| June 10, 2019 | View in browser |
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Today's top reads
- ZuckCoin in numbers
- Financial leads, Media takes last
- Mining moves west
- Don't worry, it's clean
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Market update
| COIN | PRICE | 7-DAY |
| BTC | $7,940.61 | - 6.84% |
| ETH | $242.66 | - 7.60% |
| XRP | $0.397 | - 10.50% |
| LTC | $125.98 | + 11.71% |
| BCH | $391.21 | - 8.39% |
1. ZuckCoin in numbers
Zuckerberg's debut in crypto is coming. Specifically, on June 18th when the cryptocurrency's long-awaited (and rumored) whitepaper is expected to be released.
If you've been paying attention, you probably know all the rumors, but if not, here's what you need to know about Facebook's crypto in a nutshell:
- It's called Libra. According to Reuters, Facebook has registered a fintech firm in Switzerland under the name Libra Networks.
- It's a stablecoin. Allegedly, the crypto will smooth out price fluctuations by being collaterized by a $1 billion basket of "multiple international fiat currencies and low-risk securities."
- It takes $10 million to run a node. To decentralize the effort, Facebook is reportedly offering companies the ability to run a node in exchange for $10 million.
But even though everyone is talking about Facebook's upcoming innovation, it's actually part of a larger trend of messaging platforms jumping into peer-to-peer payments. The only difference? Facebook's attempt will be the biggest splash yet.
Monthly Active Users for Messaging Apps with Integrated Payments (in millions)
Facebook-owned platforms are blue.
It's not just Facebook's massive userbase though. No, what makes this new product so special is that it's utilizing blockchain technology - something only Telegram and Kik have attempted so far (and in a very rocky fashion).
So what? We know that. Well, it means Zuck's new cryptocurrency could actually crack up to be one of bitcoin's most serious competitors to date.
Think about it, it's already got a massive on-boarding platform, like 2.9 billion users massive, and is tackling the volatility issue head-on that bitcoin has suffered from as a global currency for years.
The bottom line: We've got one more week of speculation until Facebook's crypto debut but the rumors speak volumes: It's going to be something big.
2. Financial leads, Media takes last
We're almost halfway through 2019 and the crypto market has been filled with green so far (fingers crossed) after bitcoin's revival seemingly lifted the market into hopeful times once again.
However, although the entire market has gone along for the ride with the industry's market cap crossing $200 billion for the first time since November of last year, each sector has performed a tad differently.
Here's the performance breakdown by sector using Messari's asset classifications:
| Sector | Performance (YTD) | |
| Financial | 73.82% | |
| Services | 72.75% | |
| Infrastructure | 66.50% | |
| Currencies | 57.91% | |
| Media | 43.09% |
Notably, bitcoin's sector, "Currencies", actually sat in the middle of the pack despite having a strong 107.1% gain from the world's first cryptocurrency this year.
Lagging behind, "Media and Entertainment" cryptocurrencies, such as Basic Attention Token (BAT) and Decentraland (MANA), have recorded the lowest gains with a sector average of 43.09%.
But still, despite the differences, each sector has recorded gains - a luxury no investor can complain about.
3. Mining moves west
Bitcoin mining is on the move. According to a report from CryptoSlate, Squire Mining (SQRMF), a publicly traded mining firm, has signed a letter of intent to host 41,000 bitcoin mining rigs in the United States.
It's a big win. For years now, bitcoin mining has been fairly centralized in China. In October, Princeton researchers reported that over 74% of the network's hash rate was located in the country - with a staggering amount of miners located in just one province: Guangdong.
So what's behind the move? Allegedly, there are three reasons for the latest migration:
- China's possible crypto mining ban.
- The consequences of an ongoing U.S.-China trade war.
- The Chinese government's strict stance on crypto.
All in all, the move to areas outside of China is seen as a positive. The more decentralized the mining, the more decentralized the network.
4. Don't worry, it's clean
Miners love renewable energy. According to research from crypto firm CoinShares, 74.1% of the industry is now using renewable sources of energy to mine bitcoin.
Though that number is down from their 77.8% estimate seen last November, it's still a substantial amount. The 3% difference actually stems from an influx of mining in Iran - a region that relies heavily on petrol-gas to power their plants.
Now, the bitcoin community is firing back at the environmentalists who claim the network is "boiling the oceans."
Bitcoin advocate and founding partner of Adamant Capital Tuur Demeester tweeted:
The cheapest household electricity in the US is Louisiana with 9.37¢ / kWh. Most Bitcoin miners pay less than half! Illustrates how Bitcoin mining is about electricity at the margin in the middle of nowhere, not about stealing capacity from urban centers or boiling the oceans.
In the end: Bitcoin mining is an extremely intensive process that uses a lot of electricity, but with renewable energy estimates like these, it might be one of the most environmentally-friendly, large-scale industries in the world.
5. You should also know
6. 62% on Crypto Twitter
From last week's poll, 62% of respondents answered that they are active on Crypto Twitter.
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