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[bitmex]????Crypto Trader Digest


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A Message from Alexander Höptner, CEO of BitMEX


An intellectually honest, savvy crypto trader should maintain his or her overall investing thesis without becoming blind to the inevitable twists, turns, and headwinds along the way. In this week’s Crypto Trader Digest, Arthur shows us how it’s done. 

As we were all rudely reminded of over the past few weeks, crypto assets are still susceptible to outside market forces. Token prices are a function of the technology of the project and monetary conditions surrounding it. And this piece does a brilliant job of looking at if - and how - the monetary conditions might shift in the next few months. 

All great stories have familiar elements - a central challenge, intrigue, uncertainty. This story is about inflation (not so transitory any more?), the inner workings of central banks, and a healthy dose of politics to make things even more interesting and unpredictable. 

How will the story of crypto capital markets play out in the first few months of 2022? I suggest you read “Circo Loco” to get a view from one of the best.  


- Alex (@AlexHoeptner)

From the Desk of Arthur Hayes


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Circo Loco

(Any views expressed in the below are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.)

The price of anything is the most powerful signal of the collective will of humanity. As a society we utilise forms of money as an abstraction of the energy it costs to produce the things that sustain us. The price tells us what amount of energy balances supply and demand for a given good or service. When society distorts pricing signals, supply and demand becomes imbalanced, resulting in wasted energy. Waste enough energy, and civilisation falls; hopefully to be replaced with a new social structure that is properly organised to conserve energy in a better way. With all of the exciting current and future developments of crypto, we must not lose sight of the most important ingredient to the current excitement … The BOOLMARKET.
 
Yes, the technology has to work and does … sometimes. But if we are moving towards a tokenised world, the price of the token that represents a particular piece of crypto technology or community is the easiest way for a layperson to understand whether it is successful or not. However, the PRICE = SUCCESS identity is easily perverted if the unit of account is attached to a money printing central bank / government.
 
How are we to tell the real energy value of a thing if the quantum of the yardstick increases every year? Or worse, if the yardstick is just a piece of political theater based on the whims of fallible humans who care only for their survival in office. While many crypto natives benchmark their wealth in Bitcoin (and increasingly, Ether) terms, the vast majority of humanity values their net worth on some derivative fiat currency linked to the US dollar.
 
The spectacular rise of all things crypto since the washout in March 2020 will make some think that superior technology is winning. The tech is so amazing and transformative that the gains in adoption will not only increase but accelerate. Along with this success, the prices of many assets will continue to rise exponentially. You think to yourself, “this shit is so LIT, I only look at charts on a log scale.”

Click here to continue reading this edition of Crypto Trader Digest  

–  Arthur Hayes, Co-Founder of BitMEX (@CryptoHayes)

Latest Commentary from BitMEX


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Under the Hood: Optimising Trading Performance on BitMEX

 

Behind the scenes here at BitMEX, our engineers are always looking to improve our platform performance - especially in light of the rapid product expansion we have planned, starting with the launch of Tether margin and settlement this week. 
Lately, we've knocked it out the park - take some of the highest volume trading days of 2021 - 19 May, 8 September, and even last week for example. These high volume days knocked some other exchanges off their mark, but BitMEX outperformed. 
Here, we shine a spotlight on what our engineers have been doing to reduce data feed latency, and why it matters for traders.

Latest from BitMEX Research


Ethereum's New 1MB Blocksize Limit
 

In this piece, we look at a new Ethereum improvement proposal (EIP-4488), published recently by Vitalik Buterin. This proposal is designed to make a potential so-called “layer 2” scaling solution, called rollups, more affordable. As a result of this, to mitigate the high level of block space these rollups could consume, a new blocksize data limit is introduced. We explain the very basics of how rollups work, particularly in the context of Bitcoin and discuss some of the challenges Ethereum may face, caused by the new blocksize limit, which we think could undermine some of the benefits of EIP-1559. 

Social Spotlight


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No articles in this email should be copied or reproduced in whole or in part. The information contained does not constitute research or a recommendation. 

Neither HDR Global Trading Limited nor any of its affiliates make any representation or warranty as to the accuracy or completeness of the statements or any information contained in these articles and any liability therefor (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. This is not providing any financial, economic, legal, accounting or tax advice or recommendations. In addition, the receipt of this email is not to be taken as constituting the giving of investment advice nor to constitute such person a client of the BitMEX trading platform.






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