BitPR Weekly Crypto Highlights: Crypto Needs the Crypto Winter

Week 3 Feb 2019
18 Feb 2019

The Crypto Winter might actually be good for crypto, despite what it is doing to your portfolio. It will get rid of bad projects and useless altcoins and reallocate developers and investable funds to solutions that people actually need.

There are some parallels to draw with the dotcom bubble that burst in 2000. That crash destroyed many internet companies which didn’t provide enough value. Even companies that survived the dotcom crash were battered in 2001-02. Amazon’s stock lost 90% of its value in two years after the bubble. However, since the company provided things that people actually wanted, it survived and became a giant.

Something similar will happen in blockchain and crypto. Losers will disappear and winners will achieve mainstream adoption. CNBC wrote a piece last November drawing parallels between Amazon and Bitcoin. While this piece might be a little too appreciative of BTC, the general idea is valid: crypto and blockchain projects that provide real value to consumers, investors and businesses will survive.

The Crypto Winter will force projects and coins to attract large user bases and solve real problems or relegate them to the dumpster of history. When Binance CEO Changpeng Zhao spoke to BitPR last year, he said that there aren’t enough ‘killer apps’ with 100 million or a billion users, and that blockchains must be way faster to handle these numbers of users. Basically, too few people and businesses are using blockchain apps and crypto and this will destroy many blockchain projects.

Maybe Bitcoin’s Lightning Network and Ethereum’s upcoming Constantinople upgrade will help address speed and scalability issues. Maybe new blockchain platforms will replace them. Maybe Bakkt and the companies following it will bring institutional investment into crypto and stabilize the market. Maybe security tokens are the future and all financial instruments will be tokenized and traded on the blockchain.

It is too early to predict exactly which crypto & blockchain solutions will survive the Crypto Winter, and whether the best dapps will be built on Ethereum or elsewhere. Still, the best projects will survive, and in 10 years we will wonder why we ever doubted them and never invested in them.

Now that we got the seriousness out of the way, let’s start with something funny.

 

Crypto Trader Accidentally Buys BTC at 500% Premium

Source: Cryptoline News

A crypto trader in Brazil ended up buying Bitcoin at a price of over $19,000 per BTC. Luckily, the trader only ended up buying 0.0047 BTC.

Either this person really believes in BTC and wanted it at any price or was just a newbie that executed a market buy order on an exchange with very low liquidity. Moral of the story: always use limit orders to protect yourself.

At least now he or she has every reason to HODL.

 

Japanese IT Giant GMO Internet Will Launch of Yen-Backed Stablecoin in 2019

Source: Cointelegraph

GMO Internet confirmed its plan to rollout their stable coin GYEN pegged to Japanese Yen. Japan will join South Korea in this regard, after South Korean firm BxB Inc reportedly launched the first stablecoin backed by the Korean Won this January.

GMO’s mining business is facing losses and they have closed a mining site in Northern Europe and will relocate another site by the end of 2019. Its executives believe this will affect earnings, which totaled 2.3 billion JPY in Q4 2018, over 12 percent below previous quarters. This drop was attributed partly to “extraordinary losses” related to their crypto mining business restructuring.

 

What’s Next for the NEM Foundation

Source: Cointelegraph

The NEM Foundation is running out of cash and is restructuring. It wants to become a product-focused organization with traditional lines of reporting, doing away with regional teams that were given too much freedom. To promote transparency and accountability around how fund usage, which contributed to the problem in the first place, all fund usage will be reported to the council and community.

The Foundation will also implement budget cuts and layoffs and raise an additional 160 million XEM from the NEM community. Alexandra Tinsman, President of the NEM Foundation, said that the full report of their restructuring plan and fund allocations will be released to the community when finalized.

 

Bakkt to Launch in Late 2019

Source: Invest In Blockchain

Bakkt will launch in late 2019 according to the Intercontinental Exchange (ICE), the company behind Bakkt and the New York Stock Exchange (NYSE). One of the reasons for the delay in launch is due to a pending approval by the US Commodity Futures Trading Commission (CFTC). Investors are hopeful that Bakkt will usher in a large amount of institutional funds into crypto and help alleviate the crypto bear market.

Bakkt is also partnering with Microsoft and Starbucks to promote consumer purchases using crypto. These dual ambitions might explain why Bakkt successfully raised $182 million in a recent funding round.

 

JP Morgan Creates First US Bank-backed Cryptocurrency

Source: BBC

JP Morgan has released its own digital currency to settle payments between its clients in its wholesale payments business. JPM Coin will be used in internal transactions for immediate settlement of balances among institutional accounts. Whenever a JP Morgan client deposits money into an account, it is automatically converted into an equivalent number of JPM coins which are redeemable for US dollars. This is intended to increase transaction speed while reducing counterparty and settlement risks for clients.

However, some have questioned whether JP Morgan really needs a blockchain for this. “It doesn’t even need a blockchain at all because JP Morgan runs it. They could do it on a website and database they run,” said David Gerard, author of Attack of the 50 Foot Blockchain: Bitcoin, Blockchain, Ethereum & Smart Contracts.

JPM Coin is also not usable or transferable outside of the JP Morgan network.

 

Check back next week for more crypto highlights.

 

Disclaimer: BitPR is not responsible for content on external sites.

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