In the inaugural episode of The Satoshi&Co Podcast, we host Thomas Pacchia of HODL Capital. We discuss Thomas’ background and his journey from law to crypto. Thomas talks about his favourite crypto projects, especially Bitcoin and the lightning network. We also talk about privacy coins and their importance and the crypto ecosystem in Asia. The summary of the podcast can be found below. We also recommend that you listen to our entire recording here.
How are Institutional Investors Looking at Bitcoin Now versus Two Years Ago. The 2017 ICO bubble showed us that the market was looking for the next Bitcoin or a better Bitcoin. This enabled scamsters to leverage the FOMO that was being generated among retail investors and make fortunes for themselves. Institutional investors were reluctant to invest in that bubble and the reluctance increased post the ICO bubble crash. Family offices now are looking at the market closely and they are seeing extreme volatility, low liquidity and a paucity of quality market access options for buying cryptocurrencies. Investors are looking more at the price charts and less at underlying adoption curves, which actually paint a positive outlooks for the future of Bitcoin.
Funding Status of Bitcoin Core Development. The Bitcoin ecosystem is a victim of the free rider problem. The biggest users and beneficiaries of Bitcoin such as miners, exchanges, crypto funds, and merchants are not contributing anywhere close to what they should be because Bitcoin can be used free of cost. This could justify including a Founder’s reward in the protocol to maintain the system and fund future development.
Lightning Network. We are still in the early days of Lightning Network, both in terms of technology and its adoption. It’s growing at breakneck pace; more people are starting to open more nodes and the initial use cases look very promising and provide the initial proof of concept for Lightning.
As we are witnessing the green shoots of a turn around in market sentiment, we wanted to present our readers with some market-related commentary over what we can expect from here onwards. The general consensus is that we are finally getting out of the crypto winter and the cumulative effect of all the positive announcements and news has not been fully captured yet. Binance research recently provided a neat summary of all the positive news flow, which includes growing institutional interest and more supportive regulatory updates.
The recent rally in prices was predominantly driven by Chinese investors in response to the devaluation of the Chinese renminbi. To counteract the metered and predetermined supply inflation of cryptocurrencies, there has to be a sustained inflow of new money into space, with estimates pegging that value at almost $3.3 Billion dollars for Bitcoin. Short pullbacks can be expected in the short term, but the overall trajectory looks upwards and the current prices look favorable for accumulation. Check out our recent post on various technical analysis perspectives
The IEO Phenomenon’s Impact on Markets and Token Models by Derek Hsue
The Economics of The Lightning Network featuring Nic Carter and Pierre Rochard