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Cloud Computing & Cryptocurrency

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We are starting to see a rebound in BTC and ETH. We touched 1180 ETH as of this writing, and I am in a happy spot now after the news that Robinhood will allow trading of stocks and cryptocurrencies (ETH and BTC) in the same account. Please make sure you are exposed to ETH if you’re investing in these markets. Now more than ever is it important for coins to have working business relationships.

However, everyone must be weary of hearing big names, and not looking at what these names are actually buying. I have recently become fascinated with the cloud computing relationships that certain cryptocurrency companies have. What I find incredibly frustrating is how amazing these things are, and that I have absolutely no stake in it. I am going to use Microsoft and Stratis as my example, and if this is of interest to everyone I will do IBM and Stellar next.

Why is this Important?

Storage and analysis of information is one of the biggest costs to any company. The amount of data that a business compiles – financials, supply chain data, internal information sharing etc. – has become larger and larger each year. The cloud is a solution that allows access to remote data storage and applications via the internet, rather than having it stored locally (hard drives/local servers) that require large upfront investment and costly on-going maintenance. The clouds became flexible toward certain patterns (Black Friday, tax season, etc.), and will shift in size and cost based on the amount the company needs, rather than having excess capacity of local servers year round.

Companies did not have to take on the cost burden of local servers, and the scalability was more than enough to fit almost everyone’s needs. These clouds have evolved into the public sector as well. Individuals can now store their information (iCloud would be a familiar one) in a way that protects them from any hardware malfunction. Applications that we use have our activity information stored “in the clouds” as well.

How does your cryptocurrency get involved? They are the ones creating the file cabinets. One of the main problems associated with cloud computing is securing sensitive information. Many old school IT folks are still concerned that storing information on the cloud increases the risk of theft of sensitive information. Blockchain is a sophisticated way of providing extra armor within the cloud – in other words, encrypted information in blocks rather than just information itself.

The big players are Amazon, Google, IBM and Microsoft, each with their own different spin. Two of the companies, Microsoft and IBM, have become CaaS (cloud as a service) solutions, with a BaaS (blockchain as a service) added within.

Microsoft Azure is a cloud solution that was released in 2010. It provides a hybrid (public/private) cloud to corporations and individuals. Microsoft is able to store, automate and infer all of the information gathered by businesses in a much quicker way. Their applications are becoming stronger each day and are beginning to have real world use cases.

I am not from the tech background, but the consensus is that this Azure platform is one of the easiest to understand if you’re used to developing on Linux, which describes most developers. Azure is an easy transition. Their recently implemented BaaS is where Stratis enters the conversation.

Stratis prides itself on being the “status quo” blockchain maker. The software was designed to work with corporate America’s operating systems (OSX/Windows) through nStratis, which is a private “side chain” service for businesses and individuals. This means that when companies want to secure their information on the cloud, the early consensus is that blockchain is the best way to do so. The Stratis company was designed for Microsoft systems, and the people who are used to them. It was an excellent play on Stratis’ part to notice that cloud computing, and specifically Microsoft, would be the segment that would adopt their products and service first.

I would say Stratis is going to have a lot of work through these relationships. Side chains for private storage are what normal corporations are looking for, not cryptocurrency solutions. We raised money for Stratis through STRAT so that they could do this. However, I don’t see how their side chain business will reward coin holders.

Stratis probably has the best competitive advantages of all cryptocurrencies in that it plays well with Silicon Valley coding languages and has a knack for building a great private chain. But, where is the coin holder value? I would love to own some Stratis stock, in which I have ownership of the underlying company and receive profit. But that isn’t what this is.

Conclusion

This is the frustrating part about cryptocurrency. The lines have been greyed surrounding what is going to benefit the coin, and what isn’t. Rapid payment and processing has about 100 new coins coming on the market each month, usually with nothing more than the same coin properties as everyone else.

Microsoft has the largest technical reach of any company through its corporate monopoly. Windows and Microsoft Office are simply too imbedded in businesses’ lives for there to be a change in demand over the next 3-5 years. I believe that with the languages that Stratis can be adopted in, Microsoft will be calling them consistently as more people and businesses migrate their information to the cloud in the most private customizable manner possible.

I would exercise caution on STRAT. I have made a rule for myself that once a coin begins working with companies that will have no relationship to the coin, I will exit. It’s so tough for me to say, as I think this will be a revolutionary IPO in the future. Don’t be one dimensional in cryptocurrency. That is how so many people are being pinched. There are many ways to look at a company in blockchain, and one of them is getting the first look at a revolutionary company before it goes public. Stratis could certainly be an example of that.

 

This is not a recommendation to buy or sell cryptocurrencies. I do not own STRAT anymore. Best of luck to you. Please do follow me on Twitter @raijincrypto for thoughts throughout the week.

 

P.S. I read my last article. Raiden had taken it a little too far with the cloud computing Youtube videos the night before, and clearly wasn’t awake enough to write. Cryptocurrencies take a toll on us all, and I apologize. However! Now, I have some great cloud computing stuff that I am hoping is of interest, and will allow us to take a look at the first commercial uses of blockchain.

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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4.4 stars on average, based on 27 rated postsMythological God of Lightning. Cryptocurrency/Blockchain writer, evangelist, and friend. May the odds be ever in our favor.




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Altcoins

Dash Price Analysis: DASH/USDT Downside Risks Linger Despite Trust Wallet Support Announcement

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  • DASH/USDT price action is moving within a narrowing range formation, subject to further downside risks.
  • Trust Wallet, Binance-owed crypto wallet provider, announces support of DASH.

Price Behavior

DASH/USDT has been trading within a $6 range for the tenth session in a row, at the time of writing. The upper part of this range should be noted at $73. Looking to the downside, the lower support of the formation is seen at $67. The price, like many of its peers within the cryptocurrency market, is stuck within a narrowing range block. They are all currently demonstrating strong downside vulnerabilities, given the current behaviour.

This trading range came after a steep fall in the market last Thursday, 10th January. Double-digit losses were seen across the board after moving within a prior narrowing range formation. DASH/USDT had a strong run from 15th – 24th December, gaining as much as 81% within that time frame. Following the high print towards the latter part of that period, at $102.50, price cooling was seen and then begun to trade sideways.

Between 26th December 2018 – 9th January 2019, DASH/USDT was moving between a narrow $86 at the high and $73 at the low. This led to the explosive breakout to the downside, where the price dropped around 20% on 10th January.

Trust Wallet Supports Dash (DASH)

Trust Wallet, a mobile crypto wallet owned by Binance, announced earlier this week that it has added support for Dash. The announcement followed after just a week ago, when the wallet provider revealed the support of Litecoin (LTC), Bitcoin (BTC), and Bitcoin Cash (BCH). In addition, the app also supports Ethereum (ETH), Ethereum Classic (ETC), Tron (TRX) and others.

The team at Trust Wallet, upon their DASH support update, also left users somewhat excited about further announcements lined up. They stated, “Going forward, we will monitor the performance and stability of our Dash release very closely, and if everything works well, hopefully, we can surprise you with more new coins in the coming weeks!”

Technical Review – DASH/USDT

DASH/USDT daily chart.

A breakout of the key mentioned levels that make up either side of the range, $72 and $67, will likely determine the next committed trend. Firstly, in terms of the next major area of support south, eyes will be on the December low area, $58. To the north, drop supply remains heading into and just above the psychological $100 mark.

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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4.6 stars on average, based on 112 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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Bitcoin

Bitcoin’s Year of Accumulation

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Although bitcoin looks poised to extend its January losing streak to five consecutive years, 2019 will be a year of slow accumulation for the virtual currency, according to Eric Thies, a well-known technical analyst. In the meantime, traders can expect the bear market to reach its climax once a new yearly bottom is breached.

Accumulation Year

In promoting the view that 2019 will be an accumulation year for bitcoin, Thies directed our attention to the major bear trend that emerged in 2015. That was the year bitcoin exhibited significant volatility, albeit in a lower range. Following the latest breakdown in price, bitcoin could be in for a similar trading pattern this year.

“Similar to 2015, 2019 may be the year of accumulation,” Thies said, according to CCN. This means bitcoin is likely to be an attractive investment in $2,000-$4,000 range – even with wild swings priced in.

Bitcoin’s volatility regime has changed dramatically in the last two months. Following a period of unprecedented calm, volatility surged to nine-month highs in the back end of December. Volatility will likely remain a factor for the foreseeable future as the technical tug-of-war continues. More on this: Bitcoin Maintains Narrow Trading Range as Recovery Faces More Resistance.

Circulation Grows

That bitcoin will remain highly volatile is supported by the recent influx of digital currency into circulation. Anonymous owners of dormant bitcoin wallets have been trading with greater frequency since October, which means their activity may have predated the November price collapse.

Data from Flipside Crypto recently showed that long-dormant bitcoin wallets have accounted for about 60% of the market’s circulating supply in the last 30 days alone. What’s more, active bitcoin supply has increased by a whopping 40% since the summer. This, of course, feeds into higher expected volatility.

If that’s not enough, consider that 1,000 addresses hold 85% of available bitcoin. As Bloomberg recently noted, many of these holders remained on the sidelines during the 2017 bull run and its subsequent collapse. If dormant accounts are becoming active again, there’s good reason to suggest that the whales are looking to re-enter the market.

Not Overnight

It’s reasonable to expect that bitcoin will become more attractive at lower prices, especially as more institutional investors access the crypto market in the coming year. But that doesn’t mean the accumulation will happen overnight. Previous bear cycles have taught us that downtrends can stretch for 1-2 years before any noticeable accumulation takes place. The only difference this time is there are more people involved, and more eyeballs on the price.

Additional reading: Crypto Winter and the Fed?

To demonstrate bitcoin’s potential at current levels, and why 2019 will be an attractive year to boost one’s holdings, it’s worthwhile to reflect on the cryptocurrency’s yearly lows rather than its highs. Below is a quick snapshot of bitcoin’s yearly bottoms stretching all the way back to 2012:

  • 2012: $4
  • 2013: $65
  • 2014: $200
  • 2015: $185
  • 2016: $365
  • 2017: $780
  • 2018: $3,200

Traders tend to focus on bitcoin’s lack of new all-time highs as evidence that the market is going nowhere, but these figures clearly show that BTC is a solid investment at almost any period in the last seven years (of course, this isn’t the case if you bought during the peak of 2018).

Make no mistake: technical analysis and market sentiment clearly show there is more pain ahead for bitcoin and the broader cryptocurrency market. But as the long-term value proposition continues to hold, there’s strong reason to believe we haven’t seen the last bull market. In the meantime, 2019 prices could represent a unique buying opportunity for those who missed the boat two years ago.

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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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Altcoins

Lite.IM Surpasses Facebook In Race To Support Cryptocurrency Compatible Messenger

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Since the early part of 2018, crypto traders have been bombarded with bad news.  Hacks, broken promises, and overall lack of enthusiasm have resulted in huge losses.  But more than that, some promising cryptocurrencies just haven’t survived.  As traders look to the future, they should begin looking at projects that have the potential to disrupt industries and take them to the next level.  One company that has the potential to accomplish that is Zulu Republic (ZTX).

Zulu Republic is an ecosystem of blockchain tools and platforms, designed as a place where people, businesses, and organizations can thrive on their own terms.  The company’s stated mission is to advance the development of decentralized technologies, to promote human rights and empowerment around the globe, and to reduce the global digital divide.

Well the company is off to a great start with the development of Lite.IM.

What is Lite.IM? 

Lite.IM is a project aimed at expanding global cryptocurrency adoption.  With Lite.IM, users can send, receive, and manage Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and the company’s native currency (ZTX), on Facebook Messenger, Telegram, and SMS (in the USA and Canada).  To get started managing these cryptocurrencies on the aforementioned platforms, users simply need to send a text-based command to the Lite.IM bot.  The commands are as follows:

Telegram:  @LiteIM_bot

Facebook Messenger:  @lite.im

SMS (USA and Canada only):  760-LITEIM-0

Competition with Facebook

On December 21st, 2018, Facebook announced that it was developing its own stable cryptocurrency that users would be allowed to exchange through its popular chat service, WhatsApp.  But while Facebook’s initial approach will target users based in India, Lite.IM is open to everyone in the world.  Further, Zulu Republic has previously mentioned that they expect to announce support for WhatsApp in the next few weeks.  It certainly appears as though Lite.IM has the upper hand here.  And that is before even addressing Facebook’s obvious privacy concerns.

When it comes to cryptocurrency, privacy and security have always been two issues at the forefront.  Given the rough year that Facebook has had in that regard, users must certainly be forgiven if they have trouble trusting the social media giant.  In September, 2018, Facebook announced that an attack on its computer network had exposed the personal information of nearly 50 million users.  Apparently, the hackers were able to exploit a feature in Facebook’s code to gain access to user accounts.  Even prior to this announcement, Facebook was already under Congressional scrutiny over revelations that a British analytics firm obtained access to private information from nearly 87 million Facebook users.  Not to mention Facebook’s rumored involvement with Russian election meddling.  Suffice it to say, it has been a tumultuous year for Facebook.

And while users may have concerns trusting Facebook’s ability to handle cryptocurrency data, they shouldn’t have those same concerns with Lite.IM.  Private keys are RSA encrypted with the user’s password.  Lite.IM will never ask for that information nor will it be stored.  Because of this, no third party will ever have access to that valuable information.

Conclusion

The truth of the matter is that Facebook is an absolute giant and has grown at an extraordinary rate since its initial public offering.  Facebook has hired some incredible talent, from executive positions to marketing to development.  And while one should never count them out, I simply wouldn’t be able to trust them with all of the recent issues.  Perhaps in time, after regaining the public’s trust, users could once again look to Facebook as a leader.

Fortunately, users have another strong and dependable option.  Lite.IM will allow users all over the world to manage popular cryptocurrencies via their favorite messenger platform.  Users should continue to stay tuned for future developments.

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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