Market report

BITCOIN SIDEWAYS, ALTS UP - PART II

London Block Exchange

19th April 2018

As bitcoin continues to consolidate, top alts increased 9% on average yesterday.

BITCOIN SIDEWAYS, ALTS UP - PART II

As bitcoin continues to consolidate, top alts increased 9% on average yesterday

Now that almost every other newsletter and Twitter personality is talking about the potential alts cycle, is it possible that it's not going to happen after all? Contrarily, will FOMO propel us into new highs?  Is there a possibility of this being a major trap before bitcoin continues its downwards trajectory? We'll have to wait and see, however, some say 'alt season may also open doors to scam season'.

The theory says last week's short squeeze was a mechanism to make bitcoin holders comfortable moving their profits into alts - improving the bullish sentiment. As people need to buy bitcoin before they buy the majority of alts, this could have been done by big players who needed thicker order books to sell their bitcoin at the current price. If they sold before the short squeeze, it would likely affect the market negatively. Look at this more precise chart of the downtrend for a clearer view.

With regards to bitcoin, will we see the identical 8 AM BST move we've noticed the last couple of days? One may construe this as a great short opportunity as it's happened for the third time in a row. Watch out for risky leveraged plays as the new 'bart pattern' is out to get you! Furthermore, you check out this great 'are alts actually back' thread to draw some conclusions. If time is of the essence, jump to the last tweet for the golden nugget.

THE FUNDAMENTAL CATALYST - PART II

As blockchains are just databases, cryptoassets are key to improve data validity

Yesterday we started our rebuttal for the infamous ‘blockchain is not only crappy technology but a bad vision for the future’ article. We focused on why adoption of decentralised blockchain solutions is not doomed. Though, currently users are accustomed to centralised solutions. Additionally, we delved into why it's normal that trustless movements still require trust, although that may be counter-intuitive. 

Today's claim is that blockchain is only good at hampering the tampering of data, and not at ensuring its validity. Blockchain is just a database, with certain key differences. Thus, any database suffers from the data validity problem. Cryptoassets are trying to optimise post-entry adulteration, not human error in data entry, though, they can also improve data entry errors. If a participant - be it a person or even a sensor who provides the data - makes such mistakes, they won't be rewarded and might even be punished. 

This mechanism is difficult to replicate in the legacy systems that Kai appreciates. The only thing present there is reputation, and reputation is not transparent, nor does it makes otherwise boring databases fully transparent. So, the burden lies on proving which governance model (central vs. 'decentral') is less prone to error. We will always need auditors to look out for mistakes and manipulation, so the question is wouldn't it be better to live in a world that is more difficult to dupe auditors, since they'll spend less time analysing documentation and instead focus on investigating processes and risks of fraud?

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack
  • Did you know that EIP 867, an Ethereum Improvement Proposal is aimed at standardising recovery proposals for lost funds? Now there's also EIP 999 - specifically aimed at tackling the funds locked in the Parity wallet hack last November, which amount to £175 million.

  • Did you know that token economies started as incentive systems for children to behave as their parents wanted? Now there's a way to blend such history with today's token economies using the latest cryptocurrency piggy banks for kids- read all about it here.

  • Did you know about the possible exit scam by Savedroid, a German-based project that recently raised over £35 million in an ICO? If it is a scam, we are not sure that the founder will be able to flee for long. Even if the Egyptian backdrop in his goodbye photo is just a distraction.

WHAT TO READ TODAY

An insight a day could give you more profits to play
  • bitcoin
  • btc
  • fomo
  • twitter
  • scam
  • altcoin
  • bullish
  • kai
  • cryptoassets
  • blockchain
  • data
  • eip867
  • savedroid
  • consensys
  • bitcoin standard
  • balanc3