Connect with us

Op-Ed

Market Waves and ADA Research

Published

on

How about it, guys and gals! Good job not throwing your computers out of the window and hodling on. I wish I could tell you anything about why we dipped into the BTC four-figure category, but my guess is as good as yours. The cryptocurrency markets work according to fear, and if you stand up to the virtual lion you can make a lot of money. Everything in my last article is up roughly 20-40%. That isn’t my expertise in crypto picking, the wave just came in.

Nobody knows when it will come back again, so you have to trust your price picking. Everything became not-so-attractive within a morning trade. By the time I looked on the exchanges, everything was low, but not so low that it was attractive to buy. The market tests all of us. We just dropped for regulation whispers. Regulation enforcement could rock this ship off course again, which is why profit taking is so important. I am not telling you to go buy a nice new couch. I am telling you that you saw how quickly a 30-40% gain can happen. When the wave goes back out to sea, that’s when you jump in. I am always ready.

Let’s see, of the unattractive prices, I have been inundated with social media buzz about ADA. I have previously owned some appreciated ADA ,which was wonderful. Speculation can have treasures. However, I became very skeptical of high supply coins, and lessened my exposure. As I continue to learn as quickly as I can about this crazy world, the “P” word came up about ADA, which intrigued me.

ADA

Charles Hoskinson is a very smart man who was part of the Ethereum project, before a difference of opinion drove him out of the loop. He left to work on the Cardano project. IOHK is his development arm that has been contracted to develop Cardano. Emurgo is the commercial arm that supports the business applications on Cardano.

Difference of opinion people are double edged swords. Just like our old pal Jed at Lumens, the divergent characters can be the ones who open the gates of Valhalla through innovation, or the gates of Hell through hubris. I won’t be able to tell you who Charles is yet, because there simply isn’t enough information. From the things I have listened to, he is a very intelligent man with very distinct goals (plural).

Cardano is an Ethereum-like platform that has advanced smart contract technology, and a unique technical infrastructure. About 97% of the ICO volume was from Japan, and many people are speculating its wide scale adoption through ATMs and payment systems in one of the most tech savvy places in the world. Those are big goals.

Nuts and Bolts

Proof of Stake: This is a much faster, streamlined, and energy efficient method compared to proof of work. When you see people running mining farms and having to calculate electricity costs, you can’t think that this is going to be a sustainable way of doing business. China has been kicking energy hogs out of the country, and I don’t know why we go two steps forward with blockchain, but one step back with big fans and mining farms in low cost areas. It just doesn’t seem like something that is going to carry forward, at least in the way it is being done now.

Ouroboros and the Epoch System: Scheduled mining. The Chain is divided into Epochs. Those Epochs are divided into slots. Not everyone can mine slots at once, and they elect slot leaders who can mine a specific block in their “slot”. I believe this regulated way of mining allows the miner to not to have to play (and cost) the equivalent of an entire Metal Gear Solid story map (12 times in a row) to get anything done, while also giving Cardano the ability to scale it at their own pace, by making more slots in each Epoch, or making more Epochs to fill with slots. That’s the deepest technology jargon you will hear from me. I am attaching the link of a wonderful explanation that would do it 100 times better than I.

Network System: Instead of all data needing to go to all nodes, they have networks of nodes that will store local information to the network, but with the added ability of communicating with other networks. This sounds like the internet of/for miners. Just like the internet in the 1990s, it all has to start with the tech people talking to each other on it. Back then, it was the government. However, people came along and designed software and web browsers that made it a public product, and not a technical one. I am hoping local miner communication/storage is just the beginning of the use of this infrastructure on the blockchain.

Treasury System: This was a fantastic business idea. For each transaction, Cardano places a portion of the revenue into a smart contracts based treasury. The treasury awards money based on people submitting improvement proposals to the network, in which their peers will review their proposal and vote on the ones they believe will most benefit Cardano. If there is a smart contract designed to award money to innovative people in perpetuity at Cardano, I wouldn’t see why someone wouldn’t keep coming back to the well that always has water?

Goals, Goals, and more Goals

“Cardano is home to the Ada cryptocurrency, which can be used to send and receive digital funds. This digital cash represents the future of money, making possible fast, direct transfers that are guaranteed to be secure through the use of cryptography.

Cardano is more than just a cryptocurrency, however, it is a technological platform that will be capable of running financial applications currently used every day by individuals, organisations and governments all around the world.” (Source:https://www.cardanohub.org/en/what-is-cardano/)

There are so many projects within Cardano. I love its goals, but I just want to know which one will make coin holders the most money. Its claim of a “separate computing layer” sounds like the one I like the most for this reason. If we have a long and windy road of being a community coin until we get to business coin, I am not interested. That may not be the case at all, and we begin to see some real commercial use going on. It is quite early.

Conclusion

Overall, Charles has a broad array of global people working for him, making a “better” ADA coin. Right now, I can’t see what a “better” ADA coin is in their minds. There are so many goals listed (Interoperability, Scalability, Sustainability), not to mention sub-sects within the goals. I would love to tell you about target markets and competition, but they are going after everyone! They are trying to design an all-in-one blockchain/crypto that can be the unified solution. I can’t qualify an all-in-one coin on a SWOT analysis.

Time is going to tell us which one of these goals is the focus. Here in lies the bet. I am exposed to ADA, but not in a way I am to the other platforms. With billions in circulating supply, this wasn’t meant to be a gigantic coin like bitcoin. At $0.60, there is certainly money to be made, but this is more a small speculation bet until I hear more about customer types, and primary target markets.

I see a lot of currencies throwing all types of money at technical developers, but not business people. A lot of currencies could brush up their image if they knew how to talk to people who have their coins. If you go on Shark Tank or Dragon’s Den saying your competition is everyone and your market is everyone, you better have a darn good sales pitch. I would start by creating a hierarchy of needs to be completed according to what will derive the most coin holder value, not what is going to be the most revolutionary. Time will tell with Cardano.

 

 

This is not a recommendation to buy or sell cryptocurrencies. I hope this is helping you in your thought process on a flat’ish day so you can reap the benefits of the market at any given time. I hope you make money, but your decisions should never be based on anyone else. I have never heard a rich man say, “I just listened to an article on the internet…and BOOM”. Don’t think that will be you.

Do follow me @raijincrypto on Twitter if you would like to chat on cryptocurrencies.

 

 

 

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.
6 votes, average: 4.17 out of 56 votes, average: 4.17 out of 56 votes, average: 4.17 out of 56 votes, average: 4.17 out of 56 votes, average: 4.17 out of 5 (6 votes, average: 4.17 out of 5)
You need to be a registered member to rate this.
Loading...

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.




Feedback or Requests?

Bitcoin

Bitcoin’s Year of Accumulation

Published

on

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.

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.
4 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 5 (4 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 741 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




Feedback or Requests?

Continue Reading

Altcoins

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

Published

on

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.

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.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.8 stars on average, based on 21 rated posts




Feedback or Requests?

Continue Reading

Cryptocurrencies

Why Investors Should Be Paying Attention to Dotcoin

Published

on

I remember one of the first terms I learned in economics class was “complementary goods”. If one thing was bought that meant that the other would be in higher demand as well. In terms of investing, this tells you that investing in breathalyzers which can detect marijuana would be a smart move, or any other “cottage industry” to the medical marijuana rush.

But in terms of blockchain, it helps to figure out a way to make money on the trading industry, without becoming a trader yourself. One way to do this is to find a token that is tied to a trading exchange.

Cryptopia’s Utility Token

As a budding cryptocurrency exchange, Cryptopia has a lot of work to do. It also has clearly not been a good year for the cryptocurrency industry. However, Dotcoin (DOT) functions as the utility token to Cryptopia and could prove to be a good way to benefit from a comeback in cryptocurrencies. If the comeback occurs, trading would likely increase, as would the demand for DOT.

DOT is used to pay for coin listing fees and is how Cryptopia covers referral fees to traders. The requirement for listing fees to be paid means that during a crypto boom, when there are projects aplenty, something like DOT would be in high demand. The same thing applies to referral fees. Nobody is referring friends to join exchanges in a down period, so this is more likely to change when crypto hits the news again.

With over 2 million users as of the time of writing this, Cryptopia is a mid-sized exchange with not a lot setting it apart. To put it in perspective, I have only ever used Cryptopia to purchase DOT. That isn’t a “red flag in itself, but as a trader, you can actually use past experience to decide how likely it is that many traders will move to a different exchange.

In the end, so many companies (and especially trading exchanges) depend on network effects for their growth. For each new customer, it becomes slightly easier to attract another one. This applies to all exchanges though, and some of the biggest exchanges have been able to lower fees or offer deeper liquidity pools as a result of their larger user base.

What Your Investment Means

As an internal utility token, you are essentially making a bet on the platform. Currently trading around 150 satoshis, DOT has been running flat for a while. This makes it a low volatility bet with high potential upside. Previous resistance levels have been around 300 satoshis (with an all-time high at 650-ish).

As a utility token that is inextricably tied to a single exchange, it is almost for sure that it will spike again in the future. This is because a certain “price floor” exists on these sort of tokens which is hard to escape. That isn’t to say a return is guaranteed (this is a low market capitalization coin, after all), but more that there is more upside potential than downside risk.

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.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.2 stars on average, based on 58 rated posts




Feedback or Requests?

Continue Reading

Recent Posts

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. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending