5 Key Crypto Events of 2018 (Year Review) | Blockchain Central

Hey everybody, welcome to a new episode on
Time flies, right?
2018 is coming to an end, so it’s time to
look back at the key events of this very bizarre year.
Let’s be honest, it wasn’t a very good
year for Blockchain, but there is a silver lining.
What is it?
Watch the video to find out!
When talking about 2018, one might argue that
the crypto landscape has changed MORE last
year than it has in a decade of existence.
One thing that hasn’t changed, though, was
the constant barrage of criticism and predictions
that Blockchain is FINALLY done for.
In 2018, more than ever, the critics were
somewhat justified in their opinions.
But I personally prefer to look at it as a
slightly painful, but mostly awkward adolescence
of the crypto industry.
Those growing pains had to happen, and now
we’re set for maturation.
2018 has seen dwindling profit margins for
individual miners, as the price of Bitcoin
and other cryptocurrencies continued to drop.
Add to that the prices of electricity, GPU’s
and the competition from institutional miners
which remained relatively high, and you’ll
see trouble.
Multiple mining operations that were not economically
viable had to close down and, in November,
the total hash rate has dropped to its lowest
point since August.
Depending on where your operation is located,
it is estimated that the mining cost of a
single Bitcoin can currently range from $6,000
to $7,000.
With the price of Bitcoin now around 3700
USD, it is clear that many miners will operate at a loss.
While the bigger players can weather the storm
hoping for a bull market in 2019, the average
miner will struggle to be profitable.
For that reason, GPU manufacturers saw a significant
drop in sales which led to several business
executives calling the mining market dead.
The CEO of AMD Jensen Huang went on record
saying that “at this time, we consider (crypto)
to be immaterial for the second half of the
fiscal year.”
Of course, things might improve with the developments
in ASIC mining hardware and sustainable power
solutions, but it is unlikely that we’ll
EVER AGAIN see the amount of mining hype that
was present throughout 2017.
But let’s look at the bright side: maybe
you’ll be finally able to upgrade that graphics
card on your gaming PC without going bankrupt!
I think it is safe to say that unregulated
financial spaces will always create issues.
There will ALWAYS be bad actors looking to
exploit the system.
That is why, both IPO’s and private equity
became so overregulated.
In fact, now they are SO complicated that
it became increasingly difficult for retail
investors to participate in the market.
The ICO was heralded as the democratization
of the investment space: now everyone could
participate and get rich by supporting this
new and emerging technology.
But, as is usually the case, this led to a
few bad actors exploiting the space by means
of ICO exit scams.
As a result, these few scandals and scams
gave the entire ICO industry a bad rep.
These included the Shenzhen Puyin Blockchain
Group, a tea-based blockchain project defrauding
over 48 million USD or Pincoin, which pulled
off a 660-million-dollar scam.
Let me know in the comments if you’d like
to see a separate video detailing the worst
ICO scams of 2018.
As a result, first Facebook and then Google
banned advertising of ICO’s and tokens in Q1 of 2018.
Outside of these extreme cases, the market
in general has seen investors turning away
from ICO’s quoting low crypto prices and
the fact that only a handful of those startups
managed to bring sustainable value to the
It is said that sometime next year, many ICO
companies will run out of capital accumulated
in 2017 and–if they fail to come up with
sustainable business models–they will be
off the market by the end of next year.
As a result, many crypto sceptics were quick
to point out that blockchain startups, despite
having accumulated over $30 billion in ICO
money, have failed to deliver a meaningful
user base.
One victim of the diminishing interest in
ICO was Ethereum: the primary platform for many ICO’s.
According to analysts, its rapid price decrease
was caused by lower usage rate, due to fewer
ICO’s being held.
Additionally, the fact that many projects
are selling off their Ether to maintain liquidity,
contributed to the increased supply and lower
When, in November 2018, the SEC went hard
after two ICO companies: Airfox and Paragon Coin,
this sent a message to the entire sector
that the wild, wild west of token sales is over.
To put it bluntly, 2018 saw all attempts at
having Bitcoin-based Exchange Traded Funds
approved by the SEC fail.
The chairman of SEC, Jay Clayton, has been
very specific that a Bitcoin ETF is unlikely
to happen until there are measures in place
to ensure that it is free of manipulation.
If you’re not sure what ETF stands for,
we have an entire video about that, but in
short, it’s a security that tracks a given
index, commodity or even an entire industry.
ETF’s – unlike mutual funds – can be
traded on a stock exchange like any other
common stock.
Of course, having an ETF for Bitcoin would
be a watershed moment for the entire industry,
as it would allow individual investors to
participate in the market with a relatively
low barrier to entry.
But most people are very skeptical that the
SEC is going to approve Bitcoin ETF’s anytime soon.
Probably not even in 2019.
2018 also saw a major personnel reshuffling
of the crypto industry.
First of all, multiple crypto companies had
to significantly reduce the number of employees.
Some of them, due to the overall decrease
in prices of cryptocurrencies, some of them
simply to conserve their ICO budgets.
A good example of that could be the social
network and token Steemit which laid off 70%
of their staff.
Bitmain, a crypto mining company, also closed
off an entire R&D office in Israel.
Even ConsenSys, a company led by Joseph Lubin–a
key contributor to Ethereum–had to cut staff.
We have also seen a few key figures stepping
down from the top of the organizational chart.
Some examples of that include the CEO of Ripple,
Chris Larsen and TEZOS president Johann Gevers.
The 6000 USD Bitcoin support line was heralded
by many as the unbreakable barrier that will
hold up no matter what.
Well, it’s late December 2018 and we’re
hovering around 3700 USD, so that prediction
clearly didn’t pan out.
The 6000 USD was touted both as a technical
and a psychological support line.
It represented a 70% decline from Bitcoin’s
high of $20,000 in December 2017 and, taking
into consideration that all nine previous
Bitcoin corrections never exceeded 64%, many
people thought that the price will never fall
below 6000 USD.
In addition, it was thought that even if it
did, a massive drive to buy would increase
demand, almost immediately driving the price
back up.
Well, that didn’t work out, proving yet
again how unpredictable the crypto market can be.
OK, I just gave you a bunch of bad news!
Sorry about that.
Is it all that bad, though?
I really don’t think so.
We can look at 2018 as the clean-up year and
a solid reality check.
With the ICO bubble bursting and more regulation
and attention coming to the blockchain from
the SEC, we’ll hopefully see a more secure
and mature market that will support sustainable,
profitable businesses adding real value to
the consumers.
In addition, many people think that the recovery
of crypto prices will be slow and steady without
the drama of drastic price hikes and drops.
This can mean that the ever-present volatility
argument, used by blockchain critics will
not be so relevant in the future.
It is my hope that the awkward adolescence
is over, crypto went to jail on a misdemeanor
charge, learned its lesson and it’s all
going to be all good from now on.
Of course, it’s not going to be that optimistic,
but my outlook for 2019 is still positive.
We’ll post our 2019 predictions in a couple
of days, so please subscribe to make sure
you don’t miss out.
Before you go, please note that this content
neither represents financial, legal, or tax
advice, nor is it supposed to be understood
or interpreted as solicitation to buy or sell
any securities, coins or tokens.
Thank you so much for watching.
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Happy investing!

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