E Crypto: Hodl

The performance of Bitcoin over the last week was another yawning event. The lack of volume, interest and volatility continues to be the headline event. The US vote gives some hope with the pro-crypto politicians from Colorado and California elected. The bounce back in the global tech sector adds some fundamental relief as well.  If you believe owning ETH or BTC is a call option on future technology then you should care about the present technology share price. The grinding bid tone to the week matters but perhaps not enough to spur action. Many look at 2018 as a lost cause for crypto – an annus horribilis – where 2019 can’t get here fast enough. Out of the pain of the January, collapse has come many positive steps towards institutionalization.  The global crypto markets are growing up. The latest BitMEX research is the focus of the week for me. There is a lot in the report but here are the things that stand out. 

  • Total spot volumes make up less than three-quarters of the total market volume.
  • Visitors to an exchange and business aren’t the same thing - exchanges like Coinbase, Bittrex, and Cex.io appear to have more visitors per day than other exchanges that have similar volumes.
  • Cold wallets are used by only one-third of top exchanges, while 11% of top 100 have fallen victims to hacking attacks. 
  • Less than half of top exchanges have strict KYC requirements, and over one-quarter of them have no such requirements at all.

The need for more regulatory clarity seems obvious in the list of findings. The need for better data – from coin lending rates to margins to the bid/ask spread – all seem necessary for building up the trust in the market. The dependence of the market on fiat currency makes clear the risks of USD strength as a negative to the viability of the asset class. 

What Happened Last Week?

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Alexis Renault 1 month ago Member's comment

What is a "Hodl?"

Jesse L. Peterson 1 month ago Member's comment

It is an acronym for "Hold On For Dear Life." Meaning you should hold onto the cryptocurrency rather than selling it.

Currency Trader 1 month ago Member's comment

Actually it is a "BACKRONYM." Funny story - it originated with some drunk guy's post on a bitcoin forum back in 2013, where he simply mispelled "hold" as hodl. The term has stuck ever since.

Howie Sandberg 1 month ago Member's comment

No way, that has to be an urban legend. Too funny if true though.

Currency Trader 1 month ago Member's comment

Oh it is true alright. Google it. Or just check out this link:

https://www.investopedia.com/terms/h/hodl.asp