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Over the course of 2017, the correlation between online search volumes for cryptocurrency-related queries and the bitcoin price received much attention. Some cried causation, while others begged to hold the horses. Although the correlation remains a chicken and egg conundrum (which came first?), it is widely acknowledged that crypto price movements of the past year or two were mostly driven by retail buyers represented by social media and online search queries.
Over the 2018 period, online interest in crypto remained tightly correlated to price, plunging with the January price dump and fading throughout the year. While this metric would indicate a dismal situation, the much-speculated matter of 2018 has been institutional capital inflows through OTC channels.
What if, while we’ve been looking at retail interest as a predictor of investor sentiment a disproportionate volume of capital has been pouring into the industry through OTC channels?
Reports by equity houses the likes of Morgan Stanley and Grayscale testify to a spike in institutional capital inflows in 2018. The veracity and impact of such reports remain to be seen, but the launch of several regulated cryptocurrency platforms scheduled for 2019 promise a more transparent view of crypto investment activity.
Before we get ahead of ourselves over the bluffs that might be revealed in 2019, 2018 deserves credit as the annum of grit and graft that will make it all possible. Though market prices have remained depressed, the cryptocurrency and blockchain industry regained focus on the fundamentals.
And so, before we head into the bright promise the new year holds for crypto, let us take some time to focus on the topics that grabbed our attention over the past year.
When it comes to cryptocurrency, an asset unlike any we have seen before, how does one judge whether it is a good store of value or market frenzy? While it is extremely difficult to accurately calculate the intrinsic value of a new and groundbreaking technology, it is incredibly helpful to consider the criteria that any asset needs to meet in order to qualify as a good store of value.
To this end, the blog delves into the origins of ‘money’ and how it became a store of value in the first place. Dig into the topic.
Speaking at last year’s Consensus blockchain technology summit, Dan Larimer (creator of Graphene, Bitshares, and EOS) noted that, in order to see blockchains truly go mainstream, we need to go beyond its applications in terms of cash and a store of value and address the sheer volume of traffic and operations occurring on real-world business applications.
Smart contract functionality is a shining example of a blockchain application that has the potential to do just that: improve on real-world business applications, a hundred times over. Dive into the basics of Smart Contracts.
True to our founding ethos, Bitstocks remains dedicated to a long-term investment approach and a buy-and-hold strategy of our primary assets. That being said, we know that amidst the hype and fanfare of the plethora of ICO’s and tokens, lie opportunities for shorter-term bolstering or hedging of portfolio performance. Finding the ‘diamonds in the rough’ that have genuine potential and value does, however, require extensive industry experience, ongoing research and careful evaluation.
With that in mind, Bitstocks employs a group of associates and traders who are tasked with our investment and diversification strategy. Meet the team.
As countermeasure to the pessimism associated with the bear market, we offered you a selection of video resources on some of the exciting developments and inspiring individuals in the community. Watch now.
At the height of the price peak, a spike in Google searches for “Buy bitcoin with credit card” was seen. The decentralised, equity-based Bitcoin economy offers a chance to be free from the slavery of a credit-based economy, and purchasing on credit defeats the purpose. Read about the risk that global debt poses to the economy.
Blockchain technology, which underpins cryptocurrency, ushers in a new world. It breaks the mould of bureaucracy, and provides a framework where irrespective of location or status, we are afforded an equal role in economic inclusion, without the fees and red tape associated with the traditional system. It is an operating system that blows open unlimited global trade unlike anything we have seen before, and we are only just at the point where the decentralised foundation has been laid. We are still in the elementary stages of development of the commercial applications that will continue to open more and more opportunities of cryptocurrency utility, and that is value that will far outweigh any current price point. Read about the real upside that is still to be realised.
Investing early on in a new company or product can be incredibly profitable if the venture turns into a big success. While risk may pay off over time, this comes with the possibility of losing your entire investment. This is why it is crucial to do thorough research into any project that you are considering for investment. Follow the series.
Though the number of cryptos and the purchasing channels available to you have significantly grown, it has not become any easier to know how to take the first step to buying in. To the contrary, with so many scam coins and fraudulent purchasing schemes out there, first-time buyers would be wise to take it one small step at a time.
If you find yourself in this position, the best way for you to determine which step to take first will depend on the answer to one vital question.
If the promise of the late-2017 cryptocurrency rage could be described as “get-rich-quick”, 2018 will be known for its motto of “focus on building the fundamental value - and the users will follow.”
As those who entered the market in late-2017 hoping to make a quick buck backed off and scam coins folded by the dozen, developers and blockchain firms got cracking on building (#buidl) new applications and improving existing infrastructure. Review of our 2018 quarterly client reports revealed the following 6 key advancements that set it apart as a breakout year for the cryptocurrency movement...
Despite the 2018 cryptocurrency bear market, bitcoin trading volumes are close to their 2017 heights in emerging markets. Most notably, emerging markets where sovereign currencies have embarked on a downward spiral due to political abuses and economic mismanagement. Narrowing it down even further, in Turkey, Argentina, Venezuela, and Zimbabwe, 2018 has seen bitcoin trading volumes soaring new all-time heights. The reason is clear: The demand for Bitcoin is most urgent where governments fail in their primary responsibilities to citizens.