Bitcoin market update...
The current draw down has continued, but this is nothing new for Bitcoin.
The crypto markets added to losses last week, falling another 5% just one week removed from dropping almost 20% the week prior. Bitcoin itself has now dropped 45% from highs made this summer, though BTC still remains one of the top-performing assets YTD (+109%). Of course, these large moves are not new; Bitcoin and other digital assets have had plenty of large drawdowns since inception. But the inability for digital assets to retain gains often makes it difficult for new investors to jump in.
Various Bitcoin narratives have been characterized by thought leaders in order to relate price movements to different types of investors.
Bitcoin is a store-of-value
Bitcoin is an uncorrelated asset class
Bitcoin is a risk on/off asset
Bitcoin is a macro hedge
Bitcoin is a flight to safety
Bitcoin a vehicle for simple speculation or trading
Bitcoin is quite small (market cap) with relatively low volumes compared to other asset classes (think equities, oil, treasuries, etc). Lacking a true identity results in a volatile trading environment, with frequent large swings. This might be the environment we will be in until a consistent narrative evolves.
Personally I believe the different narratives are what makes Bitcoin one of the most compelling and miss-understood assets. Bitcoin can be different things to different investors. An investor utilizing Bitcoin to move wealth from Hong Kong to another jurisdiction is utilizing Bitcoin’s optimized immutable & somewhat anonymous qualities. While a rogue nation investing in Bitcoin could be solving their inability to trade in the current financial system. Bitcoin can be a solution to many problems we face around the world. As I explained to a good friend this weekend it’s really just way to cast a vote (with your wallet nonetheless) outside the current financial & political system we live in today. This will become increasingly important as political and economic risk continues to rise; having a monetary network outside of a sovereign framework is very important to humanity in general.
Onwards & upwards!
Bly 🏁
📊Charts of the Day📊
What goes down must go up?
Buyer Beware…
⚠️Infographic⚠️
📜Random Interesting History 📜
Today, October 8th…
1945
President Harry Truman announced the U.S. would share the secret of the atomic bomb only with Great Britain and Canada.
1956
Don Larsen of the New York Yankees pitched the first and only perfect game in a World Series.
2004
Martha Stewart began her prison sentence at Alderson Federal Prison Camp.
🎧Podcast of the Week🎧
Click below to listen to a great, real-world perspective surrounding Bitcoin by Parker Lewis with Unchained Capital. Parker great job!
🔥Tweets of the Day🔥
📰What happening; News that Matters📰
PayPal Withdraws From Facebook’s Libra Payments Network
New York Department of Financial Services to Hire Deputy Superintendent for Virtual Currency
Intercontinental Exchange Announces First Block Trade of Bakkt Bitcoin Futures
Edge Wallet Announces Partnership With Bity to Enable Fiat-Cryptocurrency Trading With No KYC Requirements
Brave Releases Distributed Virtual Private Network VPN⁰
Hong Kong Securities Watchdog Issues Rules on Funds Investing in Crypto
MIT Launches Digital Content Library for Workforce Learning on Blockchain
Changelly Launches Mobile App for iOS Users
🏁Final Thought🏁
Change is never fun, but how is life remotely interesting without it?
🙏Connect & Share🙏
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Disclaimer: None of the content in this newsletter is meant to be financial advice. Please do your own due diligence before taking any action related to content within this article, and yes I am personally invested.