The aggregate value of all crypto currencies tumbled from $700B to $550B today.  This was the worst single day in recent memory.

However the monthly chart doesn’t look so bad:

As with many previous market tumbles, this one was driven by news from China.  The Chinese government announced a plan to block citizens of accessing foreign crypto currency exchanges. I’m sure the panic was exacerbated by profit taking from the recent bull run, as well as the many new investors who entered the market.

The crash was so bad that Tether, a crypto currency supposedly pegged to the dollar rose to $1.02:

Here’s more analysis and basic investing advice from one of the Youtubers I recommend, David Hay:  Did the bubble burst?

Decentralized Exchanges

What I wrote in my previous newsletter was very apropos: “many people have predicted that in 2018 governments will come for their pound of flesh. . . . I think we can reliably predict that people will seek alternatives. Decentralized Exchanges are already here and already working.”

Such bans, like the one that China proposed, will become meaningless when (not if, when) decentralized exchanges take over from their centralized counterparts.

You can invest decentralized exchanges them by buying their tokens.  However there are a lot of projects in this space, and it’s hard to say who the winner(s) will be.