Despite an already six month cool-off period, for 2018 we see more sideways and downside potential in the Bitcoin price due to sluggish retail demand, hesitation from institutions, and a current market cap that seems too high relative to on-chain activity.

Many investors and advisors are on record stating that $5,700 was the bottom in Bitcoin for this year, and that higher prices lie ahead. While we are very bullish on Bitcoin’s long term prospects, we do heed caution for more short term price optimism.

To find the starting point of the historic parabolic rally in Bitcoin that ended at $20,000 we have to go as far back as August 2015, when Bitcoin traded at below $200. This past rally was a stupendous, historic move. …


We’d like to raise your awareness for a fundraiser to the benefit of Bitcoin core developer Luke Dashjr and his wife and children. Living in the Tampa Bay, their home recently was struck by hurricane Irma, which was the most intense Atlantic hurricane to hit the US since Katrina in 2005.

Before we go into how much we hope to raise and for what damages, let’s go over a few ways in which Luke has contributed to this community:

  • Created one of the very first mining pools in 2011, and in 2014 released BFG miner, open source freeware to help…


In this article, I take issue with several of the claims made by Vitalik Buterin in his Dec 2016 article “A Proof of Stake Design Philosophy”. My hope is that it sparks debate about proof-of-stake’s high level design and about the proposed future of the Ethereum protocol.

1. “Cost of attack should exceed cost of defense” is illogical

This is a core building block for the argument that proof-of-stake (PoS) is ‘more efficient’ than proof-of-work (PoW), so important to review carefully.

Vitalik starts this argument by claiming that cryptography allows users to defend their data in a much more effective way than a castle or island owner can self-defend in the…


After the ransomware attacks of today, in which it appears at least 50,000 systems (including those of UK’s NHS, Santander & Caterpillar) were affected by a worm demanding Bitcoin as ransom, I thought of compiling some resources which build the case that ransomware is a growing trend disrupting digital business as usual in a major way, and, in turn, a source of growing inelastic demand for Bitcoin.

Here’s the story of what is happening today (click to read tweetstorm):

After 2015 generated revenues of $25 million in Bitcoin for ransomware attackers, the year 2016 was the breakthrough year for…


With the recent surge in the Ethereum price (ETH reaching 30% of Bitcoin’s market cap at nearly $5 billion), I find myself reassessing a number of my conclusions, to the point where I’m wondering whether it could overtake Bitcoin as the dominant cryptocurrency at some point in the future.

Because of various network effects, I hold a cryptocurrency maximalist position, believing that one protocol will eventually win +80% of the market.

With that as a given, I currently have a binary view on the ecosystem: either Bitcoin will win, or Ethereum.

Here are my assumptions about the Ethereum (ETH) blockchain, compared to Bitcoin’s:

  • “Turing vulnerable”, i.e. has a much larger attack surface


With almost 100 attendees from very diverse backgrounds, I was able to absorb a huge amount of new information at this year’s Satoshi Roundtable. Here are six hypotheses that I take away:

1. Bitcoin matures as a financial asset

Remembering my chats with two CEOs, a CTO, and a fund manager at the conference, it’s clear to me that Bitcoin is coming into its own as a financial asset.

Because selling and re-buying Bitcoin can have tax consequences, entrepreneurs are now building solutions to allow use of it as collateral for dollar denominated short term loans. And in order to meet the demands of investors looking for…


Proponents of Bitcoin as ‘digital cash’ place more emphasis on the accessibility aspect, arguing that its transaction fees should be low, whereas proponents of Bitcoin as ‘digital gold’ are more focused on its security, arguing that this should not be compromised by efforts to lower costs.

In my opinion Bitcoin is and will be both: digital gold and digital cash.

Cash and gold aren’t that different

The vision behind Bitcoin emerged from the cypherpunk movement, which over the course of two decades pursued the development of ‘digital cash’, also named ‘digital gold’. These two words are more alike than it may seem on the surface.

The…


In no particular order, with links to their twitter handles

This list is mostly based on my experiences on Twitter, so people who are more active on other platforms may be underrepresented or absent. I have no doubt that this list is non-exhaustive, as I have a lot more to learn about the platform. It’s fair to consider this a list of sources I rely on for my research.


Source: cryptowat.ch

When it passed a market cap of $1.5 billion, both in March and in May, Ethereum became the highest valued non-bitcoin cryptocurrency ever.

The enigmatic project is no doubt the altcoin that has the most Bitcoin enthusiasts confused—or even rattled. People are wondering whether Ethereum could be Bitcoin 2.0, like Facebook versus Myspace, or VHS to Bitcoin’s Betamax.

Others have stated that Ethereum is carving out its own space entirely, calling it the oil to Bitcoin’s gold.

I don’t share either opinion. …


My Twitter profile has 12,600 followers, which isn’t that much by celebrity standards, but I’m excited about it for these reasons:

  • I get to learn from a sizable crowd of people from all walks of life who share my interest in Bitcoin, investing, and new technological frontiers.
  • The growth has been entirely organic, supplemented by a few articles, conference presentations, and the occasional interview.
  • My followers are pretty successful! At least by financial standards: their minimum combined net worth is $3.9 billion (more about that later).
  • And they talk back: with a daily 122 retweets and 38 replies, my ‘engagement…

Tuur Demeester

Economist & investor. Mainly Bitcoin.

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