you see this family who sold everything for Bitcoin. That's pretty hardcore.
Lufthansa, Europe's largest airline, is investing in Winding Tree, an Ethereum-based ICO that makes travel cheaper.
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Coin to Watch
Trolling Jamie Dimon in the @WSJ this morning. Classic.
— Rob Madelmayer (@RMadelmayer) October 10, 2017