E Crypto Markets: Observations

Waiting for something to happen in BTC to write about beyond momentum has been hard. The price action today - near $4000 - is encouraging for HODL types. It's a sign of BTC (BITCOMP) returning to alternative money catching up to gold. But there are cracks in the price action. 

The scariest story over the last 3 weeks since I last wrote about cryptocurrency has nothing directly to do with this space but it is tangential and meaningful to the entire zeitgeist of technology changing the world.  

If there is one thing that matters to the blockchain, bitcoin, alternative money, and processed induced trust – it's technology. So when I read that China is tracking nearly 2.6 million people in Xinjiang using AI and facial recognition technology and that the 17,000 Android apps have been collecting information– it becomes clear that technology is amoral and can be dangerous in the hands of the state.  Perhaps this is the reason for hope that the libertarian constructs of the cryptocurrency world matter most in nations where freedom is hardest to find. 

Of course, there is a downside to picking on China in the headline, as the same technology is being used by the police in the UK, US, and EU. Now the effect of ugly cyber technology ruling over us all via an all-powerful state is developing from the science fiction of the Twilight Zone to something more tangible.  Observations matter, and that is the lesson of the week, as markets in crypto land are stuck waiting for reasons to see more money flow – beyond the return of China from its holidays and boosted by the tired hope that the US/China trade war finds a real deal. Or the collapse of Venezuela and the surge in BTC trading there. What matters to this space is money, and the flow of it to pay for the infrastructures built up when BTC was $15,000.  

The point is that BTC is trying to build its own independent set of rules for trust in the global marketplace. This is not a simple process – something that seems obvious in the US but maybe less so in emerging markets.  

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