Archive for the ‘Federal Reserve’ Category

What is blockchain?

July 18th, 2018 by Vigilo

Being a proponent of cryptocurrencies, it is obvious that mass adoption is still a long way off.

The price of 1 bitcoin topped at nearly $20,000 in late 2017. While that generated some interest, most people still have no idea what that means, or what they can do with it.

Bitcoin is a decentralized distributed cryptocurrency (digital currency) without a central bank. It has a fixed supply, so no government or administrator can create coins out of thin air, like the Federal Reserve.

Bitcoin is the most popular crypto, but there are thousands of other cryptocurrencies and tokens which address literally all aspects of human life. People are working to improve not only payment systems on the blockchain, but also healthcare, insurance, real estate transactions, information, voting, etc.

Improvement is good right? But before we get into learning all the different coins, what they do, and how to trade them…we all start at this first question. What is the Blockchain?

What is the Blockchain?

Instead of typing out how blockchain works, it may be easier to absorb through some tutorial videos. In about 40 mins, you can see all of the videos, and have a better understanding of what is blockchain. In the final video, you can actually see blockchain in practice.

 

If you are ready for more information beyond “What is Blockchain”, and want to learn how to trade cryptocurrencies, let me know.  I can recommend a full paid course that is not my own. Also, I can personally give you some tips, and if you want some more coaching beyond that, I can do so for a nominal fee.

Any questions or comments, fell free to do so below.

Travis

JMJ – UIOGD

A Blessed Resurrection to you!

As a relatively early adopter of bitcoin and cryptocurrencies, I was the first to introduce quite a few people to the world changing technology of blockchain and associated projects. One of those people was Jerremy Newsome of the IR4 podcast and Real Life Trading. The IR4 podcast had me on last week and we discussed some bitcoin predictions, governmental policies, and ICO’s among other things. Hope you find it valuable, enjoy!

links relevant to the podcast….

Start Engine – Equity Crowdfunding Investment Opportunities

Gab ICO – Initial Coin Offering for GAB Free Speech Social Network

Start Engine ICO Summit – Network and learn about the upcoming ICOs set to disrupt the industry

CLOUD Act – A privacy infringing expansion of data collection powers

$10,000 Bitcoin – Our article from December 2016, calling for $10,000 Bitcoin, back when the price was only around $1,000.

IR4 – It’s the Fourth Industrial Revolution Podcast – You can find information surrounding Global consciousnesses, the way we interact, conduct business, and overall live as human beings. Check it out to heat about everything from entrepreneurshipAIblockchain techIoTeco intelligencenano techcryptocurrenciesfundraisingwearable techquantum computing, 3D printing and all other things changing the world. See their Patreon page HERE.

Real Life Trading – Is Jerremy’s trading group. You can get some free content there, as well as have the opportunity to join the trading groups (morning and/or afternoon sessions), get the Weekly Options Newsletter, or delve into the Cryptocurrency Trading course.

-Travis

JMJ – UIOGD

Cryptocurrencies are here to stay, and I believe that blockchain technology will change the world and eventually find in a place in our everyday lives, BUT there are scams and frauds that must be navigated around on the way up.

There is good and evil in this world, and evil will always try to perpetuate some scheme in an attempt to satiate their vices. Today it is this, tomorrow it is that. This article intends to point out a few of the mines in the mine field, the reader can decide which are evil or not.

For more context, in December 2016, this site foretold bitcoin reaching $10,000. Eventually, it will reach another all-time high, much higher than that. (the only disclaimer is if another coin dethrones bitcoin dominance in the meantime) So this article is from the mind of a long term crypto bull, but in the short term, I’d really like to see this current batch of mines cleared out before really getting bullish again.

Crytopcurrency Mines

Ponzi schemes like Bitconnect, Issuance of Tether, Possible Futures manipulation, Initial Coin Offering scams, Pump-and-Dumps, and Mt.Gox Trustee distribution are a few main issues right now.

If you are more of a visual learner, you gotta see this video. It’s about 40 mins…called Decentralized Deception.

Actually, everyone reading could benefit from the video. You will hear clips from the perpetrators themselves. You will also see the unfortunate conclusion for some people of the scams, like one man who was streaming from his new home, aka his car.


Ponzi schemes like Bitconnect are featured in the video and don’t require much more comment here. Watch the video and do your due diligence.

TETHER (USDT)

Tether (USDT) and the bots trading the Tether prints appear quite nefarious. On Tether’s own site, they have a 6 months old “Proof of Funds” report. Well 6 months ago there were only about 400 million Tethers. Today there are 2.2 BILLION. Now you may say “Travis, how much of an impact can 2 billion have on a market that is 400 billion?”

Fair question. But if you know about trading, you know it is a story of sentiment. And if you know that bitcoin dominance is down to around 40%, then you know that bitcoin’s market cap is around 153 billion.

Please stay with me… For the unaudited Tether to go from 400 million in September 2017 to 2.2 billion in March 2018, there would have to be an average of 10 million Tether added per day!! Now, Tethers are not printed daily, so these Tethers would be added more infrequently and in bigger batches, like 50 million or 100 million at a time. So with that, lets look at what a 100 million dollar dump would look like to a normal stock.

Let’s take Pepsico as an example of the issue here. Pepsico (PEP:NAS) trades at about $112.75 per share right now, and has a market cap of 160 billion, close to bitcoin’s 153 million. If one were to buy 100 million dollars worth of Pepsi stock, they would buy 886,917 shares. Pepsi’s average daily volume is around 4,000,000 shares. So a strategically placed order of 886,917 shares (more than 20% of daily volume) would have a considerable impact on the price of Pepsi and the sentiment around it. This is quite simple, and in reality, the application of this trade would be more complex, but I just want to show you what impact Tether has on bitcoin, if it is being printed out of nothing.

In bitcoins case, $100 million can buy almost 11,000 bitcoin. Most exchanges do not have 11,000 volume in an entire day. So hopefully you can see how it wouldn’t take much to manipulate the price. I assume it would go something like this..

1- Tether printed. 2- USDT traded for BTC  3- Spike in volume and price increase drives sentiment to bring in more buyers. 4- Arbitrage bots reach target and trade BTC for US dollars. 5- Tether now has USD to cover some of the new printing. 6- BTC price eventually falls. 7- More Tethers printed. Repeat.

To me, the faster Tethers crash the better, no matter what happens to the price of bitcoin and other cryptocurrencies because of it. Until then, I guess all that we can do is refuse to trade USDT, even if it’s convenient to use on any given exchange, don’t trade it. Whether it’s liquidity or regulator clamp down, Tethers need a bitconnect moment, in my opinion.

And if you want more, here is a THEORY of what a possible Futures manipulation would look like using Tethers.

 

Mt.Gox Trustee

As if the pressure of Tethers on the market was not enough, we have the Mt. Gox bitcoin dump to contend with. Mt. Gox was an exchange that went belly up, and years later, the bankruptcy trustee is recently moving the bitcoin from cold storage onto exchanges. This has a similar effect as the Tethers from the previous section. Below you can see the distribution of bitcoin, and the impact it had on the market.

mtgox-dumps

 

This is the impact of 40,000 BTC. The trustee has 160,000 BTC more from what I can tell. As of this writing, there is no word on future distributions, as it seems the next court proceedings are not until September 2018.

Whether it’s Tethers or Mt.Gox dumping, these actions have huge impact on the price of bitcoin. When they do it on any one exchange, it is more than enough to trigger a large enough move, which then triggers existing stop and/or limit orders, and can bring the entire market down in short time. Trade responsibily.

 

Ongoing Scams

Tether and Mt.Gox are the big fish to me right now. Though in general you should always beware of ICOs and Pump-and-Dumps, etc. These will be ongoing obstacles.

Initial Coin Offering – ICO

As the use of cryptocurrency and blockchain technology develops, there will be many new coins and utilities. They will range from between ‘world changing’ and scams. Before investing in any ICO, read it’s whitepaper, study the team behind it, and exercise overall diligence.

Pump-and-Dumps

Just see twitter or certain ‘newsletters’ and these will not be hard to find. A person/group will shill for a coin, drive it’s price up, then dump it.

FUD

Fear, Uncertainty, and Doubt. This is a disinformation strategy used by others to influence perception in order to attain a certain goal. Fake news.

Regulations

As crypto grows, so will the attempt to regulate it. Regulations in of themselves may not be that bad, some may actually be good and beneficial. But again, learn to discern between the actual regulation being discussed, and the aforementioned FUD surrounding it.

Tether Alternative

Back to Tether for a moment.

There has been news lately of Amazon inquiring about banking. Ask yourself…if Amazon or Apple took some of there cash and made a real 1:1 crytpo USD pair, do you think the price of Tether would crash? I do. Even those weary of a Jeff Bezos world takeover would still trust him over Bitfinex and Tether.

Actually, I find it amazing that no major, regulated bank has tried this. They could literally issue their TRANSPARENTLY AUDITED 1:1 USD crypto, then charge a meager fee for the customer to exchange to USD at anytime. Maybe legally it would have to be a separate entity from the actual bank… but one of the banks or an Amazon/Apple should clear with the SEC to see what would be legal…and do it. Just do it honestly.

This seems like a no-brainer for Amazon or Apple to do to essentially accept bitcoin at checkout, without the risk of the volatility. And I suppose the ideal coin would have an elastic supply, instead of a fixed one, to maintain the 1:1 ratio with USD. Anyway, I’m sure some developer could figure it out for a price that Bezos can easily afford.

Closing

Once the current mine field is cleared out, those of evil nature will no doubt devise other schemes to attain ill gotten gains. Such is a part of the ongoing battle between good and evil. We will just have to be vigilant as cryptocurrencies continue their widespread adoption.

All and all, I still believe cryptocurrencies and blockchain will be an integral part of our lives. I still believe they will change the finances of many that ‘invest’ in them. This is to serve as a warning to navigate the obstacles in realizing that ascent. Also, may this serve as a psychological aid for if the time comes when prices become unbelievably low again. That you view it as an opportunity of a lifetime, not the end of it.

Among all that was in this article, you can still actively trade crypto with this knowledge. Though I only recommend it with proper attention and risk mitigation. You can learn a lot about this and get access to a crypto trading program from RealLifeTrading. Disclaimer: I am currently subscribed there.   

Also, you can find several people who know what they are doing on Trading View like MPC and RLT.

Did I misrepresent anything? Do you have anything to add or correct? Please comment below if so.

Hope this article serves you well.

-Travis

God Bless

JMJ – UIOGD

It was only a few days ago that 1 Bitcoin cost more than 1 ounce of gold, but volatility continues to pick up in the digital currency markets as many “coins” move off from their all time highs. In this article, Bitcoin, Ethereum, and Dash will be discussed. Even with the ongoing volatile swings, the overall market cap of cryptocurrencies is relatively small, and digital currencies will be a player for the foreseeable future. Now, what to do about it?

Bitcoin

bitcoin chart Cryptocurrency Volatility | The Latest Digital Currency News of Bitcoin, Ethereum, and Dash

Just over 2 months ago, the MASSIVE 50% cryptocurrency gain in 2 weeks was noted on this site, and at that same time, Bitcoin gained 21% in 1 week. Since then, there was a build-up in price to the all-time high of about $1,270 per bitcoin, as the SEC was to rule on the approval of a Bitcoin ETF. An ETF would have given investors easier access to ‘trade’ Bitcoin, and it was speculated that an approval would immediately add several hundred dollars to the price of Bitcoin.

As it turns out, the SEC rejected the ETF, and so Bitcoin trading is yet relegated to alternative platforms, and not easily accessible to institutional traders. (Personally, I think this is better for Bitcoin in the long run, as paper trading has manipulated assets such as gold and silver) However, the price didn’t crash as was expected by some, but was fairly stable for several days…..until now.

Over the last few days, Bitcoin has dropped nearly $300!  This drop is likely attributed to the “forking” of Bitcoin. If you care to learn more, here is a forking op-edAlso, here are 3 ‘forking proposals.’ 

It is doubtful that this spells the end for Bitcoin, but more likely could present a buying opportunity once the price bottoms.  Especially when considering the market capitalization of Bitcoin, compared to other assets. It has realized only a fraction of it’s potential growth, even at $1,000+ per Bitcoin. Keep an eye to see if the 100-day moving average (blue line on chart) acts as support as it did a few months ago.

What is notably actionable now, though, is that this forking issue has increased the desirability of alt-coins like Ethereum and Dash.Cryptocurrency Volatility | The Latest Digital Currency News of Bitcoin, Ethereum, and Dash

 

Ethereum

Some speculate that Ethereum will catch and exceed the size of Bitcoin in time! This is partly due to it’s ‘smart contract’ functionality. Per wikipedia, smart contracts, are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract, or that make a contractual clause unnecessary. Ethereum also uses an expanded blockchain technology than that of bitcoin, rendering it as ‘better’ to many people. For example, being able to correct the issues of Bitcoin, Ethereum is believed to have better scalability as more and more digital transactions take place globally.

Other differences to Bitcoin, are that Ethereum:

  • has a faster block time, quicker transactions
  • has more coins yet to be mined
  • encourages decentralized mining
  • has it’s own Turing complete internal code

Ethereum’s smart contract technology is enabling other companies to develop blockchain based applications. As the National Inflation Association reports, Augur (decentralized prediction market) and BTL Group (TSXV:BTL), are among those utilizing the Ethereum blockchain. BTL Group is currently testing their Interbit platform with VISA, among others.

These advances in Ethereum easily explain the drastic price moves of late. The cryptocurrency volatility was evident in March 2017, as in a span of 9 days, the value of Ethereum went from about $17 to $55! A 224% gain in only 9 days! 

ethereum chart Cryptocurrency Volatility | The Latest Digital Currency News of Bitcoin, Ethereum, and Dash

dash coin vs bitcoin Cryptocurrency Volatility | The Latest Digital Currency News of Bitcoin, Ethereum, and Dash

 

Dash

Dash coin has quite a few desirable characteristics that make it more appealing to various users. It boasts a quicker transaction, a better future forking transition, and the transactions are truly anonymous. See the infographic at the right for a Dash vs Bitcoin comparison chart.

One of the leaders in cryptocurrency volatility as of late, it’s current price sits at about $109. On Feb. 20, it was nearly $21 per Dash. That is a 420% gain in only 1 month!

 

dash coin chart Cryptocurrency Volatility | The Latest Digital Currency News of Bitcoin, Ethereum, and Dash

 

 

Bitcoin vs Ethereum vs Dash

All things considered, each type of cryptocurrency has it’s own goal. Really, it is not fully accurate to say one is ‘better’ than the other, because each is developed to achieve different ends, and each user has their own needs. Bitcoin aspires to be more of a stable currency, Ethereum provides the system on which many companies can develop and operate, and Dash points to it’s anonymity and quickness.

They all are susceptible to governments making laws, regulating their use, and the resulting cryptocurrency volatility. But then they all are immune to government central banking. So it’s just like investing in any asset, there are risks and rewards.

Personally, I recommend acquiring some Bitcoin, Ethereum, and Dash. Even look into companies like BTL Group (TSXV:BTL) who are utilizing the technology. The market capitalization of all crypto currencies combined is a mere $24 billionThat is comparable to the size of Hershey’s (NYSE:HSY) or Kellogg (NYSE:K).

These digital currencies are still relatively new, and they are open to global inflows of capital. Plus, while we can measure them against companies, they are actual currencies, and cryptocurrency volatility will probably never go away. $24 billion is not that much when the entire world has a GDP of $120 trillion. While not without risk, the potential is astronomical.

 

Hopefully this info was of use to you. Below, I will include links from our last 2 cryptocurrecy articles to do your own research, if you are interested. And with any gains you may realize, please be a good steward.

JMJ – IOGD

Travis

 

MUST SEE! Crytpo-Currencies Gain 50% in 2 Weeks After Breaking All-Time Resistance
Bitcoin and Gold in 2017 | $10,000 Bitcoin is Coming
bitcoin address Cryptocurrency Volatility | The Latest Digital Currency News of Bitcoin, Ethereum, and Dash

1NjFD6ktEmvkVPHVYv5fBFePMfGGsBpZoU


Here are some useful tools:
Bitcoin Wallet
Bitcoin Charts
Bitcoin Exchanges – BTCe  Bter
Crytpo Currency Market Capitalizations
Bitcoin real time flow
National Inflation Association

You must be paying attention to the history currently unfolding in crypto-currencies. In only 2 weeks, the total market capitalization of all crypto-currencies has jumped 50%!!

chart

Many have heard of Bitcoin, but are unaware of the hundreds of other digital currencies like it. These currencies are traded on exchanges just like currencies of the world’s various central banks. As there is the dollar, euro, yuan, ruble, pound, etc. There is also Bitcoin, Ethereum, Monero, Litecoin, Ripple, GlobalBoost, etc. However, these digital currencies are more like a commodity in the sense that there is a finite amount available, scarcity. Career politicians just can’t go and create more of them by the push of a button, but they are mined by various ‘computers’ through an algorithmic blockchain….and there is a set amount to be mined.

 

Market Capitalization of Crypto-Currencies

In this case, Market Capitalization can be understood as the total value, or total amount of dollars making up the shares of the crypto-currencies.

On December 4, 2013, there was $15.7 billion in Bitcoin and the other altcoins. On June 17, 2016, that high was tested and peaked at $14.9 billion before pulling back. Again, on December 22, 2016, the resistance was tested at $15.6 billion, and once broken, the market capitalization skyrocketed nearly 50% in just 2 weeks. As of January 5, 2017, there is $21.7 billion in crypto-currencies.

This is truly an amazing event unfolding before our eyes. Think of any stock or any other central bank currency….to grow 50% in 2 weeks, after living below an all-time resistance, is remarkable.

 

Bitcoin

It was only a week ago when we published Bitcoin and Gold in 2017 | $10,000 Bitcoin is Coming. At the time, the price of Bitcoin was $959. As of this writing, it is now $1,164. That is a 21% rise in only 1 week! (also, in that article, an immediate $78 move higher in gold was referenced, and gold has risen $34 since.)

bitcoin-addressIf you have not already, it is time to get at least some Bitcoin. Of course, we can’t know when the next regulation will come, trying to stifle the rise of Bitcoin. That $7 billion dollars added to crypto-currency market cap in the last 2 weeks can evaporate as quickly as it came, testing the old resistance as new support. Or, this move higher could still be in it’s beginning stages. In 2013, the price of Bitcoin rose 450% in only 1 month. If a similar move in unfolding, it’s not yet finished. Keeping an eye on the action from China will help this time around.

Take a minute to review the $10,000 Bitcoin is Coming article, and here are a few useful tools from it:
Bitcoin Wallet
Bitcoin Charts
Bitcoin Exchanges – BTCe  Bter
Crytpo Currency Market Capitalizations
Bitcoin real time flow
National Inflation Association

 

In God’s Will

-Travis

 

 

In 2016, Bitcoin and gold have seen massive rallies. Gold stumbled hard in the last quarter of the year, but Bitcoin surged even higher, back up to it’s record levels from 3 years ago. The current price of Bitcoin is $959 …… but just how far away is $10,000?

Bitcoin and Gold in 2017 | $10,000 Bitcoin is Coming chart

$10,000 Bitcoin

Looking at the history of price swings in Bitcoin, $10,000 is not that far away, but in truth, neither is $200! Bitcoin by it’s very nature has huge swings in part because the general public still has not grasped the world changing reality of digital currency and the blockchain. It is still considered highly ‘speculative’.

I’m not going to get into all of the politics of decentralized money, nor the safety of deposits on hand in any one bank, nor the general pros and cons of Bitcoin. Simply, I want to illustrate why $10,000 Bitcoin is coming.

Let’s start with the market capitalization of Bitcoin. Market capitalization is the total value of something. In the case of Bitcoin, the market cap is currently at a record $15.4 billion dollars.

This is calculated by taking the current total number of Bitcoins in existence 16,068,750 and multiplying it by the current price of $959. (note: Bitcoins will cease to be mined at 21 million, here you can track the market capitalization of all crypto currencies)

As Bitcoin is globally traded, $15.4 billion dollars is not much at all. Consider that Apple (NASDAQ: AAPL) alone has a market cap of $625 billion dollars…and consider that there is over $60 trillion in equities in general!

$10,000 Bitcoin would equal a market cap of a mere $161 billion dollars. That is about the size of Pepsi (NYSE: PEP) or Cisco Systems (NASDAQ: CSCO).

In time, if Bitcoin were to reach the level of capitalization as Apple is currently, Bitcoin would be valued at $39,000.

We are talking about a relatively new (about 10 years old), but definitely up-and-coming global currency, in a world with a $120 trillion dollar GDP!

You see, it’s nothing at all to get Bitcoin to $10,000. It’s all a matter of sentiment, and right now the sentiment out of China is quite notable.

Bitcoin rises in China

Bitcoin and Gold in 2017 | $10,000 Bitcoin is Coming chinaBitcoin’s latest push higher can be attributed to Chinese trading, as they have their own stock market concerns and yuan devaluations looming. China is a country of over 1.3 billion people, and their (PPP) GDP of over $20 trillion is the world’s largest!

Well, you can see Chinese Bitcoin inflows REAL TIME.

Truthfully, I don’t know if we will see the price at $500 again before we see $10,000. But I don’t really think it matters, unless you are a crypto currency day trader.

As Bitcoin popularity grows, euphoria takes hold, prices skyrocket, then governments will attempt to regulate Bitcoin use, people will panic, the price will fall, then people eventually start using it again, then it’s popularity grows, euphoria takes over, and on goes the cycle….albeit with a new floor and support.

Adding Bitcoin to your cash and tangible assets is not a bad move considering it’s potential. Crypto currencies and the blockchain are the future. $10,000 Bitcoin is not that far away.

 

Gold

While most of 2016 was bullish for gold, the price got smacked down pretty hard in the last quarter. But as it sits now, gold is oversold to the downside, and extremely undervalued.

Though the threat of deflation should always be minded, for this particular post, the short-term move for gold will be addressed.

Currently, Daily Sentiment Index for gold is at historical lows. Elliot wave cycles are at or near completion, and gold is poised for a rally. Further, the National Inflation Association has released their latest memo saying gold is “….due for an explosive short-term rally of $78 per oz!” See NIA lay out their algorithms why gold will rally in the short-term.

 

Conclusion

Heading into 2017, the Trump Rally may be nearing it’s end, and the global realities are coming back into focus.

Consider taking advantage of, or at least studying, the current opportunities in Bitcoin and Gold… may you prosper as $10,000 Bitcoin becomes one of those global realities.

bitcoin-address

1NjFD6ktEmvkVPHVYv5fBFePMfGGsBpZoU

Here are some useful tools:
Bitcoin Wallet
Bitcoin Charts
Bitcoin Exchanges – BTCe  Bter
Crytpo Currency Market Capitalizations
Bitcoin real time flow
National Inflation Association

Merry Christmas
In God’s will
-Travis