Weekly Crypto Recap [26/10/18 – 1/11/18]

Week in Brief


 

Bitcoin turns 10: the Satoshi whitepaper that questioned the necessity of the financial system that we know today

 

The institutional herds are coming — Fidelity, the 5th largest asset manager in the world announce the launch of Fidelity Digital Assets

 

Total crypto market cap is down 1.7% w/w, with 75% of the top 100 coins by market cap trading down w/w. In the last 24 hours, 87% of the top 100 are trading up whilst BTC is down 1.29% and ETH is down 1.92%. BTC, ETH and XRP lead the market cap respectively.

 

Market Performance


Top Stories


 

Bitcoin turns 10: the Satoshi whitepaper that questioned the necessity of the financial system that we know today

 

On the 31st of October 2008, coinciding with both the beginning of the global financial crisis, with the collapse of Lehman Brothers, and Halloween itself, notorious Satoshi Nakamoto unveiled the Bitcoin whitepaper to the world. Whether the pseudonymous creator of Bitcoin is a male, female or a group of individuals is up for debate. Yet the imperceptible timing of this release cannot have been a coincidence, for, in the first block ever created, the genesis block, Satoshi inscribed a clear message for all to see:

“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”

Whilst Wall Street crumbled under the midst of the largest financial crisis since the great depression and possibly the greatest financial scandal of all time, an alternative financial infrastructure was being quietly developed online in order to destroy the current status quo.

Although Bitcoin would not be discovered by the mainstream until the speculative mania of 2017, the foundations for a new way of transferring value between individuals was already firmly laid. No longer would banks be necessary for individuals to transact trustfully with one another. Instead, a financial system had been built with trust inherently baked into the Bitcoin code. Such trust is immutable, it cannot be tampered with, it cannot be censored and it cannot be seized.

The world is still waking up to what Satoshi coined a “purely peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without going through a financial institution.” But as we loom on the edge of another global financial crisis, how much longer will individuals place trust in intermediaries who continually exploit everyone but themselves. Bitcoin has provided an exit sign for individuals to leave this corrupt system and become their own bank. Such financial freedom is arguably one of the most impactful inventions one will see in their lifetime. One thing is for certain, Bitcoin is here to stay.

 

The institutional herds are coming — Fidelity, the 5th largest asset manager in the world announce the launch of Fidelity Digital Assets

 

Fidelity, the renowned asset management franchise, announce the launch of their cryptocurrency investment vehicle, Fidelity Digital Assets, aimed at onboarding institutional investors to the marketplace. The firm is currently the 5th largest asset management company in the world, with a total of $7.2 trillion of customer assets under their control. This dwarfs the current market cap of the cryptocurrency industry, a mere $200 billion at the time of writing. If just 10% of their total assets were to become cryptocurrency assets in the future, this would sharply bring the cryptocurrency market estimation towards a trillion itself. Alongside the other institutional investment onramps which are around the corner, such as Bakkt, early retail adopters are almost certain to cash in big on their curiosity and foresight.

Based in Boston, the limited company aims to bring industry-grade custody solutions for institutional investors not possible with traditional unregulated cryptocurrency exchanges. They will achieve this with a geographically diverse set of cold storage locations which are disconnected from the internet itself and vault protected. At current, Institutional investors are simply not willing to risk the large sums of capital they have at their disposal on exchanges which could be shut down, hacked or exit scammed at any moment. Instead, such market participants need assurance from regulated and familiar mechanisms that their funds are secure at all times.

The firm will also provide a cryptocurrency trading platform alongside 24/7 institutional advisory services to cater to the market that never sleeps. Tom Jessop, founder of Fidelity Digital Assets states that “This is recognition that there is institutional demand for these assets as a class, family offices, hedge funds, other sophisticated investors, are starting to think seriously about this space.”. Ultimately, it is clear that the institutional herds are coming with the funds needed to really push this market into a new era, for better or worse. Optimistically, this institutional jumpstart could be exactly what the market needs right now to keep momentum, allowing the underlying technology to continue to improve at an exponential rate.

 

Meanwhile


 

Cryptocurrency titan, Coinbase, receives a further $300 million dollar investment in their most recent round of funding, leading to a total valuation of over 8 billion dollars (Coindesk).

Bakkt is set to be launched in December, a cryptocurrency exchange founded by the intercontinental exchanges (ICE) seeking to solve the custody problem for institutional investors, confirming a new era of investment from retail to Wall Street may be on the horizon (Bitcoinist).

The US Securities and Exchange Commission (SEC) launches a Strategic Hub for Innovation and Financial Technology, in hopes of updating individuals on SEC regulatory issues, in order to be more transparent and create greater confidence in the market. (The Daily Hodl).

 

What We’re Reading At BBOD


 

Bitcoin At 10: The Satoshi Whitepaper

Why Bitcoin and Crypto Have No Future

MappleChange: The Story of Another Cryptocurrency Exchange Exit Scam

 

What We’re Listening To At BBOD


 

Reflections on the 10 Year Anniversary of The Bitcoin Whitepaper

Radical Markets: Uprooting Capitalism and Democracy for a Just Society

What Bitcoin Did: Crypto Custody