(26-Oct-20) This Week in Crypto:
Institutional Hype, Token Economics, and Bitcoin Bulls.
- PayPal has announced that it has will launch a new service enabling users to buy, hold and sell a limited selection of cryptocurrencies directly within its digital wallet. It’ll couple this with the ability to use the funds as a source for purchases at its 26 million merchants. While the news is bullish for the cryptocurrency market, the payment company will not allow users to transfer their cryptocurrencies to other wallets. As has become the norm with crypto custodial services, some say this is anti-crypto in the sense that it prohibits the promise of a ‘decentralised financial network’ while others say hey, ‘all publicity is good publicity’.
- Last week we covered the launch of decentralised storage network Filecoin. This week everyone and their mother seem to be complaining about Filecoin and its token economics. The problem can be summarised insofar that $FIL miners need to purchase specialised and expensive (>$30k) hardware to be part of the network and those that are needed to purchase $FIL (which isn’t cheap) to stake as collateral on the network. So despite an otherwise interesting value proposition, it is hard to justify the risk of investing to become a miner on the network. For this reason, miners have begun “striking” in the hopes that the Filecoin team adjust their token economics and begin incentivising mining on the network once again. Filecoin creator Juan Benet commented that the allegations of “striking” are “nonsense”.
- And finally, perhaps amid the PayPal news, Bitcoin had it’s largest one week rise since April this year. The crypto asset broke through $12k and is currently sitting just north of $13k. Institutional interest in crypto is once again making some bullish, let’s see if this will be sustained as we get right into Q4 2020.
This Week’s Top Crypto Conversations:
Forbes on why PayPal’s adoption of Bitcoin may be good for crypto:
@NicoDeva_ on why Filecoin miners are striking:
24M+ of Harvest Finance was exploited:
We’re holding our Community Call #2 tomorrow: