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Op-Ed

They Built It. Who’s Coming?

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2018: The year of opportunity if you are reading this right now.

You know either on a basic or high level that cryptocurrency has value, and hopefully you have begun poking around at what is investable. I do enjoy having private investors from around the world joining together to invest in things that we will never be able to fully understand. That is textbook early adoption! We aren’t supposed to know every single speck and detail. The reason I have so much faith is because regardless of what people tell you, there are facts in cryptocurrency that no pessimist can deny. The facts that I care most about are: Who is here, who is coming, and how much are they coming with.

Who is here

Well, I don’t think we could be joined by any better group of people. When co-workers and family members tell you that it’s all going to $0 (as all day job final adopters will say), you must first think of who is going to go to $0 with you in their world. The founders of what would be Facebook, the founder of PayPal, Hedge Fund Managers, Creme de la Creme Back/Front end developers (some of which left HUGE Silicon Valley jobs), and of course, all of us fine normal people who don’t want to miss out on the Google IPO of our generation. There are more big money people here than we can count. A lot of them have significant amounts of their net worth tied to cryptocurrency.

I am sure you could go throughout history and find me smart people who have made bad second business decisions. However, if we just think about the history of innovation, cryptocurrency has all the signs of a wave that is not yet a wave. The first sign is anger. When the talking heads on TV discuss blockchain, there is always someone declaring it’s demise in hyperbolic fashion. Smart people get upset when they can’t grasp the concept of something. It happened with the automobile, internet, computer, and the list goes on. I could pull up blips all day from news anchors in the 60-70’s running their mouths about something new and useful. Society has to repel it before they can embrace it. I don’t know where in the exact part of the process we are at, but I am hoping 2018 will give us our road map that we so desperately need.

Who is Coming

I will summarize and explain: Coinbase People, Big Business, Intermediaries 

Coinbase People

Coinbase people are people who are not yet able to really grasp the concept of cryptocurrency. Think about what is needed to be done if you would like to invest in currencies that aren’t the big 4-5 that everyone can buy with cash. You need to make two accounts, use your cash to buy one virtual currency to pay for another virtual currency. Yes, I know that makes sense to you and I (sometimes it doesn’t), but for most people it simply doesn’t. This extra layer of annoyance and deterrence is what is going to make us money. If it was easy for these people to buy all of the currencies we hold so dear, Raiden would already be on a beach somewhere. If you just think about all the steps you went through to buy coins and store them, that is enough to put more than half the population into a technology coma. This, once again, is my bet. My bet is that once it becomes easy for these people to buy different coins (and the government makes it easy for them), then we will begin to see some rapid adoption. You are just simply not going to get most people to go to Hong Kong virtual Exchanges to buy cryptocurrencies. It must be at their doorstep, especially for Americans. Look at the drive-thru food culture! They wait. We want them to wait, that is what creates discounts for early adopters.

Businesses 

There are plenty of businesses who are actively looking into implementing blockchain. Think of the SWIFT system for money transfer. It takes days, its expensive, and backlogged. How about securing client information? Well, I couldn’t possibly think of any data breaches in the past 5-10 years. How about the rapid exchange of information/data? Companies already do this on “secure” email servers en masse. That’s an 86′ Toyota Corolla with 300,000 miles on it compared to the cars that people can encrypt their information on in the blockchain. Encrypting money and information from a basic level makes complete sense. If the best cars/roads are crowd sourced on an alternative platform, so be it. If they want to stick their nose up to it, that’s fine. Darwin’s finches had some losers obviously. Blockchain will be the place where all things are done eventually. Brick and Mortar stores are slowly dying, while our internet identity grows at an unstable pace. All of this volume must go somewhere. Clearly the way we use the internet now is outdated and dangerous. So, we must migrate. Here in lies the bet.

Intermediaries

I saved the best for last. Remember those lazy Coinbase people? Intermediaries are the folks who will make the drive-thru window for them. Let’s think about how an asset manager could use cryptocurrencies. They can actively manage a pool of currencies for investors, they can make an index that costs people essentially nothing to buy on an e-trade account, or they can simply buy large amounts to go with the other holdings that they have of traditional investments. The amount of ways they can use these products to derive fees from their clients its infinite. Each and every single way will benefit us. I have never known a financial services firm to turn down a financial market because of it’s volatility. These are the people to listen for. Currently, there are a couple funds investors can buy that have a holding of bitcoin. If you and Raiden aren’t satisfied with just one coin, why do you think others would be?

I am sure you recently saw the SEC is quietly telling all asset managers to pull their bids for cryptocurrency funds. Governments are still trying to get taxes from the last big wave, you think they can handle another one right now? This was expected. This wasn’t going to be a smooth ride. If you have read my earlier posts, we like when the government talks. They scare people! We can make money from scared people.

All of what I have told you means something. Think ahead. What would your parents buy? Grandparents? Co-workers? Or better yet what are they willing to be exposed to in a financial product. A fund listed on an American Exchange can’t have “road map” currencies as constituents. That wouldn’t make sense. My homework to you is to write down your own hypothetical American Index fund. find the names you think are stable enough to be tracked in a basket of other currencies.

This is going to be an exciting year if you are prepared, and you are creative. I do hope this has stimulated some thought. I am not recommending you buy or sell any currencies, as my intention is to give you as much armor as I can in the trenches of the exchange. I wish you the best of luck. But, this all can go to $0. Take profits. Read.

Images courtesy of Pennex and 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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Articles

Are Crypto News Sites Allowing Freedom Of Thought?

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As the interest in cryptocurrencies has exploded during the past couple years, crypto news sites have been on the rise.  These sites are quickly becoming an invaluable resource for traders who enjoy learning about new crypto projects and trade ideas.  The content distributed through these platforms is typically created by a combination of full-time staff and guest contributors/bloggers.  Many of these writers also have a lot of experience in crypto trading so the articles are extremely beneficial for readers.

One thing that readers should always keep in mind is that the content from these sites normally represents the independent thoughts of the writer.  This is important because writers/traders aren’t infallible.  They can make mistakes like all of us.  So, the best approach for readers is to try to attain a diversity of thought.  A diversity of thought means to gather as much information as possible, from a wide selection of sources.  This is absolutely necessary before reaching a conclusion on a certain topic.

But what happens when a website prevents writers from writing about specific topics?  A colleague of mine recently tried publishing an article at Coinnounce.  The writer wanted to publish an article about the buying opportunity that the Bitcoin crash was affording investors.  Normally an article is rejected for legitimate reasons such as poor grammar, plagiarism, or promotional work.  Unfortunately, Coinnounce cited that the website was bearish on Bitcoin and that they wouldn’t be publishing bullish articles.  Even more troubling is that when Bitcoin rebounded in price, Coinnounce reached out to my colleague and told him they would now be willing to publish the bullish article.

When I found out about the rejection and the reason given, I decided to browse the Coinnounce website (which I had never heard of) to find out what kinds of articles were being published.  And sure enough, the articles were nearly all bearish in some fashion.  The problem with this approach is that nobody knows where Bitcoin is going.  It’s 100% speculation.  What actually matters is the logic presented in the article that helps back up a prediction.  So, while Coinnounce is free to run its business as it sees fit, the website (or the articles published) should have a disclaimer that the information presented represents the thoughts of the website’s owners/editors.  Otherwise, readers may not have a clear understanding of what is being presented.

The point of this article is not to call out Coinnounce.  Rather, the point is to make sure readers are aware that some sites may have different motivations than others.  It’s important to read from a variety of sources to get as much information as possible.  This is true not just for cryptocurrency markets, but for everything in life.  I’m proud to write for Hacked which runs an open and honest platform.  The articles written do represent the thoughts and feelings of the writers.  So, while the editors may not always come to the same conclusions that the articles do, they will never suppress freedom of thought.

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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Op-Ed

The Underlying Assets are Getting Squeezed

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An interesting phenomenon has emerged in the last 3 or 4 months. It appears as if many of the core underlying investment assets of the economy are getting steadily killed in the markets. This is observable in FANG stocks (Facebook, Amazon, Netflix, and Google) as well as commodities like crude oil and iron ore.

Additionally, Bitcoin has continued to get hammered during this absolute beat down on the economy. Many pundits have come out and talked about how this is the “end of Bitcoin” or how this is Bitcoin finally finding its true value, but something far more important is at work here.

Deleveraging During the Credit Squeeze

For anyone who hasn’t been reading the news over the last several months, the actions of the Fed (and other central banks) have been under considerable analysis. The previous decade has seen some of the easiest money in the history of our economy. Easy money refers to the cost of borrowing. The lower the cost (interest rate), the easier the money is considered to be.

So as we start to see the credit markets change in a way that makes it a lot harder to borrow money, a credit crunch begins. This is when there is a shortage of credit (lending) and borrowers are forced to pay back parts of their loans, or at least not take out any new ones. And as a direct result, they can’t afford to maintain certain investment positions.

Their inability to maintain these positions means they need to sell off their holdings in the same way a short squeeze causes short sellers to need to buy back the security they were shorting. A credit crunch closes a lot of positions.

The economy-wide effect this is having is both predictable and scary, because we don’t know how far all these underlying assets are going to fall before they stabilize. In the mean time, there will be drastic political effects as a result. The policies of central banks have come under scrutiny in recent months thanks to comments by President Trump, and now that a tighter monetary policy is being put into play, we are going to see much lower dollar liquidity in the future.

Zooming in on Bitcoin

So with all of these assets “puking on themselves”, or deleveraging, we are seeing some interesting dynamics unfold. In Bitcoin, capitulation is occurring on both sides of the asset, which is exactly what is necessary to reverse this trend in the future.

You can see traders instinctively realize that the “dead cat bounce” that normally occurs as shorts get squeezed out in the $4k range is much more muted now. This is because many of the shorts have already closed their position. Longs are doing the same as they bought in at what they thought was the bottom, even as recent times have proven them to be mistaken.

This is going to work out as a good thing for Bitcoin in the long-term, as it could be the end of the massive downmarket it has experienced all year and a new time to shine. At the very least, it could create a good “bottom” for opportunistic buyers to hop in and average their costs down a bit.

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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Altcoins

60 Minutes Showcases Potential of DNA and Genetic Genealogy; Opportunity for Crypto Investors

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DNA Storage

Throughout the years, 60 Minutes has been responsible for reporting on some of the biggest stories in the world.  Many of the most memorable episodes have involved world leader interviews, stories on endangered animals, profiles of famous celebrities, and occasionally, segments on promising developments in business and science.  A week ago, 60 Minutes had a very interesting report on how the authorities used Genetic genealogy to solve the case of the Golden State Killer, and how the authorities plan to keep using this new field to solve more cold cases in the future.

On April 25, 2018, authorities in Sacramento announced that they had solved the notorious case of the Golden State Killer.  Authorities were able to use a promising new technique called Genetic genealogy to help identify 72-year-old former police officer, Joseph DeAngelo, as the suspected killer.

Genetic Genealogy

Genetic genealogy is a mixture of high-tech DNA analysis, high speed computer technology, and family genealogy.  The end goal is to determine the level and type of genetic relationship between individuals.

In the case of the Golden State Killer, DNA came into play because the killer had committed at least 12 murders, 50 rapes, and many home burglaries.  Investigators were able to obtain DNA from the killer at one of the reported crime scenes.  After many years of frustrating dead ends, a cold case investigator submitted the obtained DNA sample to GEDmatch.  GEDmatch is the largest public genealogy database in the world.  After uploading the sample, authorities were able to generate a handful of leads which eventually led to the front doors of Joseph DeAngelo.

In addition to the Golden State Killer case, authorities have used Genetic genealogy to make arrests in at least 11 other cold cases.  While the science appears to be sound, there is a legal question that has yet to be answered.  There is no doubt that attorneys for the accused will raise the question of privacy and whether using databases, thought to be private, should be legal.

Opportunity for Crypto Investors

While I’ve invested in equities and crypto for many years with varying degrees of success, I’ve never had the opportunity to invest at the beginning of a new frontier.  Fortunately, the opportunity has come.  Encrypgen (DNA) is a genomic blockchain network that provides customers and partners with best-in-class, next generation, blockchain security for protecting, sharing and re-marketing genomic data.  This creates a fair marketplace for a person’s DNA that can be stored private and sold (if a person wishes to do that).

Over the past few months, Encrypgen has been gaining attention in the mainstream media because of their revolutionary technology as well as the fact that their closest competition is still years away.

In August, Encrypgen released a beta version of its Gene-Chain.  The Gene-Chain allows consumers to upload their genetic profile and for researchers to purchase that genetic data.  Within the next 2 weeks, the company plans to release the full version of the Gene-Chain which will officially make them a new pioneer in the field of genomic blockchain security.

With the DNA token hovering at approximately 5 cents, the time is running out to accumulate at bargain basement prices.  I fully expect the token to achieve utility in the next several months which will cause a rocket-like explosion in the token price.  There is no looking back now, only forward, and I love what I see.

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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