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The Darkest Valley

This is The Block.

The Block

July 6 · Issue #53 · View online
Weekly curated #cryptocurrency news and commentary.

This is The Block.

The Darkest Valley
Hey. How’re you doing? Hanging in there? How’s your portfolio? Down 60%? 80%? or just 25%? Looking out the window, wondering if the market’s ever going to recover.
You’re one of the lucky ones.
You probably thought you were going to retire in January, before the bottom dropped and your portfolio looked more red than Bruce Willis’ feet at the end of Die Hard.
Break glass in case of emergency.
Break glass in case of emergency.
Bitcoin. Ethereum. NEO. XRP. Tron. Oh so many others. So many others. All red.
Yeah, it’s fair to say it’s been a rough time for many.
Patience is not an easy virtue when your retirement plans are at stake. When you think, “What if the market never recovers?”
You may not have realized it, because it can be difficult to know you’re in a valley when everything is so dark. But you are. And it doesn’t seem to matter much that we’re up 1000% from this time last year because you’re only looking at the fact that you dropped 4,000% from the all time high. Psychologically, that’s incredibly challenging terrain.
You’re in the depression stage. You know the chart.
It’s not an accident that opportunity and depression are closely linked. One is not possible without the other. Opportunity–real, life-changing opportunity–can only happen at the bottom. It’s that old saying: “Nowhere to go but up.”
This isn’t to say you’re going to retire next week. This isn’t to say the market will turn around in a hot minute and you’ll be seeing green again in the near future. The 2018 draw-down was years in the making, the culmination of a gold rush of euphoric, addictive investments by scads of people, many of whom did not know what they were doing or why they were doing it, other than they just wanted to make a lot of money like everyone else.
I predicted a few months back that by the third Quarter we would begin to shed some of the malaise as regulatory uncertainty was smoothed out and institutional money began flowing into the cryptocurrency market.
We’re already seeing some of that. The SEC has weighed in on several high profile issues, to a mostly positive outlook, and I believe that trend will continue. By Q4 I expect we’ll see another rush to the top, an influx of a lot of hands, and new, clear signals from regulatory bodies, which will dictate the movement of the big institutional money, as well as indicate to individual investors how much confidence they might have in their currency of choice.
In the meantime we’re squarely in the shaking out of weak hands–not just investors, but also in crypto projects as well. Are you hanging on? Have you abandoned hope and sold off everything? A lot of people have.
Monday’s newsletter had some links to crypto grave yards, where projects have fallen into disuse and whose value has become effectively zero. This is the culling time. It’s necessary to weed out the dead and dying projects, the ones that brought no real value to the crypto space, and make room for new innovations, new ideas, new capital, and new philosophical understanding of this charged market. That philosophy includes the understanding that crypto will never be truly viable as a meaningful currency application until it cracks that most difficult of markets: the human user. And we’re already seeing some cracks at this from big players. Ripple is doing some interesting stuff with Interledger and entrepreneur funding. Bitcoin has lightning network. Ethereum has sharding and proof of stake coming. And there’s lots of others.
Next week I want to start highlighting some smaller cryptocurrency projects that I believe have promise. I’ve only ever wanted to advocate for projects I believe in, projects that I believe have a possible future and hand in making crypto a more palatable product for mass adoption.
I hope you’re still along for the ride, because this industry is still very young, and we’re filled with the immortal fire of youth. If only you can hang on through the valley, you’ll see the light coming.
Hang on. We’re almost through it.
After months of sideways and downward price action, is Bitcoin testing a bull comeback? Or is it heading south again?
Hey, how’s Ethereum doing these days? Holding steady, with a chance to break out?
And our old friend XRP? Yeah, starting to look bullish as well.
Chinese crypto billionaire in secret audio recordings trashes some high profile currencies. Catty!
Former BitGo engineer James Lopp says roughly 6 million bitcoins have been lost or stolen, and wonders if that should factor into the price (hint: it probably will drive the price up, just not right now).
You know, market cap is not the only way to value crypto (and we believe it’s slightly overrated as a valuation mechanism—but that’s just us).
Links of Note
South Korea Officially Recognizes Cryptocurrency Exchanges
Real World Applications of Cryptocurrencies — Online Ticketing Systems
Will Cryptocurrency Be Alberta's Next Big Boom?
Pay Attention to These 7 Bitcoin Scams in 2018
Why Institutional Money Is Coming and What This Means for Bitcoin
Three Artificial Intelligence Cryptos
Ripples Faces Second Securities Fraud Lawsuit
That’s it for this week. Thanks for reading!
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