Volatility is back and that’s okay, even with bitcoin in a downtrend
As bitcoin failed to sustain itself above £6.6k ($9.2k), the bulls lost their strength by 11:15 BST and let its price test the £6.2k ($8.6k) support level — a test which also happened last Saturday. Bitcoin is currently trading in the same sideways range over the past week, with some controversial traders acknowledging that it can still go down to test £5.9k ($8.2k) soon.
From a bird’s eye view, the ‘bit-picture’ still looks good, but we can expect higher volatility over the next days. Yesterday’s dip marked the highest trading day by volume on bitcoin’s CME futures market, which can mean that professional traders have shorted the market and thus, causing 85 of the top 100 projects by market cap to fall 5% on average.
On the bright side, Kyber Network, a popular project, jumped 50% on news of a new exchange listing. Moreover, bitcoin is now in the spotlight for Venezuela’s black currency market. A popular pricing website used to aggregate bolívar to dollar prices has possibly fallen under the government’s control, so bitcoin’s price is being used to value the bolívar independently.
Kanye West is back on Twitter since last week. From basically ‘writing a self-help book’ to starting a bromance with Donald Trump, the famous artist has it all. Yesterday, he decided that decentralisation was a worthy topic, even after suing a crypto project to death back in 2014. Nevertheless, his ‘D-word’ tweet was simple and effective.
Everyone on crypto twitter rejoiced and, most importantly, engaged in interesting conversations around why decentralisation matters. The most critical response came from Dogecoin’s founder, who has been sharing his worries for a while. Though, we definitely agree he is right in advocating education, collaboration and skepticism.
Interestingly, the young founder of Tetras Capital argued that the crypto space needs to stop falling for the commonly misunderstood decentralisation hype. Most importantly, he claims that blockchain and decentralisation are independent. Watch out for overvalued tokens!
Ethereum Improvement Proposals exist to be debated. But EIP 999, a proposal to recover the funds locked in the Parity wallet hack is raising a lot of concerns. However, Ethereum’s team lead says there’s no fork on the way — they’re trying to reach consensus.
Pump and dump schemes exist to be exposed. A long post claims to have uncovered several popular crypto trading paid group’s leaders planning to manipulate the market. A well-known publication is already removing those writers associated with the scheme.
Smart contracts exist to be hacked. A new bug was found in more than a dozen ERC20 smart contracts, which is a standard used by most tokens issued on Ethereum’s platform. Some exchanges suspended all ERC20 deposits as the bug allowed hackers to generate tokens at will. However, the bug is not that new and doesn’t affect any popular tokens.
You have likely heard Bitcoin wasn’t the first attempt at creating a virtual currency. Learn more about how one of such projects — eCash — “spawned a cypherpunk’s dream”.
You have likely heard the criticism around the common crypto valuation theory — the equation of exchange. It’s tautological, they say again. Here’s the response, and here’s a new article on how you can use that equation to value a cryptoasset.
You have likely heard that ICOs are not the most democratic way to distribute tokens amongst the users of a network. Here are some good lessons on how to promote proper adoption.