You may or may not be aware that mainstream media has 0 clue about what they're covering when it comes to crypto. Today I'm exploring the most critical factors we can attribute to BTC's recent upswing and dissecting crummy reporting. I hope that this article is useful in providing some insight for your own research.
First of all: Hurray for the upswing. The single highest hour of volume in Bitcoin’s history happened yesterday, April 12th 2018.
This is great news. Smart money is entering the market along with a dizzying mix of massive shorts being liquidated, FOMO buy-ins, and of course, good ol’ market manipulation.
If you've stayed up to date with the most recent BTC news, you've probably also hears that Germany’s second largest stock-exchange Börse Stuttgart has announced that in the fall it will be launching a crypto-trading application called Bison through its subsidiary Sowa Labs. It’ll support free buying and selling of bitcoin BTC, Ethereum ETH, Ripple XRP, and Litecoin LTC.
This move by Börse Stuttgart is just another factor that will bolster BTC’s financialization and exponential growth, similar to previous financializing factors like the BTC futures traded by CBOE and CME which were introduced in December.
Of course, there’s a lot of trading happening around this news, as well as the announcement of Yahoo! Japan entering cryptospace, and a bunch of other factors. Bumpy roads ahead as more and more players enter the space, but all the more reason to celebrate, despite the volatility it brings with it. (Even though, at the time of writing this, BTC is going through a big sell-off after hitting $8,233.39 today). It’s now hovering around $8k.
Bitcoin/USD 1hr chart on Binance snapped at 9:40pm EST
Bitcoin’s previously erratic price was due to a lot of bad reporting and FUD circulating on mainstream media, most of which doesn’t accurately comprehend the purpose of BTC...
Its purpose is not to make money, but rather to provide a framework for monetary sovereignty, separation of money & state, and a censorship-resistant property that solely belongs to the individual. The fact that the American SEC is trying to regulate it is ludicrous. Lol.
However, with the right understanding of how the Bitcoin protocol works, (as well at that of younger blockchains/cryptocurrencies), and the correct economic calculations, those with the right knowledge are rewarded heftily by the profits that can be made in this space, untouched by government regulation if accessed at the right time.
I believe Bitcoin’s bearish volatility since late December is (was) due to the dated technology of the blockchain on which the coin is transacted. This is because, remember, Bitcoin was the FIRST cryptocurrency, developed in 2009. It’s a 1st generation cryptocurrency and it hasn’t scaled well.
There were a lot of large investors buying in without perspective as to how Bitcoin scales in utility and value. This fear, uncertainty, and doubt led to a whole lot of sell walls being triggered and a bloody landslide in price as impactful (yet misinformed) investors entered and exited the space.
Of course, a million more theories exists pertaining to the recent volatility - this is only one of them. Take from it what you will.
Much of the recent uncertainty regarding the efficiency of the BTC blockchain was due to the sheer congestion of the Bitcoin network; only 3.3 - 7 transactions can be made per second because the nodes that verify the transactions and store data in the blockchain can’t handle the volume it’s receiving.
(This is the reason why its hella slow and takes up to hours to send……no bueno, but it still works as a sovereign decentralized savings account, if you will)
However there are other cryptos that exist which I believe will surpass Bitcoin in value. (Ethereum ETH being the first to do so). I believe that mass consensus is declaring Bitcoin as more of a storage of value rather than a transactional currency. To fulfill the latter purpose, all eyes are on more agile 2nd & 3rd generation coins like NEO, and ETH (up 40.54%, and 31.01% in the past 7 days, respectively)….and a ton more that are set to appreciate by at least 1,000% over the year.
There are hundreds of coins on the market that serve brilliant purposes extending far beyond a simple exchange of value. Not to mention the vast spectrum of promising ICO’s solving socio-technological problems through blockchain applications.
Perhaps one of the most The fight for the most efficient blockchain application for medical records is underway and there are some strong contenders on the market that hold promising returns.
Bitcoin is/was certainly not “dying”, nor will ever die. (I could speak for hours on why, but it basically has to do with the concept of digital scarcity and the fact that there are only 21 million coins in existence). You can’t kill digital gold….
BUT, you can stronghold it for a temporary period. There are a lot of institutional investors cornering the market such as JP Morgan, Goldman Sachs-backed Circle Ltd., and George Soros to name a few…Even the U.S treasury department is in on it.
...In fact, many of the regulations that are being put in place are reminiscent of kleptocratic policies which constrict & centralize natural resources while erecting barriers to entry and astronomical taxation.
But this time, that natural resource is an immutable computer protocol called the blockchain. You can’t centralize a decentralized distributed ledger…that’s like trying to “own” the internet.
The future is bright for Bitcoin and cryptocurrency in general. BTC is well on its way to become a global reserve currency although it may take a decade more or so for this to happen. The dollar will have to implode, first.
It’s important to note many of the U.S whales dumping Bitcoin are bad actors attempting to shake out small investors through negative and fabricated sentiment.
There’s some pretty bad reporting out there, which is why this field is an exciting place. Despite the daunting dips, it’s comforting to remember that the U.S has quite a small market share of BTC compared to our friends in the East, like China, South Korea and Japan.
Dear CNBC, please define "real".
What’s disappointing is that major news outlets are missing the point of Bitcoin entirely. I was having a good laugh watching CNBC’s Fast Money. They asked, “...fresh money into Bitcoin? Or fresh money in the S&P500?"… which is a ridiculous question because:
- Assuming that both the S&P’s and Bitcoin’s valuation are affected by the same factors is absolutely insane.
- Bitcoin is passé. There are great trading and investing opportunities (short/med/long) in many coins! It just depends on your timeframe and goals.
In the meantime, BTC will continue to fluctuate, but it will generally rise as more people become privy to its purpose. It is the “sun” around which hundreds of other cryptos orbit. Although Ethereum may very well be a slightly brighter but every so smaller sun that will take its place in years to come.
Woof, that was a lot, but only the tip of the iceberg. Many great advancements and developments in blockchain and crypto are on the horizon and soon to come.
¡Atención!
If you enjoy the content I throw out into the ethosphere, your contributions are greatly appreciated to keep the ideas flowing.
ETH wallet: 0x7E53F91FdFa479CAbB991C845De6A07D2b5ae7D0