Bitcoin breaks out, alts go down. Sideway movement ensues, alts breathe again.
Another day, another moment of indecision. Last Friday, bitcoin successfully broke the long-term resistance line that marked the December downtrend- at least in log-charts. However, not everyone agrees the move is entirely legitimate. This is because Saturday and Sunday’s sideways movement is paired with low volume, which signals that buying pressure is diminishing. This is enticing traders to short the market. Plus, a bearish rising wedge may be forming on shorter-time frames. Additionally, some say a bearish Ichimoku cloud is incoming.
Nevertheless, one thing that is becoming clearer is that we have likely seen the bottom on the 6th of February, when bitcoin hit £4.3k ($6k). It wasn’t clear then and it wasn’t clear on the 1st of April — when we hovered around £4.5k ($6.4k). The consensus now is that we are safe, even if the future may be choppy, volatile, and not as parabolic. Moreover, though crypto schadenfreude is masochistic, these boom-bust cycles are making the space stronger.
In hope, check this weekly bounce. Since 2015, every time we bounced on the ‘two week’ chart like this, such quick moves led bitcoin to an all-time high. Whilst bitcoin continues trading sideways, it’s also safe to say the alt party has commenced. Consequently, most of us dislike the fact that some undeserved projects are also merited with green lights.
The week is commencing and our rebuttal of the sensational ‘blockchain is not only crappy technology but a bad vision for the future’ article is coming to an end. We started with an overview of the problems that constituted two central claims: ‘there are no unique use cases for blockchain’ and ‘the technology can’t be trusted’. We argued that use cases exist and are increasingly being adopted. Further, major blockchain projects’ governance can be as good or even better than the governance of other democratic institutions and private organisations. Later, we focused on data validity and integrity by supporting the fact that decentralised blockchains are less prone to errors.
We’ll conclude with an answer to the final fallacious claim Kai made: ‘blockchain and cryptoassets aim to eliminate trust’. The answer was hidden in the article itself. The way trust is created is independent of blockchain technology. The fact that there’s a need for trusted parties within a blockchain system — say code auditors, programmers, institutions — is not a problem because these trusted parties are forced to operate in a more transparent way than their pre-blockchain equivalents, as explained in Part II. What can be conceded though, is that the hype around blockchain-solutions, which are mostly sold to businesses over the past few years, is indeed problematic. Without a well-designed incentive mechanism any blockchain is just a shared database.
The article further claims that blockchains are the least trustworthy systems in the world and that they must be abandoned, due to hacked exchanges, buggy smart contracts, and cryptoasset’s volatility. Are the few rotten mangoes resembling the entire tree? Bitcoin and major blockchain protocols have never been hacked; only the applications built on top of them have. The fact some projects are not using blockchain solutions to manage their organisations doesn’t prove any point besides that the space is new and maturing. Railroads weren’t built with trains. Similar to other revolutionary technologies, mocking is easy — maritime transport, oil, and the internet are all examples of transformative markets that were subject to speculation, attacks, and early mishaps. The difficulty in valuing their potential in their early phases is what fuels such instability. However, it’s the instability that is attracting the investors and the builders to develop and upgrade last years’ crypto-medieval systems into the kind of social infrastructure we need for a world where trust is dominated by corporate and political monopolies. Crypto Rome wasn’t built in a day.
she256 — UC Berkeley’s First Women in Blockchain Conference — is happening today. If you ever struggled finding speakers for your conference you’ll find some of the best here. Follow on Twitter!
BraveNewCoin’s latest bitcoin price analysis was just published. Read to conceptualise the impacts of increased SegWit adoption and why £24k ($33k) by July is still possible.
Are you planning to fundraise through an ICO? Bitmex’s CEO believes that despite the crowd sale process, which is good, the industry has morphed into chaos. ICOs are not dead, but they need to get ‘back to basics’. Read this and see why the current crypto markets are a gold mine here.
Are you a crypto tribalist? Decentralise your maximalism to ensure this space can better fight the centralisation of power and data. The ‘Original Gangsters’ who developed this technology did it for the world, not for their personal gain. This and more at “Divided We Fail”.
Are you weary of Technical Analysis? Even the well-reputed analyst Chris Burniske defends parts of it in his popular ‘Cryptoassets’ book. We all agree that the TA space is ripe with fortune-tellers, but there’s something to learn that’s widely used in the quantitative trading industry.