If you’re involved or invested anywhere in the cryptocurrency space, then you know that the Bitcoin halving is the biggest event on everyone’s minds. If you’re someone who invests in cryptocurrency mining companies, then you’re probably busy looking at how your investments stack when competing against other companies, and you should be. The halving is going to produce a seismic shock in the way miners do business, and send ripples through the entire community. This is the only asset class where the entire infrastructure shifts every four years to meet an artificially induced change in supply.
All the focus so far has been on Bitcoin’s price cratering earlier this week due to the coronavirus, and the fates of bitcoin dependent companies. Naturally, as bitcoin goes so do the altcoins, with most of the charts of the decentralized altcoins showing the same stark decline as Bitcoin. They’re nearly identical in shape with only the values changed to reflect the various cap sizes and prices, so there’s no need to post all five.
It takes a certain kind of person to be optimistic about cryptocurrency in the wake of the coronavirus. Bitcoin dropped almost 50% over the weekend and while it’s starting to correct itself, having climbed up a few hundred bucks over the past 24 hours, it’s still not anywhere close to the CAD$10K it was at this time last week.
Hut 8 Mining (HUT.T) went into damage control over the weekend following Bitcoin’s precipitous 46% crash in the wake of the coronavirus, optimizing their mining operations by running its equipment in the most cost-efficient modes possible.
Alternet Systems (ALYI.OTC) entered into a partnership with Interwave, an organization involved in an initial coin offering (ICO) to launch a cryptocurrency dedicated to funding electric mobility projects in Sub Saharan Africa.
Bitcoin is supposed to be a safe-haven currency. When the markets go to shit like they are today, in theory people evacuate their traditional positions and throw their money into digital currencies and other adjacent crypto-related stock, like bitcoin mining or one of the many digital asset companies offering the proximity and benefits of bitcoin without any of the hassle of actually owning any.
The progress for cryptocurrency markets in North America has benefited so far from the lax regulatory environment. It allowed most of the major coins to slip under the radar of the major powers here, with only a handful of exceptions where the United States had to take a closer look. The relationship now that Facebook (FB.Q) has forced the government’s hand is now adversarial, ranging from benign contempt to outright hostility. The European markets are different.