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January Crypto Blues

After reaching an all-time high of around $19000 in mid-December and ending 2017 at $14000, bitcoin's

Satoshi&Co Daily Crypto Newsletter

January 24 · Issue #2 · View online
ZPX | Satoshi&Co Newsletters

After reaching an all-time high of around $19000 in mid-December and ending 2017 at $14000, bitcoin’s price performance in 2018 so far has been rather bearish. Bitcoin witnessed a strong run in the first week of January which saw it’s price rally by 30% on the back of strong trading volumes. Since then, the market has been on a persistent downward trend as bitcoin shed more than 40% of its value reaching a low of $9500. Investors were quick to attribute the market meltdown to a recently identified seasonally recurring pattern called the “Mid-January Effect” where crypto markets in the past have witnessed sell-offs in the second week of January. One theory ascribes this to selling in Asia just before the Chinese New Year. Interestingly enough, a minor faction of prophetic investors sounded the death knell for the “Crypto Ragnarok” (Ragnarok - the final destruction of the world in the conflict between the Aesir and the powers of Hel led by Loki).
Talking about prophetic forecasts, this one, from about four years ago, is truly amazing and scary. It is spot on with the BTC price in 2017, and its dystopian vision of a future where the world is polarized into a pro-BTC and anti-BTC camps is pure, dark science fiction that is closer to a potential reality that one might expect.
Anyways, back to our early-year slump trend.

We believe there are multiple factors at play in the recent crypto market crash, ranging from the unwarranted surge in bitcoin’s price in the run-up to the listing of CME and CBOE futures to the constant bad news coming out of China and South Korea about the impending regulatory clampdown on cryptos, to the spillover effect from the steep nosedive in BCC’s price following the abrupt shutdown of the platform. However, we firmly believe that the recent dip is a temporary blip and, perhaps, a good buying opportunity for investors who wish to buy BTC. With the community infighting now in the rear mirror following the BCH hard fork and growing interest from the mainstream institutional investors, we remain upbeat on bitcoin’s price in 2018.
Happy Hodl'ing!
Cryptocurrency of the Week
Polkadot is a protocol that allows independent blockchains to exchange information. Polkadot is an inter-chain blockchain protocol which unlike internet messaging protocols (eg:-TCP/IP) also enforces the order and the validity of the messages between the chains. This interoperability also allows the additional benefit of scalability by creating a general environment for multiple state machines.
Polkadot allows new designs of blockchains to communicate and pool their security while still allowing them to have entirely arbitrary state-transition functions. This opens the door to a network of blockchains, where private and consortium chains can be firewalled from open and public chains like Ethereum without losing the ability to communicate with them on their own terms.

- Polkadot is designed to enable applications and smart contracts on one blockchain to seamlessly transact with data and assets on other chains.
 - Polkadot gives the ability to run several parachains, each processing multiple transactions in parallel, which allows networks to obtain infinite scalability.
 - With Polkadot, security is pooled within the network, which means that individual chains can leverage collective security without having to start from scratch to gain traction and trust.
 - Polkadot is built to connect private consortium chains, public permissionless networks, oracles and future technological developments yet to be created in the Web3 ecosystem. It enables an internet where independent blockchains can exchange information and trust- free transactions via the Polkadot relay chain, with the key tenets of scalability, governance and interoperability.
 - Working closely with ZCash, OmiseGo, MELONPORT, SORAMITSU, symbiont, OWNAGE, Gridgularity to develop first few use cases.
- Founder of Polkadot is Gavin Wood, co-founder and main developer of Ethereum. He left Ethereum team to develop Parity, a corporate-facing client and wallet.
- Notable individuals and companies are following this project on Twitter, including Charlie Lee, Bitshares, Omega One, etc.
Crypto News of the Week
S Korea bans anonymous cryptocurrency trades - BBC News
UBS chairman warns against bitcoin investment as cryptocurrency falls 12% | Technology | The Guardian
Cryptocurrency Markets Aren't All the Same - Bloomberg
Bitcoin – Opacity – Medium
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