Satoshi Nakamoto’s vision for modern day bitcoin has failed. In his whitepaper, Satoshi envisioned bitcoin as a form of electronic cash, a payment system designed to replace banks.
That has not happened at this moment in time. Instead, bitcoin is largely treated as an investment and store of value. Bitcoin has a fundamental issue: It has two competing visions.
Bitcoin skyrocketed above $5,000 yesterday. Is this the return of the bull market?
Coinbase has increased the amount low volume traders pay while decreasing the amount high volume traders pay. Additionally, they’ve made the highly questionable move of removing stop orders from their trading service.
The Bitcoin Cash hash war mentioned in a previous blog post is largely over. Bitcoin Cash’s hard fork variants have failed to destroy each other, although they still vow to fight to the death. Nonetheless a winner has been declared. Roger Ver’s Bitcoin Cash ABC has claimed the title of Bitcoin Cash. Craig Wright’s version has been relegated to the name Bitcoin Cash Satoshi’s Vision (BCHSV), and is traded on less exchanges than Bitcoin Cash (ABC).
When it comes to the blockchain and cryptos, our co-founder Will Salisbury pretty much lives and breaths it. Recently, he had the opportunity to join another podcast as a guest to give a bit of a “cryptocurrency 101” crash course. The Podcast is called PayPod: The Payments Industry Podcast, and is hosted by Soar Payments LLC.
Will joined host Scott Hawksworth (yes, the other co-founder of Blockchain Decrypted) to give a bit of a 101 course on cryptos for payments industry professionals. While many in payments have been aware of bitcoin, widespread adoption is something that’s still forthcoming. Will’s championing of cryptos makes a fantastic case!
We’ve all seen the headlines. “Is Bitcoin the New Pets.Com?” “Which Cryptocurrencies Will Survive the Altcoin Apocalypse?” and “Cryptocurrency Bloodbath: Bitcoin, Ethereum, and More Plunge?”
So you must be wondering: Is this the end of the world for crypto?
Right now we’re in the MySpace era of digital currency. Which cryptocurrency will be the next Facebook? It won’t be bitcoin.
The simple answer is no one knows which cryptocurrencies will be at the forefront of the digital revolution. The next big cryptocurrency may even be one that hasn’t been developed yet.
Certain cryptocurrencies do stand out as contenders for the crown, however.
It’s gonna be hard not patting myself on the back too much in this post!
Turns out my previous predictions on crypto were right. Bitcoin dipped to $5,800 or so, then shot back up to around $6,800. Fortunately I put my money where my mouth was, so I ended up making some coin from that prediction.
With good timing, it was easily possible to make a 10 or 15% return within a week. That’s excellent. Try to get that from a bank or CD in a year, trust me it won’t be easy.
If you get good at cryptocurrency trading, 10% gains in a period of a few days to a week become a regular thing. It’s an extremely effective tool to build wealth. Even if you only have a few hundred dollars there are methods to start building wealth in the crypto sector today. I might end up writing a guide on that topic if there’s sufficient interest.
Onto the next pertinent question: Where do I think bitcoin is heading?
For now, we are definitely still in a bearish market. While bitcoin did rebound from the $5,800 support point, it only went to $6,800. It then reversed yet again down to its present price of $6,379. It didn’t break through the key resistance point at $6,800 or $7,300. Breaking through the $7,300 point would have indicated a possible trend reversal to the bullish side.
The $5,800-$6,000 will likely get tested again. If bitcoin breaks below $5,700 watch out. Bitcoin could fall to lows not seen since 2017 in the $3,000-$4,000 range. If bitcoin breaks below $5,700 I’m definitely doing research on the best way to short it, haha.
Ultimately though numerous other investors and I are bullish on the price of bitcoin, believing it will hit around $20,000 by the end of 2018.
Given that, one strategy that’s definitely viable is layering in buys, gradually accumulating bitcoin with the hopes that it’ll hit $20k within the next 6 months to a year.
Additionally, when locking in profits from bitcoin trading, you can opt to keep a certain percentage of the profit as bitcoin. For an easy example, when bitcoin hit $6,800 after I bought it at $6,000, you could sell $6,400 worth, taking $400 profit in cash, and keeping $400 in bitcoin.
If bitcoin falls again to $6,000, which is likely in our current bear market, you can re-purchase it. You’ll now have about 1.05 bitcoin instead of 1. Over time, you can build up a lot of bitcoin doing this if you’re an active trader. Alternatively you could wait if you strongly believe bitcoin will hit $3 or $4k, then buy 2 bitcoins with the same money.
Something to consider is that the current bearish trend has been going on for over 6 months, so it’s safe to assume it won’t reverse tomorrow.
Given that, it may be logically smarter to wait for $3 or $4k bitcoin rather than re-buy at $6k and risk it dropping to $3k. Making such decisions requires experience and analysis of bitcoin’s chart at the time you’re debating a purchase decision.
My advice for now is as follows:
Don’t make any trades and wait. Bitcoin is likely going to test the $5,800 support point sometime soon.
When it does, the question becomes whether to invest there or wait for the potential break below it. That’s where technical analysis comes in, that question can’t be answered until the chart’s available at that point.
So far I’m 1 for 1 on my predictions for bitcoin on blockchaindecrypted.com. A 100% track record, not too shabby haha. Keep dodging those bears, crypto traders!
With my first ever blog post on Blockchain Decrypted… we’re starting with some big news.
The South Korean cryptocurrency exchange, Coinrail was hacked on Sunday, June 10th 2018. They lost approximately $40 million in cryptocurrency. Some believe this news, coupled with the announcement Friday that four exchanges are being investigated for price manipulation, is what has caused bitcoin and other cryptocurrencies to drop over 10%.
Among the sites that take this position are NBC News, stating “The heist at Coinrail, a relatively small South Korean cryptocurrency exchange, sent the price of bitcoin tumbling to two-month lows as it once again highlighted the security risks and the weak regulation of global cryptocurrency markets.” Implying that a partial hack of a small cryptocurrency exchange with weak security made an entire market worth hundreds of billions of dollars drop by 10%.
Is that the whole story, though? I don’t believe so. And what does all of this mean, anyway? Is there an opportunity here to potentially make some money? This blog post will address these questions.