Bitcoin HoneyBadger, Ethereum gets smoked by some pussycats
Abstract
With the Financial mainstream lining up to get a piece of the Bitcoin pie, the value of Bitcoin only going to go through the roof at least in the short term. When Billions of capital is going to be pumped into Bitcoin it is understandable that apart from euphoria there will be genuine concern. But still Bitcoin like a Honey Badger still goes like an ace.
On the other hand there can be no worse narrative than Ethereum network clogging with transactions where people have spent stupid amount of ETH to buy virtual kittens. And somehow I feel the root of the cause is its founder Vitalik’s love for Kitten T-Shirts.
What pumped Bitcoin
The below news have been the key news that have helped pumped Bitcoin price to new high and seems it will take some more time before it comes down but again how much is anybody’s guess.
And then the below embrace from JP Morgan to support Bitcoin as new Gold pretty much only helped to pump the market even more.
What Futures Trading mean for Bitcoin……….
A futures contract is a technique to hedge positions and reduce the risk of the unknown. It is also used for arbitrating between current spot and future contracts.
While futures can be used to effectively hedge other investment positions, they can also be used for speculation. Doing so carries the potential for large rewards due to leverage but also carries commensurately outsized risks. Before beginning to trade futures, one should not only prepare as much as possible, but also make absolutely certain that you are able and willing to accept any financial losses you might incur.
Both CME and CBOE will offer cash-settled contracts that will find investors buying exposure to different reference rates that will not require custody of the asset. CME will use a custom reference rate created with partner Crypto Facilities, while CBOE intends to use data from the New York-based cryptocurrency exchange Gemini.
However, CFTC was quick to caution against the idea that the products would be regulated under its full oversight, noting its “limited statutory ability” to oversee the underlying cash markets for bitcoin trading.
Many are optimistic of this news. Some believe that if it leads to price stability, which I anticipate it will, the mainstream business are more likely to accept it. Which would lead it to be more likely to be accepted as a global currency.Plus just having it listed in the exchange gives it a lot more credibility.
However, the planned launch in the next 10 days of futures contracts by the Chicago exchanges CME Group and CBOE Global Markets, given a green light from the Commodity Futures Trading Commission last week, has prompted a backlash among the major brokers who backstop trading across the industry.
Futures brokers are worried they will bear the brunt of the risk associated with bitcoin futures, because the margin that backstops the contract is placed in a clearing house.
In the log run its only time will tell if Bitcoin is affect or CBOE & CME get rekt.
What CryptoKittes did to Ethereum…….
CryptoKitties isn’t an entirely new genre. Built by San Francisco-based studio AxiomZen, the game lets you purchase and trade digital kitties; once you start, you can also breed them to create new ones. Each kitty has a series of visual characteristics called traits, and these traits are typically passed onto their offspring. Some of these traits are rarer than others, and right now everyone is trying to figure out the game’s algorithm on how to breed cats with specific, rare traits.
By now people have spent more than $2 million worth of Eth on virtual kittens by Sunday night.
The rare specimens of these CryptoKitties have quickly risen in price; a “generation 0” cat with a “jaguar” trait currently goes for around 70 ETH ($23,676). And on Saturday, a unique cat called the “genesis cat” was sold for 246.9 ETH, or roughly $117,000.
Paying for digital goods has been around for a while, the only difference here being that the prices have turned from somewhat expensive to outrageous in a matter of days.
But that is not all ,The above post clearly highlights the risk of developing a decentralized app fully on Ethereum right now and its scalability woes. Etherscan has reported a sixfold increase in pending transactions on Ethereum since the game’s release. Some people are concerned that a frivolous game is now going to be crowding out more serious, significant-seeming business uses.
CryptoKitties is now so popular that it accounts for about 15% of all Ethereum network traffic, according to TechCrunch. That’s more than the roughly 8% taken up by the next most popular smart contract on the network: a decentralized coin exchange called EtherDelta.
Hence once can conclude, Etehreum has a long way to go to become the network of choice for Decentralized apps.
Final Thoughts
Its not that I am vilifying one platform and glorifying the other, but surely I am highlighting why one platform has mooned because it has worked hard on getting its core capability right and that is Bitcoin — To become the Backbone of the world financial system.
And for Ethereum to be the backbone of the Decentralized web it has to do lot of work.
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