Total Crypto Market Cap Since My First Newsletter
Dollar Parity, Seven Years Ago Today
On Feb 9, 2011, a little more than two years after the genesis block, Bitcoin achieved dollar parity. $1 = 1 BTC
- The Mega-Cryto Exchange Binance went off-line yesterday, terrifying many users that their funds were lost. Their CEO remained active on twitter, reassuring everybody that it was a database synchronization problem, and the system came back on line pretty much as he said, though you had to use the subdomain us.binance.com, as they were simultaneous under a DDOS attack. Binance is reducing trading fees by 70% for two weeks as an apology.
- The February 6th US Senate hearing on crypto currencies perceived as overwhelmingly positive. more
- European Banks Could Soon Hold Bitcoin, Admits ECB President more
- The popular wallet for Ethereum and Ethereum based tokens, MyEtherWallet is the subject of a bitter feud between co-fouders. More than anything, this is just a sign of the immaturity of the crypto space and its infrastructure. It seems like we’ll end up with two different versions. more
After the Crash
My opinion has not changed. In the long run, the value of cryptos will resemble a technology-adoption S curve. The December/January rally attracted a lot of new, easily frightened investors who don’t understand crypto.
So what happens next?
The fact that crypto currencies allows us to do things not previously possible remains true. A lot of projects (good and bad) received insane levels of funding in 2017 and 2018.
Some of them will create value. As this becomes obvious (or perhaps sooner), expect another round of Euphoria, tempered by memories of the January/February crash. And then reckless euphoria. And then another crash.
Watching EOS and Cardano
- Cardano’s Charles Hoskinson continued his media blitz giving this interview in which he reiterates their studied scientific approach to the project. He expects that in the second half of 2018 Cardano’s coin, “ADA,” will become objectively better than bitcoin, and by the end of the year, their smart contract platform will be objectively better than Ethereum.
- The first release of Cardano’s wallet seems to have disappointed. Some people suggest this caused the recent price dip.
- EOS’s Dan Larimer gave this awesome interview with one my favorite crypto analysis, Ivan the Tech. I watched it live. As is characteristic of Dan, he was pretty negative about everything from Bitcoin to Ethereum to Iota, and even about his previous projects, BitShares and SteemIt — both of which are awesome in my opinion, and both of which now run as Decentralized Autonomous Organizations. I think it’s his perfectionism. BitShares, a decentralized exchange and lending platform, and SteemIt, a social network, are by far the most functional, sophisticated non-crypto-currency crypto-projects operating in the real world. Perhaps most interestingly, he was asked about Cardano’s Charles Hoskinson who was briefly CEO of BitShares. Dan mysteriously said he was asked to step down for “moral reasons” but wouldn’t elaborate. He also said that he loves Nikola Tesla’s work and wants to do more research about electricity — studying the anomalies that everyone who has ever worked with electricity has seen, instead of ignoring them as anomalies.
- “Rational Ignorance”. Both Charles and Dan are deep into game theory, which is obviously a huge thing when building decentralized system. I thought it was interesting that in the interviews above, each of them discusses “rational ignorance” of users — ie. when the cost of learning something is unlikely to be proportional to the reward.
Hey, my readers. Cryptos are going to change the world. Ignorance of them is not rational. I recommend buying $50 of some crypto, moving it between wallets and exchanges, trading it. Learn it. You’ll be happy you did. 🙂