How Will Bitcoin Lead to More Freedom? – Reason.com

Why Bitcoin Has a Volatile Value?

Price fluctuations in the bitcoin spot rate on cryptocurrency exchanges are driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). More recently, a volatility index for bitcoin has also become available. Known as the Bitcoin Volatility Index, it aims to track the volatility of the world's leading digital currency by market cap over various periods of time.
Bitcoin's value has been historically quite volatile. In a three-month span from October of 2017 to January of 2018, for instance, the volatility of the price of bitcoin reached to nearly 8%. This is more than twice the volatility of bitcoin in the 30-day period ending January 15, 2020. But why is bitcoin so volatile? Here are just a few of the many factors behind bitcoin's volatility.

Bad News Hurts Adoption Rate

News events that scare bitcoin users include geopolitical events and statements by governments that bitcoin is likely to be regulated. Bitcoin's early adopters included several bad actors, producing headline news stories that produced fear in investors.
Headline-making bitcoin news over the decade or so of the cryptocurrency's existence includes the bankruptcy of Mt. Gox in early 2014 and, more recently, that of the South Korean exchange Yapian Youbit. Other news stories which shocked investors include the high-profile use of bitcoin in drug transactions via Silk Road that ended with the FBI shutdown of the marketplace in October 2013.
All these incidents and the public panic that ensued drove the value of bitcoins versus fiat currencies down rapidly. However, bitcoin-friendly investors viewed those events as evidence that the market was maturing, driving the value of bitcoins versus the dollar markedly back up in the short period immediately following the news events.

Bitcoin's Perceived Value Sways

One reason why bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency. Bitcoin has properties that make it similar to gold. It is governed by a design decision by the developers of the core technology to limit its production to a fixed quantity of 21 million BTC.
Since that differs markedly from fiat currency, which is dynamically managed by governments who want to maintain low inflation, high employment, and satisfactory growth through investment in capital resources, as economies built with fiat currencies show signs of strength or weakness, investors may allocate more or less of their assets into bitcoin.

Uncertainty of Future Bitcoin's Value

Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and method of value transfer. A store of value is the function by which an asset can be useful in the future with some predictability. A store of value can be saved and exchanged for some good or service in the future.
A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another. Bitcoin’s volatility at the present makes it a somewhat unclear store of value, but it promises nearly frictionless value transfer. As a result, we see that bitcoin's value can swing based on news events much as we observe with fiat currencies.

Large Currency Holder Risks

Bitcoin volatility is also to an extent driven by holders of large proportions of the total outstanding float of the currency. For bitcoin investors with current holdings above around $10M, it is not clear how they would liquidate a position that large into a fiat position without severely moving the market. Indeed, it may not be clear how they would liquidate a position of that size in a short period of time at all, as most cryptocurrency exchanges impose 24-hour withdrawal limits far below that threshold.
Bitcoin has not reached the mass market adoption rates that would be necessary to provide option value to large holders of the currency.

Security Breaches Cause Volatility

Bitcoin can also become volatile when the bitcoin community exposes security vulnerabilities in an effort to produce massive open source responses in the form of security fixes. This approach to security is paradoxically one that produces great outcomes, with many valuable open source software initiatives to its credit, including Linux. Bitcoin developers must reveal security concerns to the public in order to produce robust solutions.
It was a hack that drove the Yapian Youbit to bankruptcy, while many other cryptocurrencies have also made headlines for being hacked or having stashes of cryptocurrencies stolen. As an early example, in April 2014, the OpenSSL vulnerabilities attacked by the Heartbleed bug and reported by Google security's, Neel Mehta, drove Bitcoin prices down by 10% in a month.
Bitcoin and open source software development are built upon the same fundamental premise that a copy of the source code is available to users to examine. This concept makes it the responsibility of the community to voice concerns about the software design, just as it is the responsibility of the community to come to consensus about modifications to that underlying source code as well. Because of the open conversation and debate regarding the Bitcoin network, security breaches tend to be highly publicized.

High-Profile Losses Raise Fear

It is worth noting that the aforementioned thefts and the ensuing news about the losses had a double effect on volatility. They reduced the overall float of bitcoin, producing a potential lift on the value of the remaining bitcoin due to increased scarcity. However, overriding this lift was the negative effect of the news cycle that followed.
Notably, other bitcoin gateways looked to the massive failure at Mt. Gox as a positive for the long term prospects of bitcoin, further complicating the already complex story behind the currency’s volatility. As early adopting firms were eliminated from the market due to poor management and dysfunctional processes, later entrants learn from their errors and build stronger processes into their own operations, strengthening the infrastructure of the cryptocurrency overall.

High-Inflation Nations and Bitcoins

Bitcoin’s use case as a currency for developing countries that are currently experiencing high inflation is valuable when considering the volatility of bitcoin in these economies versus the volatility of bitcoin in USD. Bitcoin is much more volatile versus USD than the high-inflation Argentine peso versus the USD.
That being said, the near frictionless transfer of bitcoins across borders makes it a potentially highly attractive borrowing instrument for Argentineans, as the high inflation rate for peso-denominated loans potentially justifies taking on some intermediate currency volatility risk in a bitcoin-denominated loan funded outside Argentina.
Similarly, funders outside Argentina can earn a higher return under this scheme than they can by using other debt instruments, denominated in their home currency, potentially offsetting some of the risks of exposure to the high inflation Argentine market.

Tax Treatment Lifts Volatility

According to the Internal Revenue Service (IRS), bitcoin is actually considered an asset for tax purposes. This has had a mixed impact on bitcoin's volatility. On the upside, any statement recognizing the currency has a positive effect on the market valuation of the currency.
Conversely, the decision by the IRS to call it property had at least two negative effects. The first was the added complexity for users who want to use it as a form of payment. Under the new tax law, users would have to record the market value of the currency at the time of every transaction, no matter how small. This need for record keeping can understandably slow adoption as it seems to be too much trouble for what it is worth for many users.
Secondly, the decision to call the currency a form of property for tax purposes may be a signal to some market participants that the IRS is preparing to enforce stronger regulations later. Very strong regulation of the currency could cause the adoption rate of the currency to slow to the point where it is not able to achieve the mass adoption that is critical for its overall utility in society. Recent moves by the IRS are not clear as to their signaling motives and therefore have mixed signals to the market for bitcoin.
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Play Online Poker with Bitcoins

Play Online Poker with Bitcoins
Bitcoin (or BTC) is a decentralized virtual currency which is traded in the same way as currencies or bonds, except that for the storage of Bitcoins it is necessary to download an “electronic wallet”. According to Bitcoin there is no person, company or government that controls Bitcoin, so it requires users for its operation and the greater the demand, the greater its value. One of the main attractions of Bitcoin is its possible anonymity which allows the user to buy, pay and sell products and services without the intervention of any bank or financial institution.
Best Online Casinos to Play Bitcoin Poker of October 2020
In its beginnings, in 2008, Bitcoin did not obtain great popularity, but little by little it began to be adopted by more users and companies. It was in 2011 that the newspapers began to read about Bitcoin, since then companies of great international impact have begun to open their doors to transactions with Bitcoin, some of these companies are: Dell, Overstock and Microsoft.
The increasing adoption of Bitcoin by multinational companies spurred a reaction from government entities, with each country taking very different actions. In August 2013, the German Finance Minister declared Bitcoin as a "unit of account" which can be used for private transactions, which allowed Germany to control this virtual currency. In December 2013, the Chinese government prohibited banks and financial institutions from transacting with Bitcoins due to security and transparency issues. This government action caused a considerable drop in the value of Bitcoin since users in this country could not change their Bitcoins to the local currency. The United Kingdom and the European Union have also recognized Bitcoin as a type of currency and every day this cryptocurrency is accepted by more countries. However, each specific case must be analyzed, for example: in the case of the United States; Bitcoin is not considered a digital currency but rather a taxable product.
Buying Bitcoins for the first time can seem a lot more difficult than it actually is. There are many methods to acquire Bitcoins, the most practical is to acquire them directly from an exchange house or Bitcoins exchange houses. Their names denote their difference, in exchange houses you will go to a provider who will sell you Bitcoins for your local currency, while in exchange houses you interact with other users to exchange Bitcoins for real money. Bitcoins transactions can last from 10 minutes to several hours and are made through a Bitcoin address (similar to mail methods, only the address in this case is a series of numbers and characters), once you receive the transfer you must move your Bitcoins to your electronic wallet before you can use them.
In short, that's how easy it is to use Bitcoins:
· Bitcoin is a virtual currency that is stored in an electronic wallet.
· The value of Bitcoin is decentralized so it fluctuates depending on its demand.
· You can make a Bitcoins transfer in seconds and its verification takes about an hour.
· Once a Bitcoins transfer has been made, it cannot be reversed
· For the most part, Bitcoins transactions are not subject to fees or commissions.
For more detailed information, you can consult the Wikipedia site on Bitcoin here
Sites to play online poker with Bitcoins
Online poker sites have become more popular every day and since the use of Bitcoin is anonymous, decentralized and more or less instant transfers, online casinos have recognized in this cryptocurrency an excellent potential to attract new customers.
The way Bitcoins are used to gamble online divides casinos into two categories: exclusive Bitcoin poker sites and online casinos that accept Bitcoin. So, what is the distinguish between using an online casino that accepts Bitcoins and using a Bitcoin casino to play poker?

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Differences between Bitcoin poker and poker sites that accept Bitcoins
There are several differences between using an online casino that accepts Bitcoins and a Bitcoincasino, here are the most important ones:
The great differentiation between these types of online casinos will be the total offer of payment methods to enter or withdraw funds from your casino account, Bitcoin casinos do not accept other payment methods other than Bitcoin transfer, while traditional online casinos They will offer you other payment options such as a bank account or PayPal.
The expenses for using exclusive Bitcoins casinos are minimal and normally there are no fees for withdrawal of funds, contrary to the case of online casinos that accept Bitcoins as one of their payment methods since they most likely will charge you some commission.
Another great advantage of choosing Bitcoin casinos over online casinos is anonymity since you will not need to link your email or personal data to create an account. In addition to the convenience that this anonymity provides, it also streamlines the transfer process in relation to online casinos that require documentation. You should consider that this anonymity also makes Bitcoin casinos vulnerable to security problems with other users.
The game offer does not vary much between a Bitcoin casino and a traditional online casino, the most popular are: poker, roulette, slots and dice. Some small Bitcoin casinos do not turn to typical gaming providers like Playtech and Bets off as they tend to look for smaller providers that you may not have seen before.
Some of the most relevant Bitcoin casinos are: PokerStars, SWC Poker, Bitcoin Casino and Bit casino.
Pros of using Bitcoins when playing online poker
Transfer money to and from your online casino account
The requirements are basically the same as those of any traditional form of payment, of course you must have the electronic wallet software to use Bitcoins, but remember that withdrawals with this cryptocurrency they are usually much faster.
User anonymity
This advantage applies or not depending on the online casino you use, if when you sign up they only ask for information about your Bitcoin account then you will enjoy complete anonymity, however if you need to fill in personal or banking information to register at the casino then this benefit will not apply on that platform.
American users can use Bitcoin
Since Bitcoin is not recognized in the United States as a currency, it can be used as a means to enter and withdraw funds from an online casino account, remember that in the United States the laws vary a lot from one state to another so if you are an American user make sure you know the laws of your state in relation to online gambling before registering on a platform.
The double bet with Bitcoin
Many players opt for Bitcoin to place their bets since there is the possibility of winning some money depending on the exchange rate of Bitcoin when it comes to changing it to their local currency. This is why when used as a payment method for an online casino account, it is considered a double bet.
Best Rake backs
It is normal for Bitcoin casinos to offer better rake backs to their users since their expenses when using Bitcoin as the only payment method are lower, however this applies only to exclusive Bitcoin online casinos.
Cons of using Bitcoins when playing online poker
Where there are advantages, there are also disadvantages, here are the main cons you should consider when betting with Bitcoins.
Bitcoin-exclusive online casinos are sites without regulation or oversight
In the absence of a regulatory entity, it is hard to believe the promise of these casinos to use random platforms and take care of your funds. You must be much more careful when choosing an exclusive Bitcoins casino than a traditional online casino, the reputation and opinion of other players will be very important when choosing a Bitcoin Casino.
Another factor that you should take into account is that the lack of regulation of gambling with Bitcoin does not mean that you are exempt from following the gambling regulations of the place where you live, especially in the case of the United States, where the government has previously intervened in activities of bets regardless of the means of deposit or withdrawal of funds from the companies.
The fluctuating value of Bitcoin
The value of Bitcoin can vary both upward and downward. Its value can change in a matter of hours, and the behavior of its value is not so similar to that of currencies such as euros, dollars, pounds or pesos, but is more similar to the behavior of products such as oil, gold or wheat,
Relative anonymity of Bitcoin
While it is possible to register to exclusive Bitcoin poker sites without giving personal information, the use of Bitcoins can be traced through the blockchains to a personal account.
Lack of support from financial institutions
Being a decentralized currency, Bitcoin is not backed by financial institutions or government, which gives you less support as a user. If there were to be a problem with the Bitcoins system, there would be no government intervention as would happen in the case of a bank. Of course, you should consider that it is thanks to this lack of intervention that transfers with Bitcoins do not charge fees or commissions.
Being a virtual currency it is susceptible to cyberattacks.
While the programming behind the Bitcoins System is sophisticated, so are the hackers' systems. In 2013, the UK Crime Agency reported that several users of this cryptocurrency had been victims of cyber extortion, after receiving an email their computer was infected with a virus and later they were sued for some bitcoins to repair the virus on their computers. Unfortunately there are more cases like this, in Europe a payment provider lost more than a million dollars after a cyberattack.
All transactions are final
Remembering that there is no intervention by financial institutions, it becomes evident that it will be difficult to file a dispute in the event of a transfer error, so you will have to be much more careful.
conclusion
Playing poker online is a game of both chance and strategy. For some bettors it is exceptionally alluring to utilize Bitcoins since they have the chance of expanding their benefits as indicated by the Bitcoin swapping scale.
For many, traditional online casinos play poker with bitcoin will continue to be the best option due to the reliability and regulation of their transactions.
What cannot be denied is that the use of Bitcoins grows day by day and in the world of online poker as in any cyber activity you must consider the most innovative and practical solutions that there is for you.
submitted by emani19 to u/emani19 [link] [comments]

Bitcoin Broker Understand the Benefits of CryptoCurrency Trading

Bitcoin is a cryptocurrency, which can be spent, saved, or invested, and it can be stolen too. Trading with Bitcoins was considered to be risky, but the current trends show that it has become a big hit the binary options sector. This decentralized currency is not regulated by any Government, or by any central authority.
What determines the price of Bitcoins?
Bitcoin's price is determined according to the supply and demand ratio. Price increases when the demand increases, the rates plummet downwards when the demand falls. Bitcoins in circulation are limited, and new ones are created at a very slow rate. Since it does not have enough cash reserve to move the market price, its price can be extremely volatile.
Bitcoin trading is popular because of -
Binary options Bitcoin trading platform
bitcoin binary options are getting familiar with popularity of these Bitcoins, and its constant fluctuating values. Therefore they are using this opportunity to offer traders with the latest volatile crypto-currency as an additional payment method. Bitcoin brokers providing crypto-currency as trading option include -
Bitcoin brokers provide a simple trading online platform. All you have to do is visit their website, enter your details, and create an account. You can start with demo account to understand the market action.
The trading screen is simple.
Is Bitcoin trading secure?
Bitcoin network is possibly the world's vast spread computing project. The most common weakness here is the user errors. Bitcoin wallet files can get lost, stolen, or deleted accidentally just like any other files in the digital form.
However, users can use sound security strategies to protect their cash. Alternatively, you could choose the service providers who offer high-level security, as well as insurance against loss or theft.
We provide latest information on Bitcoin brokers and online trading platforms on our website. Please visit our website to check out the broker reviews in order to make the right choices.
submitted by amirkhoso to u/amirkhoso [link] [comments]

The Fundamentals of Bitcoin Trading/Bitcoin storm

The Fundamentals of Bitcoin Trading/Bitcoin storm
First, equities: Expected earnings are down across the board, presumably by a whopping quantity. A number of weeks ago, within the U.S. and Europe, business was humming along, albeit with trepidation. Currently, bars and restaurants are closed in many population centers, events are cancelled, outlets are shut, planes are grounded…. The list of sectors impacted by the required virus precautions is long and alarming.
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Next, government bonds: If there’s one issue the bond market hates, it’s inflation. The unwinding of globalization as a results of constricting offer chains can push up manufacturing costs which will feed through to costs. Liberally sprinkle cash round the system within the hopes of stimulating spending, in an exceedingly provide crisis, and you add to the inflationary pressure. Nominal yields on public debt are at traditionally low levels; inflation can push even additional real yields into negative territory.
As for company bonds, the sharp drop in earnings not to mention increasing costs might trigger a wave of defaults.
What about gold? The traditional shelter can in all probability do well within the medium term as investors bear in mind its anti-inflationary properties. Gold traditionally outperforms in low-rate environments – no shortage of those these days. Plus, its lack of income makes it less prone to drops in economic activity.
And then there’s Bitcoin storm. Its high volatility makes it unsuitable for several investors. However those who think gold makes sense in this world gone mad are presumably going to take a closer look, particularly once the perspective-changing storm we’ve simply weathered (with in all probability a lot of to come back). Even those skeptical of gold’s place in an exceedingly diversified portfolio are sure to be curious about a digital alternative that solves for a number of the metal’s weak points while revealing relationships with the broader economy that no other asset has
Last week I wrote concerning how it’s not a secure haven. Here’s the issue: it doesn’t want to be.
See additionally: As This Crisis Worsens, Bitcoin storm Will Become a secure Haven Once more
For those worried regarding inflation, Bitcoin storm is even additional resistant than gold. Its laborious cap and pre-programmed provide are resistant to fluctuations in value. A sharp jump in the price of gold, but, is possible to bring a lot of offer onto the market as production ramps up, and could even impact the estimated provide limit as various mining ways become profitable.

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For those worried concerning a pointy economic slump, Bitcoin storm is practically the sole asset indirectly impacted by macroeconomics. There’s no income to chop and no offer chains to hinder access. External factors like energy prices and supply chains will impact miner economics, but Bitcoin storm itself adjusts for shifts in the upkeep of its network. When miners close down, Bitcoin storm becomes chper to mine, that eventually makes the enterprise profitable again.

What makes Bitcoin storm even more of a distinctive asset class is it can be indirectly impacted by macroeconomics, in a very huge approach. The impact will come from many vectors, however particularly loose monetary policy, the currency markets, emerging economies and populist tendencie
1) Loose monetary policy: With central banks around the planet hitting the markets with no matter they'll, cash offer constraints have been thrown out the window. As this crisis unfolds, the number of money that can enter the system to help out not only markets but additionally voters and firms can dwarf what we tend to saw in 2008. Back then, the markets were threatening to drive the economy into a wall, therefore reassuring them was paramount. Currently the threat to the economy is driving markets into the wall. The usual ways that assuage market panics aren’t visiting stimulate demand that's reeling from mandated shutdowns, job losses and generalized worry.
Printing cash may maybe facilitate if it really gets into the hands of the consumers, but that can produce inflationary pressure in an economy with no tools left to fight it. The usual anti-inflation weapon is raising interest rates – but doing that during a heavily indebted surroundings might trigger waves of company and even sovereign defaults.
Growing inflationary pressures and steady currency debasement will presumably increase interest in disinflationary assets like Bitcoin storm and gold which will additionally be used for payment in some circumstances.
a pair of) Currency markets: Investors around the globe are fleeing into bucks, pushing up its worth relative to different currencies. This might facilitate the U.S. client by making imports cheaper, if imports weren’t disrupted by provide chain constrictions. But with a stronger dollar, U.S. producing can become uncompetitive, and foreign holders of greenback-denominated debt might get pushed into default. Other countries’ import and debt service prices can skyrocket, weakening their currencies and pushing up the dollar even more.
The ballooning demand for greenbacks could lead to a currency liquidity crunch – the swap lines extended to foreign central banks in last Sunday’s Fed intervention were expanded even any on Thursday, a worrying sign that the initial live wasn’t enough to alleviate the strain on the FX markets.
See Conjointly: Into the Unknown: No Limit on Fed Cash Injections
Calls are growing for concerted action the same as the 1985 Plaza Accord, however getting economic powers to follow the lead of an “America 1st” government whose leader based mostly a lot of of his campaign on guarantees of a wall is going to be a a lot of tougher challenge than within the post-stagflation desperation of the late twentieth century. With fractures in the world currency order turning into increasingly apparent, economists and investors can be asking what the next monetary order can seem like. Bitcoin storm could or might not be part of that resolution however it's a brand new tool in the box.
three) Rising economies: The sharp escalation of greenback-based mostly costs, combined with a demand crunch, may push non-greenback economies into recession, that is seemingly to steer to social unrest. In some elements of the planet, this might be met with swift retaliation or even regime modification. The confiscatory bias of political parties navigating an influence struggle could intensify interest during a liquid and semi-non-public store of worth.
4) Populist tendencies: Whereas a lot of established democracies will deal with recessions and social unrest through negotiations and trade-offs, even they could veer towards populist tendencies. These will most likely take the shape of extra support for overwrought health systems, also for voters and companies hit hard by mandated shutdowns and resulting slump in demand.
https://www.cryptoerapro.com/bitcoin-storm/


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Zhuoer Jiang: Talk about the difference between BTC, BCH and BSV

Zhuoer Jiang: Talk about the difference between BTC, BCH and BSV

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1. When do you contact Bitcoin? What do you think of the blockchain industry?
I came into contact with Bitcoin in October 2013. At that time, I was making game aids, which involved the issue of collecting money from Taiwan and Southeast Asia.
The reason for cultivating the blockchain industry is that blockchain is the only industry that can provide economic freedom. The blockchain is decentralized and has no control center, so no one can eliminate it, so it provides economic freedom. The counter-example is Qvod player. Although Qvod player also has tens of thousands of nodes, it is centralized. As long as the control center is killed, the Qvod player network will die. (QvodPlayer is a Chinese-based video-on-demand playback software, using P2P technology, users can watch online film and television programs through buffering. In mainland China, QvodPlayer has a huge number of users. Due to the use of a dedicated transmission protocol, QvodPlayer is used by some users to download banned videos, such as violent or pornographic videos, and politically sensitive videos. In addition, pirated movies are rampant in QvodPlayer)
I am not a Bitcoinist. As long as other tokens provide economic freedom, I will buy them with real money. My position portfolio is BCH 40% + BTC 30% + ETH 20% + economically free innovative currency 10%, and I think that ETH is likely to exceed BTC in total market value in this bull market.
2. What is the difference between BTC, BCH and BSV?
The easiest thing to see is the difference in block size. BTC blocks have been locked at about 1MB, while BSV advocates infinite blocks. BCH advocates a moderate block size, which cannot exceed the carrying capacity of an ordinary computer. The current value is about 32MB.
Both BTC and BSV have gone to extremes. The BTC development team, Core, pursues extreme decentralization, resulting in too small blocks and high transaction fees. In the last bull market, a transaction fee was as high as hundreds of thousands of yuan, which caused a large number of BTC users to flow out to BCH, ETH and other tokens.
Some people think that BTC can rely entirely on stored-value users instead of using users to survive. This is impossible. If there are no users, there are no stored value users. For example, gold is obviously more suitable for storing value, but almost everyone has bank deposits, except for the elderly, almost no one uses gold to store value. To
People usually use paper money to store value, and naturally they also use paper money to store value. It is impossible to use paper money to store value with gold, and it is impossible to use paper money for small transactions and gold for large transactions. Currency has a scale effect, and it must be a winner takes all.
BSV has gone to the other extreme. The blockchain is enough to store transaction data, but if the blockchain is used as cloud storage, no amount of space is enough. Think about how many resources the world has to store. The result is that the performance requirements are too high, the number of nodes is drastically reduced, and the foundation of the blockchain, which is decentralization, is lost. In the end, it falls into the same fate as the Qvod player. To
Behind the different block sizes are the differences in the spirit of the three. Just like during the Opium War, the difference between Britain and China's Qing Dynasty was not a superficial weapon, but a complete political, economic, and technological gap behind it.
Both BTC and BSV are irrational and religious to a certain extent. BTC advocates a deadlock block size, and BSV advocates a deadlock protocol. The two are very similar.
In terms of rational development and serving users, BCH has won. For example, the issuance of tokens is an important function and rigid demand of the blockchain. Tokens can already be issued on BCH through several protocols such as Wormhole and SLP, while BTC and BSV cannot yet. This is a huge difference in development.
3. Under what circumstances can BCH exceed BTC?
BCH has to wait for users to slowly develop until the number of users and transactions exceed BTC. Although under normal circumstances, the currency has a scale effect, this situation is unlikely to happen, but BTC made a fatal mistake, and locked the block and locked the user.
What if BTC expands like BCH?
First of all, BTC cannot be expanded because the expansion requires a hard fork, regardless of whether it is within the community or the Core, it must adhere to 1MB, insist on extreme decentralization, and BTC must be able to run on the Raspberry Pi. The result is that the expansion advocates in BTC and Core re-hard fork.
Isn't this the plot of the hard fork of BCH from BTC in 2017? So what are these "advocates" doing hard forking again? Just go straight to BCH.
Therefore, BTC must undergo a hard fork to expand, so it cannot be expanded.
So BCH only needs to catch up, which is a fixed goal. I estimate that in this bull market, BCH can exceed the number of users. At that time, BCH had a solid foundation of users and communities. The price increase only increases the price of BCH, the value of BCH is determined by the number of users, and the price fluctuates around the value.
4. Will BCH hard fork happen? What impact will it have on us later?
The BCH community has recently had a lot of discussions on the issue of miner donations, which reflects the decentralization of BCH.
If BCH is controlled by bitmain, why it took a long time for bitmain to implement this problem? Conversely, if CSW wants to modify something on BSV, it can be passed immediately.
5. Do you think BCH is worth long-term ownership?
I often say: "Ask God in the short term, and the number of users in the long term."
The longer the time, the more worth holding BCH. BCH is developing rapidly due to the correct route. I just gave an example. There are already several schemes for issuing tokens on BCH, but neither BTC nor BSV have one. Part of it is because BSV locks the protocol and is not convenient for development. The other part It is because the BSV community has inherited the characteristics of CSW and only speaks big words and does not do practical things.
Therefore, it is definitely worth holding for 1 to 2 years, and the rate of increase is likely to be higher than that of BTC. I predict that the highest point of this round of bull market for BCH will rise from about 3.6% of BTC to 10% to 20% of BTC.
8. Free Q&A
"Will Bitcoin die due to quantum computers or other reasons?"
Certainly not, at best, replace a quantum-resistant algorithm. Looking at it now, quantum computers will not be practical for a long time. And I think quantum computers may not be able to solve the NP problem, that is, the current asymmetric encryption problem, which may not be possible mathematically.
"The impact of the proliferation of contract transactions on currency prices?"
The currency price is ultimately determined by the number of users, not by speculative users. The proliferation of futures trading has happened long ago. From 2016 to 2017, in the presence of a large number of futures trading, BTC rose 100 times.
"Will you be notified when you escape?"
I will definitely not inform. I have already made predictions. I think the bull market may end in the second half of 2021. Or conversely, this bull market may last for two to three years, and two years are more likely.
Why not notify? Most of my clients are miners, and the currency price directly affects the income of the miners. If the currency price drops due to my notification, the interests of my clients will be damaged.
"Recommended regular investment in 2019, what strategy is recommended in 2020?"
This year's bull market has begun, and it must be a full position investment. The cost of regular investment to buy coins later is very high.
"Is it better to speculate or to mine now?"
Most people can't insist on holding the token from start to finish. Most people are in the middle of the bull market, or even sell it at the beginning, and then miss the entire bull market.
Only miners, no matter what level of miners, will hold the token from beginning to end. During the entire bull market, miners are very profitable. Miners will certainly not sell the goose that lays golden eggs like mining machines in the bull market, so miners tend to make more. The earliest miners are basically still active in the market, and their wealth is free, while the earliest holders of coins are almost gone.
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LOEx Market Research Report on August 6: BTC tries to resume its uptrend today

LOEx Market Research Report on August 6: BTC tries to resume its uptrend today
[Today's Hot Tips]
1. [Vitalik Buterin: DPoS systems such as EOS are the ruling group of the rich]
A Twitter user, Patrick McCorry, said that in fact, delegated proof-of-stake systems (DPoS) such as EOS are more like democracies. For example, users pledge tokens online to elect validators. But BTC and ETH avoid this. In response to this, Vitalik Buterin just replied that they are a ruling group of rich people, and do not destroy the concept of democracy with a system where the formal power of the giant whale is thousands of times higher than that of everyone else.
2. [Monero will undergo a network upgrade on October 17 to introduce the CLSAG signature scheme]
On the evening of August 5, Monero officially released its weekly progress report and announced that the next Monero network upgrade will take place on October 17. At the same time, Monero will officially release the software version required for the upgrade on September 17. In addition, this network upgrade will introduce the CLSAG signature scheme. The CLSAG signature scheme can reduce the transaction size by about 25% and improve the verification performance by 20%. The CLSAG signature scheme has been reviewed.
3. [Vitalik Buterin: Hard fork is more conducive to protecting people's rights]
Vitalik Buterin just tweeted that in a soft fork, the default is inaction, and new rules will be imposed on you without even active confirmation. In a hard fork, either you get the positive approval of the majority of participants, or everything is messed up. The latter seems to be more conducive to protecting people's rights. Of course, soft forks better protect the freedom of individuals not to update code, but I just don’t understand why this is important. Obviously, what matters is not what code you are running, but the rules of the network you are on.
[Today's market analysis]
Bitcoin (BTC)BTC traded sideways around 11650 in the early morning, and quickly rose around 5 o'clock, breaking through 11700 USDT in the short-term, and rising to 11780.50 USDT. Then BTC fell rapidly again, fell below 11,600 USDT for a short time, and rebounded after falling to 11,512 USDT. At present, BTC is finishing within a narrow range around 11650 USDT. Most mainstream currencies have risen in the morning and then fell rapidly, with short-term fluctuations. BTC is currently reported at 11678.2 USDT on OKEx, an increase of 0.32% in 24h.
Gold has risen very well recently, and the currency circle represented by Bitcoin is certainly not bad, so all aspects are accumulating power.
After forming an intraday candlestick pattern from August 3 to 4, Bitcoin today tried to resume its upward trend, which shows that the bulls have overwhelmed the bears.
The rising moving average and the relative strength and weakness of the overbought zone indicate that the bulls are in a dominant position.
If buyers can push the BTC/USD currency pair above $12,113.50, the uptrend may resume. The next target for the rise is $13,000, and then $14,000. The bears may actively defend the $14,000 level, so a meaningful correction may be made at these levels.
Contrary to assumptions, if the currency pair retreats from the resistance level of $12,113.50, it may enter a consolidation of $10,400–$12,113.50 within a few days. A break below $10,400 would be a huge negative impact because it is likely to catch the bulls by surprise and lead to the liquidation of long positions.
Operation suggestions:
Support level: the first support level is 11000 points, the second support level is 10800 integers;
Resistance level: the first resistance level is 11800 points, the second resistance level is 12000 points.
LOEx is registered in Seychelles. It is a global one-stop digital asset service platform with business distribution nodes in 20 regions around the world. It has been exempted from Seychelles and Singapore Monetary Authority (MAS) digital currency trading services. Provide services and secure encrypted digital currency trading environment for 2 million community members in 24 hours.
https://preview.redd.it/7nn7e6y8acf51.png?width=614&format=png&auto=webp&s=07b57933c2d839b439c616e3fafa0803f56391ac
submitted by LOEXCHANGE to loex [link] [comments]

Benefits and Risks of Trading/Bitcoin trader

Benefits and Risks of Trading/Bitcoin trader

Ought to you jump in and begin using your onerous-mined bitcoins within the markets? Find out the risks and advantages initial.KEY TAKEAWAYS
The market is devoted to trading in the globe's currencies.
https://preview.redd.it/u8gle9a0m4f51.jpg?width=770&format=pjpg&auto=webp&s=9368e9fe9613884fb4fd0c86fb716e50319f2d53
Many brokers currently settle for bitcoin and different cryptocurrencies.
Bitcoin trades benefit from the anonymity and decentralized valuation system the currency represents.
They add a replacement layer of risk trading, exacerbated by the acute volatilityStandard Forex Trade
Before you think about whether to trade using bitcoin, it's helpful to understand how a standaroretrade works.

A forex trade is simply an exchange of 1 currency for an additional at its current rate. Unlike tourists who exchange their home currency for local spending cash, forex traders are trying to form cash off the continual fluctuations in the real value of 1 currency against anothe

Imagine you're an American trader betting that the British pound can lose price compared to the U.S. dollar. This is termed trading on the British pound/U.S. dollar currency pair (GBP/USD).The Impact of Decentralization
The key distinction is that, though forex exchanges would possibly be decentralized, the currencies themselves are backed by central banks in the countries that issue them. It's the duty of those banks to stabilize the value of their currencies and keep them stable
Now think about an example of a forex trade using bitcoin. First, you open a forex trading account with a broker who accepts bitcoins. These embody AvaTrade,one? eToro, and LiteForex.a pair of? You then transfer 2 bitcoins from your digital wallet to the forex broker’s digital wallet.

If you wish to trade using bitcoin, use only a locally regulated forex brokerage. And avoid using leverage till you know what you are doing.
Assuming the present bitcoin to U.S. dollar rate is 1 bitcoin = $seven,500, your deposit of two bitcoins is value $fifteen,00zero. Now, assume that you would like to require an edge in British pounds. If the exchange rate is £zero.five = $one, you may receive £7,500. When it rate changes to 0.45, and you square off your position t.sixty five in your trading account. You have got made a tidy eleven.elevenpercent profit and you're prepared to cash out.




Despite the very fact that your bet on British pounds earned you an eleven.11% profit (from $fifteen,00zero to $16,66six.65), the fluctuation in the bitcoin to U.S. dollar rate suggests that that you sustain a loss of zero.039 bitcoin or about -two.percent. (Initial deposit of 2 bitcoins — 1.961 bitcoins = .039 bitcoin).

However, had the bitcoin to U.S. greenback exchange rate changed to 1 bitcoin = $7,000, you'd realize a benefit from both the forex trade and the bitcoin exchange. You'd have received ($16,66half dozen.65/$7,00zero) = two.381 bitcoins, a profit of nineteen.onepercent.

Increased Unpredictability
This hypothetical example illustrates the large reason to exercise caution when using digital currencies for forex trading. Even the most fashionable and widely used cryptocurrency, the bitcoin, is highly volatile compared to most traditional currencies.

Within the year ending July 24, 20twenty, the value of a bitcoin ranged from $five,532 to $eleven,982
This unpredictability means that that the risks associated with trading forex using bitcoin are that abundant larger
Beyond the exchange rate fluctuations impacting profit and loss, there are other edges and risks to consider before trading forex with bitcoin
Decentralized Vauations: A major advantage of trading forex with the bitcoin is that the bitcoin isn't tied to a central bank. Digital currencies are free from central geopolitical influence and from macroeconomic issues like country-specific inflation or interest rates.
High Leverage: Many forex brokers offer leverage for bitcoin trades. Experienced traders can use this to their profit. However, such high margins ought to also be approached with great caution as they amplify the potential for losses.
Low Deposit Amount: A trader can begin with as little as $twenty five with some bitcoin forex trading firms. A few forex trading companies have even offered promotions sort of a matching deposit quantity. Traders ought to check that the broker is legitimate and appropriately regulated.
Low Cost of Trading: Most forex brokers that settle for cryptocurrency are keeping brokerage costs terribly low to attract new shoppers.
Security: You don’t would like to reveal your bank account or mastercard details to make a bitcoin transaction. This could be a massive advantage in terms of price and monetary security.

No World Boundaries: Bitcoin transactions don't have any international boundaries. A trader primarily based in South Africa can trade forex through a broker based mostly within the United Kingdom. Regulatory challenges could stay a concern, however if both traders and brokers are willing to transact, there aren't any geographical boundaries.
Risks of Trading Forex with Bitcoin
Different Exchange Rates: Bitcoin trades on multiple exchanges and exchange rates vary. Traders must guarantee they understand that bitcoin exchange rates the forex broker can be using.

U.S. Dollar Rate Risk: While receiving bitcoin deposits from clients, almost all brokers instantly sell the bitcoins and hold the quantity in U.S. dollars. Even if a trader will not take a forex trade position immediately when the deposit, he or she remains exposed to the bitcoin-to-U.S. dollar rate risk from deposit to withdrawal.
Danger of Volatility: Historically, bitcoin prices have exhibited high volatility. Within the absence of regulations, volatility will be used by unregulated brokers to their advantage and a trader’s disadvantage. For example, assume the intraday bitcoin rate fluctuates from $five,00zero to $5,300 U.S. greenbacks per bitcoin. For an incoming deposit of two bitcoins, the unregulated broker may apply very cheap rates to credit the trader $10,00zero (2 bitcoins * $five,000 = $10,000). However, once the trader is ready to create a withdrawal, the broker might use rock bottom exchange rate. Instead of the original a pair of bitcoins deposited, the trader receives o
Security Risks Inherent to Bitcoin: Deposited bitcoins are vulnerable to theft by hacking, even from a broker’s digital wallet. To reduce this risk, rummage around for a broker who has insurance protection against theft.


Risk of Leverage: Using leverage is risky for new traders who may not perceive the exposure. This risk is not unique to cryptocurrency forex trading and comes into play in traditional forex transactions still.
Asset Category Mixing: Cryptocurrency may be a different asset class altogether and has its own valuation mechanism. Trading forex with bitcoins primarily introduces a replacement intermediate currency which will impact profit and loss in unexpected ways. Any cash that's not locked down in an exceedingly trader’s base currency is a risk.
Although cryptocurrencies like bitcoin are gaining popularity, there are still several associated risks. In forex trading, dealing in a decentralized currency that provides global transactions with no fees is a bonus. But the tradeoff is actually adding a 3rd currency to what was a trading try
Put your trading skills to the take a look at with our FREE Stock Simulator. Compete with thousands of Investopedia traders and trade your means to the top! Submit trades in an exceedingly virtual setting before you start risking your own cash. Practice trading ways thus that when you're prepared to enter the $64000 market, you've got had the practice you would like. Attempt our Stock Simulator today
https://www.cryptoerapro.com/the-bitcoin-trade
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LOEx Market Research Report on August 6: BTC tries to resume its uptrend today

LOEx Market Research Report on August 6: BTC tries to resume its uptrend today
[Today's Hot Tips]
1. [Vitalik Buterin: DPoS systems such as EOS are the ruling group of the rich]
A Twitter user, Patrick McCorry, said that in fact, delegated proof-of-stake systems (DPoS) such as EOS are more like democracies. For example, users pledge tokens online to elect validators. But BTC and ETH avoid this. In response to this, Vitalik Buterin just replied that they are a ruling group of rich people, and do not destroy the concept of democracy with a system where the formal power of the giant whale is thousands of times higher than that of everyone else.
2. [Monero will undergo a network upgrade on October 17 to introduce the CLSAG signature scheme]
On the evening of August 5, Monero officially released its weekly progress report and announced that the next Monero network upgrade will take place on October 17. At the same time, Monero will officially release the software version required for the upgrade on September 17. In addition, this network upgrade will introduce the CLSAG signature scheme. The CLSAG signature scheme can reduce the transaction size by about 25% and improve the verification performance by 20%. The CLSAG signature scheme has been reviewed.
3. [Vitalik Buterin: Hard fork is more conducive to protecting people's rights]
Vitalik Buterin just tweeted that in a soft fork, the default is inaction, and new rules will be imposed on you without even active confirmation. In a hard fork, either you get the positive approval of the majority of participants, or everything is messed up. The latter seems to be more conducive to protecting people's rights. Of course, soft forks better protect the freedom of individuals not to update code, but I just don’t understand why this is important. Obviously, what matters is not what code you are running, but the rules of the network you are on.
[Today's market analysis]
Bitcoin (BTC)BTC traded sideways around 11650 in the early morning, and quickly rose around 5 o'clock, breaking through 11700 USDT in the short-term, and rising to 11780.50 USDT. Then BTC fell rapidly again, fell below 11,600 USDT for a short time, and rebounded after falling to 11,512 USDT. At present, BTC is finishing within a narrow range around 11650 USDT. Most mainstream currencies have risen in the morning and then fell rapidly, with short-term fluctuations. BTC is currently reported at 11678.2 USDT on OKEx, an increase of 0.32% in 24h.
Gold has risen very well recently, and the currency circle represented by Bitcoin is certainly not bad, so all aspects are accumulating power.
After forming an intraday candlestick pattern from August 3 to 4, Bitcoin today tried to resume its upward trend, which shows that the bulls have overwhelmed the bears.
The rising moving average and the relative strength and weakness of the overbought zone indicate that the bulls are in a dominant position.
If buyers can push the BTC/USD currency pair above $12,113.50, the uptrend may resume. The next target for the rise is $13,000, and then $14,000. The bears may actively defend the $14,000 level, so a meaningful correction may be made at these levels.
Contrary to assumptions, if the currency pair retreats from the resistance level of $12,113.50, it may enter a consolidation of $10,400–$12,113.50 within a few days. A break below $10,400 would be a huge negative impact because it is likely to catch the bulls by surprise and lead to the liquidation of long positions.
Operation suggestions:
Support level: the first support level is 11000 points, the second support level is 10800 integers;
Resistance level: the first resistance level is 11800 points, the second resistance level is 12000 points.
LOEx is registered in Seychelles. It is a global one-stop digital asset service platform with business distribution nodes in 20 regions around the world. It has been exempted from Seychelles and Singapore Monetary Authority (MAS) digital currency trading services. Provide services and secure encrypted digital currency trading environment for 2 million community members in 24 hours.
https://preview.redd.it/z2arjmu0acf51.png?width=614&format=png&auto=webp&s=d41ee75d425f17abe871f2389298413d7b864b6c
submitted by LOEXCHANGE to u/LOEXCHANGE [link] [comments]

Gold and Silver: Where Do They Go From Here?

https://federationofglobalmerchants.com/2020/08/14/gold-and-silver-where-do-they-go-from-here/

Investors know by now that one of the leading indicators of an unstable and unpredictable stock market is a surge in the price of precious metals like gold and silver. In February, amidst the COVID-19 pandemic, the markets officially entered a recession, even though just months later several of the major indices have reached all-time highs. It was a brief dip into recessionary territory, but this sort of volatility is what gives investors hesitation in putting their money into the stock market, rather than something that is perceived to be more stable. Gold future contracts are selling well above $2000 per ounce for the rest of 2020 and well into 2021 as well showing that investors are confident that gold will continue to rise in price. Silver is also surging reaching new all-time highs on a daily basis. So investors may be curious as to how to get into this red-hot market, especially as the markets continue to fluctuate.
Gold:
For centuries now gold has been literally the ‘gold-standard’ of currency and wealth. Dating back all the way to around 40,000 B.C. in Spanish caves, gold is a naturally occurring element that has both fascinated and lured people for as long as barter systems and wealth has been recorded. Currently, gold is enjoying its highest valuations in history as investors flock to the stability of the precious metal through various streams. So what is the allure of gold and why is it so stable?
Warren Buffett once said, “Gold is a way of going long on fear.” That is quite a statement from perhaps the greatest investment mind of our generation. But what does this mean for the novice investor? Even the most successful blue-chip stocks can crash. Obviously the more prominent and profitable companies with mega market caps will not crash as easily as smaller companies, but given the volatility of the pandemic, we can see anything happen. But as stock markets fluctuate on a daily basis, the price of gold remains mostly stoic. Not as manipulatable as stock prices, gold is as steady as it gets for investors.
What makes gold so stable? It is a combination of factors, first and foremost, it is a physical and tangible element which makes it possible for people to store and stockpile. It does not corrode or wear down over time, making it durable and ensuring that the value remains. There is also a finite supply of it in the world. This reinforces that it will always keep a certain level of valuation as the supply is kept in check.
Today, as the Federal Reserve tries desperately to pump money into the American economy to stave off a global recession and keep companies afloat. Printing more American dollars helps in the interim, but it is a temporary band-aid for the bigger problem. As more of the dollar gets created the more it gets devalued as a form of currency. This is another reason why gold is skyrocketing. The two valuations always work inversely to each other, so as the greenback continues to plummet, the price of gold will continue to surge which makes perfect sense if one thinks about it. The value of gold is priced in American dollars per ounce, so if the value of an American dollar retreats, the cost of gold will rise in response.
So how can investors take advantage of the current state of gold? In the age of internet investing, there are plenty of ways to invest in gold or anything in that matter. Most American platforms give inventors the ability to buy fractional shares of companies. While this comes in handy for expensive stocks like Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), or Tesla (NASDAQ:TSLA), it also allows investors to diversify their funds across multiple companies to form a basket approach to an industry. There are also plenty of ETFs or Exchange Traded Funds, available for investors to consider. These funds have the diversification of a mutual fund or index fund, but trade like individual stocks. Here’s a few of the better gold ETFs to consider if you are looking to get into the industry:
  1. IAU – iShares Gold Trust: One of the better known gold ETFs out there, iSHARES is a reputable brand with great overall market performance. The fund has returned over 17% to inventors already this year, and with the price of gold projected to continue to rise, this fund should keep delivering for investors into next year.
  2. DGL – Invesco DB Gold Fund: Another well known and reputable ETF, the Invesco Gold Fund has slightly higher fees than iSHARES but has also had a slightly better return so far this year.
  3. IAUF – iShares Gold Strategy ETF: Another iSHARES ETF, this one has parts of IAU, as well as gold futures contracts, to get a long term forecast of the price of gold so the investor gets exposure to a wider range of gold options.
There are dozens of other ETFs available for investors that cover everything from miners to the finished products. Mining company stocks are another great way to get exposure. As the demand for gold increases, these mining companies should see a rise in their revenues and eventually, their profits as well. These changes will be reflected in their stock prices and we have already seen some of this already this year.
  1. ABX – Barrick Gold: One of the largest gold mining companies in the world, this Canadian company has seen healthy gains in their stock price so far in 2020. Over the last 52 weeks, Barrick investors have enjoyed a 131% increase in stock price. With mining projects ongoing in Canada, America, Australia, South America, and Africa, Barrick has already announced that it is on track to achieve guidance this year despite closures from COVID-19.
  2. FNV – Franco-Nevada Gold: This stock price rose almost 15% in July alone. Franco-Nevada operates as a funding company to gold mining companies, rather than actually doing the mining themselves. Sustainalytics, a guidance and analysis company, rated Franco-Nevada number one amongst 104 precious metal companies.
  3. NEM – Newmont Goldcorp: The largest gold stock by market-cap and the only stock to trade on the S&P 500, Newmont is probably the safest company for gold investors to invest in. On top of steady returns and low volatility in the stock price, the company pays a fairly healthy dividend as well.
With gold at all-time highs, we can begin to question how high the precious metal may go. With a second wave of the coronavirus making its way around some parts of the world, and America, still making its way through their initial wave, the uncertainty that exists in today’s markets may continue into 2021. Some Wall Street analysts have forecast gold to rise as high as $10,000 per ounce, but that seems like a little ambitious. Gold has just recently hit all-time highs at $2000 per ounce and to imagine that it can run up another 500% in the next few years seems far-fetched at this point in time. That would require the markets to enter an extended bear-market, which of course is possible after a decade of a bullish run, but it would also require the American dollar to continue to be further devalued.
Gold is pegged to continue to rise for the rest of this year though and well into 2021. That means investors and analysts are foreseeing a further devaluation of the American greenback as well as continued volatility in the markets and economy. Is gold a safe haven? Some people believe it is, but if you are an investor that enjoys high returns over long periods of time, investing in precious metals may not be for you. Investors love the stability of gold but the returns are never astronomical, with the last few months being an exception. It helps to have a portion of your portfolio dedicated to precious metals to diversify and protect you from any sudden market corrections, but investors should not be looking at gold as a short-term way to get wealthy.
Silver: The other precious metal that has been flying sky-high of recent months is silver, the eternal younger brother to gold. Mined from silver-ore, it is a highly malleable metal that was once valued higher than gold by the Ancient Egyptians. Today, it is relatively low in price per ounce compared to gold, reaching all-time highs recently of just under $30 per ounce. Silver is another stable alternative to gold, and at lower prices, it may be a little more affordable for the novice investor to jump into.
Like with gold, silver has an inverse relationship to the American dollar, and to all currencies in general. Again, this is another reason why silver is hitting all-time highs right now, with silver future contracts predicting a steady rise to mirror gold, well into 2021. There is also something that Wall Street calls the gold silver ratio, which is exactly what it sounds like: the ratio of the price of gold per ounce to the price of silver per ounce. This ratio has historically moved together, which makes logical sense if both precious metals are independently moving inverse to paper currencies. Historically, the gold and silver prices do move together though as the general ratio has been in the range of 17:1 to 20:1.
Silver also has numerous ways for investors to get involved in, including silver mining and production companies, as well as the ever popular silver ETFs. These Exchange Traded Funds have gained popularity amongst retail investors in recent years as a way of purchasing a diversified product as a single equity with low costs, and no trading fees if your platform allows it. Here are a few of the better performing silver ETFs that investors can look into adding to their portfolios if they are interested in the precious metal:
  1. SLV – iShares Silver Trust: Probably one of the better known silver ETFs, this is fully backed by silver bullion and coins held in a vault. While usually fairly steady, this ETF has enjoyed a 52-week increase of 152% with much of that coming in the last few months.
  2. SIVR – Aberdeen Standard Physical Silver Shares ETF: Very similar to SLV but with lower fees, this is an ideal fund for novice and experienced investors to get into as they start to diversify their portfolios.
  3. DBS – Invesco DB Silver Fund: Again another stable ETF for investors to get into, and another good performing one as well. Just as with their gold ETF, Invsco focuses on silver futures contracts for this fund, so it is a nice long-term play if investors are bullish on silver.
Just as with gold, investors can get a slice of the silver pie by buying shares of silver mining companies as well. Here are a few of the top silver mining company stocks that investors can look into adding to their portfolios.
  1. PAAS – Pan American Silver Corp.: This Canada based miner is focussed on the exploration, development, extraction, refining, processing, and reclamation of silver. They operate mines in Peru, Mexico, Bolivia, and are developing more as well for the future.
  2. WPM – Wheaton Precious Metals: Another Canadian based company that deals with miners of gold, silver, palladium, and cobalt. Wheaton is not a direct miner, rather they purchase these precious metals from other mining companies.
  3. AG – First Majestic Silver Corp.: Canadian companies seem to be dominating the silver industry, and First Majestic is another of those. This company focuses mainly in Mexico for gold and silver.
Silver may never be as popular as gold for investors to keep track of but the two precious metals move in a synchronized fashion, and both are looked upon by investors as safe havens for their money when the market is in flux.
The rest of 2020 seems like a wildcard right now, with many analysts expecting a further correction to the markets at any point. There seems to be an inevitability to a market crash of some sort, whether it is as big as the one that happened back in February and March, remains to be seen. Investors are looking at the precious metal industry to hold their funds to wait out any sort of correction or crash. If this does happen, we may expect a pullback in precious metals too as investors selloff to get back into some stocks at their low levels. Such is the ebb and flow of the economy during turbulent times like the current one we are in.
At the same time, what if a market correction does not happen? Will the uncertainty continue or will investors feel relatively secure in the way the markets are progressing? This could cause a reduction in the demand for silver and gold, culminating in lower prices in the future. Of course this also depends on the Federal Reserve diminishing their rate of printing paper currency to bailout the economy, which does not seem like a reality in the short-term at least.
Another point of contention for investors is the ongoing economical and political tensions between China and America. The two world powers have been feuding for the past couple of months over various things, but it escalated as China social media app Tik Tok gained popularity in North America. It was alleged that TikTok was sending data and information from mobile phones back to China, though nobody is sure of their intended use of this data. Regardless, the markets have stumbled several times lately because of this. Both sides have threatened economic sanctions and the banning of certain product use in each country. The prices of silver and gold have shot up as the tensions have escalated between the two governments, as investors flock to the precious metals. Many of the biggest companies on the major stock indices rely on China for materials or production, so any sort of breakdown in supply chains could cause an enormous change to their stock prices. An example of this is a sudden 5% correction in the price of Apple (NASDAQ:AAPL), as it was thought that iPhone sales would decline if China’s chat platform WeChat was banned in America.
There are other factors that may have an effect on gold and silver prices as well. In this modern economy, many of the retail investors have trended towards younger adults with a sudden influx of income. Popular platforms such as Robinhood combined with increased time at home during the quarantine, have caused retail investor usage to skyrocket during the pandemic. Many of these investors are more lured in by the shiny new objects of cryptocurrencies like Bitcoin. Perhaps we will start thinking of these cryptocurrencies as a modern day version of precious metals one day, as many investors and some analysts, believe that Bitcoin may be a safe haven in the future. Already, the price of Bitcoin has risen above $12,000 in August, mirroring the highs of gold and silver. If the demand for Bitcoin rises higher than the demand for precious metals, we may see an investor migration to cryptocurrencies rather than tangible metals.
Conclusion: Gold and silver are staples of our global economy, and will continue to be so as long as the demand for precious metals exists. In times of uncertainty, gold and silver are viewed as safe relative to the volatility of the stock market. Sure, their prices can vary as well, but because they are tied to a less dynamic valuation that is based on an inverse relation to paper currency, their prices will not and can not fluctuate as much as the liquidity of individual stocks.
As long as the world remains in flux, there will be a general feeling of instability, especially for global markets. A second wave of COVID-19 in the third or fourth quarter of 2020 could prove to be enough to push the markets over the edge and into another recession. The bull market has been rallying for over a decade now, with astronomical gains over the last few years, especially for sectors like the big tech FAANG stocks. Another factor to consider is what a Biden government could bring to the world if he is elected over President Donald Trump in October. A new government could ease some of the tensions with China, as well as within America itself. These are all big what ifs, and could all have potential impacts on the economy and the world. As long as all of these factors are up in the air, investors will be looking to gold and silver as ways of stabilizing their portfolios and protecting their finances from a potential market crash in the future.
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Where is Bitcoin Going and When?

Where is Bitcoin Going and When?

The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people.
The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets.
Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.

Stock Market Crash

The Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially.
All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity.
Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses.
Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely.
So, why inflate the economy so much?
Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value.
Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat.
Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis.
Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.

Economic Analysis of Bitcoin

The reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero.
Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology.
Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value.
Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block.
Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer.
Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed.
Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin.
Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public.
A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved.
Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely.
Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.

Trading or Investing?

The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY).
In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing.
The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors.
Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature
Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market.
According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains.
We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.

Technical Indicator Analysis of Bitcoin

Technical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
  • Volume – derived from the market itself, it is mostly irrelevant. The major problem with volume for stocks is that the US market open causes tremendous volume surges eradicating any intrinsic volume analysis. This does not occur with BTC, as it is open twenty-four-seven. At major highs and lows, the market is typically anemic. Most traders are not active at terminal discretes (peaks and troughs) because of levels of fear. Volume allows us confidence in time and price symmetry market inflection points, if we observe low volume at a foretold range of values. We can rationalize that an absolute discrete is usually only discovered and anticipated by very few traders. As the general market realizes it, a herd mentality will push the market in the direction favorable to defending it. Volume is also useful for swing trading, as chances for swing’s validity increases if an increase in volume is seen on and after the swing’s activation. Volume is steadily decreasing. Lows and highs are reached when volume is lower.
Therefore, due to the relatively high volume on the 12th of March, we can safely determine that a low for BTC was not reached.
  • VIX – Volatility Index, this technical indicator indicates level of fear by the amount of options-based “insurance” in portfolios. A low VIX environment, less than 20 for the S&P index, indicates a stable market with a possible uptrend. A high VIX, over 20, indicates a possible downtrend. VIX is essentially useless for BTC as BTC-based options do not exist. It allows us to predict the market low for $SPY, which will have an indirect impact on BTC in the short term, likely leading to the yearly low. However, it is equally important to see how VIX is changing over time, if it is decreasing or increasing, as that indicates increasing or decreasing fear. Low volatility allows high leverage without risk or rest. Occasionally, markets do rise with high VIX.
As VIX is unusually high, in the forties, we can be confident that a downtrend for the S&P 500 is imminent.
  • RSI (Relative Strength Index): The most important technical indicator, useful for determining highs and lows when time symmetry is not availing itself. Sometimes analysis of RSI can conflict in different time frames, easiest way to use it is when it is at extremes – either under 30 or over 70. Extremes can be used for filtering highs or lows based on time-and-price window calculations. Highly instructive as to major corrective clues and indicative of continued directional movement. Must determine if longer-term RSI values find support at same values as before. It is currently at 73.56.
  • Secondly, RSI may be used as a high or low filter, to observe the level that short-term RSI reaches in counter-trend corrections. Repetitions based on market movements based on RSI determine how long a trade should be held onto. Once a short term RSI reaches an extreme and stay there, the other RSI’s should gradually reach the same extremes. Once all RSI’s are at extreme highs, a trend confirmation should occur and RSI’s should drop to their midpoint.

Trend Definition Analysis of Bitcoin

Trend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail.
Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form.
A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.

Time Symmetry Analysis of Bitcoin

Time is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding.
Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading.
Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure.
Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price.
Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not.
We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in.
What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
  • Yearly Lows (last seven years): 1/1/13, 4/10/14, 1/15/15, 1/17/16, 1/1/17, 12/15/18, 2/6/19
  • Monthly Mode: 1, 1, 1, 1, 2, 4, 12
  • Daily Mode: 1, 1, 6, 10, 15, 15, 17
  • Monthly Lows (for the last year): 3/12/20 (10:00pm), 2/28/20 (7:09am), 1/2/20 (8:09pm), 12/18/19 (8:00am), 11/25/19 (1:00am), 10/24/19 (2:59am), 9/30/19 (2:59am), 8/29,19 (4:00am), 7/17/19 (7:59am), 6/4/19 (5:59pm), 5/1/19 (12:00am), 4/1/19 (12:00am)
  • Daily Lows Mode for those Months: 1, 1, 2, 4, 12, 17, 18, 24, 25, 28, 29, 30
  • Hourly Lows Mode for those Months (Military time): 0100, 0200, 0200, 0400, 0700, 0700, 0800, 1200, 1200, 1700, 2000, 2200
  • Minute Lows Mode for those Months: 00, 00, 00, 00, 00, 00, 09, 09, 59, 59, 59, 59
  • Day of the Week Lows (last twenty-six weeks):
Weighted Times are repetitions which appears multiple times within the same list, observed and accentuated once divided into relevant sections of the histogram. They are important in the presently defined trading time period and are similar to a mathematical mode with respect to a series. Phased times are essentially periodical patterns in histograms, though they do not guarantee inflection points
Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows.
Therefore, we have two primary dates from our histogram.
1/1/21, 1/15/21, and 1/29/21
2:00am, 8:00am, 12:00pm, or 10:00pm
In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations.
The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year!
Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market.
Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020.
The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX.
Therefore, our timeline looks like:
  • 2/14/20 – yearly high ($10372 USD)
  • 3/12/20 – yearly low thus far ($3858 USD)
  • 5/9/20 – T-Theory true yearly low (BTC between 4863 and 3569)
  • 5/26/20 – hashrate difficulty halvening
  • 11/14/20 – stock market low
  • 1/15/21 – yearly low for BTC, around $8528
  • 8/19/21 – end of stock bear market
  • 11/26/21 – eighteen months from halvening, average peak from halvenings (BTC begins rising from $3000 area to above $23,312)
  • 4/23/22 – all-time high
Taken from my blog: http://aliamin.info/2020/
submitted by aibnsamin1 to Bitcoin [link] [comments]

Nigerians Are Using Bitcoin to Bypass International Trade Hurdles

Chukwuemeka Ezike sends thousands of dollars worth of bitcoin a month in order to trade with Chinese exporting companies.
In return, he receives spare auto parts, construction equipment, and juices for a family business his father started more than 30 years ago. Ezike works full-time at Singapore-based crypto exchange Huobi as its community manager but helps with his family’s business on the side.
He says bitcoin is faster than exchanging currencies the old-fashioned way. And he can use it to leapfrog bank limits of $10,000 a day, which he often needs to do.
Ezike doesn’t pay the manufacturer directly. Over WeChat, he works with a middleman named “Allen” who exchanges Ezike’s bitcoin for renminbi, China’s national currency, and then passes it on to the manufacturer. Ezike couldn’t divulge which companies he deals with, saying, “The Chinese are sensitive with the data that’s shared.”
He’s one of several Nigerians using bitcoin for this purpose. Ezike even helps other Nigerian companies make similar cross-border transactions with bitcoin.

Using bitcoin for global trade

In several ways, bitcoin makes sense for global trade. The currency jumps borders with ease, where other currencies encounter friction. If the counterparty is willing to receive bitcoin on the other end, it’s often faster and cheaper than legacy payments. But this can be a big “if,” since bitcoin is a newer way of transferring money and people aren’t exactly used to it quite yet.
While bitcoin has these nimble properties, it hasn’t disrupted international trade and value transfer just yet, especially given the currency’s current limitations. If more people use bitcoin at once, the network becomes congested and payments slow down.
Behind the scenes, developers around the world are working on the Lightning Network to fix these problems, so that more people, maybe one day even millions, can all use bitcoin regularly without seeing a spike in fees and sluggish transactions.
All that said, some Nigerians are becoming reliant on using bitcoin as a way to trade internationally, and are finding bitcoin has significant benefits over legacy financial systems.

Foreign exchange woes

Nigerian bitcoin entrepreneur Chimezie Chuta has another theory for why some are using bitcoin for trade with China and beyond.
Like most other countries in an increasingly globalized world, Nigeria imports a significant percentage of the goods that it uses. As Chimezie Chuta put it: “Nigeria is a very import-heavy country. Food industry, drugs, you name it, construction equipment, cars.” Much of these goods are bought from Chinese manufacturers. “Nigeria’s economy is heavily import dependent and China is a major import partner to Nigeria,” Chuta adds.
Nigerians have to struggle with this process, though. “Access to [foreign exchange (FX)] for importation by Nigerian business owners is highly limited because the [Central Bank of Nigeria (CBN)] has limited liquidity to cater for everyone,” Chuta told CoinDesk.
If Nigerians want to reap the benefits of trade, they need to hunt down a way to exchange their naira (Nigeria’s national currency) for other currencies. In Nigeria, finding U.S. dollars or Chinese remnibi is not an easy task. “Importers typically rely on the black market for the additional FX needed and that comes at a very high price,” Chuta said. This phenomenon has been covered in Bloomberg, for instance.
This is one of the other reasons Ezike has turned to bitcoin as an alternative. “The hustle for [the] dollar and all that is quite a thing I love to avoid,” Ezike told CoinDesk.
With bitcoin, he can “take out all international banking routing processes,” he said.
Others are reaching the same conclusion.
“Chinese exporters have expressed willingness to accept bitcoin payments for their goods; hence, many business people in Nigeria find it more convenient to make such payments with bitcoin for obvious reasons,” Chuta said, adding that bitcoin is speedier, open and trustless.

More naira problems

Entrepreneur Monyei Chinazaekpele was able to buy clothes, COVID-19 masks and tests from House of Trippy in China, to resell to customers in Nigeria.
He decided to use bitcoin after experiencing mounting frustration with current banking limitations, especially their impact on global trade. “I was enlightened about the monetary policies on the ground. I was shocked to my nerve,” he told CoinDesk.
Chinazaekpele reiterated Chuta and Ezike’s point that foreign exchange is tough in Nigeria. “You can’t easily switch to other currencies,” he said, adding that he’s hopeful it’s just “a matter of time” before this situation improves.
“Basically, bitcoin is stress free to use and honestly, the naira is not a good store of value,” Chinazaekpele said, pointing to the naira’s 12% inflation rate, which means the value of the currency depreciates by that much value every year.
Bitcoin’s price fluctuates, and sometimes the price goes down. But Chinazaekpele argues that bitcoin generally doesn’t have this inflation problem, since over the long term the price has been going up.
Chinazaekpele’s also looking to buy a cashew processor with bitcoin, but he’s still working out the details with the factory, which is also located in China.

Keeping it on the down-low

All this trade with bitcoin is happening behind the scenes. Businessmen and women on the ground aren’t exactly eager to publicize that they’re using bitcoin for international trade. For one, the legality of cryptocurrency is fuzzy in the region.
The CBN has issued several warnings to banks. The latest in 2018 advised banks “not to use, hold or transact in any way with the technology.”
“In the bitcoin space we don’t know what reaction to expect, so we try to be a little bit discrete,” Ezike told CoinDesk. That’s why he doesn’t want to reveal the name of his father’s importing business. By only revealing his individual name, he’s less fearful that the Nigerian government will “attack” the business.
“We have had accounts frozen at some point due to bitcoin transactions,” Ezike said. “We had to appeal to re-open them.”
He added that it’s the same situation in China, which is why the people he transacts with there “ensure they [keep] a low profile.”
As for the relationship between the government in Nigeria and crypto, Ezike said that “they are really confused about what to do with it. But hopefully they will embrace it.”
https://www.coindesk.com/nigeria-using-bitcoin-trade-with-china
submitted by vegasbm to Nigeria_FreeSpeech [link] [comments]

Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Why coin staking will be added in Ethereum 2.0

A brief educational program for those who do not follow the update of the project of Vitalik Buterin. Ethereum has long been in need of updating, and the main problem of the network is scalability: the blockchain is overloaded, transactions are slowing down, and the cost of “gas” (transaction fees) is growing. If you do not update the consensus algorithm, then the network will someday cease to be operational. To avoid this, developers have been working for several years on moving the network from the PoW algorithm to state 2.0, running on PoS. This should make the network more scalable, faster and cheaper. In December last year, the first upgrade phase, Istanbul, was implemented in the network, and in April of this year, the Topaz test network with the possibility of staking was launched - the first users already earned 1%. In the PoS algorithm that Ethereum switches to, there is no mining, and validation occurs due to the delegation of user network coins to the masternodes. For the duration of the delegation, these coins are frozen, and for providing their funds for block validation, users receive a portion of the reward. This is staking - such a crypto-analogue of a bank deposit. There are several types of staking: with income from dividends or masternodes, but not the device’s power, as in PoW algorithms, but the number of miner coins is important in all of them. The more coins, the higher the income. For crypto investors, staking is an opportunity to receive passive income from blocked coins. It is assumed that the launch of staking:
  • Will make ETH mining more affordable, but less resource intensive;
  • Will make the network more secure and secure - attacks will become too expensive;
  • Will create an entirely new sector of steak infrastructure around the platform;
  • Provides increased scalability, which will create the opportunity for wider implementation of DeFi protocols;
  • And, most importantly, it will show that Ethereum is a developing project.

The first payments to stakeholders will be one to two years after the launch of the update

The minimum validator steak will be 32 ETN (≈$6092 for today). This is the minimum number of coins that an ETH holder must freeze in order to qualify for payments. Another prerequisite is not to disconnect your wallet from the network. If the user disconnects and goes into automatic mode, he loses his daily income. If at some point the steak drops below 16 ETH, the user will be deprived of the right to be a validator. The Ethereum network has to go through many more important stages before coin holders can make money on its storage. Collin Myers, the leader of the product strategy at the startup of the Ethereum developer ConsenSys, said that the genesis block of the new network will not be mined until the total amount of frozen funds reaches 524,000 ETN ($99.76 million at the time of publication). So many coins should be kept by 16,375 validators with a minimum deposit of 32 ETN. Until this moment, none of them will receive a percentage profit. Myers noted that this event is not tied to a clear time and depends on the activity of the community. All validators will have to freeze a rather significant amount for an indefinite period in the new network without confidence in the growth of the coin rate. It’s hard to say how many people there are. The developers believe that it will take 12−18 or even 24 months. According to the latest ConsenSys Codefi report, more than 65% of the 300 ETH owners surveyed plan to use the staking opportunity. This sample, of course, is not representative, but it can be assumed that most major coin holders will still be willing to take a chance.

How much can you earn on Ethereum staking

Developers have been arguing for a long time about what profitability should be among the validators of the Ethereum 2.0 network. The economic model of the network maintains an inflation rate below 1% and dynamically adjusts the reward scale for validators. The difficulty is not to overpay, but not to pay too little. Profitability will be variable, as it depends on the number and size of steaks, as well as other parameters. The fewer frozen coins and validators, the higher the yield, and vice versa. This is an easy way to motivate users to freeze ETN. According to the October calculations of Collin Myers, after the launch of Ethereum 2.0, validators will be able to receive from 4.6% to 10.3% per annum as a reward for their steak. At the summit, he clarified that the first time after the launch of the Genesis block, it can even reach 20.3%. But as the number of steaks grows, profitability will decline. So, with five million steaks, it drops to about 6.6%. The above numbers are not net returns. They do not include equipment and electricity costs. According to Myers, after the Genesis block, the costs of maintaining the validator node will be about 4.75% of the remuneration. They will continue to increase as the number of blocked coins increases, and with a five millionth steak, they will grow to about 14.7%. Myers emphasized that profitability will be higher for those who will work on their own equipment, rather than relying on cloud services. The latter, according to his calculations, at current prices can bring a loss of up to minus 15% per year. This, he believes, promotes true decentralization. At the end of April, Vitalik Buterin said that validators will be able to earn 5% per annum with a minimum stake of 32 ETH - 1.6 ETH per year, or $ 304 at the time of publication. However, given the cost of freezing funds, the real return will be at 0.8%.

How to calculate profitability from ETN staking

The easiest way to calculate the estimated return for Ethereum staking is to use a special calculator. For example, from the online services EthereumPrice or Stakingrewards. The service takes into account the latest indicators of network profitability, as well as additional characteristics: the time of operation of a node in the network, the price of a coin, the share of blocked ETNs and so on. Depending on these values, the profit of the validator can vary greatly. For example, you block 32 ETNs at today's coin price - $190, 1% of the coins are blocked, and the node works 99% of the time. According to the EthereumPrice calculator, in this case your yield will be 14.25% per annum, or 4.56 ETH.
Validator earnings from the example above for 10 years according to EthereumPrice.
If to change the data, you have the same steak, but the proportion of blocked coins is 10%. Now your annual yield is only 4.51%, or 1.44 ETH.
Validator earnings from the second example over 10 years according to EthereumPrice.
It is important that this is profitability excluding expenses. Real returns will be significantly lower and in the second case may be negative. In addition, you must consider the fluctuation of the course. Even with a yield of 14% per annum in ETN, dollar-denominated returns may be negative in a bear market.

When will the transition to Ethereum 2.0 start

Ben Edgington from Teku, the operator of Ethereum 2.0, at the last summit said that the transition to PoS could be launched in July this year. These deadlines, if there are no new delays, were also mentioned by experts of the BitMEX crypto exchange in their recent report on the transition of the Ethereum ecosystem to stage 2.0. However, on May 12, Vitalik Buterin denied the possibility of launching Ethereum 2.0 in July. The network is not yet ready and is unlikely to be launched before the end of the year. July 30 marks the 5th anniversary of the launch of Ethereum. Unfortunately, it seems that it will not be possible to start the update for the anniversary again. Full deployment of updates will consist of several stages. Phase 0. Beacon chain. The "zero" phase, which can be launched in July this year. In fact, it will only be a network test and PoS testing without economic activity, but it will use new ETN coins and the possibility of staking will appear. The "zero" phase will test the first layer of Ethereum 2.0 architecture - Lighthouse. This is the Ethereum 2.0 client in Rust, developed back in 2018. Phase 1. Sharding - rejection of full nodes in favor of load balancing between all network nodes (shards). This should increase network bandwidth and solve the scalability problem. This is the first full phase of Ethereum 2.0. It will initially be deployed with 64 shards. It is because of sharding that the transition of a network to a new state is so complicated - existing smart contracts cannot be transferred to a new network. Therefore, at first, perhaps several years, both networks will exist simultaneously. Phase 2. State execution. In this phase, various applications will work, and it will be possible to conclude smart contracts. This is a full-fledged working Ethereum 2.0 network. After the second phase, two networks will work in parallel - Ethereum and Ethereum 2.0. Coin holders will be able to transfer ETN from the first to the second without the ability to transfer them back. To stimulate network support, coin emissions in both networks will increase until they merge. Read more about the phases of transition to state 2.0 in the aforementioned BitMEX report.

How the upgrade to Ethereum 2.0 will affect the staking market and coin price

The transition of the second largest coin to PoS will dramatically increase the stake in the market. The deposit in 32 ETH is too large for most users. Therefore, we should expect an increase in offers for staking from the exchanges. So, the launch of such a service in November was announced by the largest Swiss crypto exchange Bitcoin Suisse. She will not have a minimum deposit, and the commission will be 15%. According to October estimates by Binance Research analysts, the transition of Ethereum to stage 2.0 can double the price of a coin and the stake of staking in the market, and it will also make ETH the most popular currency on the PoS algorithm. Adam Cochran, partner at MetaCartel Ventures DAO and developer of DuckDuckGo, argued in his blog that Ethereum's transition to state 2.0 would be the “biggest event” of the cryptocurrency market. He believes that a 3–5% return will attract the capital of large investors, and fear of lost profit (FOMO) among retail investors will push them to actively buy coins. The planned coin burning mechanism for each transaction will reduce the potential oversupply. However, BitMEX experts in the report mentioned above believe that updating the network will not be as important an event as it seems to many, and will not have a significant impact on the coin rate and the staking market. Initially, this will be more likely to test the PoS system, rather than a full-fledged network. There will be no economic activity and smart contracts, and interest for a steak will not be paid immediately. Therefore, most of the economic activity will continue to be concluded in the original Ethereum network, which will work in parallel with the new one. Analysts of the exchange emphasized that due to the addition of staking, the first time (short, in their opinion) a large number of ETNs will be blocked on the network. Most likely, this will limit the supply of coins and lead to higher prices. However, this can also release some of the ETNs blocked in smart contracts, and then the price will not rise. Moreover, the authors of the document are not sure that the demand for coins will be long-term and stable. For this to happen, PoS and sharding must prove that they work stably and provide the benefits for which the update was started. But, if this happens, the network is waiting for a wave of coins from the developers of smart contracts and DeFi protocols. In any case, quick changes should not be expected. A full transition to Ethereum 2.0 will take years and won’t be smooth - network failures are inevitable. We also believe that we should not rely on Ethereum staking as another panacea for all the problems of the coin and the market. Most likely, the transition of the network to PoS will not have a significant impact on the staking market, but may positively affect the price of the coin. However, relying on the ETN rally in anticipation of this is too optimistic.
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What Can We Expect in the Halving Market? 58COIN Exchange Beauty Executive Gives the Answer

What Can We Expect in the Halving Market? 58COIN Exchange Beauty Executive Gives the Answer


What are the effects of the third Bitcoin halving?
How to view the relationship between mining pools and exchanges?
Is the contract a road of no return?
What is the future trend of digital currency?


Q1: What does 58COIN expect from this Bitcoin halving?
Xiao Bei: On the macro level, reduction in the bitcoin production shows a more stable signal to the market. May 12th is the third halving in bitcoin’s history, before it, however, the daily production plunged from 1800 to 900, a reduction of around 30,000 bitcoins in a month. The selling pressure reduced significantly, which leaves the root impact on the gradual stability of the market.
The reduction not only brought us a bull market with a sustainable and long-lasting effect but greater opportunities as well. As an exchange, it should better improve itself and render stable and quality products to users. Currently, 58COIN’s mining pool ranks the top 5 in the world. After the reduction, based on the principle of survival of the fittest, the superior resources will be allocated to a larger and more stable mining farm, and the steady recovery of computing power is also anticipating.
Q2: As an exchange, why does 58COIN occupy more than 10% of the overall bitcoin’s computing power?
Xiao Bei: At present, our computing power share is about 7.8%, ranking among the top five in the world. Our recent goal is to have a stable computing power share of more than 10%.
The mining pool provides the main non-trading BTC source for the exchange, increases the supply of BTCs on the market, and injects liquidity into the market. The top ten exchanges are expected to receive more than 70% of the bitcoin in the mining pool, so all major exchanges have begun to layout the mining pool to compete for BTC.
58COIN has reorganized the layout and started the operation of the new mining pool (58COIN& 1THash) in 2019. We have a mature operation team with more than 6 years’ experience, and hope to better link the upstream and downstream industries in the next stage. This is also an important step in the strategic development of high-quality exchanges.
Q3: For an exchange, liquidity and redemption abilities are the absolute reflection of the user's sense of security. How does 58COIN ensure these two abilities that users care most?
Xiao Bei: In terms of liquidity, first of all, our registered users have exceeded 3 million, which provides sufficient trading liquidity and depth. Secondly, our matching transaction service with constantly upgraded technology and algorithm ensures that each matchmaking time is in the microsecond level, and easily achieve system 10,000-level throughput performance.
Concerning the redemption ability, non-trading digital assets held by the exchange serves as the foundation. The advantages of 58COIN's mining pool have accumulated abundant platform reserves for us. As of now, our risk reserve has exceeded 3.6 billion yuan.
Besides, the Exchange integrates account opening, transaction matching, and liquidation, and plays an important role in the secondary market. Most exchanges lack a high-quality intelligent risk control system, a comprehensive anti-money laundering mechanism, and insufficient open and transparent information disclosure and supervision. There may be acts of forgery of trading volume, joint price manipulation with the project party, and other actions that harm the interests of investors. If the liquidity itself is not good enough, the situation mentioned above is more likely to occur.
Q4: Which section does 58COIN values most? Contract Trading or Spot Transactions? What is the biggest advantage of trading contracts on 58COIN?
Xiao Bei: Both spot and contract boast their own advantages, separately lie in the exchange value through hoarded coins, and flexible use of fluctuations. 58COIN as the main contract exchange, contract trading is definitely our focus. In terms of spot, it is mainly based on mainstream currencies.
Compared with spot trading, the two-direction trading mechanism is more flexible. Also, leverage can increase the utilization rate of funds and amplify the profit, which is suitable for users with fewer funds to trade.
The biggest advantage of contract transactions, in addition to the just mentioned abundant platform reserves, complete risk control and huge user base, there are several points related to the user's vital interests:
  1. The lowest fee in the industry. For example, the handling fee of the perpetual contract is: “Taker 0.03%, Maker 0.015%”;
  2. The fixed maintenance margin of 0.5%;
  3. No funding fees. We have made every effort to reduce the principal consumption in each exchange, thus greatly lower the risk of liquidation;
  4. The platform insurance funds bear the full debt loss, and users do not have to worry about apportioning any risks.
In addition, the contract can also maintain the value of the existing mainstream spot of the user to minimize the risk of depreciation caused by spot fluctuations.
It is worth mentioning that in terms of wallet, we implement multi-level and multi-dimensional security risk control strategies such as hot and cold wallet isolation, multi-signature authorization, and regularly change of hot wallet addresses. Meanwhile, a manual verification process was added to ensure the safety of the assets. Since its establishment, there has never been any wallet accident, wallet stolen, or the loss of coin incidents.
Q5: In the contract transaction, what advice does 58COIN give to novice users?
Xiao Bei: Firstly, please remind that contract is not a devil, it is just a tool. What we should do is to make good use of the tool to make profits.
Secondly, the purpose of the investment is to withdraw, and suggestions are shown below:
1. Invest with the spare funds at hand;
2. In the spot transaction, hoard coins in the bear market and exchange in the bull market, do not follow the trend of buying in the bull market;
3. In the contract, set up operation points and positions, and perform secondary operations according to market conditions. (Do not be greedy)
4. Make a risk response plan during the investment process, such as a sufficient margin, value preservation plan, etc.
Finally, we must keep in mind: when doing spot transactions, choose assets with good liquidity in a way to get away from manipulation projects, risky exchanges, etc.
58COIN provides detailed descriptions for each business line, novice users should read them carefully before using. Besides, each contract trading page is designed with a calculator to help provide trading references to users before investment.
Q6: What are the new plans of 58COIN?
Xiao Bei: First of all, we will remain a sophisticated attitude in technology, risk control, and product experience, offering a stronger guarantee for users' transactions; second, we will further improve the ecological layout of 58COIN, from increasing investment in mining pools, gradually optimizing the hot and cold wallet system, enabling entities, focusing on community construction, etc., with better technical upgrades and preparations, to ensure that the entire 58COIN ecology can better link the upstream and downstream industries, providing our users with a more stable ecological background; We will launch some online activities in the near future, covering basic knowledge, candlestick chart learning, and industry analysis. We look forward to making joint efforts with our users in learning and making progress.
Q7: What does 58COIN want to say about the future cryptocurrency market?
Xiao Bei: The real big bonus in the cryptocurrency market has not yet been released, and Bitcoin has more imagination space than gold in the future. The cryptocurrency market is stepping toward a diversified, professional, and tangible direction, requiring more high-quality industries participation and landing. Though it is currently the fastest-growing field, financial attributes should not be the only factor entitled to cryptocurrencies, the future market should be more integrated and serve the real economy, such as the Internet of Things, financial systems, and personal privacy.
For more details, please log in to www.58ex.com or download our app: https://wap.58ex.com/?locale=en.
Website: https://www.58ex.com/
Twitter: https://twitter.com/58_coin
Facebook: https://www.facebook.com/coin.58COIN
Telegram: https://t.me/official58
Medium: https://medium.com/@58coin_blog/
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Bitcoin's fundamentals haven't changed since the price fell

Bitcoin's fundamentals haven't changed since the price fell
The financial crisis predicted by economists has finally begun. As we have seen, since March 9, 2020, the virus that has spread throughout the world has become a catalyst for a sharp decline in financial markets.

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The growing economic crisis has triggered collective panic, and for 99% of people, it is imperative to restore as much liquidity as possible. Logically, we are facing a liquidity crisis that is having a significant impact on the liquidity of all financial markets around the world. On Wall Street, the Dow Jones Index has fallen by 20% in the past 5 days. Over the past month, the Dow Jones Index has fallen by about 30%, and the S & P 500 has undergone the same adjustment.

In the rest of the world, the situation is exactly the same. For centuries, gold has been used as a safe-haven asset in times of crisis, but in recent days it has fallen by more than 10%.

When everyone is in panic, there is no safe haven at all. In this case, it is impossible for Bitcoin to not fall. Bitcoin is a highly liquid market, and it can even be said that it is the only truly free market in the world.

Even though Bitcoin has evaporated $ 60 billion in market value in just a few hours, it continues to operate, allowing investors to find equilibrium prices on their own.

Whether an asset has hedging properties requires long-term measurement. Similarly, the correlation between Bitcoin and other assets cannot be concluded in these days. At this point, if we step back, we can see the big picture instead.

Although the price of Bitcoin has changed, has its fundamentals changed? No, the fundamentals of Bitcoin March 18 are the same as those of March 1. Bitcoin still maintains good fundamentals, which gives us reason to be optimistic about the future of Bitcoin.

01

Bitcoin is as scarce as ever

The price of Bitcoin dropped from $ 9,000 to more than $ 3,000 within a few days. Its price has now stabilized at around $ 5,300. The current global situation is in turmoil, and panic in the market may cause the price of the currency to fall below $ 5,000 again.

However, no matter what the price of Bitcoin is, it remains as scarce as ever.

Bitcoin is still the rarest decentralized invention ever made by human beings, and no matter what happens, the maximum supply of Bitcoin will not change. No leader in this world can change the fact that the total amount of Bitcoin is 21 million.

So after the crisis, gold and bitcoin will eventually resume their roles, and when prices will rise again, those who have seized the opportunity will get huge returns.

02

Unique monetary policy

Bitcoin was created by Satoshi Nakamoto in response to the 2008 financial crisis. Realizing that the currency and financial system have reached their limits, Satoshi Nakamoto decided to officially launch the Bitcoin experiment on January 3, 2009, and wrote in the genesis block: The Treasury Secretary is on the brink of saving the bank for the second time. "

Therefore, we can also think that Bitcoin was created for what we will experience in the coming weeks or months. When Satoshi Nakamoto created Bitcoin, he hoped to obtain a scarcity similar to gold, so the longer it took, the more difficult it was to create a new Bitcoin. For every 210,000 additional transaction blocks, the number of newly mined Bitcoins will be halved.

Initially, for every additional transaction block in the Bitcoin blockchain, 50 new bitcoins will be generated, and by May 2020, the bit will be halved for the third time, after which each additional block will only add 6.25 BTC. Therefore, the number of new bitcoins created daily in the future will be reduced from 1800 to 900, which will have a certain impact on the total supply of bitcoin.

This single monetary policy is a huge advantage of Bitcoin over the current monetary and financial system. After the third Bitcoin halving, the annual inflation rate of Bitcoin supply will definitely fall below 2% to 1.8%. In the future, bitcoin's annual supply inflation will tend to zero, and will reach zero in 2140, at which time all bitcoin will be mined.

Bitcoin's monetary policy can protect what you have, and it was still valid when the Fed just decided to inject more than $ 700 billion in US banks. It can be said that from the perspective of how Bitcoin operates, the Fed still has a lot to learn.

03

Bitcoin network is still decentralized

Anyone can join the Bitcoin blockchain and become a node in the network. In the Bitcoin world, all users are equally important. All this makes Bitcoin able to withstand the obstacles of powerful people in the current system.

No one can stop you from using Bitcoin at will. At any time, if you want, you can sell all your Bitcoins. This is why the price of bitcoin has fallen sharply in the past few days. Bitcoin operates permanently by letting users determine its equilibrium price.

Once the stock price falls too fast, Wall Street will cease to trade. At this point, Bitcoin once again shows its superiority over Wall Street. The basic fact that Bitcoin is the only truly free market in the world has been proven again a few days ago.

04

Bitcoin remains a secure decentralized network

In its 11 years, the Bitcoin network has never been hacked. Bitcoin's security has never been breached and it's incredible to think about it, because hackers from all over the world have been trying to attack Bitcoin over and over again.

Still, Bitcoin has stood on its feet. The theft in the Bitcoin world exists only at the weakest link: trading platforms and users. Since its birth, Bitcoin has been operating normally 99.98% of the time. There is nothing enviable about the normal operation of Internet giants such as Google, Amazon, or Facebook.

However, Bitcoin's secure operation is based only on the user's computing power. These people are so convinced about the future of Bitcoin that they have been providing more computing power to the network.

At the beginning of 2020, the hashrate of the Bitcoin network reached a peak of 130TH / s. The recent drop in the price of Bitcoin and the accompanying collective panic have led to a decline in computing power, but currently still maintain the level of 100 TH / s.

In this crisis, Bitcoin remains the most secure decentralized network in the world. Secondly, you should notice that the basic situation of Bitcoin has improved a lot since the end of 2017. Due to the sharp increase in transaction volume at the end of 2017, the overall network speed has slowed down, but this time, Bitcoin standing in the storm has been able to absorb an entire transaction volume peak without any stalls.

05

Bitcoin still belongs to everyone

The high fluctuations in the price of bitcoin in the past week remind us that bitcoin still belongs to everyone and everyone can sell bitcoin freely. When Bitcoin depreciated by 50% within hours, the transaction continued.

At the same time, once the market falls more than 7%, Wall Street will suspend trading for 15 minutes. This fusing mechanism has been applied several times since the liquidity crisis broke out in the market.

Wall Street is not a free market. It belongs to a few powerful people who protect their interests at all costs. Once the market does not turn around and continues to fall, Wall Street will call on the Federal Reserve to maintain the current system.

The Federal Reserve ’s monetary stimulus measures have become less and less effective. It cut interest rates by 100 basis points on March 15, 2020. At the same time, it introduced a quantitative easing plan to reduce the bank deposit reserve ratio to zero. This series of measures was even affected Opposition to Wall Street. Once again, Bitcoin stands out in the current system with its strong fundamentals.
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Cryptocurrency Terms You Need to Know Part 2

Cryptocurrency Terms You Need to Know Part 2

https://preview.redd.it/fn70h29ikz451.jpg?width=1280&format=pjpg&auto=webp&s=eab0e4fb90b292379fc80554e3ecef6b60a3f53e
As new users go deeper into the crypto industry, a lot of them will surely encounter a lot of never-heard jargon and phrases that describe that day-to-day crypto processes and transactions. Since we’ve introduced the basic cryptocurrency terminologies on our previous blog post, now the Swipe team lists down the words and phrases that will help readers further along the way to understand the crypto industry.
Address — consists of 26 to 35 alphanumeric characters that serve as an account number or ID where people can receive and send digital currencies. There are different addresses per cryptocurrency, your Bitcoin address and Ethereum address are different from one another.
Block Reward — is the reward (in a form of crypto) earned by people who maintain the blockchain
Bounty — is a reward given to a person in relation to a certain accomplished task or work
Custody — the act of holding assets (cryptocurrency) on behalf of a user or client. Check our blog about custodial and non-custodial wallets here: https://sw.pe/blogcustodialnoncustodial
Decentralized Application — or DApp is a technology or application controlled by a network of computers rather than of a central authority
Decentralized Autonomous Organization — or DAO refers to an organization regulated and controlled by shareholders and not influenced by any central authority
Decentralized Finance — or DeFi is a decentralized monetary system or financial applications built on blockchain
DYOR — or Do Your Own Research. An important piece of advice given to users before investing in a coin or token
ERC-20 — ERC stands for “Ethereum Request for Comments.” ERC-20 is the technical standard used to create a token for all smart contracts on the Ethereum Blockchain. ERC-20 tokens are hosted and created on the Ethereum blockchain
FUD — or Fear, Uncertainty, and Doubt. A strategy where information is disseminated within the community to create a feeling of fear, uncertainty, and doubt on a certain project
FUDster — a person or group who spreads FUD
Fork — is an event wherein a blockchain splits into two separate chains or branches. It can be due to software changes or a result of a change in consensus algorithm
Gas — refers to the transaction fees paid to calculate the costs of transactions in the Ethereum blockchain
Hash — is an output created using an algorithm needed in the blockchain management
Hash ID — is a string of characters given as proof to every verified transaction in the blockchain
Hash Rate — refers to the speed at which a computer can calculate hashes
HODL — at typo for the word “hold” that eventually evolved to Hold On for Dear Life. This is an act of buying cryptocurrencies without the intention of selling it even if the price fluctuates
Moon — an action where the price of a cryptocurrency is experiencing a significant increase in prices
Off-chain — a transaction that is not reported in the blockchain that may be recorded later
Proof of Work — or PoW. A process of consensus algorithm to avoid the possibility of double-spending
Proof of Stake — or PoS. A consensus algorithm wherein the blockchain validators are paid or rewarded base on the amount of cryptocurrency that they stake
Satoshi — smallest unit of Bitcoin. One bitcoin is equivalent to 100 million satoshi
Sharding — a process of dividing a large number of information into several groups. It breaks up a large number of information into smaller segments to improve the performance and be more manageable
Smart Contracts — agreements or contracts that are automatically activated as long as the conditions are met
Stablecoin — a type of cryptocurrency designed to maintain its value which is backed up by reserve asset
Trustless — is an act of not requiring other parties to trust one another to secure smooth transactions as all authorization doesn’t have a central authority and are all consensus.
Volatility — measurement on how the price of an asset can change quickly
Volume — the number of assets traded, bought or sold over a period of time
Wei — smallest denomination of Ether (ETH)
Whale — a person or a group who holds a significant amount of cryptocurrency enough to allow them to impact the market movement
Whitelist — a list of allowed participants or crypto addresses that are proven to be trustworthy
Now that we already defined the cryptocurrency terms and phrases, it will be easier for new and existing users to understand the topics being discussed within the crypto community.
If you need to brush up your knowledge with these terms, don’t forget to visit this page and part 1 of our glossary of terms.
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This blog is also posted at https://sw.pe/blogcryptoterms2
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