weekly #92 – 27 september 2019
The following topics will be addressed in this weekly.
- Bundles performance
- Triaconta tip
- Bakkt slow start
- Market overview
A major price move to the downside on Tuesday makes this a negative week for all Bundles. Some altcoins like XRP, IOTA, XEM, ZRX and DOGE gained on Bitcoin again this week, but could not escape the average double digit crash against the euro. We see some recovery with investors buying the dips, but overall it was a very bad week.
The Big 3 (-20%) still has a virtual year to date performance of +63% so 2019 is still very good. Top 30 (-21%) this week resulting in the year to date performance of -5%. Penny Stock (-21%) makes it 12% cheaper than this Bundle on January 1st.
Did you know we are building a knowledge base with information about all the cryptocurrencies in the cryptocurrency section? Take a look at it.
BAKKT slow start
Bakkt’s Bitcoin futures launch Monday was underwhelming in volume so naturally people point the finger at Bakkt for the sudden downfall. Almost $1000 of the speculative rise of the past month was probably because of the announcement of Bakkt, and now the price inflates just one day after the actual event. In trading this is called “buy the rumour, sell the news” and it is normal. It allows you to see the price effect on just the speculators if the Bakkt is a success and imagine what can happen if it actually becomes a success in a few months time. This might even accelerate as institutional buyers will certainly notice this low price opportunity.
Bakkt is owned by Intercontinental Exchange (ICE). ICE owns the New York Stock Exchange (NYSE). The NYSE is the single largest stock exchange on earth, by a large margin. This simply cannot remain a small, insignificant market.
This is a game-changer and something totally new because physically delivered means it requires the actual purchase of Bitcoins. This is totally different from the dollar-settled futures we had until now with the CME. The slow start is easily understood if you consider their target audience. This will have to mature and although long anticipated most institutional traders will not have had their systems ready on September 23 for this or are more likely take a wait and see approach for the first few weeks.
On September 23, the Bitcoin hashrate suddenly dropped 40% after reaching a new all time high on September 19. So far, it’s not really clear why this happened. Most likely story so far is major mining operations in Canada and Kazakhstan have suffered power outages. All should be back to normal in a few days. Price and hashrate are very correlated because higher prices make it more profitable to mine. And more mining makes the network safer and creates more faith in the future of the coin, because mining Bitcoin requires significant hardware investments. If the hashrate drop was in part responsible for the price crash this effect will be temporary. Today the hashrate is back up.
Dash Nigeria reports over $10,000 paid with anypay using Dash. Anypay inc. is adding an average of five hundreds of accounts per month this year using a mobile app to connect customers, retailers, and e-commerce sites. It doesn’t matter anymore whether you pay in person or pay someone across the globe.
IOTA partners with mainstream opensource giant Linux do co-develop the LF Edge framework. Edge computing means expansion of the cloud to your network or your device. If more work is done locally (on the edge of the cloud) it is faster but still secure. This is especially relevant for Internet of Things devices.
An independent survey by the Insights Network with participants from over 100 countries shows Chainlink technology to be vital for smart contracts reliability. The market believes in the system Chainlink is providing and this will increase institutional investments.
USD Tether, the stablecoin, passed Bitcoin Cash for fourth place on Coinmarketcap with a marketcap of 4 billion dollar.
Dogecoin Is the Third-Most Resistant to 51% Attacks, After Bitcoin and Ethereum. This means it will cost you so much money to attack the blockchain, you will be far more profitable just mining blocks.