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Wesley Messamore

Articles by Wesley Messamore

Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

January 24, 2021

A Fortune magazine story about bitcoin began making the rounds Friday. In it, senior Fortune and Data Sheet writer Aaron Pressman cops to tripling his money in bitcoin– then losing half of it.It’s a cautionary tale alike for prudent long-term investors in cryptocurrency and day traders who are very smart at getting very stupid with money. The endlessly interesting and complicated question: “Where is bitcoin’s price going next?” is no idle curiosity. It’s a question with a lot of zeroes on it.Here’s a tweet from an extremely early adopter that aged painfully and humorously as only hindsight this pain can be. It’s from 2011. So he was an absolute lunatic to give up a dime for something that admittedly did look the part of an obvious Internet scam. Bitcoin still looks that way today if you

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Dear J.K. Rowling, Bitcoin Is Just Like Harry Potter

May 16, 2020

Friday was a big day for Bitcoin Twitter. Harry Potter author J.K. Rowling asked Twitter to explain the cryptocurrency to her. All the big whales on Bitcoin Twitter jumped into the thread to offer various explanations and summaries to the legendary fantasy writer.J.K. Rowling asks Twitter to explain Bitcoin. | Source: TwitterElon Musk even chimed in:Source: TwitterSince Rowling ultimately concluded in the threads that followed that she just couldn’t understand Bitcoin no matter how people try to explain it, here are some Bitcoin explanations in Harry Potter terms.Dear J.K. Rowling,Bitcoin Is Like The Philosopher’s StoneBitcoin is like the Philosopher’s Stone. It has the power to turn any metal into gold and to produce a potion of immortality. Bitcoin takes the metal and silicon of

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Bitcoin Hash Rate Hits All-Time High: Here’s How It Works And How It Affects The Price

May 4, 2020

Bitcoin intelligence, data, and analytics firm Glassnode found the Bitcoin hash rate hit a new all-time high over the weekend, ten days before the Bitcoin halving event.In other words, miners are putting more computational power into maintaining the Bitcoin network. Because miners must venture electricity and capital intensive computer processors to mine Bitcoin, the increase in hash rate is a bullish sign. It means miners are after the Bitcoin rewards they get from maintaining the network. And they’re venturing the resources to go after those rewards.Bitcoin price vs. hash rate. Source: Glassnode TwitterIs The Bitcoin Hash Rate Correlated With The Price?In general, the Bitcoin price and the hash rate are not correlated. The price is what buyers and sellers agree to pay for one Bitcoin,

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Opinion: Fed President Calls On Banks to Cancel Dividends, Is It Time for Cryptocurrencies?

April 19, 2020

Minneapolis Federal Reserve President Neel Kashkari wrote Thursday that banks should cancel dividends and sell shares to raise cash.
Kashkari said these measures would be necessary to create a cash buffer going into a potentially drawn-out recession. Because should the banks fail to have enough cash on hand, a wave of defaults could trigger a financial crisis.
Kashkari wrote: “The most patriotic thing they could do today would be to stop paying dividends and raise equity capital, to ensure that they can endure a deep economic downturn.”
But this is ironic advice coming from a Federal Reserve official. Because hoarding cash was precisely what financial markets were trying to do last fall, that led to interest rates in overnight money lending markets between banks (called “repo” markets)

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Opinion: We Need A Blockchain COVID-19 Tracker So We Don’t Have To Trust Google and Apple

April 16, 2020

Google and Apple are working together to create a COVID-19 tracking app. While they emphasize the technology would be opt-in only and protect users’ privacy, we’ll just have to trust them on that. But can we really trust Silicon Valley tech giants, or even the U.S. government to respect our privacy?
Both marketers and the police state would likely find the information gathered by this app very lucrative. Like so much oil underneath a field in Texas, all that data would be sitting on servers just waiting to be tapped. Further, we’re living in the post-Edward Snowden era. So we know we can’t really trust Google or Apple, or the federal government to have scruples.
World Wide Wiretap: The Era of Mass Surveillance
Edward Snowden was the government contractor working for the Central

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Why Global Markets Are Rallying When It Seems Like They Should Be Crashing Due To COVID-19?

April 8, 2020

There’s something curious unfolding in global markets this month. While COVID-19 rages across the planet and the economy has ground to a halt, equities have actually been rallying. Global stock prices have been on their way up for two weeks now. It appears like Wall Street’s doing great. The Dow Jones Industrial Average has increased by 21.8% since Mar 23.So have investors lost their minds? On the face of it– this seems absolutely crazy. How could stocks be rallying when 10 million people in the U.S. have lost their jobs in just two weeks? On Mar 23, the day the rally started, Morgan Stanley forecast a 30% decline in U.S. GDP for the second quarter of this year. We’re looking at economic damage of Great Depression proportions here.An Unseemly RallyTo really give an idea of just how strange

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Crypto Analyst: Digital Gold Thesis Puts Bitcoin Price At $1 Million

April 6, 2020

Mr. Qiao Wang, the co-founder of crypto intelligence firm Messari, Inc., said Sunday that Bitcoin’s total addressable market (TAM) might be approximately $20 trillion. If that’s the case, the Bitcoin price would surge to $1 million USD a coin. While that’s a welcome projection for Bitcoin holders, it might be a bit of a stretch. Here’s what Wang tweeted Sunday:Source: TwitterBut to be clear, he did also qualify this tweet by saying:This is not meant to be hopium, but a reminder that TAM is a moving target.Now that may be so, but it’s an extraordinary way to make that reminder.The Merits and Limits of A $1 Million Bitcoin Price TargetThere is, however, some degree of usefulness in modeling Bitcoin’s prospects this way. The digital gold thesis is after all, not merely a theory cooked up by

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FDIC Chair Literally Urges Americans Not To Hide Money Under The Mattress: Do-Or-Die For Bitcoin? (Opinion)

April 5, 2020

Toilet paper isn’t the only thing people are hoarding during the coronavirus panic. In a sign of the times, FDIC Chair Jelena McWilliams literally asked Americans not to hoard cash under the mattress. That is not the message you want to turn on your television to hear the government telling people.Because that means it’s getting terrifyingly real out there.Is The FDIC Scared of A Bank Run?The FDIC is the Federal Deposit Insurance Corporation. It was created by President Franklin D. Roosevelt during the Great Depression to insure any money deposited at U.S. depository institutions. As a result, all U.S. checking accounts are insured (up to $150,000) by Uncle Sam. The official Twitter account for the FDIC tweeted this message Tuesday:“Forget the mattress! Keeping large sums of cash at home

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Crypto Hedge Fund Pantera’s CEO: Bitcoin Price May Set A New Record in 12 Months

March 29, 2020

Dan Morehead CEO & Co-Chief Investment Officer of Pantera Capital, a crypto hedge fund, says the Bitcoin price is set to surge during this economic crisis. In fact, Morehead predicts the Bitcoin price could reach a new all-time high within 12 months. That would be a truly astonishing turn of events, but not entirely out of the cards.The Great Recession and 2008 financial crisis gave rise to Bitcoin in the first place. After watching the financial system critically fail, some computer engineers with talent in the obscure branch of mathematics called cryptography decided enough was enough. So they created an open-source, distributed, peer-to-peer financial system.The Last All-Time High Bitcoin PriceThe Bitcoin price soared in the following decade from virtually worthless to $20,000 per

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Bitcoin Price Appears To Be Decoupling From Other Asset Classes Again

March 27, 2020

Bitcoin fell sharply along with all other assets during the global valuation collapse. Because it tracked with other assets like stocks, gold, and oil, there were more questions about Bitcoin correlation. Is Bitcoin an uncorrelated asset? One that doesn’t consistently move in the same or opposite direction as other securities?The Bitcoin price was uncorrelated with stocks over the 2019 calendar year. That seems to suggest its price has determinants that don’t overlap, either positively or inversely, with those of stock prices. That’s no idle curiosity. If Satoshi Nakamoto’s coin is an uncorrelated asset, then it has a certain appeal as a hedge for investors to diversify their portfolio.So many noticed and were quick to point out that Bitcoin cratered like the rest of the world. At one

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What Will $6 Trillion in Monetary Expansion Do To Cryptocurrency? (Opinion)

March 26, 2020

The pressure’s on for Congress to pass a $2 trillion spending bill to thaw the frozen economy. While they negotiate the largest ever emergency relief bill in US history, markets are getting restless. Stock futures have been volatile as the bill makes progress and stalls, then makes progress and stalls again. Voters are getting restless too. Both sides are badgering each other to “Hurry!” while negotiating a $2 trillion transaction with other people’s money.Any time either side of the partisan divide has a scruple, the other party attacks them for holding up the bill. They insinuate the other side doesn’t care about all the people who are hurting right now. Of course, a swarm of each party’s rank and file supporters also join in the shouting. The farther you zoom out from the picture, the

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Investing: This Stock With Bitcoin Exposure Is Oversold Amid The Global Markets Crash

March 25, 2020

Twitter founder and CEO Jack Dorsey went on to found Square Inc. (NYSE: SQ) in 2010. It’s a payment processing company that made a credit card reader merchants could use with their smartphone to accept payments. But in 2015, Square took it a step further with the creation of Square Cash (now called Cash App).It allowed businesses and organizations to send money from smartphones using a “cashtag” like “$thisisacashtag.” The idea was to make sending cash as easy as sending an email. The Cashtag would be like an email address for sending cash. Moreover, Square extended the app for personal use so friends could send each other cash. It entered the market PayPal had dominated since its founding by Peter Thiel and Elon Musk.As an aside, when Peter Thiel created PayPal, his original idea was to

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If Bitcoin Moons It Will Be As Abrupt As The Coronavirus, Opinion

March 23, 2020

Coronavirus changed everything very abruptly. If bitcoin makes a moon shot, it could quickly happen just this fast. Isn’t it strange going to the grocery and seeing all the empty shelves? The long lines of slightly nervous-looking people waiting to check out? Or sitting in your home semi-isolated, working remotely, or working reduced hours? Driving and seeing how little traffic there is on the road these days? All compared to just a month ago?Our world completely changed all of a sudden. A month ago, everything seemed fine, even as many of us read terrifying coronavirus headlines in the news. Watching it spread rapidly in China and Italy, most of us still could not have imagined how radically our world would be rocked. Coronavirus is what probability mathematician Nassim Nicholas Taleb

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Nouriel Roubini: Trillion Dollar Stimulus Bails Out Corporations, Not Workers

March 22, 2020

NYU economics professor Nouriel Roubini attacked federal stimulus legislation Sunday as a light on aid for workers. His remarks echo the response from several prominent Democrats, including Sen. Bernie Sanders, who is running for president in the Democratic primary, and Senate Minority Leader Chuck Schumer. Likewise, House Speaker Nancy Pelosi had objections to the Senate GOP’s fiscal stimulus bill:We are beginning to review Senator McConnell’s proposal and on first reading, it is not at all pro-worker and instead puts corporations way ahead of workers.Trillion Dollar Fiscal Stimulus Pro Corporation, Anti WorkerMeanwhile, Professor Roubini remarked Sunday:“Trump now speaks of a $2 trillion fiscal stimulus. But a lot of it is smoke & mirrors that doesn’t help the average American. Too much

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Coronavirus Financial Crisis: How Can You Tell It’s Over? The Two Must-Meet Conditions

March 21, 2020

Efforts to contain the coronavirus pandemic have erupted into a disastrous and panicked shutdown of the economy by Western governments. The term “Marshall Law” (correct spelling: “Martial Law”) trended on Twitter last weekend. While many scoffed at this characterization of coronavirus containment efforts, it’s not entirely off base.In New York City, police can arrest bar and restaurant owners if they remain open. That’s to stay compliant with the mayor’s strict executive order to lock down the city:“Patrons and operators who do not comply with the executive order could face a disorderly conduct summons and, in more severe cases, arrest for not complying, according to an advisory to NYPD.”These measures to contain coronavirus are a chilling echo after the last century’s police state edicts

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Opinion: Bitcoin Just Proved Itself to Be The Perfect Asset In A Financial Crisis

March 17, 2020

While the US stock market saw its steepest one-day sell-off since Black Monday in 1987, Bitcoin saw its steepest one-day sell-off in its ten-year history, just a few days before.But don’t worry, that was institutional money running from everything Thursday. Of course, it ran from the risky cryptocurrency industry. Don’t forget that institutional investors getting into Bitcoin was a massive driver of its price growth over 2019. So Bitcoin just lost a bunch of people who don’t believe in it– yet.Amid the Crypto Winter of 2018, big finance was building significant institutional infrastructure to offer bitcoin custody services to the normies. That included Bakkt, a creation of Intercontinental Exchange, the company that owns the New York Stock Exchange. It included Fidelity Digital‘s entry

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Opinion: Bitcoin is Still Too Small to Possibly Be Correlated with Markets

March 14, 2020

On the same day that Wall Street took its hardest plunge since the 1987 Black Monday crash, Bitcoin’s price cratered from a touch under $8,000 per 1 bitcoin to the $3,700 handle within 24 hours. This is calling into question the entire thesis of Bitcoin as an uncorrelated asset.Here’s why it shouldn’t.Bitcoin Market Cap Is Too Small to CorrelateWhile Bitcoin has an impressive market cap for “fake Internet nerd money,” it is too small to possibly be correlated with markets.People don’t seem to comprehend how early we still are in the adoption curve. They don’t realize how small the Bitcoin market cap is relative to major global commodities like oil or primary global securities like gold.To put it in perspective, Bitcoin’s total market capitalization as of the time of writing was $106

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Coronavirus Madness Continues: Bitcoin Price Crashes Below $4300, Over 40% Daily Loss

March 13, 2020

This is not the Bitcoin halving the crypto industry was talking about in 2020. The Bitcoin price crashed on the worst day for equities markets in 33 years. The Dow Jones plummeted 9.99% during trading, the S&P 500 lost 9.51%, and the NASDAQ took a 9.43% dive.Even spot gold declined by some 4% Thursday, as the logic of Bitcoin’s detractors like Peter Schiff, gold is now positively correlated with stocks. However, Bitcoin was the biggest loser, with a massive run on the world’s first cryptocurrency driving prices down by over 40% in under 24 hours.Wild Bitcoin Price ActionSpikes punctuated the losses as opportunists took big bites out of Bitcoin on sale. This kind of volatile price action is common in capitulating markets.Following a price crash of over $1500 in an hour, Bitcoin price was

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Trump Halts Flights From Europe: Stock Market Futures and Bitcoin Tumble

March 12, 2020

President Donald Trump announced a ban on all travel from Europe Wednesday. The ban will go into effect on Friday at midnight and remain in effect for 30 days. The president did announce an exemption for travel from the United Kingdom.Announcing a rare Oval Office address from Mr. Trump, he said:“After consulting with our top government health officials I have decided to take several strong but necessary actions to protect the health of all Americans. To stop new cases from entering our shores we will be suspending all travel from Europe to our shores for 30 days.”Donalt Trump, Image by: APEconomic Fallout from CoronavirusStock market futures and the bitcoin price tumbled on the news. It will directly impact financial markets and the economy in two ways. For one, it will disrupt a lot of

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Peter Schiff Explains Why The Coronavirus Recession Will Be Worse Than The 2008 Financial Crisis

March 11, 2020

Euro Pacific Capital CEO and chief global strategist Peter Schiff warned the coronavirus recession would be worse than the 2008 financial crisis. Furthermore, in a terrifying tweet Wednesday, the US dollar bear and gold bull diagnosed the underlying problem in both crises.He argued the coronavirus pandemic and the crashing housing market were the pins that popped debt bubbles. But this time, the debt bubble is much bigger than last time. So the crisis is likely to get much worse.“The 2008 financial crisis started with housing prices falling. The 2020 financial crisis will start because of the @Coronavirus. In each case it’s the debt bubbles that cause the crisis, not the pins that pop them. Since there is far more debt now, this crisis will be far worse!,” according to Schiff’s tweet.Now a

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Financial Crisis Might Worsen As US Authorities Are Badly Fumbling The Coronavirus Response

March 7, 2020

The US Centers for Disease Control and Prevention (CDC) has said coronavirus will inevitably infect many Americans. Therefore drastic steps must be taken to fight the epidemic. But stories of unbelievable missteps in the US government’s response to coronavirus abound on social media.CDC Refuses to Test Nurse Who Cared for Coronavirus PatientOn Thursday, the California Nurses Association read a statement by one of its members. She’s a nurse in Northern California on quarantine after caring for a patient who tested positive for coronavirus. But she says the CDC won’t test her:“As a nurse I am very concerned that not enough is being done to stop the spread of the coronavirus. I know because I am currently sick in quarantine after caring for a patient who tested positive.I am awaiting

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2 Possible Reasons Why This Week’s Emergency Fed Rate Cut Boosted The Value of Bitcoin

March 6, 2020

The Federal Reserve cut interest rates this week. While the central bank was hoping to boost the falling stock market, the move seemed to spook investors. All the major US stock market benchmarks swung upward for just one day on Wednesday after the cut.But investors continued to dump equities Thursday. On Tuesday, when the Fed rate cut was announced, the stock market ended the trading session with a loss.It seems the Fed’s efforts to save the stock market were a terrifying confirmation of the worst coronavirus fears. The surprise Fed rate cut was remarkable in two ways.It was the first time the Federal Reserve has cut interest rates by half a percentage point since the 2008 financial crisis. And it was also the first emergency Fed rate cut since 2008 as well. Because of this, the markets

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Safe-Haven Or Not: Why Bitcoin Price Is Correlated With Wall Street Over The Past Week?

March 4, 2020

After overheating for months to pie-in-the-sky valuations, the stock markets are finally cooling down. Coronavirus may have been the catalyst, but market analysts worth their salt knew the correction was looming.The Buffett Indicator (the total market cap of the US stock market divided by US GDP) has surpassed the pre-Great Recession and pre-Dot Com bubble pop levels for weeks. Corporate multiples like forwarding stock price to earnings ratio haven’t been promising either.And then there were the record levels of corporate, consumer, and government debt amid massive balance sheet expansion by the Federal Reserve since Sept 2019. That was all proof enough the bull market was a mirage.But as stock markets’ values fell from the sky in the swiftest, most brutal correction in history by some

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Opinion: How Blockchain Will Power The Electricity Grid of The Future

March 1, 2020

Earlier this month, under its “The Future of Everything” vertical, The Wall Street Journal reported how AI is improving the power grid. The Journal says artificial intelligence is “the key to keeping the lights on.” The article explains how power companies are “turning to AI, drones, and sensors to curtail outages, save money, and help operate an increasingly complex electricity grid.”Further, by doing so, they cut the recovery time from hurricane-related outages nearly in half in just a little over a decade. But these improvements are just the beginning of how artificial intelligence will manage the electricity grid of the future. Blockchain-powered artificial intelligence will be a linchpin of the global electricity infrastructure. It’s easy to envision how this will work out.Solar Panel

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Opinion: The Global Market Meltdown Reestablishes The Case for Cryptocurrency as Global Macro Hedge

February 25, 2020

Global markets crashed and burned Monday as risks from coronavirus, and other uncertainties fueled panic. The Dow Jones Industrial Average cratered over a 1,000 points for a 3.56% loss. The S&P 500 Index closed 111 points down, losing 3.35%.The NASDAQ Composite fared worst, with a 355 point decline, or 3.71% of its market capitalization at the start of the day. Further, oil prices tumbled, with Brent crude down 4.1% and U.S. crude futures down 4%. As of press time, the above US indexes are down another 1%.Stock Valuations Have Been Overheated for MonthsMany analysts are pointing to coronavirus as the catalyst, but the stock market has been overbought for weeks. Maybe it’s been overvalued for months, depending on how bullish/bearish equities you are.Even CNBC’s Jim Cramer and his

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This Week Gamers Invested $1 Million in Virtual Blockchain Real Estate

February 16, 2020

This week alone, gamers, virtual reality enthusiasts, and the cryptocurrency community have invested nearly a million dollars worth of real world currencies into virtual real estate generated and maintained by blockchains.The three largest blockchain generated virtual world games, The Sandbox, Decentraland, and Cryptovoxels, all saw the total trading volume of their digital tokens surge above $940,000 USD. That’s according to data compiled by Nonfungible, the largest database of blockchain gaming and crypto collectible markets. That figure includes volume from direct sales of blockchain real estate, and token trading in secondary exchange markets.Blockchain Real Estate Sale at The SandboxPart of the surge in volume is likely due to a big virtual “land sale” going on in The Sandbox. The

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The CIA Secretly Owned Crypto AG, Did They Secretly Create Bitcoin? (Opinion)

February 16, 2020

“It was the intelligence coup of the century.” That’s the assessment of the CIA in a classified report obtained earlier this month by an investigation of the Washington Post. The Post made stunning revelations in a report headlined, “How the CIA used Crypto AG encryption devices to spy on countries for decades.” Crypto AG was a Swiss encryption company. It made millions of dollars since World War II selling encryption devices. The governments of over 120 countries bought Crypto’s devices well into the 21st century.Operation “Thesaurus”But the Washington Post made the stunning revelation in early Feb 2020 that the information security company was secretly owned by the CIA. And the Central Intelligence Agency had built back doors into the encryption methods so it could easily decode messages

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Opinion: CNBC Gets To The Party Earlier Than in 2017 – Time to Sell Bitcoin?

February 15, 2020

When your completely non-computer savvy, totally apolitical friends or family members come up to you asking, “Hey, you think I should buy this Bitcoin thing?” you’re in bubble territory. The coin is very possibly overheated, and it might be time to sell.We need a healthy pull back. Too much hype about #bitcoin halving and altseason. Too much dumb money re-entering shitcoins. Looking for $7200. It takes time for halving to propogate and market to react. Maybe 6-7 months. Only my opinion. What do you guys think?— A v B (@ArminVanBitcoin) February 14, 2020Also, when CNBC starts flogging the coin to its straight-laced, buttoned-down audience of respectable, Italian suit-wearing nest egg builders – it might be time to jump ship for the subsequent altcoin bubble while running for Treasury bonds

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100K Validators Flock to Stress Test Lighthouse Ethereum 2.0 Testnet

February 12, 2020

Sigma Prime’s Lighthouse project just unveiled an Ethereum 2.0 testnet it hopes will be capable of handling 100,000 validators. Sigma Prime is ready to stress test the Ethereum 2.0 client before it goes public. Paul Hauner, a lead developer for Lighthouse, posted a video unveiling the ETH2.0 testnet on Twitter this week. In a reply thread on the original video, Hauner says the testnet will be playing with 3.2 million “pretend ETH” (or a little under $800 million worth of simulated ether).’s another step forward for Ethereum 2.0, a complete overhaul of the planet’s second-largest cryptocurrency by market cap. The new Ethereum will solve critical problems inherent in the current implementation.Mainly scalability issues it will have

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Fidelity’s VC Arm Invested $13 Million In His Blockchain-Based Startup: Clear’s Co-Founder Explains Why

February 7, 2020

Singapore-based blockchain startup Clear just raised $13 million in a Series A round of venture funding. Multinational financial services giant Fidelity facilitated the fundraise. Specifically, its investment arm, Eight Roads (formerly Fidelity Ventures), led the round. It makes sense that Clear went with Fidelity to help it raise venture capital.“Eight Roads is the investment arm that looks at strategic areas for Fidelity,” Clear’s co-founder and executive chairman Eran Haggiag told CryptoPotato earlier today about the $13 million raise.“It has an advanced and unique view to multiple industries and is a big supporter of Blockchain. As Clear deals with the financial backbone of enterprises, Eight Roads is a great partner to facilitate this round.”Fidelity, the $7.8 trillion asset

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