How Crypto is Preparing for Takeoff

How Crypto is Preparing for Takeoff

March 16, 2018

“We were working in a complete vacuum as to information based upon prior performance and prior design.”
Howard Hughes

A Leader Will Emerge

In order for newly designed planes to have taken off, better runways had to be built in response to the innovation. In order for virtual currency to take off, reliable infrastructure and exchanges need to be built to support the demand. There is no analog for an auction market with the initial, high volume transaction requirements that virtual currency has launched off with.   The largest exchanges right now are Coinbase and Binance and they are facing this temporary dilemna of reliability which has morphed into a P.R. nightmare of sorts for the crypto space.  Both are a large part of the ecosystem right now and the community is looking at them at a critical time when coin technology is currently ahead of the exchange infrastructure to handle transaction volume.  Scalability is a good problem to have though since it is borne out of demand for expansion.  The exchanges may not yet be aware of their influence and that their direction can shape the entire marketplace globally.  They will have to assume that role of leadership since most other exchanges are looking to them to set the bar for expectations in what is expected and an acceptable model for the crypto community of traders and investors. They are being relied on for something larger than there own revenues and will be forced into the role of working to define the new ecosystem and industry.

Why the timing of the G20 Meeting Matters

Japan will be calling on G20 members to concentrate on developing anti-money laundering (AML) strategy for cryptourrency on March19-20.  From a global perspective, this is a systemic remedy that will benefit cryptocurrency infrastructure and improve the speed of mass adoption.  The fact that cryptocurrency is dropping in price into this huge catalyst is likely why larger investors are taking notice of this setup.

The Art of Being Greedy When Others are Fearful

As BTC/USD is dropping below 8,000, billionaires Jack Dorsey and Peter Theil are seeing the opportunity of this massive discount and are buying Bitcoin at these levels.  Founders Fund, run by Thiel, bought about $15 million to $20 million of dollars in bitcoin for their portfolio and is supporting it as a “digital store of value” and calling it the equivalent of online gold.  Technically, the BTCUSD graph appears to be putting in a “W” pattern which would confirm a long-term bottom could be in formation.

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