BTC Finally Busts $10,000 – Can We Stop Talking About it Yet? No.
Aloha cryptofans, we hope your week is off to a good start wherever in this 24-hour time zone sphere you may live. As I’ve been typing this, the price has been tickling $10,000 – I almost can’t wait to fall asleep so that way I can wake back up and check on it again. What are your thoughts? Up? Down? HODL? Sell? Feel free to drop us a comment and let us know where you think BTC is headed.
A Commodity You Can’t Touch or See is the New “Safe Haven” for Many, Serious Investors
2017 is now officially the year in which bitcoin finally surpassed gold for title of “safe haven investment.” Traditional safe-haven currencies, mutual funds and bond markets are all definitely “safer” than bitcoin, but as far as being a solitary, store of value is concerned, bitcoin has now become even more “solid” than gold itself, which is impressive for a metal or otherwise.
Bitcoin has proven to be unhackable, despite the years of no press or bad press and a slew of preaches from those accused of swindling massive amounts of the currency from trusting customers by making claims about the structural integrity of the blockchain and security design that allows bitcoin to operate – near flawlessly. This property of solidity of value makes bitcoin and other cryptocurrencies seem exceptionally exciting for citizens of countries who are facing economic turmoil, hardships and even warfare.
Another chief propellant of bitcoin’s flame of excitement is the fact that it just recently surged past $9,000 and briefly touched as high as $10,020 in some markets (as of the writing of this article), further fueling momentum investor fire. Such rapid movement is thought to also be the result of yet another bitcoin fork to take place before the year’s end (if not more). Pro-Fork agitators are clamoring for the idea that a more expensive bitcoin will equal a more expensive fork – but for whose gain – and who’s loss?
The Other Side of the Coin
Some prominent critics of bitcoin see a “bitcoin bubble” popping from a basic perspective, all-to-often ignored by the perhaps over-exuberant, or worse, irrational. The perspective is based on the age-old theory of supply and demand: supply is what drives valuation. Meaning, it is not the price of something itself that will cause a “bubbled” financial instrument to pop, but the realization that supply has exceeded demand – sometimes by major proportions. Luckily for bitcoin, it has the largest distribution of holders among all cryptocurrencies, the most amount of transactions, the longest running reputation, and is gaining a lot of ground around the world every day. This all means that, with enough supply and decreased speculative holders (hoarders), there is little chance that BTC supply will meet demand, at least for some time. In case you’ve forgotten, just remember that 2017 has happened, and it ain’t over yet.
Regardless, recent improvements made and not made to bitcoin have only strengthened it and solidified its position as a pillar of value, at least in the opinion of many big-money investors, who are moving their startups from the “nano league” to the “micro” league in record numbers. Microcap companies are defined by having a market capitalization of somewhere between $50 million and $300 million and are most frequently listed on smaller “pink sheet” exchanges. Blockchain-based companies are seeing a huge rise in this category as there have been quite a few successful startup ventures that, much like Facebook or Microsoft, are in some way hoping to transform the world and perhaps in which we access data and even perceive reality.
$31 Million USD-Pegged Tether Taken in Major Heist
Almost $31 million worth of the most widely used cryptocurrency pegged to the U.S. dollar, Tether, was stolen through what looks to be an hacker based inside exploit and potentially even bad blood between two companies having a falling out. Tether states that they are rolling out new software while simultaneously denying redemption of lost funds, in hopes of recovering them within a reasonable time period. The $30.95 million in company and user funds were sent to an “unauthorized bitcoin address.” A 5% drop in the price of BTC shortly thereafter is named as the chief culprit, but the price of bitcoin has almost certainty changed near 5% since I first began writing this article. While Tether also happens to offer this same service for many other major coins, none of these coins were affected in the breach.
Exchanges Finally Say Hello to their Big Friend: The IRS
Sad news if you’re a crypto exchange operator. As of 2018, the IRS may have its eye on you (if you aren’t already registered with them), chiming in to congress about introducing a bill to require over 1,000 cryptocurrency exchanges to file tax returns in the upcoming years. Don’t worry, its still just a bill, so this year’s return shouldn’t worry any exchange.
Also in the News
Here’s a few other stories we found to be not just fascinating but entertaining as well – there’s a lot to keep up on, so let’s break it down quick for you this time.