Bitcoin & Cryptocurrency Blog – Official CoinJar Blog

Bitcoin & Cryptocurrency Blog – Official CoinJar Blog

Bitcoin & Cryptocurrency Blog – Official CoinJar Blog
Read the latest Bitcoin and Cryptocurrency news and opinions from the easiest place to buy, sell, and use crypto.
Bitcoin & Cryptocurrency Blog – Official CoinJar Blog

Nonsensical NFTs
<h2 id=”what-the-latest-crypto-craze-can-tell-us-about-the-good-the-bad-and-the-weird-of-the-blockchain-world-“>What the latest crypto craze can tell us about the good, the bad and the weird of the blockchain world.</h2><p>Chances are that unless you’re being kept in some sort of subterranean dungeon and/or have been pronounced clinically dead, you’ve read something about NFTs over the last few weeks. <br></p><p>What started as the occasional explainer as to why people were spending <a href=””>thousands of dollars on NBA highlights videos</a> rapidly transitioned to thinkpieces about how NFTs were going to save or destroy art, music, film and everything in between, roaring Twitter fights and, to top it all off, a digital picture by the artist Beeple <a href=”″>selling at auction for US$69 million</a>.<br></p><p>I’ve been around crypto for a while now and even I’ve been shocked by the speed with which the idea of an NFT has gone from “cool, quirky crypto concept” to “mainstream media freakout factory”. Like, I only really engaged with the topic six weeks ago, and I consider myself a pretty on-the-ball crypto watcher. Now we’ve hit the level of media saturation usually reserved for incoming meteor strikes, US Presidential elections or Kardashian photo shoots. So, what the hell is going on? <br></p><figure class=”kg-card kg-image-card”><img src=”” class=”kg-image” alt></figure><h3 id=”nice-fancy-things”>Nice, fancy things<br></h3><p>Standing for Non-Fungible Token, an NFT is basically a blockchain-verified proof of ownership that can be tied to, well, anything. The idea is that you can make as many copies or screenshots of something as you want, but if you look at the blockchain you’ll be able to prove that, yes, you are the person who spent US$69 million on a very high resolution JPEG.<br></p><p>On the face of it, this does seem dumb. But underneath the surface, there’s a lot of interesting stuff going on. <br></p><p>For one, NFTs offer artists, musicians and performers new ways of monetising and controlling their work. Not only can you directly (and legally) transfer ownership of something you’ve created, but you can also ensure that you get a cut of any future sales of your work. That of itself represents one of the biggest conceptual challenges to intellectual property and licensing laws since the advent of the internet.<br></p><p>They also offer a template for the blockchain-ing of all sorts of real world things – <a href=””>property deeds</a>, <a href=””>concert tickets</a>, <a href=”″>passports</a>. These aren’t necessarily novel uses of the blockchain, but an NFT packages it up in a way that makes sense to people and will make it easier to shift it into the mainstream.<br></p><h3 id=”nope-f-k-that”>Nope, f**k that<br></h3><p>The histrionics from those arguing against NFTs – usually some variant on, “why do they suck? Because they’re dumb” – reminds me of the arguments we heard when bitcoin started its climb towards $20k in 2017. <br></p><p>And, sure, right now a lot of it does suck. A browse through the front page of an NFT market like <a href=””>OpenSea</a> does not make for edifying viewing. The valuations on most tokens are entirely untethered from reality and you can already sense that we’re just counting down the days until the whole market implodes. <br></p><p>From a crypto standpoint, though, here’s why NFTs feel important: because, for the first time, crypto has created something tangible, a technological breakthrough visible from the real world. No need to invoke abstract financial concepts like inflation or money supply. No need to try and get people excited about smart contracts, scaling solutions and level 2 application layers. You like that art? You can have it, forever, for a price. Let the chaos begin.<br></p><h3 id=”now-for-the-“>Now for the…<br></h3><p>It’s difficult to know what happens next with NFTs, but crypto’s own bubble-strewn history offers some lessons. And this current frenzy doesn’t remind me of 2017 so much as it does November 2013, when an immature, hype-driven crypto market saturated with bitcoin clones went from obscurity to TV news coverage in a matter of weeks and then disappeared just as quickly.<br></p><p>In tech circles, people talk about something they call Amara’s Law (after the futurist Ray Amara), which states that we tend to overestimate the impact of a technology in the short run, but underestimate it in the long run. <br></p><p>Read the coverage of NFTs right now and it might feel like they’re about to take over the world. However, in all likelihood, six months from now everyone will be looking back at that weird moment in our shared history when people thought they were going to become rich by flogging NBA highlights packages that you could watch for free on YouTube. How dumb is that!<br></p><p>But in the background the true believers and the visionaries will keep on working, thinking and developing, and a few years from now we might look up to find that NFTs are at the heart of radical new models of commerce, art, ownership and identity. A few years after that we might be using them every day without even knowing that they’re there.<br></p><p>Will that come to pass? Only time will tell. In the meantime, who wants to buy this picture of my elbow for 20 ETH?</p>
<p><strong><a href=””></a></strong> <a href=””>(Why?)</a></p>
Wed, 17 Mar 2021 04:06:38 +0000 Luke at CoinJar

The Hard Sell
<h2 id=”the-prices-are-low-and-the-panic-is-high-is-this-the-time-to-sell”>The prices are low and the panic is high. Is this the time to sell?<br></h2><p>If you’ve been around crypto for longer than a couple of months, you’re probably familiar with the feelings that come with your average market-wide correction. <br></p><p>Euphoria fizzling away as that first red candle starts dropping down, down, down. Confidence in a quick recovery giving way to sweaty-palmed anxiety as the correction passes the 10, 20, 30% mark. Is this the big one? We all know what happened on <a href=””>March 13th last year</a>. Finger hovering over the “Sell” button, knowing that if you just pressed it this horrible feeling would go away.<br></p><p>And even worse are the recriminations. How could I have been so blind? How did I let this happen? Why didn’t I sell when the going was good? Will I ever feel joy again?</p><figure class=”kg-card kg-image-card”><img src=”” class=”kg-image” alt></figure><h3 id=”unrealised-profit-and-loss”>Unrealised profit and loss <br></h3><p>Look, I’m not going to say <a href=””>I told you so</a>, but if there has ever been a market in need of a correction it was the crypto market of the last two months. It wasn’t a question of <em>if</em> your alt was going to do a 50 or 100% day; it was a question of when. Meanwhile, Bitcoin basically tripled its 2017 all-time high over the course of eight weeks, making it (briefly) a trillion dollar asset. <br></p><p>It’s not that bitcoin doesn’t deserve to be in that august club, but more to point out that markets will always revert to the mean, no matter how compelling the background narrative might be. And in the same way that you don’t expect to see an elephant jump over a small apartment block, an asset of bitcoin’s size shouldn’t be tripling in size like it ain’t no thing. Especially not when it’s taken three long, hard years to get back to its previous peak.<br></p><h3 id=”timing-is-everything”>Timing is everything<br></h3><p>Here’s the thing though: in every other market that humanity has ever created, taking three years to make a new all-time high actually is perfectly reasonable, bordering on suspiciously fast. Investments aren’t supposed to be measured in days or weeks. They’re supposed to take years, if not decades to play out. But the speed, 24/7 relentlessness and hyper-visibility of the crypto markets means it’s very easy to lose sight of the bigger picture. People who bought in at the absolute peak of the last bubble are still up 250% – presuming that they had the patience to hold on for a measly three years.<br></p><p>Nonetheless, selling can produce a real and concrete advantage. Get out near the top and you might be able to buy back in close to the bottom, thereby compounding your gains. (Despite what the people of <a href=””>TikTok Investors</a> would have you believe, this is far harder than it appears.) <br></p><p>More simply though, money is money and when assets are appreciating like crypto assets have recently that can mean getting ahead of your mortgage, or buying a car, or paying for a holiday for your family, or being able to cover rent for the next month. If what you’ve made could make a difference in your life, then it makes complete and total sense to sell some – even if you think the crypto market is going to keep on going up. As the old adage goes, no-one ever went poor from taking profits.<br></p><h3 id=”respect-the-sell-out”>Respect the sell-out<br></h3><p>That’s not an invitation or a suggestion to sell it all right now – a good rule of thumb is sell when it feels hard (i.e. on the way up) not when it’s easy (on the way down) – but more to start thinking about what your endgame is. What do you hope to gain from this bull run? How much is enough? And will you be strong enough to start getting out when you reach your target? (Also, on a more prosaic note, <a href=””>what would taking profits mean for your tax</a>?)<br></p><p>These are questions without easy answers, but start planning now and you’re less likely to be swept up in the mania and delirium that marks the real, bloody and unmistakable end of the bull market. And until then? <a href=””>DIAMOND HANDS</a> ENGAGE.</p>
<p><strong><a href=””></a></strong> <a href=””>(Why?)</a></p>
Wed, 03 Mar 2021 04:29:05 +0000 Luke at CoinJar

Elon-gated FOMO
<h2 id=”tesla-owns-1-5-billion-bitcoin-let-the-corporate-fomo-begin”>Tesla owns $1.5 billion bitcoin. Let the corporate FOMO begin<br></h2><p>Look, I don’t need to tell you what happened: it was covered in pretty much every single news and news-adjacent outlet in the world. But let’s not mince words here. The richest person on Earth announcing that his company, the <a href=””>tenth most valuable asset on Earth</a>, had poured 8% of its cash reserves into bitcoin is the kind of event that even the most fervent BTC maximalist circa 2017 would have straight-up laughed at.</p><p>It was amazing when hedge fund billionaire Paul Tudor Jones first invested in bitcoin as <a href=””>a hedge against inflation</a>. It was incredible when Michael Saylor catapulted Microstrategy, his small-scale business software player, onto the global scene by <a href=””>investing pretty much all their cash into BTC</a>. It was almost unbelievable when PayPal announced that they were rolling out crypto services to their hundreds of millions of users. </p><p>Yet even by those standards Elon’s Tesla bet is a big deal. Sure, he may be a pot-smoking, pot-stirring billionaire eccentric. But he’s also one of the single most prominent corporate figures in the world, with an ironclad, legal obligation to his shareholders to maximise his company’s value. And bitcoin is now part of that strategy. I reckon some other companies might be taking notes.</p><figure class=”kg-card kg-image-card”><img src=”” class=”kg-image” alt></figure><h3 id=”in-retrospect-it-was-inevitable”>In retrospect, it was inevitable</h3><p>Over the long years of bitcoin’s post-2017 winter, the idea that institutions might one day see the purpose and value in crypto was one of those thoughts that kept us warm while the rest of the world viewed us as a laughing stock. </p><p>But I can’t recall anyone ever seriously proposing that a publicly listed company would one day hold bitcoin on their balance sheet. Hedge funds making a speculative bet? Sure. A company fleeing the safety of US dollars for bitcoin? Not in a million years. There’d be a shareholder revolt!</p><p>It speaks to how profoundly COVID-19 has changed our ideas around money that, while certainly a surprise, Tesla plunging $1.5 billion into bitcoin is being greeted not as the unhinged actions of a madman, but as a rational response to the potential collapse of fiat value. The US has, after all, printed 30% of all the US dollars ever printed in the last 12 months. Not an available option with bitcoin.</p><h3 id=”mars-mission-initiated”>Mars mission initiated</h3><p>The immediate response to the Tesla investment was predictably euphoric. The bitcoin price surged almost 30%, topping out at a shade over US$49,000. Twinned with the retail-fuelled fallout from the Gamespot/Robinhood debacle (which caused exchange sign-ups to surge to <a href=””>unprecedented levels</a>), the whole market started melting up. Major coins were doing 50% days. Minor coins were doubling weekly. Forget $50k; $100k was just a matter of time.</p><p>Yet euphoria and a sense of inevitability are two of the most reliable top indicators there are. A correction here would allow the market to execute “maximum pain” on new and leveraged participants, one of its favourite pastimes. And right now most crypto charts look less like an ascending rollercoaster than they do a line drawing of the Burj Khalifa. Gravity is going to kick in sooner or later.</p><p>Long story short: it is probably a matter of time until bitcoin starts its irresistible journey to $100k. But nobody knows when that time might be. It could be tomorrow, it could be next week, it could be in six months. The only (almost) certainty is that Tesla won’t be the last company to buy bitcoin. (Two weeks ago, Microstrategy ran a conference to help companies looking to buy bitcoin; <a href=””>more than a thousand attended</a>). Consider this our window before the corporate FOMO really sets in.</p>
<p><strong><a href=””></a></strong> <a href=””>(Why?)</a></p>
Thu, 18 Feb 2021 02:28:10 +0000 Luke at CoinJar

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