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Crypto Versus Cannabis: What You Need To Consider

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Here is a question worth taking a moment to consider.  Which would you rather own: one Bitcoin or 130 shares of Canopy Growth Corp (NYSE: CGC, $50)?  They are both about equal in value based on current prices. But what about next week, next month or as far out as maybe 2020?  

The point of the question is this: when it comes to speculative investing, how much room is there at any one time for two stars? In this case, we are talking crypto and cannabis. We all know how difficult this year has been for crypto. On the other hand the cannabis industry is hotter than ever, with new deals announced almost every day, and merger and acquisition activity at an all-time high.

Just in case you are wondering, the market cap of CGC alone is around $11.4 billion, which would rank fourth in asset value behind Bitcoin, Ether and Ripple.  Collectively, the 10 largest publicly traded cannabis stocks are valued at over $35 billion.

Viridian Capital Advisors estimates that cannabis investments have already surpassed $5 billion this year. There have been over $582 million in Initial Public Offerings and over $8 billion in mergers.  The point here is that cannabis is a headwind that offers a compelling alternative to crypto. Do we need to choose or will there be room for both?

Important Differences

On the surface, there are two fundamental differences between crypto and cannabis: government and mass acceptance.  In the crypto world overwhelming attention is on solving the technical impediments like scaling and security. These are key issues that must be resolved before any coin or token can be expected to serve as a widespread medium of exchange.

Cannabis, of course, suffers none of these limitations.  According to New Frontier Data, sales are expected to surpass $9.5 billion in 2018 — with MJBizDaily forecasting sales of up to $12 billion. If ever there was an understated estimate, this is one of them.

Government Strangulation Versus Acceptance

The United States is one of the biggest markets for crypto and yet regulators have done just about everything possible to drive crypto entrepreneurs to places like Malta, Liechtenstein, Switzerland and elsewhere.  Though the idea of regulators cleaning up numerous scams, security risks and other things is a virtue, the crypto industry’s passion to preserve anonymity has created tension between the two groups.

October 17th, Cannabis Legalization Day

The tipping point for cannabis investors is coming up very soon. October 17, 2018 is the day the government of Canada legalizes cannabis everywhere in the country.  Beyond the obvious, the move opens Canadian banks to do business in cannabis including the processing of credit and debit cards. This is a big deal with implications for U.S. and for crypto as well.

Industry sources suggest that if the U.S. Congress changes control in this November election that either Federal law could be changed or those states with liberal leadership may follow by creating their own cannabis regulations.   

Crypto Needs A Customer

Legal cannabis has pent up demand but what about crypto? As much as we love blockchain technology, it has been a while since the list of merchants accepting Bitcoin has grown significantly.  

Why has so much attention been heaped on Ripple of late? In addition to the news on xRapid, Ripple is disrupting the antiquated and costly SWIFT system of fiat currency exchange where there are billions of wasted time and cost. Little wonder that XRP is challenging ETH for the second spot of crypto rankings.

What To Do Next

With investment returns in conventional stocks limited by record high prices and bonds facing a succession of Federal Reserve induced interest rate increases, the relative value offered by both crypto and cannabis is compelling.  But thanks to favorable developments in the cannabis world, there is now a real horse race underway between the two camps. For what it is worth, it makes sense to own both for long term investors.

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 115 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




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Cardano Price Analysis: ADA Bulls Set for Another Retest of Big Supply Area

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  • ADA/USDT trading firmly within the green on Wednesday, outperforming its peers.
  • Cardano Shelley upgrade is heavily anticipated across the community.

The ADA/USDT pair was seen holding decent gains in the session on Wednesday, up as much as 5%. The bulls are looking at resuming their decent upside momentum, which was seen through mid-December early January. In terms of that rally seen, the price gained a whopping 90%, moving from around $0.02793 up to a high print at around $0.05368 on 10th January. This was the highest-level ADA/USDT had reached since 19th November.

ADA/USDT daily chart.

The bulls had the wind taken out of their sails after failing to breakdown a known area of supply. This can be seen tracking from $0.04900 up to $0.05400. The price has not been above this level since 19th November 2018, which was a period of heavy selling. Buyers have faltered here on two occasions recently – 24th December 2018 and 10th January. It will not be an easy area to break down; however, upside potential is chunky should it be broken down.

Project Shelley Imminent

The eagerly awaited Shelley update is very much quickly nearing its release from the Cardano foundation. It is set to be launched in the coming few weeks, as can be seen via their roadmap countdown clock.

This update is significant as it will make the Cardano blockchain fully decentralized. The Cardano blockchain is currently within the Byron phase. In terms of the Shelley upgrade, it will additionally mark the release of Cardano 1.5. The foundation provides the following insight from the detailed roadmap, “As we progress through Shelley, work will be done that contributes to stability, interoperability and governance. Throughout the arc of development, Cardano’s protocols will increase in complexity, interdependence and use more exotic cryptographic primitives”.

Technical Review – ADA/USDT

ADA/USDT 4-hour chart.

A near-term upside challenge is seen tracking from $0.043500-$0.045000, via the 4-hour chart view. Over the past six sessions now, the bulls have failed to break this area down. Further north of this, a heavier zone of supply can be observed from $0.04900 up to $0.05400, as detailed earlier.

If the bulls fail to move north of the mentioned areas, then key daily support levels should be noted for potential comfort. Eyes would be on the following levels: $0.03900 (13-14 January low), $0.03550 and then finally $0.027600 (7-16th December 2018 low area).

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 107 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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STEEM Coin on the Move While Steemit Loses 20 Million Visitors in Six Months

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One of the three currencies which fuel the Steemit blockchain-based social media site, Steem (STEEM) gained 22% in the previous two days. Despite the increased price movement in January, monthly visitors and unique account creations continue to plumb new yearly lows on the Steemit social media website.

STEEM Price

STEEM’s recovery has been slow in coming – the coin gained 43% from December into January, however most of that came in the last forty-eight hours. Compare that to major and mid-cap altcoins such as Tron (TRX), Zilliqa (ZIL) and Augur (REP) which gained over 100% in that time, and you see a major discrepancy.

From Monday through to Wednesday STEEM went on a 22% run which carried the coin price from $0.249836 up to $0.306033. Trades against Korean won on the Upbit exchange accounted for more than 40% of the day’s trades, or around $1.2 million of the $2.7 million daily total.

Steemit Cools Down

After suffering the indignity of laying off a majority of its staff back in November, Steemit continues to hold on despite plummeting numbers.

Remarkably, the Steemit social media site lost almost 20 million monthly visitors in the last six months – a 61% drop off from the 30.8 million visitors in July, to the current 11.9 monthly visitors according to SimilarWeb. New account creations are also down 83% in the last six days alone, however statistics show that new users tend to flood in whenever the coin price pumps – even if just for a brief time.

CCN reported back in May of 2018 that Steemit had surpassed one million accounts created on the blockchain. This was a startling figure at the time, and grabbed a lot of headlines. However, Steemit statistics from the time suggest the number of unique users was actually much less – closer to 150,000 according to this chart from Steemit’s @arcange.

Follow the Money

The same chart shows that January of 2018 remains Steemit’s most successful month. The site gained close to 120,000 new users in the sixty days leading up to January’s all-time high, when the coin price climbed as high as $8.57.

As the coin fell to a twenty-month low in December, unique accounts on the blockchain also fell to eighteen-month lows in the process. A major increase to new account creations was seen on January 9th, as STEEM went on a similar 23% price spike, and 4,108 new users flocked to Steemit in one day.

Stats courtesy of Steemit’s @penguinpablo

By six days later, new registrations had fallen back to 695 per day, as STEEM’s gains from the previous few days were wiped out.

Steemit launched back in early 2016, and has divided opinion since its inception. Check out this recent primer for an up to date summary of Steemit and its features.

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 123 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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Binance Coin Price Analysis: Binance Completes 6th Token Burn; BNB/USDT Struggling to Move Back Above Breached Channel

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  • Binace has completed their sixth round of BNB token burning, a total of around 1.6 million.
  • BNB/USDT bulls are retesting a breached ascending channel formation.

BNB/USDT is holding steady for now, with a gains of 4% on Wednesday. Caution can be observed following a breakout to the downside from a rising channel formation. The price had been moving within this structure from around 15th December, when the bulls commenced the most recent upside trend. BNB/USDT had gained as much as 51%, while within the confinements of this. However, all good bull runs must come to an end, and on 10th January the lower supporting trend line gave way to the market bears.

BNB/USDT daily chart.

In terms of price behavior since the break, as detailed earlier, there is a lack of commitment seen. The bulls have stringently retested and been moving underneath the channel but have not got the momentum to break back above at this time.

Binance Complete 6th BNB Token Burn

The world’s largest cryptocurrency exchange by traded volume, Binance, announced they have completed their sixth token burn. Binance burnt a reported total of 1,623,818 BNB tokens. This detailed burn was for the period between October 1 and December 31, 2018. For comparative purposes, the number is similar to the 1,643,986 BNB amount that they previously burned in their fifth round.

Despite the similar number of BNB being burnt, it is worth considering that the final quarter of 2018 had “brought significant changes in the cryptocurrency landscape”. In monetary terms, the dollar value during the sixth BNB burn was around $9.4 million, versus the $17 million during the previous period.

CZ, founder and CEO of Binance, said, “I’m excited about is Binance Chain and Binance DEX, which will launch soon. From a tech standpoint, it is a major development for the Binance ecosystem. From an earnings standpoint, Binance DEX will not directly increase profitability for Binance, but it will certainly increase the utility of BNB in a big way. That should be good for BNB holders. Binance is also a larger holder of BNB, so we benefit the same way as all BNB holders. The more people using Binance Chain, the more value is created, or the more successful we all become.”

Technical Review – BNB/USDT

BNB/USDT must break back above the $6.40 area to attract another wave of buying. This is where the lower supporting trend line of the breached channel in tracking. Separately, a supply zone is seen in proximity, tracking from $6.20-$6.90. The price has not been above this region since 19th November. Should the bulls gather enough momentum to break above this supply, then a fast move could be seen back to $10.00. BNB/USDT had been consolidating here prior to the steep fall in November.

Looking to the downside, there isn’t much in the way of major support seen until the $4.00 price region. This is where the December low can be seen, $4.12, with a demand zone observed running from $4.55-$4.12.

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 107 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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