weekly #97 – 1 November 2019
The following topics will be addressed in this weekly.
- Bundles performance
- Triaconta tip
- All coins great and small
- Market overview
Bitcoin surged 24% between last Friday and Saturday after Chinese president Xi’s plan for China to embrace blockchain technology, touching $10,350 in its biggest two-day jump. The ‘Xi’ effect has also been responsible for pushing other coins to double digit price increases in price this week. In a nutshell, it was an excellent week for all the bundles and cryptocurrencies.
The Big 3 Bundle (+13%) with Bitcoin back as the main riser. The Top 30 Bundle (+16%) with almost all green and Ontology (+51%) and Neo (+51%) as the highest contributors. The Penny Stock Bundle (+13%) has this week’s winner IOST (+70%) profiting the most from the recent enthusiasm in China. The IOST project got a real boost after its founder, Terry Wang, presented the project before a Chinese state-owned TV channel.
Did you know November historically is the best month for cryptocurrencies? And January is usually the worst. October, with a final leap in the past week, ended unexpectedly positive for all three bundles. Big 3 (+6%), Top 30 (+12%) and Penny Stock (+14%).
All coins great and small
What exactly are cryptocurrencies for? Where is my money actually going? We think it’s a good idea for you as an investor to know a little bit more about the cryptocurrencies you can invest in with Triaconta.
Holochain is a project that many say is set to change the way we think about Distributed Ledger Technology. Holochain is not organized as your typical proof of work blockchain and therefore has none of the scalability problems. Holo is convinced their holochain is cheaper, faster and better than blockchain in giving developers a framework for decentralized applications.
Typical blockchains are big databases or logs of every transaction. For every new transaction there needs to be global consensus and to achieve that every node in the network has to have a full copy of the blockchain with all transactions ever made. Each node is always required to verify the entire network. Right now it takes a lot of computers to do that and for a payments system such as Bitcoin it usually works fine.
It gets problematic when you have thousands of distributed applications working at the same time each creating millions of transaction and all working on the same single blockchain. As happened often on the Ethereum blockchain, a popular apps will create a virtual traffic jam, long delays and high transaction costs for everyone, not just for the users of the app. Holochain aims to remove these network constraints.
Holochain uses a validating DHT (Distributed Hash Table) where every application has their own chain. The agent-centric system gives each application (hApp) their own private fork of the blockchain and the nodes therefore only need to verify the transactions of one application. The Holochain central chain keeps tabs on the individual nodes but does need not verify on all the transactions. It creates truly peer-to-peer applications using the holochain if there is a need to bridge between the hApps.
Web 3.0 hosting
Nowadays you can host your internet application on a major cloud services like Amazon Web Service or Microsoft Azure Cloud. It is cheap and reliable and makes your application available 24/7 even if your own systems are not (fire, power outage etc.). The design of the Holochain enables distributed hosting and makes them a decentralized peer-2-peer competitor for storage and application hosting services. It fits perfectly in the Web 3.0 narrative of a decentralized internet with distributed applications.
Holo (HOT) was added to the Penny Stock Bundle in the revision of July. Against USD we see a new uptrend forming in October with the coin already rising over 60%. The value is intended to grow with the growth of the network. Holo would really explode if the technology would be implemented by a Google or Amazon for their platform. No signs of that happening just yet, but based on the publicly visible Github commits by developers, it is clear that Holochain is among the most active projects in the world.
If Chinese impact on the market is so big, maybe we should pay more attention to what China thinks are the best cryptocurrencies. This month’s ranking on technology, applicability and creativity from the CCID puts EOS on first place, Tron overtakes Ethereum for second place, and Ethereum is now in third place.
Stellar has ended its staking rewards. The extra free Lumen were originally intended to support projects in the Stellar ecosystem. Users were allowed to vote on the projects and they would receive the staking rewards. Instead most holders used staking pools to keep the coins for themselves. As Stellar explains the “free” coins only generated inflation meaning a lot of users got more coins without actually adding more value to their portfolio. Ending inflation will be good for the XLM price (+15% this week) if users understand that this ends the negative price pressure.
In a patent application of Intel on IoT a footnote mentions tangle as defined by the IOTA foundation. The fact that a major corporation such as Intel with 70 billion in yearly revenue would call four-year old IOTA (with only 750 million marketcap) as the presumed standard is pretty amazing.
Bakkt is now trading over 1000 BTC per day in future contracts. This week they released plans for a consumer app for digital asset trading and payments. Bakkt expects testing with partner Starbucks to start next year. The app will be easy to use for consumers by making the digital technology part invisible. If you like Starbucks and want exclusive pre-launch updates and early access to the new app you can sign up for updates here.
Correlation with stocks? Most investors agree that bullishness in equities markets is required to ignite a bullish Bitcoin. Fundstrat’s Tom Lee believes that when the S&P reaches a new all-time high, bitcoin would follow suit. This week we have seen that new all time high in the S&P stock market. Bitcoin is indeed doing fine but no new all-time high yet…