BITCOIN DIARY: In the same sinking boat with Wang, the chicken farmer
'Nobody wants to be playing catch-up to the Chinese on matters of high (or low?) finance'
There's no disguising it, there's no hiding it, there's no finessing it, Bitcoin and friends are on the slide, the slippery slope, the road to nowhere. See graph below for confirmation of HOW BAD THINGS ARE RIGHT NOW:
A glance at my portfolio (A heady mix of Bitcoin, Etherium and LTC) shows that I am up a mere 10% and the chances are that this may evaporate if the slide continues. (See Dutch Tulip Market Bubble of 1636)
This is all to do with China, which has basically shut down crypto trading by banning ICOs (Initial Coin Offerings) and turned on the Bitcoin exchanges, which are falling one by one.
The effect of this is to make the rest of the world wonder if it isn't perhaps missing a trick. Nobody wants to be playing catch-up to the Chinese on matters of high (or low?) finance.
The South China Morning Post reported it thus:
Cryptos, a form of virtual currency created using computer cryptography, have been under China’s regulatory scrutiny since the start of 2017, due to its explosive growth that’s raised concerns that a meltdown of the unregulated market could spill over to financial losses. The ruling Communist Party, scheduled to pick its line-up of leaders for the next five years on October 18, is anxious to maintain social and financial stability ahead of its election.
Instructed by his editor to bring real people into the story (this is called human interest in the news business), the writer turned to "a chicken farmer who would only give his surname Wang", who bought 8 million yuan (US$1.2 million) worth of crypto currency. (Aside: Obviously chicken farming in China is on the up, how do I invest?)
Well, Wang found he'd lost no less than 5 million of his 8 million yuan after the party intervened to stop the party.
But hark! Is that light at the end of the tunnel?
The Post also reported:
The gloom on the mainland may be a boon for Hong Kong, driving the founders of many cryptocurrency projects to the city, said Aurélien Menant, founder and chief executive of Gatecoin, a cryptocurrency and blockchain token exchange in the city.
See? The free market! Hayek was right - You can't stop the flow of dodgy currencies with no real fundamentals when there's money to be made! It finds a way! You suppress it here, it pops up there!
You have no idea who Hayek is, do you? Watch this:
So we're counting on Hong Kong and the under-regulated financial world outside China to ignore the slight problems with crypto so it can rise again. This is, admittedly, a fall-back strategy, but at least it's something. Anything.
Meanwhile, here's a graph which shows you that there may have been a little ICO bubble going on as the hucksters, con-men/women and opportunists climbed on the crypto bandwagon:
And here's a list of the ICOs in just one week:
Token Sale (ICO) Calendar
Berith - Membership and loyalty program systemBitindia - Digital currency wallet and exchange for IndiaEnigma Catalyst - Algorithmic trading and asset management application for cryptocurrenciesGamecoin - Platform allowing videogame players to earn moneyRoin - Cryptocurrency for rocks and geologists' ecosystemScience Blockchain (Presale) - Blockchain startup incubatorSpotree - Security platformWeigrate - Decentralized currency designed for users who value privacy and purpose
Anryze - AI powered voice call tracking/transcription and storage networkBitjob - Marketplace for student jobsBlackmoon Crypto - Investment fundCindicator - Trading analytics platformDomRaider - Domainname sale and auction platformKin - Currency for the Kik application and ecosystemRobot Vera - AI robot-recruiterStreamr - Data management and data marketplace
Cobinhood - Cryptocurrency exchange with zero trading feesEventchain - Event ticketing platform and marketplaceMatryx - Database, marketplace, & community for 3D digital assetsTokenStars - Funding talented athletes in exchange for a cut of their future earnings
CamOnRoad - Decentralized real-time video logging applicationElectroneum - Cryptocurrency ecosystem focused on mobile usageHerocoin - eSports betting platformPrivatix - Internet bandwith marketplaceTokenlab - ICO creation and management platform
Abab dao - Marketplace for short-stay apartment rentalsAcuitty - B2B Services exchange platformAmberPort - Investment in a chain of jewelry stores in Duty Free zonesAmbrosus - Trusted Quality of Food and Medicine - Ecosystem to assure the quality, safety & origins of productsBitclave - Decentralized search engineDLS Academy - Online education and learning platform & marketplaceGenesis Vision - Trust management platformGLX - Capital markets & financial news platformGraft - Payment processing platformHedgetoken - Cryptocurrency index investing platformIMMLA - Transportation & freight platformKexCoin - Investment in student housing real estateKyber Network - Decentralized cryptocurrency exchangeOceanus - Platform for the international shipping industryOren - Game development platformParagon - Banking and payment system for the cannabis industryQaazqaaz - Advertising marketplace for bloggersRega - Crowdsurance: decentralized insurance platformreOrder - Payment terminals for restaurants and retail shopsRich Coin - Ultra deflationary coin with continuous initial coin offerings (ICOs)Seratio - Platform that enables beneficiaries to keep track of the value and impact they makeStartMining - Investment in cryptocurrency mining farms in RussiaUshba - Cryptocurrency trading exchangeValue Coin - Investment in a value investing fundVR Coin - Competition for VR games
AxionV - AI driven cryptocurrency fundChange - Cryptocurrency bankCryptum - Board game production companyGimli - Broadcasting & livestreaming platform for eSports and gamesStarmine - Platform to manage and generate Machine Learning datasets
Ethbet - Decentralized dice gameStoriqa - Platform to create ecommerce websites
Okay, so maybe China has a point ... But I'm still counting on a Hong Kong bounce.