Since the beginning of the year, the first cryptocurrency has risen in price by 36.5%. At the same time, quotes of the largest banks lost in value, according to Ryan Selkis, founder of Messari. So, JP Morgan securities lost 37.2%, Bank of America shares fell by 38.4%, while Citi fell by 47.4%. Wells Fargo quotes showed the greatest drawdown, having decreased by 55.3%. Today, the average market price of bitcoin is $9,780, the cryptocurrency has strengthened by 1.87% in 24 hours. Since mid-March, BTC has risen in price by more than 2.5 times.
US Authorities Arrest Alleged SIM Swappers After Crypto Thefts
The FBI arrested two Massachusetts residents Thursday on charges of attempting to steal cryptocurrency and hijack social media accounts from individuals by “SIM swapping” their phones. According to a press release, the U.S. Department of Justice has charged Eric Meiggs, 21 and Declan Harrington, 20, on counts of conspiracy, wire fraud, computer fraud, abuse and identity theft for allegedly targeting cryptocurrency company executives and other individuals “who likely had significant amounts of cryptocurrency,” as well as those “who had high value or ‘OG’ (slang for ‘Original Gangster’) social media account names.” The two allegedly sought to steal more than $550,000 in cryptocurrency from 10 different individuals, and apparently secured access to two social media accounts. The victims were not identified, though the indictment briefly described several of their connections to the crypto space. One victim owned a bitcoin teller machine, while another ran a “blockchain-based business.” A number of individuals in the cryptocurrency space have fallen victim to SIM swapping, when attackers pose as the owners of a cell phone number, convincing cellular service providers to give them access to the victims’ accounts. By taking control of a cell phone number, attackers are able to log into social media and sometimes crypto exchange accounts, giving them access to users’ holdings and digital presence. Messari’s Ryan Selkis, Coin Center’s Neeraj Agrawal and VideoCoin’s Seth Shapiro have all reported facing such issues in recent weeks. Michael Terpin, a prominent investor in the crypto space, has filed lawsuits after being SIM swapped, taking on both his mobile provider AT&T and the alleged perpetrator. While his case against AT&T is ongoing, he won $75 million in a case against Manhattan resident Nicholas Truglia, 21. Similarly, Seattle-based Gregg Bennett is suing Bittrex, claiming the exchange failed to act in time to protect against a SIM swap targeting the angel investor. https://www.coindesk.com/us-authorities-arrest-alleged-sim-swappers-after-crypto-thefts
Disclaimer: Every Coin I mention in the below I own and have owned for awhile With that out of the way, the point of this post isn't too shill any specific coin, but use real world examples to illustrate why I think a lot of the ideas and metrics thrown around here (and the Crypto Community in general) aren't using the proper frameworks to evaluate these coins as investment opportunities. First, STOP USING MARKET CAP. Seriously, it could not be a worse metric for the assets we are comparing. Market Cap is used to find the EQUITY VALUE of an entity or corporation. It is NOT the total value of an asset. These currencies are, in and of themselves, the total value. So saying that Bitcoin is more valuable than xyz company is not correct. Bitcoin is not a company and it has no equity value or cash flows. A more relevant comparison is the M3 Money Supply, which essentially includes all very liquid fiat denominated assets (and fiats themselves). If you take that view of CryptoCurrencies, they are dwarfed by other Currencies (US has an M3 of 13.7 trillion). You could also use comparisons to other hard assets, like Gold, which has a total value currently of ~$8 trillion. However, On top of that, it fundamentally misunderstands what CryptoCurrencies are. Despite the name, MOST CRYPTO CURRENCIES, TODAY, ARE NOT ACTUAL CURRENCIES and only a few of them even want to be. And because each Crypto represents a different addressable market, you can't use marketcap to compare them to each other, either. Ryan Selkis had a tweet yesterday about Ripple being the a top 30 currency worldwide, which, of course, clearly misunderstands what tokens like Ripple, Stellar, IOTA, BAT, etc etc actually represent. Ripple's value isn't as a currency as you an I look at it, it's as a piece of technology to be used within a product. Same with the others. XRP is meant to be the settling mechanism within an electronic transfer mechanism. Currently, SWIFT transfers almost $1.25 Quadrillion dollars worth of transactions a year. XRP is meant to be that settling mechanism, which means that comparing it to other currencies as a valuation mechanism is incorrect, because that's not how it's being used. It's being used as a token to settle those $1.25 quadrillion in transactions. Yes, I know there hasn't been widespread adoption of the XRP token, but this is illustrative. That brings my to my next point Ryan Selkis also had a medium article yesterday that said "all utility tokens are going to zero", which struck me as particularly narrow minded. The fact that utility tokens are just means of settling a transaction and are then often immediately turned into FIAT doesn't make them worthless, that's a fundamental misunderstanding of economics. First, you have to assume that there is a perfect equilibrium of supply and demand. Which as you see in a case like XRP above, wouldn't be the case. So XRP would, based on simple supply and demand, have a value because demand exceeds supply (same is true for the others). Secondly, the point becomes that even more mute if you take into account things like XRP (same for stellar) saving more on a transaction over that of a non-XRP currency designed by a third party, you see that the value is at least the difference in transacting fees. So even at a base level, if you believe XRP will be adopted by banks (i'm not saying one way or the other, but I do believe SWIFT is for sure on the way out), then it has inherent value as well as value based on simple supply and demand. Which brings me to my final point, given these points, how should we view the investing landscape. It is not fair to call it "speculation", that people might invest in Lumens, XRP, IOTA, ADA, etc based on their potential and not their current working products. Why is that? Because ICOs are, for the most part, just seed and angel investing funding rounds. No one here is calling out Andreessen Horowitz for "speculating" despite the fact that many of their portfolio companies don't have sales or working products. They use different metrics to evaluate prospects. What does the underlying tech (coin) look like? What is the addressable market for that tech (coin)? What does the road map look for adoption? How experienced and good is the team? Those are the types of questions I have asked myself as an angel investor in the past. And they are the types of questions I ask myself as a Crypto investor now. It's not about market cap or currency comparisons, it's much more nuanced than that. Again, that's just my two cents as someone who's worked around tech investing and investment banking, so feel free to rip me apart.
Selkis recently tweeted that Bitcoin’s growth amid the impending dollar crash is infinite. He added that the future value of the number one cryptocurrency will not be measured in thousands or millions as the value continues to increase with no limits. Selkis argues that no fiat currency has ever survived debasement and the U.S Dollar may be facing the same fate soon. The president of the ... Spencer Noon, the head of crypto-native investment fund DTC Capital, says that the total amount of Bitcoin (BTC) held on Ethereum’s blockchain will increase 20x by the close of 2021. Noon revealed his forecast on Twitter, telling his followers to expect the total value of BTC locked in decentralized finance (DeFi) protocols to keep climbing. By Ryan Selkis. Updated May 20, 2020 . The Rise of Bitcoin ... The value of bitcoin is always changing, based on the demand for the cryptocurrency as well as the public perception of how much the ... Security is an important aspect of every crypto-asset and Bitcoin [BTC] is often dragged into debates on whether the blockchain is protected from hacks or vulnerable to certain technological developments. In a recent episode of whatbitcoindid, Andrew Poelstra, the Lead Researcher at Blockstream, was asked about whether Quantum Computing was… He believes however that the value of bitcoin in the nearest future isn’t measured in the thousands or millions. Responding to CEO Ryan Selkis, co-founder of EOS and CEO of Block.one, Brendan Blumer, is of the opinion that BTC is on a pathway toward $250,000 irrespective of what happens in the traditional markets. He believes that time is a determinant factor towards achieving this. “BTC ...
Why a Strong Dollar Benefits Bitcoin Messari CEO Ryan Selkis Explains
What will happen to the price of Bitcoin with the Bitcoin Halving coming up? Ryan Selkis, CEO of Messari shares his thoughts with BlockFi's CEO Zac Prince. L... 1-Messari Crypto CEO Ryan Selkis predicts possible growth in the price of Cardano (ADA) after Shelley’s launch. 2-Google Searches for Chainlink Hits High as Link Token Rallies 3-Third Crypto Co ... Messari co-founder and CEO Ryan Selkis explains the aftermath of the halving, where crypto fits into the macroeconomic structure, and why the stock market is rising despite a faltering economy ... 🔴Larry Page Live: Blockchain technology, Future of Crypto, Bitcoin BTC Halving 2020 Larry Page 45,405 watching Live now Ari Paul Talks Blockchain, Investing, And Regulation - Duration: 1:36:27. Subscribe to Hidden Forces here: http://www.hiddenforces.io In Episode 55 of Hidden Forces, Demetri Kofinas speaks with Ryan Selkis about how his company, Me...