Crypto Market Musings
- As I write, bitcoin is trading around $29,000. Ethereum is trading near $1,900. And the remainder of the markets are a multitude.
- Welcome to crypto allergy season, everyone. The bear market is over. The bull market hasn’t began. Meaning cryptos aren’t moving up in lockstep. They usually’re not moving down in unison. Some days shall be good. Some days, the markets or certain cryptos could have allergies.
- Macroeconomic aspects still matter. Inflation, investor confidence, pressures on the banking system, and monetary policy proceed to play a robust role — each positive and negative — in driving the crypto markets.
What Vin Is Pondering About
One thing I’m desirous about is how necessary regulations are within the evolution of latest technologies and recent sectors.
Two key decisions fueled the expansion of the web:
- President Clinton’s decision to (temporarily) ban taxes on e-commerce sales — including state sales taxes
- Congress’s decision to shield web firms from responsibility for what their users post.
Those two moves allowed the web to take off. E-commerce gained in popularity. And the user-generated content/social media era was born. Without those protections in place, it’s entirely possible that the digital world as we realize it — from streaming to social media and e-commerce — wouldn’t have developed as quickly (or in any respect) and the U.S. would’ve fallen behind Europe and Asia when it comes to robustness and innovation.
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Crypto needs an analogous regulatory moment. The EU just adopted a regulatory framework that ought to allow the industry to grow. Meanwhile, Coinbase is suing the SEC in an try to persuade the agency to do its job. What a multitude. I’ll discuss Coinbase suing the SEC extensively in the following Crypto Insider podcast.
Ethereum’s move from a proof-of-work protocol to a proof-of-stake protocol has cut the quantity of energy the network uses by 99.9% in keeping with Latest Scientist. Now that’s impressive.