This week’s dip has been unnerving to many, but if you have lost trust in blockchain technology and cryptocurrencies because of it, we urge you to read below.
This week’s dip has been unnerving to many, but if you have lost trust in blockchain technology and cryptocurrencies because of it, we urge you to read this very well analysed article by the New York Times that was published on Tuesday. We know giving and reading opinions is free, but being free does not make it necessarily valuable. Earlier this year, The Guardian published in its editorial column that “cryptocurrencies are a greater fool’s gold”, with the key argument being that one shouldn’t trust blockchains.
Why? Because blockchain start-ups and decentralized apps have been hacked in the past. What they failed to convey was that wallet hacks, ICO hacks and the DAO hack are different than an Ethereum hack — which has never happened in history!
Software has bugs in every industry, so is it better to trust proprietary development or open-source movements? Note this quote from the New York Times article above: “Bitcoin is now a nine-year-old multibillion-dollar bug bounty, and no one’s hacked it. It feels like pretty good proof”!
Even The Economist, which has been defending blockchain since 2015, called the 237th obituary of Bitcoin yesterday! While it’s important for the media to balance their views, this should not be at the expense of calling off innovation.
As usual, some say it is, while others say it isn’t.
After bitcoin hit a low of £6,680 ($9,230) on Bitfinex, a major exchange, at exactly 15:30 GMT, it has since been attempting to bounce out of its downward trajectory. The next movement that will occur is not clear, however, despite CNBC’s attempt at ‘confirming’ the bottom.
Even though 90 out of the top 100 cryptoassets by market cap are back in the green — and in spite of Business Insider’s report saying that bitcoin is making a comeback — the most optimistic Twitter bitcoin bulls are still cautious. Keep watching the trend!
As we wrote yesterday, there are many theories that try to explain this dip — here’s a short summary of them. But even if you know which theory is correct, how would that change your trading decisions? How would you know that the fall is over?
It’s difficult. Many people tried to say the bottom would have been yesterday before 21:00 GMT, as that was the time the first CBOE bitcoin futures contract from December expired. The futures contract had the potential of being a LIBOR fixing scandal in the making!
Overall, however, it seems that the futures volume was not that significant and, while there was a ‘fake’ breakout at that time, the price re-adjusted over the following hours. In the grand scheme of things, it seems that the worst thing about this dip was this Reddit user’s experience at work!
To prepare for tomorrow!
The London Blockchain Week starts tomorrow and will last until Friday 26th January — from ‘hackathons’ to conferences and workshops, you can have it all!
The Wanchain ICO was [one of the most hyped of 2017]*https://www.reddit.com/r/wanchain/comments/7l85mf/10reasonswhywanchainisthebesticoof_2017/). Their tokens are not yet trading and their mainnet is launching tomorrow — exchange listings will follow!
An insight a day keeps the red candles away…
Poloniex — once a major exchange but now out of the global top 10 — is struggling with some bugs in its platform that are adding to its customer service woes!
Reddit has some good communities that provide a overview of the cryptomarkets. Here’s a summary of what’s happening and how to act going forward!