On the Investor’s Field Guide

Recorded last week, out this morning. Hash Power continues w/ my conversation with @prestonjbyrne, the most consistent skeptic in crypto. We cover: -Nakamoto schemes-his overall bear case-stablecoins-regulation of crypto-assets-potential catalysts for a crashhttps://t.co/eFDMM3Mpqq pic.twitter.com/lobsThUswT — Patrick OShaughnessy (@patrick_oshag) January 16, 2018 “Cryptopocalypse.” Quite timely title for it, too: Listen to the whole thing.

Stablecoins are doomed to fail, Part II: MakerDAO’s “DAI” stablecoin is breaking, as predicted

Background This is a follow-up from an earlier post, “Stablecoins are doomed to fail,” from December 10th. I’ll keep this one short. Long have I been a critic of the “stablecoin” concept – the techno-magical idea that a cryptocurrency can tell the market what its price should be, rather than the market determining what a cryptocurrency’s price should be (the usual way these things work). My first encounter with stablecoins was with the Bitshares/BitUSD scheme in 2014. I pilloried it. Following which it fell on its face 100 hours after launch. In October, I moved on to point out how…

Venezuela’s “Petro” cryptocurrency proposal needs improvement

I was supposed to have a nice day today. I finished a final exam and was looking forward to meditating all evening about how nice it is living in America again, and how much I relish American-as-apple-pie customs like pick-up trucks, groundhogs, and bourbon. When suddenly, as I sat at my kitchen table enjoying aforementioned bourbon, this popped into my feed: Venezuela backs national cryptocurrency with 5,000,000,000 barrels of crude https://t.co/8dYWP1fqP7 — RT (@RT_com) December 28, 2017 Mother of God. This reminds me of Estonia’s Estcoin proposal – which I will charitably describe as “preliminary” – published last week. But the Petro…

How high transaction fees threaten cryptocurrency institutions’ solvency

I guess you really can have too much of a good thing, even in Bitcoin: Very interesting analysis by @LaurentMT. @coinbase / @GDAX has a big issue. Because of the fragmentation of their utxo set (tx inputs and outputs) they would have to pay miners more than the actual withdrawal amounts. https://t.co/B94S2MNCSo — WhalePanda (@WhalePanda) December 22, 2017 For example, this entity (https://t.co/wyTt53e0aX) is a wallet controlled by Coinbase. To date, it owns around 203 BTC split in 1,464,545 utxos !With BTC at $15.8k, it means $3.2M with an average utxo value of 2.2$. #DustInTheChain — LaurentMT (@LaurentMT) December 20,…

Estonia’s “Estcoin” is a Nakamoto Scheme

Today we learn that Estonia’s Estcoin is still charging full speed ahead, despite the fact that European Central Bank supremo Mario Draghi more or less shot down the idea back in September: Estonia's planning an ICO for estcoins despite Mario Draghi's warning from @joonian https://t.co/KQcSQxn44z — David G.W. Birch (@dgwbirch) December 19, 2017 From the Estcoin announcement blog post by project lead Kaspar Korjus: Much of the criticism of estcoin was based on the fact that Estonia simply can’t start its own cryptocurrency even if it wanted to. Estonia’s only currency is the euro and this is an essential feature…