Crypto Currency Markets Weekly Discussion Megathread - October 17, 2021 (GMT+0) |
- Weekly Discussion Megathread - October 17, 2021 (GMT+0)
- Public employees will receive salary in bitcoin, says Miami Mayor
- Polkadot’s first Parachain auctions may become a step closer to multichain interoperability
- Steam bans Blockchain games that issue NFTs or cryptocurrencies
- Bitcoin all-time high coming soon, analysts agree
- BTC demand outnumbers USD demand El Salvador's President reveals | Bitcoin News 18/10/21
- USA: The First Bitcoin ETF “Enters” The Market
- US SEC approved first Bitcoin ETF could be the catalyst that sends BTC to $200,000
- BIG SEC RIPPLE XRP NEWS & BITCOIN HIGHEST WEEKLY CLOSE EVER $60K!
- Real-world assets have made it into crypto funds - with WiV's fund partially backed by wine
- Bitcoin Future ETFs
- BOJ Executive Says Japan Will Favor a Plain CBDC Design
- Aassets committed to DeFi initiatives have increased by more than 385% so far this year. At this rate, total assets will surpass $800 billion before the end of the year
- What Is Arweave And The AR Token
- so now that binance finally kicked me off what's next?
- METIS is soon going live with the Layer2 network. Users will be able to create their own Decentralized Autonomous Company (DAC) and participate in staking and mining
- Not all regulation is “bad regulation”
- Exploring the realms of Crypto Markets: What are the different types of decentralization exchanges (A.K.A DEXes) and why have they gained prominence lately
- Stop Making These 6 Excuses That Are Holding You Back To Buy Bitcoin. You will need Bitcoin sooner or later in the future.
- Bitcoin, ETFs, FOMO : Things I'm watching as we go into a new week
- A provably fair dApp IGaming casino within the crypto markets that champions transparency and fairness by leveraging blockchain mechanisms such as having transactions recorded on-chain and having integrated ChainLink's VRF Oracles
- my Crypto Infinite Gallery - ONLY 1 of EACH !!
- The Balance of Bitcoin’s Use in El Salvador One Month After Its Legalization
- I know this is hard. But don’t FOMO on shitcoins this bull run even if you see them mooning.
- Most Underrated Dapp of all time and Best Web Browser!
- Bitcoin bull Mark Yusko sees trouble at $60,000, calls the cryptocurrency ‘overbought’ right now
| Weekly Discussion Megathread - October 17, 2021 (GMT+0) Posted: 17 Oct 2021 06:00 AM PDT Welcome to the /r/CryptoMarkets Weekly Discussion thread. The thread guidelines are as follows: *** The thread guidelines are as follows: * Discussion topics include, but are not limited to, events of the day, technical analysis, and minor questions. * Breaking news or other important content should be submitted as a separate post. * Cryptocurrency discussion not related to trading should be referred to the r/CryptoCurrency general discussion thread, [see here](https://www.reddit.com/r/CryptoCurrency/comments/62teju/monthly_general_discussion_april_01_2017/). * Follow the golden rule and be excellent to each other. *** Resources and Tools: * Consider joining one of the r/CryptoMarkets chat groups, [see here](https://www.reddit.com/r/CryptoMarkets/wiki/chat). * If you are using RES, please click the subscribe button below to be notified when new comments are posted. * To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. *** Thank you in advance for your participation. Enjoy! [link] [comments]  | ||
| Public employees will receive salary in bitcoin, says Miami Mayor Posted: 17 Oct 2021 03:04 PM PDT
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| Polkadot’s first Parachain auctions may become a step closer to multichain interoperability Posted: 17 Oct 2021 05:54 PM PDT
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| Steam bans Blockchain games that issue NFTs or cryptocurrencies Posted: 17 Oct 2021 05:15 AM PDT
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| Bitcoin all-time high coming soon, analysts agree Posted: 17 Oct 2021 09:29 AM PDT
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| BTC demand outnumbers USD demand El Salvador's President reveals | Bitcoin News 18/10/21 Posted: 17 Oct 2021 09:08 PM PDT
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| USA: The First Bitcoin ETF “Enters” The Market Posted: 17 Oct 2021 04:40 AM PDT
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| US SEC approved first Bitcoin ETF could be the catalyst that sends BTC to $200,000 Posted: 17 Oct 2021 02:08 AM PDT | ||
| BIG SEC RIPPLE XRP NEWS & BITCOIN HIGHEST WEEKLY CLOSE EVER $60K! Posted: 17 Oct 2021 06:21 PM PDT
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| Real-world assets have made it into crypto funds - with WiV's fund partially backed by wine Posted: 17 Oct 2021 10:37 PM PDT
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| Posted: 17 Oct 2021 12:47 PM PDT TL;DR: Recently the SEC approved trading of bitcoin future ETFs. These ETFs charge premium for: 1/ The volatility of BTC and, 2/ The custody of your coins My opinion is that this premium isn't worth at all. Obligatory this is not financial advice. For a better reading experience, I suggest reading this via twitter thread or my substack Let's take a deeper dive into how all of this works. First, what is a future? You can think of a future as a wrapper around some "thing". It can be corn, stocks, or bitcoin. A future gives you the right to buy this "thing" at a given price at a certain date in the future. So say you just bought some corn futures. You have the right to purchase 100 tons of corn at $150/ton in Nov 2022. First off, why would you do this? Imagine you are a multi-billion food production company. You want certainty around the price of key ingredients in the case something happens (e.g. natural disaster). As such you are willing to pay a premium for that certainty. Note: these derivative products are the one of the reasons why McDonald's chicken nuggets exist! Anyways, a year passes and it is Nov 2022. The issuer and seller scramble to actually deliver the 100 tons of corn. Storing and moving 100 tons of corn is not free but it's okay since they've baked these costs into the price of the future (that you bought a year ago). Ok so, back to BTC ETFs. What does owning BTC, and more broadly digital currency, even mean? Cryptocurrency ownership resides around a public and private key. These keys are super long sequences of characters (not human readable). The public key represents an address that can be used to receive bitcoin. Each public key has a corresponding private key. The private key allows you to do whatever with the BTC thats associated with the address (public key). You can think of a public key as a username, and the private key as a password. This is where the saying: "not your keys, not your coins" comes from. If someone has your keys, they can take all of your BTC. It doesn't mean they will, but they can. Now, the hard problem around custody is: you want to keep your private key secure but you also want it to be accessible if you want to move around your cryptocurrency. So do you write them down? Someone could come into your house and take them. Do you store them online? Someone can install a key logger into your computer Do you encrypt the shit out of them? Maybe, but you could forget how to decrypt them. This represents the trade-off between security and accessibility around custody. Custodying your keys certainly requires work, just like delivering and storing corn is work. Now, back to the recently approved BTC future ETFs. First off, what's an ETF? I'm glad you asked! An ETF, similar to a future, is also a wrapper around some "thing". The purpose of an ETF is to track the price of this "thing". If this "thing" increases in price, the ETF should do the same. Ditto if this "thing" decreases. The simplest way to replicate an ETF is to hold the underlying asset. In this case that would be BTC. Oh but wait! Remember BTC custody being a hard problem? The SEC doesn't want to deal with the regulatory complexity around custody of cryptocurrency. If an ETF issuer custodies their own coins, what happens if they get hacked or forget their seed phrase? It'd be devastating if the SEC stamped self-custody crypto ETFs and then the ETF issuer lost everything.
So what's another way to form an ETF around bitcoin ? Currently, there are bitcoin futures issued on SEC regulated derivative exchanges. A simple example of how a BTC future might work is: someone buys a BTC, then they put up cash proportional, as collateral, to the current cost of BTC. They are now able to issue/sell a BTC future - whoever buys this future will have the right to buy a BTC at some prior specified price and prior specified date. As BTC fluctuates in price, the seller/issuer will deposit/withdraw the collateral (deposited cash) proportionally. Remember BTC is volatile as fuck, so there is non-zero risk in doing so. Imagine BTC going up 10x, the issuer will need to keep enough cash on hand to up the collateral comparably or risk liquidation. While BTC just blew up 10x, custody solution still need to be in place. The 10x is also giving hackers/fraudsters 10x more incentive. Just as the issuer of corn futures needs to worry about the corn crops, the custodian of BTC needs to make sure the keys are both secured, yet accessible. The futures ETFs ultimately are trying to replicate the ownership of BTC. This seems like a low of work for ownership of an asset that you can buy outright. Unlike corn, BTC isn't tangible. BTCs are literally bytes (so is your Chase bank account balance!) on a computer. If humans had perfect memory like computers do, one way to custody our keys is by simply memorizing them. There's still the challenge of entering your keys securely to transaction, but that's a problem for another day. Today, we have reputable, publicly traded companies that can securely custody your coins such as Coinbase or Square. You can buy BTC on these platforms and not pay exorbitant premiums to keep your bytes away from malicious actors. Although transaction fees can be quite high. There's the common critique on whether these platforms are trustworthy - that there is a chance you lose access to your account or they ban you from their platform. Even accounting for this risk, I'd argue that the average person custodying their own keys is riskier than using Coinbase. Caveat: the only case where the ETF could be worth/necessary is owning BTC in a tax advantaged account, but even then other options exists like Greyscale $GBTC. Also, obligatory, this and the above is absolutely not financial advice. Let's zoom out on all of this - having to jump through the different regulatory hoops to construct an ETF that tracks the price of bitcoin - and ask: why does it have to be so complicated? It's the lack of seamless synchronization between the different financial systems. Financial institutions don't even interface well within the same country! Let's not get started on traditional financial institutions and crypto In the long term, the question then becomes:
My view on this is that they will all eventually converge. There will be multiple rails for processing transactions, similar to Visa vs. MasterCard vs. American Express, with one settlement layer that serves as our universal source of truth around financial transactions and contracts. So far that settlement layer/ source of truth exists as the transactions that occur across the different, disparate financial institutions all duct-taped together. That duct-tape is a chaotic mix of the laws, regulation and audits that the SEC, ECB, etc. has put together. It is also the barely interoperable, dust filled communication protocols that goes on between these institutions to process transactions. It's the millions of human operators that have to double check the data and spreadsheets being output by half century old mainframe. And just as duct-tape loses its stickiness, this legacy system makes mistakes. A common criticism is that there isn't regulation or support on a decentralized financial system. That can still be there. You can have the equivalent of FDIC insurance on a particular set of rails at the price of higher transaction fees or KYC. I won't get into the details of how this manifests, but a general paradigm in software is: building the first instance is difficult, the second instance less difficult and eventually some company builds out a generalized solution which makes it extremely easy: look at AWS for compute/servers or Stripe/PayPal for payments. This applies to spinning out decentralized blockchains too! Once the generalized solution is set up you can focus on your core value prop - in this case coming up with different policies or rule that make you favorable for a specific niche of users. We already see this playing out with the Polkadot and Kusama ecosystem. The overarching idea (multiple rails vs. one settlement layer) is the separation of execution (processing on multiple rails) with consensus (truth). This is already happening with the multiple rails such as AVAX, Optimism and Ethereum as the settlement layer. All of this said, I'm not suggesting there will ever be one settlement layer or one dominant execution layer. Maximalism, the belief that "one winner perpetually takes all", seems quite silly if you look at historical trends around business and governance. The most relevant quote that comes to mind is: "there are only two ways to make money in business: One is to bundle; the other is unbundle". Likewise, there will be constant evolution in this space. As these ideas are built out, we'll look back and laugh at the complexity that are future based BTC ETFs. But for now, these ETFs utilize a clever mechanism and they definitely affirm the belief that BTC, and more broadly cryptocurrency, are legitimate and here to stay. [link] [comments]  | ||
| BOJ Executive Says Japan Will Favor a Plain CBDC Design Posted: 17 Oct 2021 05:17 PM PDT
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| Posted: 17 Oct 2021 12:15 AM PDT
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| What Is Arweave And The AR Token Posted: 17 Oct 2021 01:55 PM PDT
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| so now that binance finally kicked me off what's next? Posted: 17 Oct 2021 08:24 PM PDT Whats a good exchange I can play futures with more than 5x leverage? I was on binance for years now and the just locked my account to withdrawal only. Everywhere I have found I could only get 1-5x if any. [link] [comments]  | ||
| Posted: 17 Oct 2021 03:16 AM PDT
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| Not all regulation is “bad regulation” Posted: 17 Oct 2021 08:54 AM PDT Yes, we usually steer away from regulation in this market and advocate for as much decentralization possible. However there are some types of regulation that could actually help the market excel more, mainly being a trusted body that legitimizes projects and monitors them for the possibility of being a scam. Something like Nasdaq but for the crypto market would actually be great. If anything there are already cryptocurrencies like EQONEX being listed on Nasdaq, so why can't we have something similar? I think it would give the market a lot more trust point. [link] [comments]  | ||
| Posted: 17 Oct 2021 07:29 AM PDT
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| Posted: 17 Oct 2021 10:05 AM PDT
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| Bitcoin, ETFs, FOMO : Things I'm watching as we go into a new week Posted: 17 Oct 2021 07:53 AM PDT Link to previous post Outcome of previous post: Some of the coins I was watching did have some small gains over the weekend. Not quite the run we could have had, but Im closing all of my positions with an average outcome of ~9-10% gains. With that said, I'm now fully on the sidelines again (all in USD, won't say which one because it starts drama :D ) Things to look out for this week!! Bitcoin ETFs are starting to be approved. This is big news and everyone thinks that bitcoin will moon overnight. But if the first ETF didnt push Bitcoin directly to all-time-highs, then its super super likely that if one of the ETFs is not approved, we could see a pullback. The market is still over-extended bullish so a correction is ready to happen. And always do things in scaled intervals, I mentioned before to scale into Bitcoin on any pullbacks and retests, and it happens that we just so happen to be retesting the rising channel. Here is a zoomed in Bitcoin chart. Look at a couple older posts to see other potential support levels for buying in. And Bitcoin Dominance is at a breaking point. Being squeezed between overhead resistance and a rising channel. Remember that dominance does not tell us the direction of the move, but it does warn us when something is about to happen. Odds are heavily stacked that this will break downward (because rising channels break downward most often AND because this overhead resistance has been tested FOUR TIMES in less than a week). BTC.D trending down is often an indicator for good altcoin trading, but because the market is so overextended, and it's likely we see some short term bad news for bitcoin (any single ETF not passing), its most likely that an entire market correction would happen, which would mean bitcoin pulls back and altcoins get dragged down hard with it. My strategy is always that if odds aren't heavily in my favor, then I'm not trading. So for these reasons, I'm sitting on the sidelines right now. Questions welcome. [link] [comments]  | ||
| Posted: 17 Oct 2021 01:11 PM PDT | ||
| my Crypto Infinite Gallery - ONLY 1 of EACH !! Posted: 17 Oct 2021 12:59 PM PDT | ||
| The Balance of Bitcoin’s Use in El Salvador One Month After Its Legalization Posted: 17 Oct 2021 05:32 AM PDT | ||
| I know this is hard. But don’t FOMO on shitcoins this bull run even if you see them mooning. Posted: 17 Oct 2021 08:21 AM PDT 600x and 800x seems so attractive I know. But these are the same coins that tend to dump so hard and only 0.1% of investors end up making actual profit. At least this bull run, try to invest in more legit and establish projects like Bitcoin, Cardano or Ethereum or at least anything with an actual valued back up. There are some like Aurum backed up by gold and many others backed up by real world currencies. Moral of the story, don't always buy into the hype and end up losing money [link] [comments]  | ||
| Most Underrated Dapp of all time and Best Web Browser! Posted: 17 Oct 2021 11:16 AM PDT
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| Bitcoin bull Mark Yusko sees trouble at $60,000, calls the cryptocurrency ‘overbought’ right now Posted: 17 Oct 2021 02:44 PM PDT Hedge fund manager Mark Yusko believes investors will take profits due to the cryptocurrency's sharp rally over the last few weeks. "There are a lot of people that think we could hit $100,000 by the end of the year. The stock to flow model says we should," the Morgan Creek Capital Management CEO and CIO told CNBC's "Trading Nation" on Friday. "I also wouldn't be surprised of a little consolidation. Look, we're up 40% this month which is only 15 days old." Bitcoin crossed the $60,000 mark for the for the first time since April on Friday. The bullish move came on excitement surrounding progress on bitcoin ETFs. "We're excited, obviously, that people are recognizing that approval is likely imminent," said Yusko, who's also managing partner of Morgan Creek Digital "We've been bullish on cryptocurrency, and bitcoin in particular, for a long time." Yet, he's questioning the latest performance's sustainability. [link] [comments]  |
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