This Week in Bitcoin 12.17.2019:
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 are the top news in This Week in Bitcoin 12.17.2019:
Digital assets were feeling the lull of the holidays as they slid 3-6% last week, with only a few outperformers; mostly related to the staking theme we reviewed last week. As we near the end of the month (December), year (2019), and decade (2010-2019), digital assets markets are noticeably slowing down with volumes for spot markets trickling along. Price action in digital assets has oscillated with less amplitude, volumes are stagnating, and even news cycles seem to be slowing. This feels similar to December 2018, where nothing of significance happened until March 2019 and most saying Bitcoin is “dead”. Notably, during that next three-month stretch in early 2019, a few select non-Bitcoin digital assets broke out with very large gains, setting the stage for a huge broad-based market rally over the next six months. With the Bitcoin-halving event set for May 2020, we may see a similar run in 2020 stretching to new all time highs in Bitcoin.
In 2019, some clear themes have emerged within digital assets. We are over two years past the ICO boom of 2017 that resulted in thousands of various digital assets. These themes include 1) money, 2) protocols/platforms/decentralized projects, 3) real cash-flow producing companies that utilize tokens, and 4)existing asset classes that can be digitized:
Four 2019 Digital Asset Themes:
Bitcoin is the only proven winner thus far. It is outperforming the field by a wide margin, especially in 2019.
2) Decentralized Protocols/Platforms
Decentralized Protocols and Platforms are the backbone of the “Decentralized Web 3.0” narrative. They are testing the boundaries of technology and value creation, but realistically 5-10 years away from creating any real economic value, and some will fail while others will be grand slams. As such, the market has adopted a “prove it” mentality. Even Ethereum, the undisputed leader in terms of usage and activity, has yet to prove any economic value, but it is a live working product and thus has outperformed handsomely.
3) Real Cash Flow Producing Companies
There are many real companies that have found product-market-fit and have figured out a real use case for tokens. The gaming industry is a good example, with HXRObeing one of the best games and best token use cases we’ve come across (gamification of trading). There has also been progress from middleware companies (like Chainlink – LINK) and internet browser companies (like Brave Browser – BAT). In addition to crypto-native companies like the ones mentioned above, there are many existing companies that have nothing to do with crypto or decentralization that could very easily introduce a token into their cap structure. The companies that come to top of mind are Twitter, Wikipedia and Starbucks, all of whom could issue a token that has immediate utility for its customers.
4) Existing Asset Classes That Can Be Digitized
This doesn’t really exist in a big way yet, but it’s coming. Soon. Tokens backed by hard assets, or by the equity and debt of real companies, will be immediately investable by traditional investors as well as crypto investors. An example from 2018 was theSt. Regis in Aspen that sold $18 millionin its real estate backed security token. We’d expect these tokens to trade similarly to traditional asset classes on specialized security token exchange platforms, but will likely come at significant discounts in the early days as the market develops.
As we close out the decade and start another, we are reminded that Bitcoin and digital assets are barely over 10 years old. The first decade was rocket ship for the emerging asset class going from completely unknown to being talked about everyday by the financial media and eventweeted by the President of the United States. If we stay on the same trajectory over the next decade, Bitcoin may be close to being a worldwide currency valued by everyone in society.
What will that do to the price?
Here’s the infographic for This Week in Bitcoin 12.17.2019:
We are inside of 6 months from the“Halving” – when Bitcoin’s daily mining production will be cut in half. If you haven’t yet, make sure you own at least $10 worth of this amazing new asset class. Visit our easy and secure kiosks or speak to an advisor today. We do our best at Coinme to make it really easy. Give us a call. Contact us. Check out our partnership with Coinstar and visit a cash to bitcoin kiosk in a grocery store near you!
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