Cryptos... going... going..... ????




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ORIGINAL POST

POSTED BY Ed (13 days ago)
Think back to this time last year, around 2017’s Thanksgiving holiday in the US. . .

As you probably remember, BITCOIN was the dominant theme of the day, whether around the dinner table or in the news headlines.

Crypto prices had soared throughout 2017, climbing from $1,000 at the beginning of the year to around $7,500 by last November’s Thanksgiving holiday.

Then, over the course of that single weekend, Bitcoin jumped to nearly $10,000 as the buying frenzy heated up.

In a matter of days, crypto-broker Coinbase opened hundreds of thousands of new accounts during the 2017 Thanksgiving weekend.

Mobs of speculators were piling in, bidding the price up to new highs on a daily basis, until it cracked $20,000 a month later.

We started warning about this in early November last year, arguing that, while crypto represented great technology to improve the financial system, Bitcoin’s rapid price rise was “purely speculative… not sustainable demand,” and “anything that’s pure speculation is eventually going to pop.”

At the end of 2017, we told you about Saxo Bank’s prediction that Bitcoin would collapse to $1,000 in 2018.

If things keep up this way, they may be proven right.

Bitcoin peaked in early January and has declined throughout 2018 along the lines of Hemingway’s famous quote about going broke: “gradually, then suddenly.”

Over this past weekend (ironically, the 2018 Thanksgiving holiday), Bitcoin’s price fell from $6,000 to less than $4,000.

What a difference a year makes.

Last December and in early January we wrote about how this could happen, explaining that crypto prices were ‘reflexive.’

In other words, as Bitcoin’s price rose rapidly, more people wanted to buy it because they believed the price would continue rising. This created a ton of demand.

But at the same time, very few people were willing to sell. Anyone who owned Bitcoin saw that the price was rising so rapidly and figured, “Why sell today if I can sell tomorrow at a higher price?”

This mismatch of extreme demand and reduced supply caused the price to jump, which created even more demand and reduced supply.

It was all based on a belief that crypto prices would continue rising.

And as we wrote last year, it would work the same in reverse: everyone selling and few people buying causes huge price declines, which makes even more people want to sell and fewer people want to buy.

That’s exactly what we’re seeing now.

I personally know several die-hard Bitcoin fanatics who have finally capitulated and are selling out, getting whatever they can, while they can.

That’s because a lot of folks who profited from crypto’s price rise never actually cashed out.

They believed that the Bitcoin price would continue rising and made blanket assertions like “Bitcoin is going to $1 million. . .”

In the meantime, they loaded up on expensive houses, cars, boats, etc., much of it financed by debt.

Yet while the value of their crypto assets has collapsed 80% from the peak, they still have to service that debt.

So now even some true believers are selling in a panic, simply so that they won’t have to declare personal bankruptcy.

Does that mean it’s over? Are Bitcoin and its cousins headed for the historical dustbin alongside Dutch tulips and Pets.com?

There are so many worthless coins and tokens out there, and many of them are absolutely headed to zero.

Perhaps Bitcoin too. I’ve discussed a few times that Bitcoin is one of the most technologically INFERIOR cryptocurrencies, so it makes little sense that it should be the most valuable.

Personally I think there will continue to be demand for niche, utility-specific coins for things like privacy or more secure e-commerce.

The concept itself is still sound: a medium of exchange that isn’t controlled or manipulated by central bankers, that’s widely accepted across the world for online transactions with minimal costs.

That was the original idea behind Bitcoin as described in its first white paper a decade ago. And some iterative cryptocurrency may still realize that vision some day.

(This is no more far-fetched than Amazon.com gift cards being used as a form of money. . .)

As we’ve written a number of times, though, the bigger opportunity in crypto is in applying its core Distributed Ledger Technology (DLT) to the countless ways it can be used in commerce and finance.

Look at the banking system as an example: It’s almost 2019. Yet it still often takes 3-5 days to transfer money, whether it’s a domestic ACH transfer in the Land of the Free, or a cross border wire internationally.

Seriously. Are these banks loading crates of cash onto a boat and shipping money via sea freight to one another? It doesn’t make any sense.

Sending money should be as easy as sending email. And the Distributed Ledger Technology that was created around cryptocurrencies makes this possible.

Shockingly, banks are hard at work to make this a reality. It’s as if the rise of crypto finally scared them into raising the bar and improving their services.

But there are countless other industries where these types of applications are sorely needed.

A few decades ago, entrepreneurs (and the investors who funded them) made vast fortunes applying the new technology of the consumer Internet in ways that fundamentally changed our lives– how we shop, share and store information, consume media, engage in personal relationships, etc.

That same opportunity exists today with crypto and DLT.

So from that perspective, this ride is far from over. It’s just beginning.

If you are interested in speculating in Cryptocurrencies, I encourage you to download our free Crypto Currency Report - A Different Perspective on Crypto.

More and more people want to dive into crypto currencies and everyone’s focus is on Bitcoin’s price. But, the price is not what matters...

https://www.sovereignman.com/investing/is-crypto-finished-24318/

COMMENTS

Ed (13 days ago)
Bitcoin sinks as cryptocurrency sell-off gathers pace

NEW YORK (Reuters) - Bitcoin plunged more than 12 percent on Monday, extending falls in recent weeks in a broad-based selloff in digital currencies as sentiment sours.

Several factors have accelerated the downturn, analysts said, including increased U.S. regulatory scrutiny and a delay to January 2019 of the widely-anticipated launch of bitcoin futures by Bakkt, Intercontinental Exchange’s crypto platform.

“These factors coupled with lukewarm network fundamentals and reports of falling adoption of crypto as a tool for services such as payments, have led to strong selling pressure against a lack of buying resistance — to a point of apparent capitulation,” said Aditya Das, analyst at Brave New Coin, a crypto asset market data company.

Bitcoin fell to as low as $3,519.94 on the Bitstamp platform, after earlier falling to a 14-month trough of $3,462,57, and was last down 12.6 percent. It has lost 74 percent of its value so far this year, after hitting nearly $20,000 in December last year.

Other digital currencies also fell sharply, with Ethereum’s ether down 7 percent at $106.69 and Ripple’s XRP falling 5.6 percent to 34 U.S. cents.

Cryptocurrency market capitalization plummeted to $122.3 billion on Monday, down 85 percent from its peak of nearly $800 billion hit in early January this year.

https://www.reuters.com/article/us-crypto-currencies/bitcoin-sinks-as-cryptocurrency-sell-off-gathers-pace-idUSKCN1NV118

Ed (9 days ago)
'I come to bury Bitcoin, not to praise it': UBS

It's time to "bury" bitcoin, UBS' Paul Donovan says.

It was "obvious" that the bitcoin rally would end badly for people not "protected by any kind of regulation and got sucked into the process," he says.

Cryptocurrencies are nearing the end of the road, and it's time to do away with the digital coins, UBS Gobal Wealth Management's chief economist said.

UBS Paul Donovan, who has never been a fan of cryptocurrency, wrote earlier this week: "I come to bury Bitcoin, not to praise it."

"These things were never going to be currencies. They're not going to be currencies at any point in the future," he said Thursday on CNBC's "Fast Money." "They're fatally flawed."

Bitcoin received lots of love during the 2017 holiday season when it began rallying to nearly $20,000. But Donovan was skeptical then, warning that it could be "destructive" in the long term.

"Right from the start of the hike in late last year, it was fairly obvious that this was going to end badly, unfortunately, for some of the people who weren't protected by any kind of regulation and got sucked into the process," he told CNBC.

After peaking, bitcoin is now trading around $4,330. Overall, the cryptocurrency market has lost about $700 billion since reaching highs in January.

Donovan thinks the cryptocurrency could be in its "death throes" because losing 80 percent value "is not healthy." Government, he said, is "one of the main obstacles" to bitcoin, adding the idea of digital currency replacing the dollar "is quite a leap."

"The main problem with these things, the absolute fundamental flaw, is that they're never going to be a store of value," he said. "Every economist knows the store of value is about balancing supply and demand, and with cryptocurrencies, you cannot control the supply in response to the drop in demand."

https://www.cnbc.com/2018/11/30/i-come-to-bury-bitcoin-not-to-praise-it-ubs.html

Ed (9 days ago)
Bitcoin falls over 7 percent

The world's biggest and best-known cryptocurrency fell to $3,920.35 in late morning trade, heading towards a September 2017 low of $3,474.73 hit on Sunday.

Other cryptocurrencies including Ethereum's ether and Ripple's XRP also weakened.

Ed (3 days ago)
Bitcoin has today sunk to its lowest level since the beginning of the year as a cryptocurrency-wide market rout continues to cause pain for holders of bitcoin, ethereum, Ripple's XRP and other major digital tokens.

The bitcoin price fell to a low of $3,563 earlier today, down around 6% over the last 24 hours according to the CoinDesk bitcoin price tracker, before rebounding slightly. Earlier in the week, a bounce in the bitcoin price had led some to speculate the worst was coming to an end for the bitcoin and cryptocurrency market.

https://www.forbes.com/sites/billybambrough/2018/12/06/bitcoin-falls-to-fresh-yearly-lows-after-wild-swings-heres-why/#5ef32eb177f4

Ed (2 days ago)
Bitcoin plunges more than 11 percent to fresh lows for the year

https://www.cnbc.com/2018/12/07/bitcoin-plunges-as-rout-continues-to-drag-down-cyptocurrency-market.html

Ed (2 days ago)
Four Days Trapped at Sea With Crypto’s Nouveau Riche

https://breakermag.com/trapped-at-sea-with-cryptos-nouveau-riche/


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