Analysis Why Ether Is Worth More Than Facebook Published 9 months ago on February 7, 2018 By James Waggoner As the dizzying pace of stock market volatility continues shock turns to the question, what is the right course of action. To make successful decisions starts with the answer to a bigger question. What is causing the upheaval? Recently we put electronic ink to virtual paper in an article making the case for a strong dollar. Our rational was based on the new Federal Reserve leadership raising interest rates in multiple increments this year. The reason for this prediction is that the long term trend of disinflation is over and the Fed’s target of a 2% inflation rate is being exceeded. That calls for an end to ultra low cost money. The Tale Of The 10-Year Note Investor anticipation of multiple rate hikes started showing last September when the 10-Year Treasury Note was selling for at a record low yield of 2.06% before raising to 2.85% early this month. That is one of the highest yields in a decade. The 10-Year Note is a good benchmark of where investors anticipate future inflation. A Vulnerable Stock Market While this is going on, the stock market is sitting near record high valuations. According to the Wall Street Journal, the Dow Industrials stood at 26 times trailing earnings up from year earlier levels of 20. These numbers are not hidden in some secret data bank. They are easily available even forming the basis of several cautionary warnings from Wall Street sources. The key to market volatility is the uncertainty over the future rate of inflation. This forms the backbone of our vision for Ethereum and its cryptocurrency Ether. Inflation Is Ethereum Best Friend There is good reason for the Fed to change its policy from Quantitative Easing following the 2008 financial crisis to inflation control. Even though the price index is still in the acceptable range of 2%+, pressures are mounting. Unemployment is ultra low, labor markets tight, oil prices have risen almost 50% since last summer, healthcare costs remain out of control while housing is in short supply with prices raising over 5% annually. These are not good signs in spite of a US economy chugging along in the longest economic expansion in modern history. There is more uncertainty today given the elevated stock market values and that is why investor fears drove the VIX fear index from 12 to over 50 in two short trading days this week. Technology The Savor Students of the economy are quick to give full credit to the benefits of technology in bringing down inflation from the lofty levels of the 1980’s to where we are today. They are absolutely correct. The benefits of today’s emerging technology is what will play a key role in the period ahead. Investors will be drawn to technology that solve problems of tight labor, energy costs, healthcare and housing. Such companies will be valued ever more highly. Blockchain Technology Serves A Broad Audience If bitcoin is a transactional currency, Ethereum is a practical software platform with a vast range of applications. One of the big criticisms of Ethereum is not that its open sourced blockchain platform is special, but that too many people want a piece of the action. In 2017, the world exploded with over $3.9 billion in Initial Coin Offerings. Almost 80% used the Ethereum platform. True, some offerings came from bad actors casting aspersions on the the process of capital raising. One the other hand the surge of applications provided all the necessary proof that Ethereum and its Smart Contracts were here to stay. The Ethereum Moat With enough skilled developers, anybody can build a blockchain, but can anybody replicate Ethereum? The answer is, of course, yes….. but. What is the probability? There is a shortage of skilled developers that is one reason the lead to the formation of the Enterprise Ethereum Alliance in February 2017. There are 300 members today with a few heavy weight corporations like Microsoft and JP Morgan Chase. The Ethereum platform has been tested by a group of major Wall Street trading firms producing savings in the billions. That is a pretty awesome endorsement for the technology. When a list of today’s emerging technology like Artificial Intelligence, Self Driving vehicles, or the Internet of Things, each could individually act to buffer future inflation. However, blockchain technology has a role in all of these and right now Ethereum is in a pretty good spot. 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. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (19 votes, average: 4.58 out of 5)You need to be a registered member to rate this. Loading... James Waggoner 4.4 stars on average, based on 114 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. Follow @HackedCom Feedback or Requests? Related Topics:cboe vixethereumFb stockus stocks Up Next Technical Analysis: Cryptocurrencies Consolidate after Powerful Rally Don't Miss Crypto Update: Coins Extend Gains Above Prior Lows You may like Market Update: U.S. Stocks Settle Mixed in Choppy Trade; Cryptocurrencies Endure Modest Pullback Ethereum Price Analysis: ETH/USD Coming Towards the End of Triangular Pattern, Breakout is Around the Corner Trade Recommendation: NEO/Ethereum Ether Price Eyes Potential Upside as Foundation Awards $3 Million in Grants “Mass Adoption is the Direction Things Are Taking” – Lionel Wolberger, CTO and Co-Founder of Platin Crypto Update: Bitcoin and Ethereum Breaking Out 1 Comment 1 Comment KD February 8, 2018 at 2:32 am 1) No mention is made of Facebook in this article, nor any indication of why Ethereum is more valuable than Facebook, specifically. Hence, the title is simply clickbait. 2) Re: Facebook again, I was at least expecting some commentary on some blockchain-based social networks that might potentially dislodge FB (e.g. Sapien, or something along those lines). 3) The author claims that, “Students of the economy are quick to give full credit to the benefits of technology in bringing down inflation from the lofty levels of the 1980’s to where we are today. They are absolutely correct.” I am no student of the economy. But weren’t the record high Fed interest rates from 1978 on, responsible for bringing down inflation? “Full credit” to technology? 4) How exactly are driverless cars and AI going to solve problems like housing and healthcare? This baffles me. 5) This article is riddled with spelling and grammatical errors. Log in to Reply You must be logged in to post a comment Login Leave a Reply Cancel replyYou must be logged in to post a comment. Analysis Crypto Update: Market Still in Deadlock Published 13 hours ago on October 20, 2018 By Mate Cser The choppy, directionless period in the cryptocurrency segment continues, with no meaningful change in the technical setups of the major coins. While the broader trends are still clearly bearish and sellers remain in control of the market, we saw another minor bullish shift in the past 24 hours, with modest gains across the board. Most of the top coins are trading in the range of the Monday session, which saw the spike triggered by the turmoil in Tether. Stellar is the apparent positive outlier of the past few days, while Dash, Litecoin, and Ethereum have been the weakest so far this week. DASH/USD, 4-Hour Chart Analysis On a positive note, all of the majors remain above last week’s levels, and especially Bitcoin’s continued stability is encouraging for crypto-bulls here, even as our trend model paints a negative picture of the segment. BTC/USD, 4-Hour Chart Analysis Bitcoin avoided a test of the $6275 level despite moving below its recent very narrow trading range yesterday, with still no meaningful bearish or bullish momentum present in the coin’s market. BTC continues to trade below the $6500 level, and its volatility is very low, even after the move below the previously dominant broad triangle consolidation pattern. Further resistance levels are still ahead near $6750 and $7000, while support levels below $6275 are found near $600, $5850 and between $5000 and $5100. Altcoins Little Changed as Ethereum Still Glued to $200 XRP/USD, 4-Hour Chart Analysis The weekend has been very quiet for altcoins so far, with even the recently active Ripple settling down near the $0.46 level. XRP is around the midpoint of Monday’ s range but the lack of follow-through after the breakout from the triangle consolidation pattern is a negative sign, and the coin remains on a short-term sell signal in our trend model. Strong resistance is still ahead at $0.51, $0.54, $0.57, while support is found near $0.42, $0.375, and $0.35. ETH/USD, 4-Hour Chart Analysis Ethereum continues to hover around the $200 price level still being in bearish short- and long-term patterns and the relative weakness of the second largest coin remains a huge concern for the whole segment. With no evidence of meaningful capital inflows to the market, the outlook is neutral at best, and traders and investors should wait for at least a short-term trend change before entering new positions. Strong support is found near $180, $170, and $160, while resistance is ahead near $235 and $260. EOS/USD, 4-Hour Chart Analysis EOS is also among the relatively weaker coins, and the coin is stuick in a broad Trading range around the $5.35 level since August. Volatility in the coin’s market has been progressively declining, but the vicinity of the bear market low suggests that the long-term downtrend is still intact, especially given the segment-wide trends. A test of the lows is still more likely than a bullish break-out, with strong support found near $4.50 and key resistance ahead near $6 and $6.5. Featured image from Shutterstock Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins. 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. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Mate Cser 4.6 stars on average, based on 380 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market. Follow @HackedCom Feedback or Requests? Continue Reading Altcoins Cardano Price Analysis: ADA/USDT is Eyeing a Big Move Out of Current Technical Setup Published 17 hours ago on October 20, 2018 By Ken Chigbo Positive update from IOHK audit of Icarus by Kudelski Security. ADA/USDT is moving within a pennant pattern formation, subject to breakout. Solid Icarus Audit reported by IOHK IOHK recently announced in their forum that an audit was conducted by Kudelski Security, which is an independent and third-party security audit firm. The audit conducted demonstrated that the Icarus project implementation for Cardano looks all good and set to go, without any major problems. However, a few changes may need to be executed. IOHK developed the Icarus code as a reference implementation, for Cardano light portfolio. The important of “independent audits, like this one was stressed by IOHK. Stating “they are critical for identifying security issues in the Icarus wallet, that may not have been identified by internal audits”. Furthermore, IOHK has elucidated Icarus as an open source code base serving as a reference for the creation of safer and easier mobile wallets for Cardano. They said, “this guarantees our customers and clients the safest portfolio we can offer.” Given the benefit of an external audit, the developers can resolve any problems identified during its product launch audit. Positive Updates from Cardano Founder Cardano’s founder, Charles Hoskinson, was recently commenting on Cardano’s future. He said “We have so many amazing things coming out.” Mr Hoskinson further added that one of their scientists has flown in from Switzerland. They will be doing a video, which will be the first time they have ever talked about their sharding design that we have for Cardano. Further commenting on other updates, including videos about Shelley and the Rust project. Technical Review – Daily Chart ADA/USDT daily chart ADA/USDT is moving within a triangular pattern or a pennant formation, as seen via the daily time frame. It is narrowing, moving closer to a breakout. Ranging ahead of another drop to the deep south. Although, fundamental developments coming out from the Cardano foundation, remain very much upbeat currently. Over the past 8 days, the price has been grinding higher, after receiving support at the lower trend line of the above-mentioned pattern. In terms of resistance to the upside, this can be seen at 0.08310000. The upper tracking trend line. Further north, a supply zone is running from 0.09000000-0.09500000. ADA/USDT last traded here on 23rd September. Finally, support is tracking at 0.071800000, lower part of the pennant, also within a demand area. Another strong buying territory is observed from 0.06500000-0.06000000. 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. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Ken Chigbo 4.5 stars on average, based on 33 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. Follow @HackedCom Feedback or Requests? Continue Reading Analysis Crypto Update: Top 10 Worst Performers Make Bottom Picking List Published 20 hours ago on October 20, 2018 By Kiril Nikolaev Yesterday, October 18, 2018, Cryptoglobe published, a list of the 10 worst performing cryptocurrency investments of 2018. These altcoins suffered heavy losses of between 97% – 99%. With tremendous devaluation, it may lead you to think that altcoins or cryptos are dead. After all, other assets such as stocks or commodities may likely never come back to life after losing all but one percent of their value. But this is crypto where coins nosedive one day and skyrocket the next. Cryptoglobe can show you a picture of tragedy, but us; we see opportunity. In this two-part article, we reveal how the top 10 worst performing cryptocurrency investments can make a good bottom picking list. Zclassic (ZCL/BTC) % Down from All-time High: 99% Current Status: Zclassic/Bitcoin (ZCL/BTC) is currently finding footing at its historic support level of 0.0005. In the last four weeks, the pair has been range trading between 0.0005 and 0.000074. Bottom Picking Candidate? An altcoin that’s down 99% is a great bottom picking candidate. Aside from the possibility of a technical bounce, you can expect whales and expert bottom fishers to accumulate positions at this level. So, you can either trade the range or accumulate with the best of them. Weekly chart of ZCL/BTC Game Credits (GAME/BTC) % Down from All-time High: 98% Current Status: GAME/BTC is attempting to carve a bottom at the parabolic support of 0.000025. Over the last four weeks, the pair has been trading between 0.000025 and 0.0000346. Bottom Picking Candidate? Yes, GAME/BTC has the potential to generate a strong rally in the coming weeks. Volume spikes on September 23 and October 4 hint that someone is accumulating at these levels. More importantly, the market is flashing oversold readings on the weekly RSI. GAME/BTC has the essential ingredients of a powerful bounce. Weekly chart of GAME/BTC Bitcoin Diamond (BCD/BTC) % Down from All-time High: 97% Current Status: BCD/BTC is currently trading inside a huge falling wedge on the daily chart. It is still bearish as it continues to generate lower highs and lower lows. Bottom Picking Candidate? No, BCD/BTC is not a great bottom picking candidate. However, the pair looks ripe for a breakout. The usual catalysts are present: flashing extreme oversold readings, nearing the apex of the wedge, and trading at all-time lows. Look for volume spikes as a sign of a breakout. Daily chart of BCD/BTC Ethos (BQX/BTC) % Down from All-time High: 97% Current Status: BQX/BTC has been carving a bottom at 0.000045 for over a month now. Those who were able to buy at this level are lucky because BQX/BTC is looking ripe for a rally. Bottom Picking Candidate? Yes, if you can still manage to get as close to 0.000045 as possible. The volume surges in the last few days suggest that the pair is in the final stages of base building. On October 14, BQX/BTC printed volume that’s over 250% of its daily average. Daily chart of BQX/BTC SALT (SALT/BTC) % Down from All-time High: 97% Current Status: SALT/BTC may already be in an uptrend but it seems that only a few people are looking. The 4-hour chart shows that the pair is currently generating a bullish higher low after pulling back from its first higher high in months. SALT/BTC looks bullish in our book. Bottom Picking Candidate? Yes, this pullback gives you an opportunity to buy the higher low. We expect SALT/BTC to trade near the support of the ascending channel as it consolidates. 4H chart of SALT/BTC Bottom Line In trading and investing, the worst performing cryptocurrency investments and other assets often provide the maximum financial opportunity. We’re seeing that in the first half of the list. We have a feeling that we’ll see more or less the same in the second half of the list. Stay tuned. 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. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Kiril Nikolaev 3.7 stars on average, based on 252 rated postsKiril is a financial professional with 4+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances. Follow @HackedCom Feedback or Requests? Continue Reading Recent Commentsmvppvm_07 on Bitcoin Price Showing Little Upside as Trade Volumes Approach Yearly LowsKen Chigbo on Monero Price Analysis: XMR/USD is Stable and Gunning for Potential Gains on “Bulletproofs” Technology Update DayAceBreakz on Monero Price Analysis: XMR/USD is Stable and Gunning for Potential Gains on “Bulletproofs” Technology Update DayChris G on Crypto Update: Altcoin Market Cap on the Verge of Trend Reversaldavidstewartkim on “The Core of Any Blockchain Project is Decentralization” – Jack Zhang, Lightning Bitcoin Trade Recommendation: Litecoin Bitcoin Price Showing Little Upside as Trade Volum... Is BTC Still the Real Bitcoin? Not According to Ro... Volatility Ahead For Bitcoin Price as Global Trade... Cardano Price Analysis: ADA/USDT is Eyeing a Big M... Ethereum Price Analysis: ETH/USD Coming Towards th... Basic Attention Token (BAT) Quietly Racks Up 42% G... Recent Posts Volatility Ahead For Bitcoin Price as Global Trade Volumes Drop Sharply October 20, 2018 Crypto Update: Market Still in Deadlock October 20, 2018 Ripple: Moving Toward Mass Acceptance October 20, 2018 ICO Analysis: Svandis October 20, 2018 Bitcoin Price Showing Little Upside as Trade Volumes Approach Yearly Lows October 20, 2018 Trade Recommendation: Litecoin October 20, 2018 Trade Recommendation: EOS October 20, 2018 Cardano Price Analysis: ADA/USDT is Eyeing a Big Move Out of Current Technical Setup October 20, 2018 Zcash (ZEC) Up 16% For Week as Sapling Hardfork Approaches October 20, 2018 Crypto Update: Top 10 Worst Performers Make Bottom Picking List October 20, 2018 A part of CCN Hacked.com is Neutral and Unbiased Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. 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