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Benjamin Graham - "In the short run, the market is a voting machine but in the long run, it is a weig
 

Satoshi&Co Daily Crypto Newsletter

February 7 · Issue #4 · View online
ZPX | Satoshi&Co Newsletters

Benjamin Graham - “In the short run, the market is a voting machine but in the long run, it is a weighing machine.
If you are a cryptocurrency enthusiast like us, we can understand how daunting the last few days were. Bitcoin’s price was essentially in freefall, with the cryptocurrency having lost more than 60% of its value in the past two weeks. The negative sentiment last week was so profound and strong that the market stayed impassive to Samsung and Square’s foray into crypto-related activities. While most of the price fall could be attributed to the ban on anonymous cryptocurrency trading by Korea and Tether’s ongoing lawsuits with the US regulators, the price plunge was further exacerbated by China’s decision to restrict domestic investors from accessing international exchanges. The market’s reaction to the Chinese ban was not surprising, as was the case when China banned ICOs last year. China previous attempts at curbing cryptocurrency activity proved futile, and, this time, the regulators resorted to the strongest weapon in their arsenal - The Great Firewall of China - to administer the coup de grace on the Chinese crypto participants. We are closely monitoring the impact of this ban on the mining businesses in China as monetization of the miner’s reward becomes harder now. The downturn is a great entry point for crypto enthusiasts who thought they might have missed the Bitcoin train, as much as it is a hard blow to take for the rally-chasing investors who jumped lemming-like onto the crypto bandwagon in the final weeks of December.
While it is hard to predict the bottom of this tumultuous fall, our longer-term thesis around Bitcoin being an indestructible store-of-value remains intact. We feel that this market sell-off is much-needed sanity, a blessing in disguise as it helps investors rationalize crypto assets by dumping scam currencies/tokens, and shifting the focus back to fundamental protocol development and problem-solving.


Cryptocurrency of the Week
Dash is an open source peer-to-peer cryptocurrency that offers all the same features as Bitcoin but also has advanced capabilities such as instant transactions (InstaSend), private transactions (PrivateSend), and decentralized governance (DGBB). Dash has a two-tier network of nodes as opposed to Bitcoin’s single-tier network, where all the tasks are performed by miners. Basic network tasks such as adding new blocks and writing transactions to the blockchain are performed by miners. The second tier of the network consists of masternodes which handle advanced features such as PrivateSend, InstaSend, and governance functions. To prevent Sybil attacks, masternodes are required to deposit 1,000 DASH as collateral. Dash uses X11 mining algorithm, which is resistant to ASIC mining. X11 algorithm uses a sequence of 11 scientific hashing algorithms for proof-of-work.
Investment Positives
Instant and Anonymized Transactions: InstaSend feature on Dash ensures that transactions are confirmed in around 4 seconds. In the case of Bitcoin, it takes an average of 10 seconds to confirm a transaction and an average of 5 to 6 confirmations are required before considering the transaction complete by merchants. These longer confirmation times make Bitcoin unsuitable for face-to-face and in-store purchases. In addition, Dash offers the users an option to anonymize transactions so that a person’s identity could never be associated with an address or transaction. The lack of full-scale privacy in Bitcoin transactions might be a concern for individuals who wish to transact anonymously.
Well-defined Governance Model: Good governance and cohesiveness in the crypto community are vital for any cryptocurrency project to succeed. The Bitcoin community has been divisive for years over addressing the scalability issue, resulting in growing uncertainty over the future of the most valuable cryptocurrency. In contrast, Dash has successfully managed to increase its block size within 24 hours due to its governance structure. We believe Dash governance mechanisms will ultimately benefit its users by delivering a superior solution. 
Crypto News of the Week
Senate cryptocurrency hearing strikes a cautiously optimistic tone | TechCrunch
Singapore Confirms It Will Not ‘Ban’ Cryptocurrency, H... | News | Cointelegraph
Bitcoin price: Market crackdown will see cryptocurrency ‘thrive’ after price ‘wild ride’ | City & Business | Finance | Express.co.uk
India Is Not Banning Cryptocurrency, Here's What It Is Doing Instead
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