"Progress lies not in enhancing what is, but in advancing toward what will be."
- Khalil Gibran
No, that was not a placeholder title
I meant our work with crypto, duh. Writing this newsletter for you daily now, I'm still blown away by much how much progress is made every day in our space. Great tech + fast pace + cool people = 🔥We're humbled by it all. Lit!
There are downs and there are ups
Yet another dip in the markets today in general. BTC is down 11% this week; however, there is a possibility we might see BTC price climb in the coming days. The combination of the 21-day EMA line crossing the 100-day EMA line for the first time since early May, coupled with the 3-month RSI reading of ~29 indicating BTC being oversold, could be the catalyst needed to propel BTC towards a short term upswing.
One of you requested for more analysis about Bitcoin maximalism, so here we are 😉 BTC has been shown to have a weak positive correlation with the stock market, so including it in your portfolio could potentially lower its beta (a risk measurement).
Due to its maximum supply of 21 million units, BTC’s current inflation rate of ~4.4% is expected to fall to 1% by 2025, making it a viable inflation hedge going forward. Similar to the internet or anything with network effects, the value associated with BTC grows depending on the number of users. With a growing base, especially in emerging markets, the value of the BTC network is expected to increase accordingly.
There is also increasing utility in BTC as a form of payment (what it was originally created for 😂), with more stores, especially in the North American and European region, open to being paid in BTC. Today, about 13,000+ stores accept BTC globally, up from 8,000+ just last Jan 👇
All together now
South Korea’s financial regulator, the Financial Supervisory Service (FSS), is encouraging local regulatory agencies and companies to collaborate on a comprehensive blockchain system for stock trading 🤝 The report details potential efficiency and security benefits of replacing existing centralized trading systems with decentralized blockchain-powered ones.
Step by step
On a similar note, Philippines is inching towards a regulatory stance on ICOs. The Securities and Exchange Commission (SEC) of Philippines recently proposed guidelines on token issuance: mandatory assessment application, submitted at least 90 days prior to the sale to clarify team members and their history, as well as a third party legal opinion justifying non-security status. They're looking for feedback from banks and investors now – tell them what you think if you're there 🇵🇭
Das ist super cool
Boerse Stuttgart, Germany’s 🇩🇪 second largest stock exchange, is in the process of developing an ICO platform where both token sales and multilateral cryptocurrency trading can be conducted. They believe it will cater to demand from both retail and institutional investors for a "regulated and reliable environment for trading and cryptocurrencies."
Bitbay, the crypto exchange, has also partnered with Neufund, a Berlin-based equity fundraising platform, to buy and sell equity tokens with fiat.
Across the globe
OKEx has injected 2500BTC to its insurance fund following the forced liquidation of a trader's $460 million long position; they have stated that they would improve their risk management systems.
Tsinghua University partnered China Internet Nationwide Financial Services to set up a blockchain research center.
Robinhood users in Georgia can now trade crypto.
Poll of the Day
How pissed would you be if we took a break on the weekends from sending you a newsletter?
We're humans too! 😢 Just kidding, we'd really like to know if you'd read this newsletter on the weekend, so we know whether to produce it.
Happening at CMC
There was a really mixed response to yesterday's poll: On a scale of 1 to 10, you guys were a 6.8 when it comes to the influx of institutional money in 2018. (At least nobody thought there was 0 chance 😆)
The general view is that it might only happen in 2019-2020, when there is more interoperability and more crypto companies with better behavior than the big institutions of today. I was really glad to see that we have people in our community who care deeply about ensuring trading opportunities for every trader, with concerns that ETFs might not be in line with decentralization and free choice due to the influence of big players.
Keep it coming, you all! 😻Have a wonderful weekend 🔥🔥🔥
See you on Monday! 😍 our newsletter? Share with a friend! 😡 our newsletter? Spam your enemy!