As we mark our 50th edition of the Satoshi&Co Daily Crypto Newsletter, we wanted to thank you all for your continued support, patronage and feedback. We started this daily roughly 3 months ago, and we are now approaching our 10,000th subscriber milestone!
Like a number of our readers, we too have made a unidirectional long-term bet on blockchain and cryptocurrencies. To every naysayer, we suggest they watch Steve Ballmer talking about the iPhone
It is a must-watch, instructive, even in its retrospective humbling of one of the leading tech business leaders of our times. Now who would want to wager some crypto that somewhere, ten years from now, similar videos might exist for the crypto naysayers, the Roubinis and the Jamie Dimons.
Especially given the current turbulence in the market ( which we will touch upon in a bit), this seems an apt time to stand up for the rebels, the true innovators, the ones that will not just adapt to status quo. As George Bernard Shaw once said (and as Steve Jobs made famous later on) - All progress depends on the unreasonable man!
As the crowds fret and fume over speculative losses of currencies based on market prices that sometimes seem to exist in a parallel universe completely untethered from the true long-term potential of the underlying technology, some folks, completely ignoring all the noise, are building out real businesses that will have long term implications for the way we bank, borrow, work and live.
Let us be unreasonable!`
Now, to the markets. It is almost good to see BTC finally move! The $6200-$6400 rangebound ‘stablecoin’ finally breached the $6k support and is seemingly on a strong downward move to record the lowest price level for this year. After having seen BTC flirt for a long time with the narrow band of $6k to $7k, which a lot of investors believe to be a strong floor due to the marginal cost of BTC mining, the precipitous fall from $6200 to $5400 in a matter of 24 hours caught everyone by surprise.
Reasons being cited for the sudden trend reversal include tax-related selling, market manipulation by traders and market fears over the outcome of the impending BCH fork. While the pace at which this price slide is happening probably has a simple, linear explanation, we have long back made peace with the futility of trying to untangle the tempest of crypto price movements. In an unregulated, hyper speculative market like this, trying to pin down anything but broad thematic causes is a fool’s errand. Instead we would rather appreciate the fact that this price decline allows serious investors to buy BTC at sub $6k prices and, at the end of this downturn, we would have more savvy and disciplined investors holding BTC than we had before. During every market downturn, the hope is that at least a few of the shitcoin projects won’t resurface again when the tide turns! Markets are a natural cleansing mechanism, flushing out the garbage, but for many, the process might be too painfully slow for them to hold on.
One potential side-effect, or unforeseen consequence, a lot of folks are going to move their cryptos to stablecoins, and wait for an opportune to re-enter. It will be interesting to study if increased turbulence leads to increased trading in stablecoins.