If It Bleeds, We Can Kill It
The famous words of Arnie, applicable to Predator but not blockchain technology, although today could have us convinced otherwise. The markets took a dive, especially altcoins. Some of the heaviest affected were NEO, ETH, ADA, IOTA and TRX. The BTC market cap was stomped on too but less severely. There is a lack of faith in the current prospects of the altcoin market, money has moved into BTC and then some money has moved from BTC into fiat.
Typical behaviour of the cryptocurrency market, and as the days go by we seem to be mirroring the great crypto depression that began in 2014 and ended in 2017, you have to ask yourself, can you hang on that long? If you have answered yes, then good for you, if you have answered no, then good thing you are a CIM reader as our market shorts earn us returns during times like these.
So will this be the death of crypto? Hell no, the markets bleed but the decentralised nature of blockchain makes it immortal. This brings us onto an interesting topic that has garnered a lot of press time lately – centralised vs. decentralised exchanges.
All the pundits have come out of the wood work to give us their two cents about the direction of cryptocurrency exchanges.
Creator of Ethereum, Vitalik Buterin had this to say: “I definitely personally hope centralized exchanges burn in hell as much as possible. In practice, particularly on the fiat to crypto side, it is very difficult to decentralize because you ultimately are interfacing with the fiat world, and the fiat world is one that only has basically centralized gateways…There are valuable services being provided there that are very hard to decentralize.”
Other commentators such as John Mcafee have also predicted that decentralised exchanges will replace their centralised predecessors. The decentralised essence of DEX’s exchanges is what has immortalised blockchain technology, so it is safe to assume the new method of exchange will have longevity.
Founder of Binance, CZ has thrown his hat in the ring, announcing the launch of a Binance DEX earlier this year. A true crypto visionary, CZ has created the most seamless centralised trading experience in crypto markets today; he has now branched out, creating Binance Chain – the Binance DEX. When asked if he thinks the Binance Chain will replace Binance as we know it, he said that although he knows DEX’s will be the future of cryptocurrency exchanges, there will be a coexistence of Binance and Binance Chain for the medium-term foreseeable future.
Earlier this week CZ demoed the new Binance Chain DEX, 2 months ahead of schedule. DEX technology is in its infancy, plagued with scaling issues. Binance has the most efficient matching engine out of any cryptocurrency exchange out there and if this performance can be replicated on Binance Chain it will be an absolute game changer.
The advantages of a decentralised exchange experience are the advantages of blockchain technology at its core – faster, cheaper and safer than the centralised alternatives. The markets are bleeding now but the fundamentals are still progressing. We are in this game to make money so right now our strategy is to short any sign of strength and enter the occasional long when the conditions are right. However this does not detract from our long-term bullish expectations from these markets. We are disciplined patient traders out to capitalise on the poor decisions of those on the other sides of our trades.
Stay tuned for our commentary on the next market moves and fundamental progress. Our community coin Twitter poll still has 18 hours left, vote here –