Chart of the Day
Journey to the West. Hashrate, a litmus test for network health, has been on a week-long decline, as much as 33% in the past three days, and is facing the prospect of further plummets as regulatory bodies in China vowed to crack down on Bitcoin mining and trading activities.
The paternalistic move in the name of fending off financial risks will likely send miners “westward” and redirect hashrate to non-Chinese pools. A “decarbonized “restructuring following the initial shock may prove to be beneficial in the long haul, as the network has previously survived and adjusted to large plunges in hashrate.
Talk of the Town
Market Meltdown. The weekend bloodbath has left many bruised and afraid, but the laments of imminent bears seem to be overlooking factors that could deem this year’s bullish calls pretty much intact — rates remain low despite repeated taper talks and inflation warnings; institutional inflows will not evaporate overnight, and the industry’s beacon of hope, albeit unstable at times, is fundamentally pro-crypto. Granted that Bitcoin may have a shady past and the hostility of mainstream media is thinly veiled, evidenced by the regurgitation of yesteryears’ news on governmental crackdowns, the fundamentals are still sound. So for those who are still hanging in there, have faith, deleverage, and keep your emotions in check.
