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Bankers and Bitcoin

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Something special happens when someone becomes threatened by an idea. They often lash out with their reasons for believing that it won’t work, but don’t address the fact they have a vested interest in it not working. This is exactly what is starting to occur with bankers commenting on Bitcoin.

You hear all the standard criticisms from these people: that it enables crime, that the cryptocurrency isn’t backed by anything, and governments will never let Bitcoin survive.

This is true of all politics and most arguments. People argue from a point of self-interest that they never unpack, so it becomes hard to take their viewpoint seriously when it is just a thinly veiled defense of themselves.

Disruption of a Monopoly

The banking industry has been a source of wealth to many people over the last few decades, but in the last few years the trend of working in tech has emerged as the smarter move for young graduates. The skills are said to be in higher demand and the chances of making the big bucks are greatly improved.

So in a way, cryptocurrency just represents one more threat against the financial industry. Now tech has gotten so big it threatens to completely replace parts of the financial industry, and they don’t like that. The big banks have had a monopoly on the consumer financial sector for decades, and this is about to change.

To be fair, this is completely reasonable, but blockchain technology is coming, and even if Bitcoin isn’t the coin to topple the financial system, there will be numerous innovations based on the same technology. The result will be an industry upended by automation and more trustworthy systems.

Criticizing Bitcoin

There are many valid criticisms of Bitcoin, but when someone argues so vociferously that they don’t address the issues with these criticisms, it hampers their argument. The truth is not a lot of people know what is going to happen and the market for cryptocurrencies is almost irrationally exuberant.

The problems with the criticisms of bankers is they don’t take into account the most important part of cryptocurrencies: decentralization. And that’s because their jobs and careers are based on centralization, or the idea that one person can be smarter and more trustworthy than the entire system. As long as they continue to see Bitcoin as a replacement for the dollar rather than an evolution of money, they will miss the point.

When people argue against the utility of Bitcoin, they falsely go after the micro-level mechanism. There are definitely problems here, as have been demonstrated by scaling issues, forks, and hacks of exchanges. But we can’t throw the baby out with the bath water. The ideas behind Bitcoin that allow for a decentralized management of a money system are clearly a step forward. To be against decentralization is to be against progress.

Karma Finally Strikes

Perhaps the funniest part of bankers protesting the spread of Bitcoin is they created the conditions that bred its necessity. The financial collapse of 2008 and every other collapse before that have been proof of too much trust being put in a centralized system. It has become clear that no single group can be trusted to run the entire economy, especially with so much at stake. It is no coincidence that Bitcoin was first released at this time.

Knowing this, we can start to think about whether these financial crises would have occurred if we were using decentralized applications. Obviously, we can’t know for sure, and it is likely something bad still would have happened, but it could have been greatly reduced by democratizing the management of the economic system.

This “democratization” is the act of letting everyone vote on whether a transaction is viable or not. The system solves the ‘double-spend’ problem by looking for a relative consensus in the network. If one person is claiming something that is out of sync with what everyone else is claiming, it can be “voted” out of existence.

To the common person, this looks and feels a lot better than having an arbitrator control the fate of his or her financial future. That is where the appeal comes to many of those who are disenchanted by the current economic system and are looking for a change.

So there is a very valid case for the decentralized aspect within Bitcoin. Whether Bitcoin will be the one to bring it to fruition or if it will be a different currency is yet to be seen.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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  1. fractalogic

    August 15, 2018 at 10:59 pm

    I want to promote the use of the term snail money (like snail mail) for government backed centralized currencies to give the proper nuance to the subject. I have used the term once before but I think it should be in wider circulation.

    BTC 3KLF5rh3GosvB2nZKkkBe24gs197WE1FqE

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Stellar Price Analysis: XLM/USD Continues to Head for the Stars

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  • XLM/USD bulls resume upward trend, having gained another 8% over the past two sessions.
  • Cryptocurrency wallet provider Blockchain is to host Stellar Lumens (XLM) airdrop worth $125 million.

Stellar’s native token Lumens is notablly outperforming several of its peers. XLM/USD has seen its firm move north has continued, with the price gunning towards the $0.3000 mark. As a recap, the bulls exerted pressure to the upside, which forced a firm breakout from a triangular pattern formation. This resulted XLM/USD moving into an explosive short-term bullish trend.

The price ran higher between 4-6 November, gaining over 16%. For the next three sessions after this, the price cooled, between 7-9 November. This was a move which was very much in line with the rest of the market. It appeared profit-taking kicked in, given the fast and explosive gains. The bulls are back on the move within the past two sessions.

Recent Stellar News Flow

Cryptocurrency wallet provider, Blockchain, will be hosting what they say is the “largest crypto giveaway in history.” They will be dispersing $125 million worth of the Stellar Lumens, to Blockchain wallet holders, that choose to sign up for the airdrop. It is offering $25 of Stellar Lumens (XLM) for free to its 30 million users, a move to encourage new users and ever so slightly assist towards the greater goal of mass adoption.

The Blockchain CEO had reported that the company is working with the Stellar foundation partly because he believes it represents a superior blockchain capable of massive transaction volumes. He added that the airdrop is designed to “put users first” and allow them “to test, try, trade and transact with new, trusted crypto-assets in a safe and easy way.”

Technical Review – XLM/USD

XLM/USD daily chart

XLM/USD over the past two sessions now is running at consecutive daily gains. Bulls having gained over 8% at the time of writing, between 10-11 November. This demonstrates the strength of the current bullish trend, which had commenced on 31st October. Technically, the market accommodated a small pullback, as mentioned in the prior article before resuming its move north.

Upside Targets

There was some sticky resistance seen around the 50% Fibonacci, but the bulls having made a firm clearance of that now in latest move. The next near-term challenge is seen at the 61.8% Fibonacci, around $0.2830. This was the high area for 21st, 23rd and 24th October, where the price faltered on each of those occasions. A breakdown will likely open the door for the $0.3000 return.

Should XLM/USD bulls manage to firmly conquer the $0.3000 price region, there doesn’t appear to be too much in the way of $0.5000. During the chunky market sell-off seen in April, XLM/USD ran straight through from $0.5000 down to the $0.3000 territory, leaving little in the way of technical observation within the $0.4000 region.

Overbought Dangers

Despite all noted above, it is worth considering the RSI’s behavior. On the daily time frame, the RSI is again approaching the 70 territory. At the back end of July and September XLM/USD saw a steep sell-off. Given the recent surge in price action higher within a short time period, it still leaves XLM/USD vulnerable.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 44 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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XRP Price Analysis: Largest Bank in Japan, MUFG Bank, Set to Utilize Ripple Technology

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  • Japan’s largest bank MUFG will be collaborating with Brazilian bank, Banco Bradesco, leveraging Ripple technology for payments between Japan and Brazil.
  • XRP/USD technical bullish formation eyed (a pennant pattern on the daily chart view) subject to a breakout.

It was reported last Friday that the largest bank in Japan, MUFG Bank, will be utilizing Ripple’s technology. MUFG Bank and one of the largest banks in Brazil, Banco Bradesco, announced signing a Memorandum of Understanding. They will be collaborating to develop a new cross-boarder payment service, which will leverage Ripple’s technology between Japan and Brazil. It is anticipated that they will be using Ripple’s xRapid, which requires the use of XRP,  to facilitate with the transactions overseas between the two countries.

Ripple announced via their Twitter account“@Bradesco and @btmu_official are leveraging Ripple’s #blockchain technology to create a new cross-border payment service between Japan and Brazil.”

Ripple continue to add large financial players to their ever-growing list of users on their network.  It was only reported at the back-end of last month that the National Bank of Kuwait (NBK), one of the largest banks in the Middle East, is actively testing and readying to go live with Ripple’s xCurrent payment solution.

Technical Review – XRP/USD

XRP/USD daily chart

XRP/USD over the past two sessions is moving back higher, after a chunky cooling in the price was seen. On 6th November, XRP/USD ran up to its highest level that was seen in around 6 weeks, moving just above $0.5700 mark. This was part of a 30% gain, which commenced after bouncing off support on 31st October. The bulls then ran into some near-term resistance, an upper trend line, that has formed a bullish pennant pattern. As a result, then price eased lower for two sessions, dropping just over 10%, during that period.

Upside Targets

Looking to the upside, should the bulls continue this pick seen going on two sessions now, a retest of the pennant will likely be seen. The above descending trend line is now currently tracking at $0.5500. A breach here could see a fresh wave of bull buying, initially with a firm move above 6th November high at $0.5705. Ultimately, a breakout from this mentioned pattern, could see a fast move back into the $0.6000 territory. XRP/USD last traded here on 1st October, before running into sellers.

Support Levels

If the technical set up as described above fails to play out, then there are key areas of support that must be looked at. Firstly, the lower part of the pennant pattern, which is observed at $0.4700. This is also in proximity to a demand area, running down to $0.4400. Any failure to provide comfort at the mentioned, then it could be disastrous. XRP/USD could be forced to free-fall back down below the $0.3000 territory. The price was last traded down here on 18th September, when it had entered into a strong bull run.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 44 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Zcash Price Analysis: ZEC/USD Trades at Its Highest Level in Six Weeks as Fundamentals Propel Prices Forward

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  • ZEC/USD upside momentum remaining on course; a green daily candle on Friday, is vital for this continued move north.
  • Fundamental updates around Zcash remain strong, with still much anticipation around pending developments.

The Zcash native token (ZEC), since its bounce on 31st October, has made solid advances to say the least. ZEC/USD received firm bidding on the lower part of the triangular pattern at $113.10. The price had initially been contained within this pattern since the start of September. The latest bull run saw a move up to a high print on 8th November at $139.65, that was a chunky gain of 23%. In today’s session, the price is swinging between losses and gains, with bulls looking to resume upside.

Zcash News Flow

Earlier in the week, it was covered that the Zcash foundation backed a funded development and execution of ProgPOW, a POW algorithm that will be removing the upper hand that specialized ASICs have when mining for ZEC. The move should also make Zcash mining more decentralized. This is expected to make the coin more secure and attractive to its users – a development of which could have contributed to the recent upside seen for ZEC/USD.

Zk-snarks

Elsewhere, there is much chatter and anticipation across the community concerning zk-snarks, or Zero-Knowledge Succinct Non-Interactive Argument of Knowledge. Recently, this technology has gained strong interest from Ethereum. It is considered a potential near-term scaling solution for Ethereum’s blockchain.

Lastly, Zcash late last month, on October 28, launched its heavily anticipated ‘Sapling’ upgrade. This brought much in the form of benefits and features to its ecosystem. As mentioned in the previous article, “Sapling introduces new shielded addresses with significantly improved performance: a time reduction of 90% for constructing transactions, and a memory reduction of over 97%”. Instant benefits were noted by users.

Technical Review – ZEC/USD

ZEC/USD daily chart

The bulls have been making solid ground since the price’s breakout from the previously mentioned triangular pattern. Current momentum is well behind the market bulls, as they look to retest the 27th September high print, $146. This is within a strong touted supply area. The price on several occasions at the back-end of September attempted and failed to break above this area, Forcing a deep sell-off over a period (some 25% was dropped).

Upside Targets

A break above the supply zone pointed out could see the bulls pilling in, resulting in further upside pressure. This could very well force a fast move towards $160+, ZEC/USD having last traded at these heights back on 6th September. Finally, this appears to be the only major barrier in the way of the big psychological $200 mark. The price has not traded here since 2nd August, when heavy selling was hitting the ZEC/USD.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 44 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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