Clearly, the cryptocurrency space continues to change and move forward. This is something that can be seen in a very easy way and that Timothy Enneking, the founder of Digital Capital Management, LLC (DCM), says.
The Crypto Space Continues to Change
Back in time, Bitcoin (BTC) was the only virtual currency operating in the market, and it was much more simple than now. After the bull market experienced by the digital space in 2017 things changed a lot. It is possible to see the expansion of Initial Coin Offerings(ICOs), and the surge of new digital assets other than Bitcoin.
At the same time, Enneking says that people started to pay close attention to blockchain technology and the technology behind digital assets rather than the cryptocurrency itself. During 2017, enthusiasts developed different taxonomies to better organize the diversified cryptocurrency space.
Enneking now believes that the space has split into three different spaces that create a trichotomy and where the word “crypto” does not apply to all of them. About it he mentioned:
“I label these three spaces “trading tokens,” “blockchain and “asset-back tokens.” Except for the first, I realized that there’s nothing even vaguely innovative about the names. The most important takeaway is probably that the latter two (and certainly the last one) have nothing to do with what most people think of as “crypto.””
The first category that he mentioned, “trading token”, is the most similar category to what people usually call “crypto.” He also says that the word “currency” is also not as good as token to describe these assets. For him, tokens are an information packet that is optimized for transfers between computers.
In general, these tokens rely on consensus algorithms based on blockchain technology or similar protocols. Nonetheless, most of the new projects do not rely on trading tokens. That means that there is not an independent driver of price information for their token, Now, these tokens depend on the advantages of the trust and reliability of the blockchain technology behind them.
Enneking says that the investments in these companies must be made in the early stages and not in the form of trading tokens. This will be changing the way in which companies plan their investments and how they receive their returns.
The DLT and blockchain space is separated from the token space. And he shows that “crypto” does not even apply to this second space. The third space is the one related to asset-backed tokens that represent another form of securitization. Thus, it has no inherent relationship to “crypto” per se, according to Enneking.
Trading tokens will eventually reach the trillion mark in the future. And indeed, back in 2017, the cryptocurrency market was close to that level in terms of market capitalization. For Enneking, this mark is going to be reached as soon as the next year or so.
He went on saying that the blockchain space could grow even further and reach double digits trillions in value. As he shows, it is just necessary to see the value of logistics chains being on the blockchain. One of hem just reaches half of that value.
Asset-backed tokens could end up reaching three digits trillions if a large part of the assets is tokenized. Real estate alone seems to be destined for blockchain, already has that value.
Nonetheless, he explains that there is a flaw in this analysis since it is possible to be double counting some of these assets two times in different categories. However, it does not matter how the taxonomy is developed. Crypto has given rise to a technology that will be much bigger and larger than virtual currencies.
Bakkt Futures to Launch in the Current Quarter
Managing director and quant strategist at Fundstrat Global Advisors Sam Doctor suggested in a Twitter post published on July 19 that Bakkt’s Bitcoin (BTC) futures contracts will launch this quarter.
According to the post, which includes a summary of Fundstrat’s takeaways from the Bakkt Digital Asset Summit held on July 18, the firm’s futures will launch in the current quarter. The launch is set to follow tests announced last month, which are scheduled to start next week. The firm believes that the launch will be a catalyst to accelerate entry of traditional institutional investors. The post notes:
“THERE APPEARS TO BE A CRITICAL MASS OF ADOPTERS READY TO COME ON BOARD ON DAY 1 OF THE BAKKT LAUNCH, WITH THE SALES TEAM GAINING TRACTION AMONG BROKERS, MARKET MAKERS, PROP TRADING DESKS AND LIQUIDITY PROVIDERS.”
During the aforementioned event, Commodities Futures Trading Commission (CFTC) commissioner Dawn Stump apparently expressed that no current cryptocurrency could threaten financial stability and that the regulator sees a growing demand for Bitcoin futures from the public. Also during the summit, chief information officer at crypto investment firm Blocktower Ari Paul was reportedly confident that once a killer app or user interface makes cryptocurrency on-ramps safe, reliable and as easy to use as Paypal, retail adoption will be enormous.
According to the Fundstrat notes, Paul also said that institutions should not dismiss crypto assets, considering their low correlation with traditional assets and with compound annual growth rates of 200%-300%. He also said that inflation and confiscation resistance of cryptocurrencies are a key value proposition.
Pantera Capital CEO Dan Morehead, on the other hand, said that most tokens will fail and a handful of base protocols will survive, but with thousands of decentralized applications built on top of them.
As Cointelegraph reported in May, the Intercontinental Exchange is reportedly taking steps to ensure approval from the United States CFTC for Bakkt.
Bitcoin Price Slips 10% in 24 Hrs as Fed Raises Facebook Libra Concerns
Bitcoin Price Slips 10% in 24 Hrs as Fed Raises Facebook Libra Concerns
Bitcoin price (BTC) shed more than 10% on July 11 as markets appeared to react to criticism of Facebook’s Libra from a senior United States lawmaker.
Market visualization courtesy of Coin360
Data from Coin360 sees the majority of cryptocurrencies firmly in the red Thursday, hours after Federal Reserve Chairman Jerome Powell said Facebook’s offering should not continue development.
Libra, which aims to act firstly as a cross-border payment method, allegedly buoyed Bitcoin throughout recent weeks, with commentators arguing its public profile was driving publicity and uptake of Bitcoin itself.
Powell’s demands, which follow similar words from representatives of the Senate House of Financial Services Committee, leant weight to that theory.
“Libra raises serious concerns regarding privacy, money laundering, consumer protection, financial stability,” he said during a speech before a congressional committee. “These are concerns that should be thoroughly and publicly addressed.”
“THESE ARE CONCERNS THAT SHOULD BE THOROUGHLY AND PUBLICLY ADDRESSED.”
At press time, BTC/USD traded down 10.4% at $11,530, having risen as high as $13,160 in recent days.
Bitcoin 7-day price chart. Source: Coin360
The drop places the pair still within its recent corridor between around $9,700 and $13,800, with volatility still in evidence across crypto markets.
Altcoins, meanwhile, delivered noticeably worse performance as Bitcoin price fell, with several assets in the top twenty by market cap shedding 15% or more.
Ether (ETH), the largest altcoin, lost a similar amount to Bitcoin, hitting $272 and firmly losing support at $300 once again.
Ether 7-day price chart. Source: Coin360
Among the worst performers were Bitcoin SV (BSV), which lost 17.2%, and EOS (EOS), which was down 20.2%.KEEP TRACK OF TOP CRYPTO MARKETS IN REAL TIME HERE
Bitcoin Approaches $11,000 With All Top 20 in Green
Saturday, July 20 — crypto markets have seen another upward move, with all top 20 coins by market cap seeing major gains, while Bitcoin (BTC) has approached $11,000 mark again.
After dipping below the $11,000 threshold on July 14, Bitcoin has approached the price point today, with its intraday high of $10,944, according to data from CoinMarketCap. The biggest cryptocurrency added 3.7% to its price to trade at $10,922 at press time. As Bitcoin has seen significant volatility this week, with its price having dipped below $9,500, the cryptocurrency is down around 3% over the past 7 days at press time.
Ether (ETH), the second cryptocurrency by market cap, is up over 5% and trading at $232 at press time. The top altcoin is down 13.4% over the past 7 days.
Ripple (XRP), the third top cryptocurrency by market cap, added 6.4% to trade at $0.339, also seeing a notable growth over the past 7 days, adding up to about 2.6%.
Bitcoin SV (BSV), the ninth top cryptocurrency by market cap, has added over 25% to its value today, seeing the biggest growth among the top 20 coins by market cap.
As of press time, total market capitalization amounts to $298 billion after that number dropped below $250 billion earlier this week. Daily trade volume amounts to around $63 billion.
The new wave of green on crypto markets follows a recent bullish prediction by managing director and quant strategist at Fundstrat Global Advisors Sam Doctor, who suggested that much-anticipated Bakkt’s Bitcoin futures contracts will launch in Q3 2019.
Additionally, India’s Minister of State for Finance Anurag Thakur said yesterday that there is no legislation in India that expressly bans citizens from using cryptocurrencies.