What did we learn from the first quarter sell-off?

Leo Zhang

By Leo Zhang

A research report from Chainalysis shed light on the spectacular sell-off since the beginning of the year. The report analyzes the behaviors of four profiles: speculators, services, investors, and lost Bitcoin. An interesting stats is how illiquid the asset actually is. According to Chainalysis, "Between 2.3 and 3.7 million bitcoin are lost, reducing market capitalisation by between 13% and 22%. Market capitalisation could be reduced by a further 35% if illiquid investor holdings are removed from the cap." How will the liquidity structure of this market evolve over time? Will the catalyst for change be technological (such as the growth of Lightning Network) or the result of adoption and (attempted) regulation?

Bitcoin's $30 billion sell-off: insights from crypto money supply analysis
(Chainanlysis)

Technical & Updates

Blockchain's once-feared 51% attack is now becoming regular
(CoinDesk, by Alyssa Hertig)

"Through three successful attacks of Zencash (a lesser-known cryptocurrency that's a fork of a fork of privacy-minded Zcash), the attacker was able to run off with about more than 21,000 zen (the zencash token) worth well over $500,000 at the time of writing."

Introduction to Decred
(Smith+Crown)

"In addition to validating blocks of transactions, ticket holders can vote on-chain for proposed network changes. These changes are first considered through informal community discussions, then published as Decred Change Proposals (DCPs). All DCPs include clear documentation and motivation for the change, as well as code for a working and tested implementation."

Noded 0.16.0 with Johnny Dilley

Bitcoin Q&A: "blockchain, not Bitcoin"

Zcash engineering weekly update

"This team focuses on the Zcash consensus protocol current and future upgrades which include R&D, specification and interfacing with the ZIP process"

Discussion thread on the reason (or lack of) to print new EOS for the mainnet launch

Why do we need to print 12000 new EOS to launch MainNet? from r/eos

Some Signal disappearing messages are not disappearing
(Motherboard, by Joseph Cox and Lorenzo Franceschi-Bicchierai)

"According to Moxie Marlinspike, the founder of Open Whisper Systems, the non-profit behind Signal, this problem impacted messages sent within a particular time frame."

News & Commentary

A sit-down with billionaire Bitcoin mining mogul Jihan Wu of Bitmain
(Fortune, by Robert Hackett)

"The cryptocurrency billionaire also addressed some of the controversy and conspiracy theories that have swirled around Bitmain. Below is a partial excerpt of Fortune’s interview lightly edited for brevity and clarity. (Read the rest of the interview here.)"

Bitcoin trading in Venezuela is skyrocketing amid 14,000% inflation
(Quartz, by John Detrixhe)

"Venezuela’s government, struggling to contain its extreme, world-leading inflation rate, is devaluing its currency by removing three zeros from the bolivar. Local citizens may be taking a different approach: As price increases run rampant, bitcoin transactions denominated in the nation’s currency have skyrocketed, according to Localbitcoins data."

Cryptokitties usage down 98.5% since its peak

Commentary on the privacy explanation on Facebook