Weekly - Crypto Flash crash wipes out $500Bn in a few hrs (Get Smarter in 5 Min)
Flash crash and recovery, BTC holding at $47k, SOL up 42% & Algo 94% over 7 days. El Salvador BTC is now legal tender.
💡What’s in it for Me: Get Smarter in 5 Minutes
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🧠Quote of the week
📚Here is what I liked reading
15 Simple Rules for a Good Life - Must read now!!
This 3X Founder Shares His Approach to Figuring Out What to Build Next -
People think that a startup is only about the idea. But in some ways, the idea is the most disposable or flexible part of the company. When something is a burning need, there will likely already be some hacky duct tape solution that folks are trying to cobble together to solve for it. That’s how you know there’s really a pain there.
How Axie Infinity Creates Work in the Metaverse (PLAY TO EARN $$$)
A cute NFT pet game called Axie Infinity is currently raking in more protocol revenue than Ethereum and Bitcoin. Filipinos are benefitting.
7 Stupid Things Society Wants You to Do - You may not agree with them but it does make you wonder, would things have turned out differently 🤔
Why China's bitcoin miners are moving to Texas - Beijing's crackdown on cryptocurrency sends bitcoin entrepreneurs moving to the wild wild west
🔥Crypto Market Update
On the face of it the market cap remains almost flat to last week ~$2.2T. But hidden underneath that is a $500Billion “Flash crash” that happened in a matter of hours. The market has since then recovered half that loss but it is a strong reminder of what I said last week - Crypto is a wild ride. Not for the faint-hearted. If you are using leverage you better know what you are doing, or you will get wiped out
Market cap chart - Dropping from $2.4T to $1.85T
So why did this happen?
No clear answer - someone started a BTC dump, that caused a chain of events taking out leveraged positions from various exchanges. The number of liquidations in the 24 hours (after that) by exchanges in total was ~$3.54B liquidated! During this time, 330,243 traders were liquidated. The largest single liquidation order happened on @HuobiGlobal
‘Bitcoin Day’ sees flash crash as president of El Salvador taunts IMF - find out more about what happened
Solana is still on fire - up ~44% over the last 7 days despite the market drop. Another new blockchain that is on fire is Algorand - up 94% driven by potential use a backend provider for apps in Elsavador - more here
Buying a Big Mac with BTC in El Salvador
🙋♂️Term of the Week - “Validator”
In contrast to mining on a Proof of Work blockchain network, Proof of Stake blockchain networks are secured by a distributed consensus of dedicated validators who have staked (locked into the network) a significant amount of token as long as the validator nodes are running.
Validators are queued for block-signing based on a combination of random selection, amount (weight) staked and length of time staked (age), and others depending on the design of the consensus algorithm.
🤣Just for Laughs
Hopefully, this is how the HODL’ers are feeling after the flash crash..
That's all, folks. 👋
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🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.