WhiteboardCrypto Newsletter - Mar 9

Welcome back to this week's edition of our WhiteboardCrypto Newsletter!

Everything Booms

You’ve probably heard that BTC hit an all-time high this week, against both the euro and USD. That’s pretty impressive (although not everyone agrees because we need 2/3 of validators to come to consensus, and we didn’t get that). But, it crashed moments after the ATH(?) because so many people sold off. It’s a reminder that trying to time the market is not easy, nor perfect. ETH also hit a high it hasn’t seen since 2021 and L2s are following along the upward trajectory. A few things are contributing to this raise: new BTC ETFs in the US, Eth’s Dencun upgrade, Bitcoin halving in April, and overall meta- and fiat-market health.

But, if you remember our video talking about how much money it would take for DOGE to 5x back in 2021, you’ll see that it would take an insane amount of incoming volume to push BTC higher than it is, because of how much is already invested in it (over $1.3T). To cause a market cap of over a trillion dollars to move in any direction by more than a percentage point means moving over a billion dollars. That’s a lot of money, so people who are claiming it will double in value in a short period of time may not be thinking about how much that would require.

But, almost half of all owned BTC hasn’t moved since 2021 so if those people all happen to wake up, some big movement could definitely occur. And indeed, we’ve already seen enough movement to temporarily crash the major crypto exchanges internationally.

Interoperability is the new thing

It seems like people are realizing that having completely contained ecosystems isn’t going to be the best way to navigate the future. By contained, we mean that assets like tokens and NFTs can only operate on one blockchain, or the layer2s built around them, such as in the Ethereum ecosystem. Aptos is a layer1 blockchain that is working on cross-chain interoperability by removing some limits on its Stargate bridge. They hope to encourage devs to create multi-chain applications. The actual technicals of this are a little too much for this newsletter but if you’re interested, you can read their documentation here. The important thing to know is that different ecosystems are using different tech to achieve the same goals—namely, to make the end-user (that’s all of us) experience more simplified.

Learn more here.

Thanks for reading and I hope you learned something!

- Theodore