Looking for Bitcoin's Bottom, Congress Confusion, Balina Bails and a Visasaurus
Today sees little change after yesterday’s acclaimed “bloodbath” by mainstream media with Bitcoin still settled around the $8k mark and Ethereum at $600.
Talk is appearing with regards to Bitcoin and it’s potential “bottom” as the cost of mining Bitcoin now starts to emerge as a potential indicator of what the terminal low value could end up being - i.e. once the cost to mine 1 Bitcoin equals the coins value – theoretically that dictates the lowest value possible because it’s no longer worth mining it.
The same principle applied to Gold prices – when the UK sold its gold reserves in 1999 at the lowest price seen for many years ($252.80), South African mining firms temporarily froze production simply due to it not being profitable to keep them running. As prices eventually rose, mines reopened and production resumed.
Whilst there is argument to suggest the same could happen with Bitcoin – the playing field as it were is very different – the cost of Bitcoin mining varies massively around the world, and some countries such as China have ulterior incentives to mine at a loss because there are no restrictions on using cryptocurrency as a means to invest outside the country.
Visa CFO Vasant Prabhu has jumped on the crypto-bashing bandwagon in an interview with the Financial Times. It would appear yet another old-money executive is annoyed at everyday people such as his limo driver, bank teller and even a young family member apparently extolling the virtues of crypto investing and the profits they have seen citing the old shoe-shine boy adage “This is the ultimate thing that you hear about when you have a bubble, when the guy shining your shoes tells you what stock to buy”. He went on to state nearby Silicon Valley residents think “people like me are dinosaurs”.
Given that Visa is a long way behind sector competitors Mastercard when it comes to blockchain technology it’s possible we may well see the birth of a “Visasaurus” in the not too distant future.
Wednesday’s congress meeting about cryptocurrencies has led to a barrage of comedic tweets regarding Brad Sherman’s comments on the subject after stating "Cryptocurrencies are a crock, They allow a few dozen men in my district to sit in their pajamas all day and tell their wives they're going to be millionaires." Quite how and why Mr Sherman knows a few dozen men in their pajamas trading cryptos is a story for another day I’m sure – meanwhile, keep up with the comments here:
Very amusing thread on Brad Sherman's comments about cryptocurrencies.... https://t.co/LYRznICrVr— ICOformula (@ICOformula) March 16, 2018
In the world of ICO ratings – Ian Balina has apparently fallen out of love with ICON (ICX) for some reason after announcing on Twitter that he was exiting his position stating the team didn’t want him associated with it any longer. No doubt there is more to the story although judging by the response to his announcement a significant portion of his followers are not impressed.
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Created: Friday, March 16, 2018
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