The week of 15/02 at a glance – News about Bitcoin and crypto-currencies is in constant turmoil. It can happen that crucial information gets lost in the daily news flow and you miss the important points.
This format is here to help. We look back on last week’s news in Crypto Weekly to keep you informed about the current state of cryptomoney.
The unmistakable of the corner
This week’s must-read is Thomas and his series of articles on the main financial bubbles. Through this new opus, Thomas tells us about the 1929 Krach.
The Roaring Twenties, or the financial euphoria of the Roaring Twenties…
It is the mid 1920s and the world is recovering from the trauma of the First World War. The mid to late 1920s was a period of exponential growth in U.S. stock prices. Between 1921 and 1929, the Dow Jones value increased sixfold.
The setbacks of leverage
This growth continued for the first six months following the inauguration of President Herbert Hoover in January 1929. Share prices reached dizzying heights during the great « Hoover bull market ». The public, from industry magnates to taxi drivers, rushed to brokers to invest in stocks. Billions of dollars were withdrawn from banks on Wall Street as collateral for short transactions. The spectacle of the South Sea bubble was back. Individuals were liquidating their A-books and mortgaging their homes to buy stocks.
The concept of margin buying allowed individuals to borrow money from their broker by depositing only 10% of the value of the stock. In short, individuals invested in the stock market with x10 leverage.
Please read the full article to learn more about the pivotal events of this crisis: When the Depression hit the financial markets crazy: the dark days of the unbelievable crash of 1929
News in brief
▶ Nigeria is scrambling over the ban on cryptomoney. Its Central Bank had chosen to ban them, while the Senate is demanding accountability for this decision.
▶ The Tezos blockchain deploys a new update. Thus, the Edo update introduces Sapling, a technology allowing anonymous transfers.
▶ Vitalik Buterin reflects on the first hard fork of Ethereum 2.0. This update would review the penalty system, and would aim at the deployment of thin clients.
▶ Canada is moving into second gear on cryptos. Two Bitcoin ETFs projects have been validated and are expected to enter the Canadian market.
▶ Bitwise is taking on DeFi. The platform specialising in cryptos derivatives has just announced the launch of a DeFi index, covering the top 10 projects in the ecosystem.
▶ New video from Corner Trading: what to do with your investments when Bitcoin has just passed the $50,000 mark?
The 5 metrics of the week
➤ 6 million is the number of 1inch tokens distributed by the protocol during its latest airdrop. A total of 25,000 addresses benefited from this distribution.
➤ $100 billion is the cumulative volume that has passed through Uniswap since its launch. This value has doubled in just 3 months, while Uniswap has recorded a daily volume of more than 1 billion dollars.
➤ 524,288 is the number of ETHs that have been deposited on the Ethereum 2.0 deposit contract. In practice, this represents 2.67% of the total ETH offering… and more than 3 billion dollars, at the current rate.
➤ 560,000 is the number of blocks that have been reorganized on Verge (XVG) after a 51% attack. This attack calls into question all the exchanges made since July 2020.
➤ $354 million is the revenue generated by Bitcoin miners in the last week. This value beats the previous record set in January 2018.
Tweet of the week
This week’s tweet goes out to the completely loco trader, CryptoLoco, with a tip that couldn’t be more topical.
There are times when the best « trade » to do is not to take any trade… 🤔
Have a good week on the Journal du Coin! 🙂