“The more you praise and celebrate your life, the more there is in life to celebrate.”
- Oprah Winfrey
Happy Wednesday folks! How's the first week of 2019 treating you? Good I hope! 😆 This fine day also happens to be one that is very very special...
Today in history (2009), Satoshi Nakamoto released the genesis block of Bitcoin into the wild. The genesis block contains the first 50 BTC block reward and cannot be spent by anyone due to a quirk in the way it was expressed in the code. 10 years on, we now have over 2,000 cryptocurrencies listed on our site alone, and a total market capitalization of over ~$130 billion. 🤯 Without him, none of this would be possible. Truly, this is a momentous milestone. Happy 10th birthday Bitcoin! 🎉🎁
In today's newsletter, we will be covering Michael Novogratz increasing his stake in his crypto venture fund Galaxy Digital Holdings, Japanese e-commerce company DMM.com to withdraw from mining activities and New York State to launch a cryptocurrency task force.
Please don't forget to answer the polls down below too! It's a great way for us to interact with you all and hear what you have to say. 💭 Happy reading! 📚
On a roll 👊
What better way to commemorate Bitcoin's 10th birthday then to see another green day? We are 2/2 in 2019! 🙌
In the past 24 hours, we saw total market capitalization rising from ~$129.8 billion to ~$135 billion, with most coins seeing gains in the ~2-6% range. 📈 Notable mover of the day is ETH, currently up ~11.7% at time of writing. With the move, ETH has regained the top altcoin position from XRP with a market capitalization of ~$15.9 billion.
At time of writing, BTC is trading at ~$3,920, up ~2% for the day after its gradual climb throughout. It continues to trade above its 21-day EMA line on the daily chart with an RSI level of ~51. There is still no significant change in trading pattern and BTC continues to remain in the current consolidation range of ~$3,800 to ~$4,200. 😴
Raising the stakes 💪
Michael Novogratz has invested an additional ~$4.8 million in his cryptocurrency venture fund, Galaxy Digital Holdings, Ltd, purchasing 7.5 million ordinary shares of the company, equivalent to 2.7% of the total shares outstanding. 💰 He has essentially increased his total stake to ~79.3% of the company.
As news broke out about this, Galaxy's stock, which trades on the Toronto Stock Exchange’s TSX Venture Exchange rose ~21%. 📈
Just in November, Galaxy reported a $76.65 million net loss for Q3 of 2018. Novogratz commented on the results at the time that it “sucks to build a business in a bear market,” but expressed optimism about the industry and predicted an influx of institutional money into cryptocurrencies in 2019.
Another one bites the dust 😣
According to a recent news report from Nikkei, Japanese e-commerce company DMM.com made a decision to withdraw from mining in September 2018. 🏳️
After just less than a year after it set up the operation - DMM began mining cryptocurrencies such as BTC, ETH and LTC in February 2018 in the capital city of the Ishikawa Prefecture, Kanazawa - the overall cryptocurrency market slump led to deteriorating profitability for the business and hence the decision to withdraw was made. The withdrawal process, inclusive of the sale of the mining machines, could persist throughout the first half of 2019. 😔
On 25 Dec, DMM also announced is dropping its plans to launch another cryptocurrency trading platform called "Cointap" to focus on improving its existing crypto exchange "DMM Bitcoin" which it launched in Jan 2018 and is one of 16 licensed trading platforms in Japan. 👍
Knights of the round table ⚔️
New York State is launching a cryptocurrency task force comprising of technologists, consumers, institutional and retail investors, representatives of enterprises and academics as appointed by Governor Andrew Cuomo and the state Senate and Assembly, to help the state understand cryptocurrencies and their underlying blockchain technology. 🧐
Cuomo signed a bill last month to create the task force, which will be required to submit reports on the technology by 15 Dec 2020. ✍️ The reports will include proposals on how the state may best regulate, define or utilize cryptocurrencies, as well as sweeping overviews of the space, including the energy cost of mining cryptocurrencies, how cryptocurrencies are being traded within the state, how these trades may be affecting tax collection and a number of other aspects.
The bill's sponsor, Assemblyman Clyde Vanel believes that the task force will help the state "strike the balance between having a robust blockchain industry and cryptocurrency economic environment while at the same time protecting New York investors and consumers.” 💪
The total amount of coins in existence right now, minus any coins that have been verifiably burned. Do not confuse "total supply" with "max supply", which is the maximum number of coins that will ever exist in the lifetime of the cryptocurrency.
Other news 📰
The Iranian government has continued its adversarial actions against Telegram by criminalizing the use of Gram, the native token of the encrypted messaging app’s new blockchain.
According to the MIT Technology Review, blockchain will be so commonplace in 2019 that it will become "boring" and "mundane". It said that the move to normalize blockchain in 2019 is being facilitated by mega-corporations like Walmart and by institutional momentum building on Wall Street. 👀
Self-declared Bitcoin creator Craig Wright recently changed the privacy settings of his Twitter account to protected status as he no longer wants to hear from non-followers how much he annoys them or how much they disagree with him. 😂
Crypto calendar 📅
Early Jan - ICE's Bakkt Bitcoin Daily Futures Contract updated launch timeline
27 Feb - SEC's ruling on VanEck Bitcoin ETF application
Poll of the Day
On a scale of 1-10 (10 being maximum progression), how would you rate the progress of the overall crypto space in the last 10 years since the first Bitcoin block was mined?💭
Why do you think so? Share with me in the polls! 😆
What you said
"On a scale of 1-10 (10 being most confident), how confident are you that 2019 will bring about regulatory clarity for the overall crypto space?" 💭
The average vote was 6.2. I'm not too confident on this as well. It doesn't seem as though much progress has been made on this front, and the initiatives that are seeking it are still in very early stages. 🤔
"Why do you think so?"
You guys said:
I give it a 7 out of 10 because it appears that lawmakers are dragging their feet when it comes to regulatory clarity. But I also know that a lot of lawmakers still do not know what cryptocurrency is and what it all can do. - In my opinion, there should be more avenues where regulators and key people in the space can interact on a routine basis to come bridge the information gap you described to find an acceptable regulatory solution. Regulators are uneducated and overwhelmed with the amount of knowledge required to ask the right questions to ensure a compliant product for their country. Basically, there just aren't enough people who know what they are doing yet, on most levels. - Hard to disagree with this. Blockchain isn't easy to comprehend.
Already big money is at stake.. and now lot of funds, hni's, traders & companies would be interested to get into the market.. it seems logical governments all over will bring about more clarity on the regularity & tax aspect for crypto. - I hope those entities entering the scene would put some pressure on regulatory bodies to think of a solution. However, it is unlikely as If 90 % of the market is B.S. regulation will be required to protect the consumer which in turn will stabilize the coin markets to some degree. Because it relies on unorganized government beauracacy - Too many different agendas being pushed makes it slowww 🐢 It is still early in the process, more analysis and trials are needed - I don't doubt this. I just don't know if government🙄 is able too work together to develop clear regulations. It would be nice, but I'm not sure if it's needed due to the decentralized nature of crypto. 😕🤷♂️ - It is still required to protect consumers, and to convince institutions on the fence about entering the space the confidence to do so. 👍 Goodbye Bitcoin - Nope. 10 years on it's still strong as heck 😉 It is needed! - Definitely needed for the space to be taken more seriously and for others to have the confidence to enter. 👍
I don't think think government regulations will clarify as much as they will restrict, and if they do start regulating it shouldn't be too hard to see who benefits, because some will (it's the nature of the Congressional beast). Free market is best - build the best, most foolproof and simple system and stay away from murky ico waters - they will come in hoards for your coin. - Interesting point. 🤔 I am a crypto novice but have 25 years experience in the financial industry. I do not believe there will regulatory clarity on cryptocurrency until one of two paths happen - the banking industry figures out how to thrive, and profit from cryptos or the use of cryptos exclusive to the banking industry becomes so significant to overall economic activity that governments and regulators have no choice but to integrate cryptos into the regulatory landscape. - Interesting point. If I would have to pick, I would say the first one is more probable. Cryptos exclusive to the banking industry misses the point about decentralization/ blockchain entirely. 😂 We have been waiting too long and all the answers will come this year I think we've just hit the bottum 3 weeks ago - Hoping so! I would say the odds are still in the favor of the bears and we are more likely to hit another downswing. 🐻
Thank you all for reading! Catch you back here again tomorrow for your daily dose of crypto news! 💙
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