I’ll be Bakkt
Market Report: 23rd Oct. 2018 — Subscribe to our newsletter.
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CRYPTO NOTE
The daily view from our desk
After sleeping on two pillows rather than one, we feel our ‘Thoughtful Tuesday’ juices are on fire. You should try it. Actual advice: It only works on Tuesdays though. So, what would Satoshi say if he found out about Proof of Stake? Ask no further, Rick & Morty have you covered. What would Yoda think? Houses to Satoshi, one must be selling. If Usain Bolt’s playing footy, do you even FOMOMG? Elon, when Tesla?
BULLETPROOF BLOCKCHAINS
It’s nice that Monero became bulletproof. But we need to resist censors first
Last Friday, the most popular privacy-focused cryptocurrency became ‘bulletproof’ by adopting a technology that reduces “transaction sizes and fees by as much as 80%” — as Lucas Nuzzi explained. Conclusively, these dropped by 96% and 455% respectively! This correlated with increasing volume in XMR-dominated decentralised exchanges and coincided with an announcement that shows how China feels threatened by blockchain.
What happened? Earlier this year, Chinese activists used Ethereum to overcome censors and raise awareness for scandals concerning defective vaccines and sexual harassment. So, Beijing regulators are proposing that “blockchain-based information service providers have to register users using real names, censor postings and store user data”. If blockchain governance is already at risk of being captured by corporations, as Lane Rettig highlighted during yesterday’s Web3Summit, imagine what a country could do!
I’LL BE BAKKT
It’s nice that Bakkt is finally launching. But we need organic adoption first
The above is particularly concerning because the People’s Bank of China was the entity with more blockchain patents in the world in 2017, and the country dominates the top 10 ranking too. Fortunately, there are sunnier — even if also centralised — topics to cover today, as Bakkt just announced its first product will finally rise from paper to reality by December 12th, with help from its parent company — the Intercontinental Exchange.
The date had been confirmed last week in an interview but the official press release only came yesterday night. The launch is still pending CFTC approval, but because it’s just a Bitcoin futures contract — albeit the first physically settled one — many believe it will get the green stamp. It’s unlikely this will prompt Bitcoin to go parabolic again — as it did last year in anticipation of December 10ths CBOE futures launch — but it’s good news.
WHAT TO LOOK OUT FOR
Filter the noise and stay ahead of the pack
▪ Are you afraid of Bitcoin? The Spectator has invited BitMEX’s CEO Arthur Hayes, Charlie Shrem, and Saifedean Ammous to discuss all things crypto this Friday in London.
▪ Do you think cryptoassets need even less volatility? Stable.Report is organising a fancy conference this Wednesday in London’s Reform Club. Watch the dress code!
▪ Despite the fact that Bakkt news failed to move bitcoin’s paralysed price, the original cryptoasset is still alive. Check Josh Olszewicz’s fresh outlook on tech & fundamentals.
WHAT TO READ TODAY
An insight a day could give you more profits to play
▪ Hasu identified three main concerns with BitMEX’s incentive structure, explored its potential for hurting customers, and proposed suggestions to solve them. Great read!
▪ If you like the blockchain meets AI debate, then you must read how “the robot economy will run on blockchain” and “how the Blockchain Could Break Big Tech’s Hold on A.I.”.
▪ In anticipation of the Bitcoin white-paper’s tenth-anniversary, the WSJ promoted a good debate on whether BTC can ever become a dominant currency. Read it here.
FOUNDATIONAL TRIVIA
Because the building blocks of crypto needn’t be irrelevant
Bakkt is a new platform for buying, selling, storing, and spending digital assets. It was founded by the parent company of the New York Stock Exchange and many hope it will be the first to launch an approved Bitcoin ETF in the US.