round 1fight

Your daily newsletter for September 7, 2018
1-2 Punch
"“It's not the size of the dog in the fight, it's the size of the fight in the dog.” 
- Mark Twain
The weekend is here! It's been an eventful week with the rapid highs and lows in the crypto markets, but I wanna say thank you for your unwavering support. This newsletter would not be here if not for you guys! ❤️

Today we will be covering a potentially new and improved ETH mining device, a joint research on blockchain conducted by the World Economic Forum and Bain & Company, and BitGo's U.S custodial service approval. We also have another deep give on Stellar (XLM) for you guys today! Happy reading! 📚

Please also take the time to give some feedback through the polls below. That way we can produce more content you wish to see going forward! 👍
The fight game
Crypto is very much like boxing, you never truly know what's about to happen, but it sure is exciting as hell! 👀

It's another small win for the crypto community today as total market capitalization rose ~$2 billion to ~$198 billion, bringing us closer to the $200 billion mark once again! And ETH is back up above $200 once again, up ~8.12% to ~$209 - that sure was a quick recovery. 😄

It's going to be an interesting weekend for BTC as MACD indicators are signalling a potential short-run rally in the coming days. Consistently rising RSI levels on the daily chart since 8 Sept also indicate that some momentum is building up from the bulls. BTC could potentially be challenging the 21-day EMA resistance line, currently at ~$6,600, with considerable momentum. 📈
About to enter the ring
The former chief chip maker at bitcoin mining chip developer Canaan Creative, Chen Min, is building a new cryptocurrency ASIC mining device called Linzhi that will target the ethhash algorithm used by ETH and ETC. 🤖

The new miner will supposedly use an eighth the amount of electricity as Bitmain's ethhash miners, and will run 1.4 billion hashes per second compared to Bitmain' Antminer's 190 million. This edge will allow the Linzhi miner's to generate approximately $20 a day, compared to Bitman's $3. The price of the miners have yet to be disclosed. 
Feeling the opponent out
According to jointly conducted research by the World Economic Forum and Bain & Company, blockchain could potentially fill the $1.5 trillion supply-demand gap in global trade finance that arises from limited access to credit and loans for SMEs that are looking to expand their businesses. 🤑

Blockchain can help to reduce this gap, that is estimated to grow to $2.4 trillion by 2025, by easing financing for SMEs in emerging markets through credit risk mitigation, lower fees and barriers to trade. Blockchain would be particularly beneficial to Asian economies as they make up 7% of the trade finance gap and 75% of global document-based transactions across supply chains. 

POWWWW!
Crypto security startup BitGo has received approval in the U.S. to act as a custodian for digital assets and can now provide institutional clients with a regulated storage solution for digital assets. They currently offer both an online hot wallet and a hot and cold wallet hybrid custodial solution. 🤝

BitGo seeks to primarily draw business from institutional investors and family offices, and provide them with a secure custody offering as a tool to reassure investors and local governments alike that cryptocurrencies can provide value to them. 

Other jabs
  • The Reserve Bank of India argued on Wednesday that BTC cannot be recognized in the country before its Supreme Court, stressing that "cryptocurrencies fall short of being true currencies under extant laws" as they are "not controlled by a service provider". 😠
  • A person close to the source reports that Morgan Stanley is building a proprietary derivatives "price return swaps" product that will grant traders “synthetic exposure” to the price of BTC. 👁️
  • FOAM, an application which seeks to build a reliable, resilient world map using smart contract technology on the Ethereum blockchain, is now live. 🌐
Crypto deep dive: Stellar
  • Cryptocurrency: XLM
  • Market Capitalization Rank: 6th
  • Consensus: Stellar Consensus Protocol - does not require all nodes to be in agreement to reach a consensus.
How it happened ⚙️
  • Stellar was founded by Jed McCaleb and Joyce Kim in 2014, and is a fork off of Ripple (RPX). Jed was actually the founder of Ripple (XRP)! The had a different set of ideologies that were fundamentally different from the rest of the RPX team, and thus left  to start XLM based on those ideals.
Why people love it 😘
  • XLM has a built-in, fixed, nominal inflation routine mechanism that increases at 1% per year. This predictability is can be preferred to some. 
  • The XLM network can facilitate multi-currency exchanges and store orders to create an order book. Essentially, XLM has a decentralized exchange functionality to match buyers with sellers across multiple trading pairs.
  • Fast transaction speeds (~5 tps) with low fees. The fees are currently approximately ~$0.000002 per transaction, which is distributed weekly as part of the inflation pay outs.
  • Partnerships with recognizable brands like IBM, Deloitte, Stripe, ICICI Bank, TransferTo and Tempo.
Why people doubt it 🤔
  • The Stellar Development Foundation owns a majority share of the tokens (~80%). About half of those tokens are set to be distributed in the coming years, but this centralized structure forces investors to place trust on the foundation that the distribution will actually take place. 
  • Centralized nature may prevent capital flows from retail investors.
  • As of now, only ~20% of XLM tokens have been distributed, meaning that by the time the remaining ~80% do get distributed, the relative price of XLM has to 5x just to keep its current price. Essentially, XLM's demand has to grow accordingly by many fold just to maintain the current price.
Poll of the Day
How satisfied are you with the content you are receiving from this newsletter as of late?
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And... what else would you like to see us cover in the future? 😆
What you said
"How much do you agree: "Ethereum (ETH) will still be the top infrastructure coin by the end of 2019"

The average was 8. Seems that most of you believe that the first-mover advantage Ethereum has in the space will allow it to retain majority market share in the infrastructure coin space. 😆

"Why or why not?"

You guys said:

I don't think that a year is enough for the things to change cardinally. - the first mover advantage that Ethereum has might be a strong barrier to entry for the other coins to penetrate.
I don't see any other smart contact platform apart from Zilliqa replacing it. - They will have to move fast!
The Ethereum enterprise alliance has some very big names all fully invested in the Ether DAP environment. I cannot see any of the other dApp tokens de-throning etherium anytime soon. However if X-Rapid does go live as Ripple has stated, before the end of 2018 I can see XRP being at least 2nd place in the coin market cap. - Interesting insights! However, many would argue that Ripple is not actually a cryptocurrency due to its highly centralized nature.

"Why do you think ETH's price has been particularly affected in recent months?"

50% voted for "Slow progress/ updates".
16.7% voted for "Lost its value proposition as an ICO vehicle".
0% voted for "High fees & too frequent network congestion".
0% voted for "Inferior capabilities to other infrastructure coins".
33.3% voted for "Other".

ETH has been indeed been cautious in rolling out their updates. I personally feel that this is a good thing as they are scaling at a pace where they aren't forgoing security, contrary to what many of their competitors are doing. Given its position as the top infrastructure coin, there is much weight on its shoulders to do things responsibly and its understandable that they proceed at a pace they are comfortable with. I'm definitely looking forward to the Constantinople update!
"What is your favorite infrastructure coin right now? Why do you like it?"

You guys said:

Ziliqa - Scaling solution - ZIL is an awesome project. Hopefully they can deliver as promised!
Neo - It's much simpler to code than Ethereum as it supports most common languages Java, C+ and has a good community with some strong ICO's built on it such as Ontology. - NEO hasn't had many commits on their Github in recent months though (:
Stellar Lumens - It has IBM's interest in it.



Enjoy your weekend weekend warriors! Go forth and conquer! 💙💙💙
See you on Monday!
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