The Wild, Wild West of Crypto May Be Over
Yet another week is behind us, and we’re all still waiting for Bitcoin (BTC, Tech/Adoption Grade “A-”) to make its parabolic move.
However, it’s not just Bitcoin maxis and mainstream investors who are waiting for the King of Crypto’s delayed launch into orbit. Ethereum (ETH, Tech/Adoption Grade “A”) investors are also primed and ready for the Queen of Altcoins’ next run.
In fact, the majority of our readers seem to fall into this second category, as evidenced by the attention generated by our most popular tweet in the past seven days:
The amount of staked #Ethereum on the #ETH2 deposit contract has now exceeded 100k, which is more than 5% of ETH currently in circulation. People are excited & confident enough that they've locked away A LOT of $ETH in preparation for one of the biggest events in #crypto history!— Weiss Crypto (@WeissCrypto) June 25, 2021
Shortly before I sat down to write this piece, I read news about the lukewarm response to Elon Musk’s Dogecoin (DOGE, Tech/Adoption Grade “B-”) shilling, and I can’t help but wonder if Musk’s influence on markets has waned?
One can only hope, right?
Well, that certainly wasn’t the case last week, as the second place on our weekly hall of Twitter Inc. (NYSE: TWTR) fame was indeed taken by a Musk tweet:
#Bitcoin advocate Jack Dorsey will face off against $BTC skeptic Elon Musk in a debate/discussion held on July 21st. The bout will be held at an event whose mission is to help institutions and corporations understand the benefits of #BTC. Are you #TeamDorsey or #TeamElon?— Weiss Crypto (@WeissCrypto) June 25, 2021
The event Dorsey has in mind is called The “B” Word. In organizer’s own words, the event “will help demystify narratives about Bitcoin, explain how institutions can embrace it and raise awareness around areas of the network that need support.”
While I’m sure the event will bring Bitcoin and cryptocurrencies in general some of the much-needed exposure and destigmatization. I can’t help but wonder if, for the investors, the result will be a wave of volatility for the King of Crypto.
BTC could surge if some of Musk’s misconceptions about energy are publicly debunked — even more so if he admits he was wrong. But it could also go the opposite way: If he runs his mouth again and his mutterings get the undeserved spotlight, we could see weakness in BTC.
As you can probably tell, we’re not big fans of the “Technoking” when he’s out of his element. We also asked you: Who do you prefer as the debate winner, and the answer you gave was almost unanimous, with just under 90% voting for Dorsey.
Don’t worry — this week’s Cryptobuzz issue will not be hogged by the CEO of Tesla Inc. (Nasdaq: TSLA). There are other tweets that grabbed your attention that I’d like to discuss.
Just three days ago, the rug was pulled under the feet of those who invested in the stablecoin SafeDollar, pushing it down to zero following a decentralized finance (DeFi) exploit on Polygon (MATIC).
These kinds of situations are breeding grounds for FUDsters and no-coiners, so it was important for us to step in and put out any flames of paranoia, as well as explain the real risks at hand:
This has nothing to do with Polygon or DeFi in particular. This is the nature of open-source and permissionless networks and #dApps. Any token can be listed with its own liquidity on a decentralized exchange. The burden of research is on users.— Weiss Crypto (@WeissCrypto) June 28, 2021
As the industry grows and matures, it causes the red eye of regulators to inevitably focus on it, targeting those who have the potential do to the most harm to the uninitiated. This happened to Binance; here was our take on the situation:
The wild wild west style era of unregulated #cryptocurrency exchanges is likely coming to a close as the world starts to realize that #crypto is here to stay. Regulation is inevitable but should be seen as an acknowledgment of the industry.— Weiss Crypto (@WeissCrypto) June 28, 2021
As we said in the tweet, regulation is coming.
It’s already come to China. We’ve already discussed Chinese miners being forced to stop mining, leaving them with the choice of losing everything or relocating to a more crypto-friendly environment.
Since China held a large portion of Bitcoin miners, this has caused a dip in Bitcoin’s hashrate. This particular topic was the catalyst for various discussions, misinformation and general confusion, which more often than not resulted in increased fear, uncertainty and doubt (FUD) towards the BTC price action.
Truth of the matter is that things are a bit more complicated than that. If you haven’t already, do yourself a favor and check out the interesting and insightful piece by Marija Matic that shines light on the matter:
#Bitcoin's hashrate hasn't been this low in almost two years. A sudden drop in the hashrate has resulted in a record jump in the difficulty of mining. Marija Matić explains how this could actually be a blessing in disguise: #BTC $BTC #ETH $ETHhttps://t.co/UvXB1hi7HC— Weiss Crypto (@WeissCrypto) June 28, 2021
And keep an eye on your inbox for this week’s Weiss Crypto Sunday Special, where Juan Villaverde and Chris Coney break down Bitcoin’s mining economy and how the Chinese crackdown affects the rest of the ecosystem.
That’s it for this episode of Cryptobuzz!
What’s next for crypto? Whether it’s more bearish dips or reaffirmation of the bullish market, one thing is certain — we’re up for another exciting week in cryptoland, and we thank you for joining us for the ride.
Stay safe and trade well,