Summer 2017 CryptoMarket Recap & ChainCoin Resilience
Below are some notes on the state of the Crypto market, and some great buys for summer 2017…
Overview
1.) State of the market
a. What’s Segwit2x
b. Timeline
c. Importance
d. Projection
2.) Recommendation
a. What are Masternodes
b. ChainCoin
3.) Other Considerations
4.) Other Resources
5.) Recap
1.) State of the market:
Right now, the market has been declining, as expected, due to the anticipation of an adjustment to the way Bitcoin’s source code is structured, which causes slow transaction times. The uncertainty stems mainly from the fact that there is not a mutual agreement between in the BTC community on one of the proposed solutions (although 90% have shown support for the Segwit2x solution).
A.) What’s Segwit2x:
There is a silly limit embedded in the original code which limits the amount of data in each block.
This limit slows down the transfer of Bitcoin from one account to another. Some coders proposed a change to the source code called “Segregated Witness,” or SegWit for short.
SegWit would lift the limit, allowing more data in each block, and thus faster transaction times.
Problem solved?
Apparently not, because there is no CEO or president of Bitcoin who can enact this solution. The entire community needs to adopt SegWit for it to work. The deadline is August 1.
B.) Timeline of events that could unify or divide Bitcoin:
By July 21: SegWit2x software is released and supporters begin using it.
July 21 to July 31: The community monitors how many miners (community) deploy SegWit2x:
If more than 80 percent deploy it consistently, that should signal community-wide adoption of SegWit and the avoidance of a split, at least for now. So things should be fine, but that explains the current drop in market cap.
Not only has most 90% of the community committed to the solution, but these big mining pools have too much hardware invested into bitcoin, and would lose millions in the event of a split (hard fork).
--- But, if a majority do not deploy, expect anxiety within the community to grow as the focus shifts to the Aug. 1 deadline.
Aug. 1: UASF is deployed by its supporters, who begin checking if bitcoin transactions are compliant with SegWit.
If a majority of miners still do not deploy SegWit2x or otherwise accept SegWit, and if UASF supporters do not back down, then two versions of bitcoin’s blockchain could come into existence: a UASF-backed one where only SegWit transactions are recognized, and another where all trades -- SegWit and non-SegWit -- are recognized.
If a split occurs, Bitcoin will likely begin existing on both blockchains in parallel, resulting in two versions of the cryptocurrency. Expect traders to quickly re-price the value of both, likely leading to massive volatility.
C. Why is this important?:
BTC is the anchor for the market as a whole. Almost every other coin’s growth is contingent on the health of BTC. If the scaling dilemma goes over smoothly, the market will flood with new money, and all of the coins which have seen big declines this month will surge back up in August. If it does not go smoothly, it will remain a bear market through August, and begin its steady rise up come (probably) mid-September.
D. Projections for BTC:
Conservative projection: Goldman Sachs $3900 btc price prediction
A recent outlook report from Goldman Sachs said Bitcoin could fall as low as $1857 (currently recovering from $1900, at $2042 – so we may have seen the bottom already) before bouncing to a much higher valuation between $3212 to $3915 by 2018.
The currency is in a corrective “fourth wave” following on a pattern that started in late 2010, setting the stage for a fifth wave in early 2018.
Their View: “Could consolidate sideways for a while longer. Shouldn’t go much lower than 1,857. Eventually targeting at least 3,212-$3915”
http://fortune.com/2017/07/03/goldman-sachs-bitcoin-price/
Optimistic Projection: $5000 by EOY
Research analyst Ronnie Moas was quoted recently as stating it could double by the end of the year, hitting $5000.
http://www.cnbc.com/2017/07/05/bitcoin-could-nearly-double-and-reach-5000-soon-says-standpoint-research.html
- Legal tender in Japan, India, and China
- Accepted on major sites (overstock, usps, amazon, etc.)
- Mainstream adoption
- Scaling issues and technology getting resolved and improved
What coins are resilient in the current bear market?
Masternode coins are notoriously resistant to down markets, because they provide owners who are running the masternode feature guaranteed residual income every day of as much as 7%-30%
Example:
ChainCoin:
1 MN – 2 CHC a day
1 CHC = $4.12 (7/17/17)
4.12 x 2 = $8.24 a day
$8.24 a day X 365 = $3000 a year
CHC Price - $4.18
- Recommendation*:
While the market is down, buy now while coins are cheap. I believe bitcoin will solve its issues and the whole market will correct with it. Get your hands on Masternode coins so that you don’t need to day-trade, as they are becoming a hot commodity in the space – especially once Ethereum begins offering them. Masternode coins are desirable due to their anonymity, resilience to volatility, and high ROI.
http://www.coindesk.com/bip91-begins-bitcoins-miners-signal-segwit2x-scaling-proposal-early/
A. What are Masternodes:
Masternodes receive 25% from all mined blocks, plus transaction fees. This means that you investment will create a residual income that gives a very fast ROI
Example:
Dash is the top masternode coin, ranking #5 on coinmarketcap. Dash masternodes cost about $240k and make owners $20k a month while theyre running. In one month, dash went from $9 dollars to over $100.
B. ChainCoin:
Below are some notes taken off of one of their websites: http://chaincoinhodlers.com/
Chaincoin is a MASTERNODE coin which was originally a fork off of Dash and which has largely been ignored by the public. Chaincoin is not a new coin and has been in development since 2014, and although Dash is more known it was Chaincoin to pioneer the X11 technology, albeit in a different order. Chaincoin has several features that make it a very powerful and interesting coin:
• Chaincoin is a masternode coin, similar to Dash. Masternodes can be set up for 1000CHC and Masternodes receive 25% from all mined blocks, plus transaction fees. This means that you investment will create a residual income that gives a very fast ROI: http://www.chaincoin.org/chaincoin-roi/
• A Chaincoin masternode is 10x more profitable than a PIVX masternode
• At any given pricepoint a masternode is a solid investment because your earnings go up proportionally.
• Masternode coins are Bitcoin-dip-resistant. We have done our research. Everytime the markets go down because Bitcoin goes down, masternode coins retain their value better because less people are selling and more people are HODL’ing. HODL’ing makes a coin stable. Stability adds significant value.
• For every masternode owner that HODLs this coin the total market supply decreases, so the price has to go up. Supply versus Demand.
• The incentive to HODL will ensure a stronger network
• Chaincoin can send anonymously. We believe in freedom and power to the people
• Chaincoin could be bought, and can still be bought, for very little. It was the cheapest masternode coin on the market, giving the chance for ordinary, normal people to own a masternode and offers a redistribution of wealth away from big money
Right now, its price is stabilizing, which makes for a great time to buy.
Its unique community controls about 30-40% of the volume (and coordinates in a closed slack group). In the stock exchange, a community like this might get in trouble with the SEC, but cryptocurrency is deregulated and open source, so a structured group like this is perfectly legal. CHC is known for having one of, if not the, strongest community of holders.
Since July 7th, ChainCoin has grown from $.07 to $4.12 (±3643%). As the price rises, the payout per masternode.
Details:
1 MN – 2 CHC a day
1 CHC = $4.12 (7/17/17)
4.12 x 2 = $8.24 a day
$8.24 a day X 365 = $3000 a year
CHC Price - $4.18
Returns:
$1 = $2/day | $730/year
$5 = $10/day | $3650/year
$10 = $20/day | $7300/year
$20 = $40/day | $14600/year
$50 = $100/day | $36500/year
$100 = $200/day | $73000/year
- Other Considerations:
-Litecoin – The silver to Bitcoins gold. Faster transactions, fast expansion, equal capabilities to bitcoin.
https://news.bitcoin.com/charlie-lee-resigns-from-coinbase-to-focus-on-litecoin/
-Ethereum Classic – Ethereum’s split. This coin just joined major exchanges in Asian, which means large volume is expected in the near future. It is also the first coin to be embraced widely throughout private equity
http://www.businessinsider.com/r-us-investment-firm-launches-first-ever-ethereum-classic-private-fund-2017-3
4.) Resources:
https://twitter.com/Chain_Coin
https://chaincointeam.slack.com
www.chaincoin.org/chaincoin-roi/
http://chaincoinhodlers.com/
5.) Recap
With the way the market looks, I would suggest getting in now while things are cheap. You will see a lot of volatility leading up to August 1st, but from what I am seeing and reading, the Bitcoin scaling dilemma doesn’t appear to be heading down the wrong path. Look further into this before acting though, but that is my take.
If you choose to purchase a masternode of CHC for yourself, their slack community will gladly assist in both its setup and hosting services. Or, start collecting now, and enjoy the huge growth CHC has in store.
https://chaincointeam.slack.com