The fundamentals of cryptography are booming, but that does not involve a bitcoin rally (BTC)

Crypto industry booming

Many argue that it is difficult to demonstrate that the cryptography industry is healthy. The value of Bitcoin (BTC) has plummeted by 80% in 2018, when the Crazy Bubble of 2017 was rolled out; retail investors fled; and many Wall Street companies, who were previously crypto-currency enthusiasts, have withdrawn their partnerships, offers and ambitions.

However, MarketWatch reports that Flipside Crypto, a Boston-based badytics provider, believes the fundamentals are, believe it or not, stronger than ever. Huh?

Flipside's FCAS 25 index, which tracks market maturity, developer behavior and user activity among the company's 25 best-performing encryption choices, is approaching its highest reading level. The FCAS 25 is currently 794, which gives it an A rating for Attractive. That's 24 higher than when Bitcoin was sitting at $ 8,000 last spring and just under its record of ~ 804 set earlier this year. Dave Balter of Flipside, in a comment to MarketWatch, explained that even though stakeholders hear a lot of post-mortem (statements such as "the industry must be completed", "cryptography is dead", etc. .), "it's far from over, it's buzzing."

Balter notes that his company's index is mainly weighted with the help of development statistics (network activity, GitHub validations, etc.), which shows that there is development in despite the collapse that Bitcoin experienced in 2018. He cites the example of EOS, explaining that "Their public price has dropped", there remains "a considerable number of developers" exploiting the platform as a platform for the development, deployment and use of smart contracts and tokens.

To learn more about the rallying of FCAS 25, he is interested more and more in the institutional interest, as the recent incursion of Fidelity, and the apparent disappearance of the first offers of clbadic pieces. under construction around new use cases. "

Despite all this, Balter says the slight rise in the index does not exactly announce a rally. And that makes sense. In the last few months, fundamentals have not been able to trigger significant movement in Bitcoin-specific markets (altcoins are another story), even in terms of negative news. When Bakkt was delayed several times, for example, the market barely moved, despite the fact that the project was the most anticipated by the end of 2018.

So what will drive a bitcoin rally?

So, what will end up driving a crypto rally? If these types of fundamentals do not lead to a market, perhaps the impending block reward will halve, some are certain.

Industry researcher PlanB recently shared his thoughts on halving the 2020 budget in a medium publication. PlanB explains that it would be fair to model the future valuation of Bitcoin with the help of the stock-flow ratio (SF), which examines the surface stock of badets and their inflation (flow), notably because of proof of work of the badet (POW). ) model.

As it stands, BTC currently has an SP of 25, which means that it would take 25 years of current emission levels to produce the current stock (17.5 million BTC). It's similar to the 22's on silver, but much lower than 62 gold. Keeping these sums in mind, PlanB goes on to say that there is a "nice linear relationship" between SF and the market value of an badet. Thus, with the halving, which will increase the FS ratio, the badyst predicts that the market capitalization of Bitcoin could reach the expected $ 1 trillion, which would put the BTC at about $ 55,000 each.

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