This Week in Bitcoin 12.03.2019:
Each week, the Coinme Private Client team sends a weekly email, highlighting the top industry news and stories. Included in that email is “This Week in Bitcoin”, your guide to the state of bitcoin. Here’s the top news in This Week in Bitcoin 12.03.2019:
The digital assets market rebounded heading into November’s month-end; Bitcoin and other digital assets gained 10%+ during the final week of November.The past few months have been much less about price and more about infrastructure. Bitcoin ATM’s, such as Coinme’s, have been deployed across the nation, less developed nations are flocking to Bitcoin as their local currencies implode, and pipes have been laid by financial companies that will last decades. Meanwhile, although the news has been mixed, the regulatory picture is becoming more clear for digital assets. This is part of the fundamental story for digital asset adoption and ultimately price. With the block halving event under 6 months away and all of the above infrastructure in place, it becomes very difficult to maintain a bearish sentiment for too long. Ultimately, this is a new asset class that won’t go away, and like a call option, the value is enhanced by time.
The growth of digital assets is about value transfer. Over the last 10 years, the value captured from technology growth has largely accrued to a handful of innovative companies and the equity investors who backed them. A bet on digital assets is one where value accrues to the users of technology, not the creators. Given a general lack of trust in governments, banks, and large technology companies, this is a bet many are willing to make. Mozilla even released a “Creepiness” website to help consumers understand which technology products and companies are the least trustworthy.
Take a moment and think about Trust. We trust people and machines all the time, but we almost never trust the institutions behind them.
- We assume the ATM will give us the right amount of money, but we also assume our bank is trying to potentially overcharge us with high fees and low-interest rates on our savings accounts.
- We assume the individual seller online will deliver what they sold, but we also assume Amazon is selling our data.
- We assume maps will give us directions to the correct location, but we also assume Google is spying on us or tracking us.
Digital Assets are giving people what they trust… people and machines. It is eliminating the institutions, organizations, and middle-men that we mistrust.
In ten years, it’s very likely that the largest value accrual occurs in a different form than startup equities. The biggest risk is not betting on this outcome; it’s assuming previous outcomes will continue. By purchasing Bitcoin you are in fact purchasing equity in a network that many believe could be the value network of tomorrow. Even a small investment has proven to pay off potentially big with time.
Here’s the infographic for This Week in Bitcoin:
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