Aug 10, 2017

As Bitcoin hits all-time high, cryptocurrency bubble fears rise


Analysts are fearful that cryptocurrencies might be approaching a bubble after this week saw Bitcoin reach an all-time high market cap with a single bitcoin trading over $3,500, per Reuters.

  • By the numbers: All cryptocurrencies combined now have a total market cap of $120 billion — Bitcoin only makes up 46% of that — whereas their combined market cap at the start of the year was $17.5 billion.
  • The argument for a bubble: Some analysts see cryptocurrencies as nothing more than a fad with their value created from nothing. And they're not accepted by the vast majority of retailers, lessening their usefulness.
  • The argument against a bubble: Cryptocurrency proponents believe that their finite supply and technological security makes them an ideal solution in today's age, citing innovations like a United Nations pilot program that used Ethereum, the second most popular cryptocurrency, to give cash to Syrian refugees.

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Situational awareness

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Illustration: Sarah Grillo/Axios

Armed with subpoenas, lawsuits and immigration SWAT teams, the Trump administration has declared war on sanctuary cities.

The big picture: President Trump and his administration have used every available tool to try to crack down on local governments that refuse to hold immigrants in criminal custody, block immigration agents from working in county jails or deny federal authorities access to immigrants' records.

Peter Thiel's Founders Fund isn't really Peter Thiel's Founders Fund

Illustration: Photo Illustration: Eniola Odetunde/Axios. Photos: Charles Eshelman, Steve Jennings, and Chip Somodevilla/Getty Images

Founders Fund has raised $3 billion for a pair of new funds, so expect a slew of headlines about how "Peter Thiel's venture capital firm" is now flush with cash.

Behind the scenes: Thiel is essential to Founders Fund, but he's not autocratic. Instead, Axios has learned that he's one of three people with veto power over most FF investments, and is unable to do a deal without approval of the other two.