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    Market commentary, 07.06.2021

    By on Market Review

    Recurring market commentary on what's happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.

    Market commentary

    Good Morning!

    Bitcoin Conference Miami 2021: My Takeaways

    First off, I was not there in person. I was only able to observe the conference digitally. However, I do think I managed to see more content than many visitors who attended physically. Let’s start off by looking at the range of content quality.

    Top end:

    Absolute bottom:

    On social media platforms, it was very easy to find the crap content. So, it is pretty hard to determine which side has the upper hand. My personal opinion is that future conferences need to be better structured to address the different topics. If cryptocurrencies want to play a bigger role (and for that there needs to be mass adoption), the space needs to grow up. None of these projects will simply take over the world. And in case the topic is to just “have some fun” then please mention it in advance…

    My personal favourite topics would be:

    • Building the ecosystem
    • Regulatory hurdles (building bridges – links to the first topic)
    • Trading venues
    • Fast forward (20 years)

    During all the dancing and drinking some pretty interesting news came out, which I think was overlooked, or, at least, did not find a great deal of engagement.

    El Salvador plans to make bitcoin a legal tender

    As a headline, this is big news. But when you discuss it with people who have some legal knowledge, and you think about how they are trying to implement it, then the headline shrinks dramatically. First, it is about the network effect. If El Salvador (a relativey small country) decides (the bill has to first be passed by the Senate) to use bitcoin as a legal tender, it only has only a local effect (not a network effect). You can find more details here:

    But maybe it will start a movement, and other countries will follow suit. And this could put some pressure on the “old legal structure” (I am referring to the U.C.C. in the above tweet), and bitcoin might be ready to be recognised as a legal tender. In terms of the technical implementation (which, in my view is where the leaders of El Salvador are going horribly wrong), it is the following:

    El Salvador citizens are basically handing over their hard earned money to a government-run company. They are in control of your wallets. This is a very sensitive topic and has to be thought through very well (in the same way that all CBDC design questions need to be thought through).

    Gcash: a wide spread payment app in the Philippines

    They are considering integrating bitcoin into their payment rails. This headline has far more weight for me. It is a smaller step, but has a huge network effect. Let’s see what happens when they switch from “considering” to “we will” implement it.

    China further tightens regulations for miners

    I mentioned it in a previous market commentary; news on further regulatory tightening will trickle in over the next few weeks/months.

    After the latest statement, miners are trying even more fiercely to relocate their farms outside of China. But again, I do not see this as a negative development for bitcoin. In the long run, it will help in overcoming certain regulatory hurdles, and it will help make the ecosystem more sustainable.

    As always, we at the trading desk are happy to take your orders and also to take on your questions and discuss market topics.

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    This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment  advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.

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    About the author

    Patrick Heusser is Head of Trading at Crypto Broker AG. Prior to joining the company, Patrick worked as an Interest Rate Trader at UBS and held various positions in the IRCC (interest rate, commodity and foreign exchange trading) in London, New York, Singapore and Zurich. Patrick is an expert in trading and risk management. He also gained experience in other areas, such as building start-up companies. Patrick has a degree in banking from a business school. He has also taken various courses in technical chart analysis.

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