We are back from the holiday break and I am recharged and excited about the blockchain industry and the cryptocurrency market for 2020. There is much to be excited about this year. BTC continues its role as a safe haven asset, as we saw last Friday, which bodes well for cryptocurrency investors as legacy markets are expected to be extremely volatile this year. Furthermore, we are seeing tremendous innovation in the blockchain space. In particular, layer-two solutions have been the highlight of 2019 and maybe the catalyst for many improvements and innovations as it relates to blockchain scalability. For example, Chainlink announced at last year’s Devcon 5 in October, that it was launching seven new oracle networks on the Ethereum blockchain. The seven oracle networks are based on Bitcoin, MakerDAO’s DAI, USD Coin, 0x, Augur’s REP, Wrapped Bitcoin, and Basic Attention Token. Also the DAPP network which is a middleware network solution for EOSIO dApp developers which provides critical alternative network resources and services. LiquidApp, the blockchain development company based out of Israel and the creators of the DAPP network has been releasing innovative services at breakneck speeds for the past few months. Probably its most innovative product is LiquidLink which is a service for developers to link their dApps to multiple blockchains such as Bitcoin, Ethereum and EOSIO and its sister chains. In other words, the DAPP Network is the first middleware solution to offer inter-blockchain communication.
Will 2020 be a big year for Crypto?
There are so many questions to be answered in 2020 such as will DeFi have a watershed moment? Will the Bitcoin halving which is Bitcoin’s upcoming reduction in mining rewards lead to another rally like the one we saw in 2017? Will Voice, the blockchain social media platform which plans to release a beta version in February on the EOS blockchain, seriously challenge Facebook, Twitter and other social media platforms? If Voice fails to deliver how will the EOS token react? There are many questions soon to be answered in 2020…
Starting 2020 with a Bang.. Literally…
The start of the decade has been nothing but extraordinary. Global markets are in turmoil over Friday’s U.S. strikes in Iraq that killed Qassem Soleimani, a top military general for Iran. Global markets were already on edge due to the U.S./China trade war and other systemic risk that has investors worried. Markets were caught off guard last Friday as tensions build up between the two countries. The questions for many investors are:
- If Iran retaliates which most experts believe they will; how severe will the attack be?
- How severe will the U.S. military response if Iran attacks? Will a “disportionate response” that President Trump promised on Twitter, if Iran retaliates lead to another bloody war in the Middle East?
- What are the long-term consequences of the U.S. airstrike in Iraqi and the killing of Qassem Soleimani
- If America engages in a war with Iran; how will China strategically respond in the trade war? Will the Chinese play hard ball taking advantage as America averts its attention in the Middle East in a back drop a slowing economy?
These are all important questions that are currently on many investors’ minds and for good reason. The S&P 500 is coming off its best year since 2013. However, a big reason for the great performance in equities last year, was in large part due to the Fed’s loose monetary policy. The U.S. Central Bank reduced interest rates three (3) times last year. A low interest rate environment leads investors to pour money into equities in search of higher yields, since the safe haven assets such as cash and CD yields are getting crushed in a low-rate environment.
Digital Gold: Macro Events Matter.
With turmoil in the legacy markets, Bitcoin soared reinforcing cryptocurrency investors thesis that BTC is a safe haven asset; earning the moniker: digital gold. As written in last year’s Mining Byte by Tynan Overstreet, BTC has been highly correlated with gold throughout 2019.
China marches forward
While America becomes entangled in another conflict in the Middle East, China continues to make news in the blockchain space which they view as a strategic industry for their global ambitions. The Shanghai Stock Exchange launched a blockchain index based on the stocks of 50 companies listed on the exchange that participate in the blockchain industry.
Great Reads Over the Weekend
Title: ‘DeFi’ movement promises high interest but high risk
Link: Click Here
Title: Unhackable, Ungameable Immortal dApps Are a Class Of Their Own
Link: Click Here
Title: Winklevoss twins on crypto’s allure for the ETF world