The criminal global finance sector that is also infiltrating Cryptocurrency

If we look at today’s financial system, having little knowledge of its history or design, we may just take it at face value. We rarely study the details and we usually think someone at the top knows better than us and knows what they’re doing, so we accept it and follow along. But what if I told you that my research has led me to believe that the financial system is rotten, corrupt, rigged by the insiders for their own profit at the expense of the masses. Also it’s morally questionable and it is actually a crime.

Take for example today’s “financial instruments”. “Securitization”, for one, is from the seventies, used to manage risk, and then there are “derivatives”, “margin trading”, “options”, and of course “futures”. But these are not real. They have no real products, and worst of all, they used to literally be illegal in the sixties. It used to be a crime that would land you in jail. The idea was that the market would theoretically stabilize itself with less government interference. In reality, the “efficient markets hypothesis” that was supposed to balance the financial system actually ended up giving us the 2008 global recession. These tools are a con game to profit the insiders and those already very wealthy, who scoop up all the losses of the poorer class for dirt cheap, during these built-in massive recessions every decade or so.

The “credit default swap” is another instrument which is a way of buying insurance against a company you’ve invested in going bust. In 2002 they were worth under $1 trillion. By 2007, just five years later, they were worth $60 trillion. So much for stabilizing the financial system. The math behind them was completely fake. It created the opposite to what was preached, in the form of far more risk, by trying to “securitize” debt. It led to the crash. As the world markets crashed, the financial sector grew. They benefit hugely from a system that is unstable and unfair.

The government in the UK, for example, says that their cash is backed by government debt, or their ability to tax the public, or in other words backed by cash they can get from the public. But this is a circular argument that is like a snake eating its own tail. It goes nowhere. Cash is backed by government debt and that debt is backed by cash. This is doomed to fail. The system is designed to make a few private corporations very rich at the expense of the citizens who suffer cutbacks and taxes, thus lowering the standard of living for the majority, while distributing the wealth among the privileged, in what I call the “trickle-up economy.”

Since the seventies, and the removal of the gold standard, we have a world with no fixed exchange rates, increasingly open financial borders, central banks that manage without any control (thanks to the loss of the gold to peg the value of a currency). As a result we have a chaotic situation dependent on quantitative easing, from the lender of last resort. Historically the monetary systems have always given the dominant international power the advantage, defended by military terror.

“America has no regard for conventions of war or rules of morality.” President George H. W. Bush jr.

The solution:
A new type of currency that is backed by something that is scarce. A return to Bretton Woods agreements made after World War II, and the gold-backed fiat currencies of the world. Or backed by something we really need and really value, like renewable energy per kilowat hour, some have suggested. We need to start valuing things that are most scarce and that are needed to survive. This would push investment into renewables. A basket of currencies is another option as a backing for global currency. Get all the competing currencies to meet and arrange a deal, though we saw how that failed after a few years. There is no major force on the planet, politically speaking, that actually wants a fair and stable financial system because they have all been hijacked already by the central bankers who are the real criminals of the world. We have seen what the IMF has done.

Why are banks so subsidized, private banks with a licence to print money, subsidized by public money, taxpayer money? They have licence to print money out of nothing, and then loan it to us at interest. Why do you think the tallest buildings in the CBD of most cities are banks? And it’s not secret, its open and now digital. Only 3% of the entire money supply in the UK is made of paper or metal coin. The other 97% is on computers, favoring the central banks who run the system. And what do they do with their special privilege? Do they channel new money into the nation in the form of hospitals, public services, etc? No, not if it doesn’t make a profit for them. Rather they use their licence to gamble on the financial markets and push house prices out of reach of the ordinary people by pumping hundreds of billions of dollars into risky mortgages. That is what caused the 2008 financial housing bubble to pop and trigger the global crash. They lent out made-up money to people they knew couldn’t repay it so that they could come and repossess the house, an actual genuine asset. And we, the least wealthy, are being forced to pay for it.

Furthermore, and worst of all to us, is that these “financial tools” are coming into the Cryptocurrency arena now too. Margin trading, and all these leveraged trading sites that Bitcoin investors are being lured into, are ruining the Bitcoin ecosystem. They are a form of moral and perhaps legal corruption. Bitcoin exchanges like Bybit and Binance margin and Bitmex and others, are all con games who attract gamblers and make addicts out of them. They turn you into a dopamine junkie. Around 90% of traders who try this “margin” or “leverage” trading lose everything they invest. And the exchanges take your money without a problem. You are the sucker.

Then we have Bakkt “futures”– supposedly a legit financial instrument by which one can trade Bitcoin, but is it settled in Bitcoin or in cash? And why not just trade Bitcoin? Why is the New York stock exchange – the nemesis of Bitcoin – running Bakkt. Kelly Loeffler, the head of Bakkt, which is run by Ice (which runs the New York Stock Exchange) is now in the US government, given a senate seat for her services. What kind of con is this? We know the US government doesn’t like cryptocurrency because it’s unregulated and beyond their control, but now they want us to believe that their darling Kelly of the NY stock exchange parent company Ice, has our Bitcoin interests at heart? Fake news. Ignorant fools we are, all being duped by this unbacked Bakkt. It’s a financial con game and it has infiltrated into our Bitcoin ecosystem, and I don’t like it.

https://cointelegraph.com/news/bakkt-ceo-kelly-loeffler-appointed-to-us-senate-seat

Therefore I warn you. Don’t waste your Bitcoin on margin or leverage trading on Bybit, Binance margin, Bakkt, etc. You will lose. Remember Satoshi Nakamoto’s principles behind Bitcoin. He released it just after the last global financial recession precisely to disempower the banks and financial institutions that had caused the 2008 global recession by their strategic con game. And now they have infiltrated the Bitcoin ecosystem. Well I will call them out as the con artists that they are. Believe me or not, it’s your Bitcoin, your money, your sovereignty, your power, and Bitcoin is how you take back your power from the criminal banking system and their criminal financial tools. Now you know.

#GIABO – Global Insurrection Against Banker Occupation
#WMFD – Weapons of Mass Financial Destruction
#OKBOOMER

How to spend our Cryptocurrency directly without using a bank

I recently found out that the bank I use is cancelling its crypto-friendly approach. The bank is ending all its accounts with crypto businesses, like my Bitcoin exchange where I spend my local fiat to buy Bitcoin. This was a bit concerning. It implied that when I sell my Bitcoin on my local exchange at a profit one day, and want to move that fiat back into my bank, I won’t be able to do it. The bank is soon closing its accounts with my exchange. So I decided to find out how I could use my Bitcoin as it is, without changing it back into fiat at all.

The good news is that there is a stylish website called Travala which is a hotel booking site that accepts crypto. You can book a hotel or hostel or guest house room anywhere in the world and pay in Bitcoin and multiple other cryptocurrencies, like Litecoin, Cardano and numerous others. This is very inspiring because if my bank won’t accept my fiat from the exchange, I will have to use it some other way. And now I can. When Bitcoin moons in the next bull run over the next few years, I will be in profit naturally, and will want to maybe fulfill my dream to travel the world some more and see new places. Well now that I have the money to do it, thanks to the profits form Bitcoin, I will be able to do that travelling and pay for my guest house room with my Bitcoin via Travala.com.

Travala even has its own crypto token that one can use, called simply “travala.com” on CoinMarketCap, with the AVA ticker symbol, built on the NEO blockchain. AVA is listed number 454 on CMC, worth around $0.09 at the time of writing. AVA token has been on CMC since June 2018 and so is well established with a daily use case or product. Not that I need AVA directly since I can pay for my hotel or guest house booking with Bitcoin. At last, I will be able to travel the world using Bitcoin, and no bank will know about it. What a sense of freedom, sovereignty and liberation, all facilitated by Bitcoin.

This was part of the plan by Satoshi Nakamoto, the founder of Bitcoin, to create a peer to peer payment service free from the banks and mainstream establishment oversight. And Bitcoin is global and not limited by national borders, so I can travel to all those favorite places like Thailand or India, paying for my accommodation bookings online beforehand via Travala.com.

The Travala.com advertising is good too and you may have already seen their ads online or elsewhere, so they are a globally established company. I have yet to try it out of course, since I still need to wait for the bull run and the profit I will accrue from the Bitcoin price hike before I cash out my profits to pay for my world tour. Bitcoin is allowing me to dream, and visualize a life for myself outside the normal parameters set up by my restricted fiat cash flow. Bitcoin will empower us all if we invest long term with faith in the revolutionary value of cryptocurrency.

We can no longer rely on our fiat to retain value or our banks to facilitate our crypto purchases at the onramps of the local exchanges. They are the gateway and the banking system still has a choke hold on our onramps into crypto. Fortunately there may still be one or two other banks that I can turn to when my current bank closes its accounts to crypto exchanges locally. So locally I’m not out of options. But even better than having to funnel my profits back through my bank, I prefer the idea of spending it directly, and now any guest house bookings will facilitate that through Travala.com.

Now I just need to find a company that will sell travel tickets for crypto, so that I can buy my flight tickets that way too. If you know of any such companies then leave your insights in the comments below, as well as any other industries you may know of or recommend where one can spend crypto directly for goods or services. This is the natural expression of Bitcoin in the end – to use it not merely as a store of value but as a means of exchange for daily purchases, like the fabled cup of coffee or pizza. Now we can add hotel or flight bookings and in a flash we have the digital nomad vision becoming a reality. For now I will keep visualizing my ideal dream future and get ready for the Bitcoin price to take my dream from the astral to the physical in the next two years during the coming bull run. It is written in the stars…and on the blockchain. Only time is separating us.

The future is imminent and built on blockchain

When I first started on Steemit about 13 months ago, it was worth $0.40. Recently it stood at $0.10. And there have been those in years gone by that saw it at $4.00. And all the variations in between. Well in future steemit (which is different from steem in that it is the platform) will host more Dapps and services so the token – steem – will regain its former value in dollar terms. We will have petaflops per second of data, football field size racks and racks of servers. Maybe some nice mining rigs, wait, do we even mine steem? Anyway mining of mineable tokens will go on. (Long live Bitcoin.) And that is how the future looks potentially…

The future looks quite different from today. “The same but different.” That about sums up all of reality too. I could put it on a T-shirt and then put on the T-shirt and have the conclusion to life, the universe and everything as my meme. And in this new age, our collective new world reordered, we will have Tesla’s electric cars. That’s a gift from the past if ever there was one. We have had electric vehicles for 100 years already but they were shelved mostly to profit the oil barons who cared little about poisoning the world. We will have 3D printed clothes and food and body parts, so all will be fixable in the future. Except sanity. That will not be fixable by AI or an algorithmic bot responding to your speech patterns. Real life therapists will still be counselling humanity as it loses touch with its humanity, or perhaps its sanity.

We may have less water and species variation but we will have bottled oxygen to make up for the loss of the original thanks to a tipping point that occurred a while before anyone found the political will to end fossil fuels the way they ended lead piping and teeth fillings. Hindsight leaves such a mass of death in its path, the path we took to learn the lessons we know today, and will know in the future, which is just another today… but in the future.

We have borrowed from our future, as an economy on the planet, borrowed their money to pay for our foolishness. Actually not foolishness because it was engineered by the 0.1% to fleece the rest of us via their model of capitalism, Keynes or post-Keynes Austrian School. Crony capitalism, along with fascist totalitarianism aka communism, has stolen from the future to fund the ponzi of the present for the profit of the few at the expense of the many. What a slave species we seem to be, and we can’t even see our prison walls. We can’t see how our brains are being engineered for consent from childhood at school, all the way up to corporatism or stateism. Is there even such a word?

Anyway, the future is bright with Bitcoin and particularly with Blockchain technology, perhaps more than Bitcoin. And digital currency issued by the state and the central banks will replace fiat paper money once known as cash. That future will also have the built in device from which to trade. Actually the smart phone will become a built-in device, hands free, implanted so that one can have one’s smart device seemlessly integrated via the “neuralink” interface. This will allow you to be hooked up to the IoT, the interconnectedness of all AI things, including your brain. And it will run on 5G, followed by 6G and of course 7G in time to come, all the time with smaller and smaller frequency waves running through the air invisibly around us and through us. What an interconnected world it will be. And a public one – no privacy left, not even in your own thoughts in your own head. Cameras and neuralinks will read your every act…and thought, in time.

Well, at least we will have supersonic flight, rail and general transport. EU to Australia in an hour or two, for example. Free from fossil fuels if I have my way. Power is not the problem – Tesla (the original one) proved that over 100 years ago. It’s the sharing of that power with the masses without hoarding profit that is important. And ideally necessity facilitates the eventual sharing of that power which is so freely available via renewables, or something even more dynamic that has not been revealed to all of us yet.

As far as finance goes, UBI (universal basic income) may emerge across the board. Also new jobs in cyberspace will arrive – paid to play anyone? And cryptocurrencies will emerge that share the profits fairly in a company. With blockchain we can now use the distributed ledger to create smart contracts that are streamlined and customized to facilitate the healthy world that we envision, one of fairness, and justice for all. Clean air, clean water and clean money, that’s the world I aim for in the future. Welcome to my world, welcome to yours.

Upcoming Bitcoin Halving of May 2020 – focal point of the coming bull run

In analyzing Bitcoin there are basically three departments of investigation, namely sentiment, fundamental analysis and technical analysis. As traders and investors, we are always keen to know as much as possible regarding all the details so that we can be informed and thus profit from this revolutionary cryptocurrency that is taking over the world with its admittedly wildly volatile price swings. As powerful as Bitcoin is, it’s like a wild and untamed horse, and just as many speculators have lost money, as those that have profited, even though Bitcoin has been on a lifelong overall uptrend.

Losing money on your Bitcoin investments seems odd, since the simplest procedure is to buy and “hodl”, or buy the dip and sell the tops. Easier said than done though, since few can predict the dip or the top, and inexperience in the market can lead some to panic sell at a loss, instead of cultivating “strong hands” and keeping the faith in the technology and its potential to change the world for the better. This tendency to sell at the wrong time is based on the first principle of analysis, namely sentiment. When sentiment is down, people get fearful and sell as they see price fall, which is understandable human nature, though it shows how easily we are swayed by emotions stoked by FUD (fear, uncertainty and doubt), all of which should be avoided by the discerning investor or trader.

Current sentiment – if we go by stats regarding Bitcoin-related Twitter posts – is at something of a major low point. Twitter mentions of Bitcoin are down significantly, as are Google searches, and people overall thus seem to have gone relatively quiet, which initially is a bearish indicator, for what it’s worth. So sentiment appears bearish, and sentiment – despite being the most irrational and illogical or all indicators – has a tendency to lead the herd, who invariably are usually wrong. Nothing to be done about human psychology except learn to think like a “contrarian” or at least outside the herd, or to become better informed.

Now when it comes to fundamental analysis of Bitcoin, traders look at things like hash rate (which ironically is at an all time high), mining costs, financial regulation, etc. And this is where the halving comes in. The Bitcoin “halving” is part of the architecture of the Bitcoin design, given to us in the original code by Satoshi Nakamoto. Built into the design of Bitcoin are required halvings of the reward paid to miners every few hundred thousand blocks mined, which turns out to be every four years or so. The current block reward is about to be cut from 12.5 BTC to 6.25 BTC for miners, every ten minutes. In this way it takes longer for Bitcoin to be mined as the difficulty increases, and the price rises. This is the perfect math behind the design of Bitcoin that makes it deflationary, and that makes it work as a store of value more valuable and scarcer than gold itself.

This overlaps with the third aspect of price prediction, namely technical analysis because it is by looking at historical market data that the technical analysts make their predictions about potential future trends, or patterns repeating themselves in the beautiful Fibonacci (Golden Ratio) fractal that some say is seen in the Bitcoin price cycles. And indeed, there are distinct patterns to be observed in the way Bitcoin price cycles play out, based on its mathematical design. However, when FA and TA concur, this is all fine, but sometimes they show a divergence, so past price action does not imply exact fractal-like repetition. Today’s fundamentals may be different, and therefore price action will also be different this time around.

The upcoming halving of May 2020 will be the third for Bitcoin, the previous two being in 2012 and 2016, and although there were similarities in each past halving and the price action around it, there were also differences. Besides that, only two prior halvings is not really enough historic data to base a prediction on for the next big event. And the current imminent recession in the global economic picture is also unique compared to the previous occurrences. Having said that, there are some overall patterns that we can expect with the upcoming halving. After all, the fundamentals are much the same in regard to the actual design of the Bitcoin code itself. So let’s look into what we can expect for certain and what may be uncharted territory, because both sets of data exist. And experts will disagree on how to interpret the data too.

For example experts like famous Bitcoin bull Willy Woo, in his recent Twitter post this week says:

NEVER gone into a halvening in BEARISH price action, miners already capitulating adding sell volume. Historically we front run with a BULLISH setup, miner capitulating only after halvening when revenues are slashed. This is a unique setup. Quite bearish leading up to the event.” https://twitter.com/woonomic/status/1196473964014424064

The analysis says that the Bitcoin halving is a major catalyst that always leads to the beginning of the next major bull market cycle. Both halvings showed a rally of 12-13 000% in price each time, although there were differences in the exact timing:

Halving1: 513 days to rally 13 304% from pre-H bottom of $2.01 to post-H top of $270.

Halving2: 1068 days to rally 12 168% from pre-H bottom of $164.01 to post-H top of $20k.

As you can see, there were similarities but also differences. And this time will also be the same…but different. Already Bitcoin has rallied around 380% since the bottom of $3100 in early 2019, which was 544 days before the next halving. A natural retrace in price occurs before the halving of around 50%. That’s where we are now in the cycle. We had an unusually fast pump since the bottom around $3100 earlier this year, and thus the strong retracement from $14 000 back down to $7500 at one point, almost 50%. But although the general pattern is repeating itself at each halving, they all have unique variations, so that’s why this time will be similar but different and we can’t generalize too much in our analysis.

Theoretically though, we may now trade sideways – with volatile swings – until the halving in May 2020, six months away. We may still even fall down to earlier support at around $6 000, which is the break-even price for some miners (outside China), so don’t be surprised by that. Fundamentally miners indirectly control price. At certain prices it becomes unprofitable for small miners and they close down their rigs, or sell their vast hordes of Bitcoin to pay for expenses or lock in at least some small profit. This can end up pushing the price still lower, so watch out for this shakeout. Historically we don’t see new ATH (beyond $20 000) until several months after the halving. But statistically we can optimistically expect BTC price to gain another 12 000% from the bottom of $3 100. This would take the price to around $385 000, as mindblowing as it sounds. Yet this is exactly what happened after both previous halvings.

Time wise we’re looking at the next ATH to be around 500 days after the halving, which is Q4 of 2021, so just “hodl” guys. The logic is in the math. It’s built in to the code. Other than some fallout from the global recession, or some manipulation by the new influx of “traditional financial tools” like futures, margin trading, even Bakkt, etc, or some regulatory clampdown by the SEC (securities exchange commission), we can look forward to a post-halving price pump until late 2021, at which point we sell the top as it lands on the moon. I hope you have your ticket because I would love to see you there.

For more details on the stats of the halvings, check out this very insightful post.

Yesterday’s 8% flash crash in Bitcoin price dwarfed by today’s 40% historic flash pump

Just when bitcoin was getting boring with all its sideways movement and gradual bearish slump in price action, we suddenly – out of the blue – get a moment yesterday of sudden losses followed just a few hours ago by today’s equally sudden explosion to the upside. Overall in the past 24 hours bitcoin has made one of the most powerful bullish moves in its 10 year history. This is it guys – moon landing incoming!

Some jokingly call the chart pattern formed the “Bart” pattern, where a steep vertical drop down in price is followed by a sideways range-bound or horizontal move for a few hours, only to be met by an equally vertical pump upwards in price. The pattern created looks like the shape of Bart Simpson’s head. This is what we have on our price graphs today, the colloquial “Bart” pattern, except for the fact that the latest pump to the upside has way surpassed the former price range that leaves Bart with a long fringe of hair on the one side. This pump is something way beyond Bart.

Beside that odd image, we have what seems to be something truly volatile happening in Bitcoin price action at present. Much of the recent bearish retracement in price in what was presumed to be a bull market, has been negated by today’s massive price pump from $7400 to $8800 at one point, or a rise of over 18%. And here I was thinking that we had lost the bull run for a while. Actually we did, but it may be back. And then six hours later we have another 20% pump, taking bitcoin price all the way up to $10400, though it has since settled back to $9500 or thereabouts.

Ever the cautious conservative lately in bitcoin technical analysis, I will refrain from attempting to call it like it is because sometimes it isn’t what you think it is. Yesterday it was a major bearish sentiment sweeping the cryptoverse and within 24 hours we are back in a bullish mood, backed by the massive green volume candles seen in the last 12 hours during the pump today.

A price spike like this of over $1300 in one day and then another $1800 within two hours is very rare, even for bitcoin, and it suggests that the previous dump was an anomaly and this is the real sentiment waiting behind the scenes – one of eager investors aiming to go long or buy up any and every dip in bitcoin price. This first boost back up to $8800 retraced slightly to the $8500 region and then six hours later pushed up to a massive $10400 for a few minutes.

We now find ourselves and the bitcoin price right up beyond longterm descending wedge pattern in play since the recent peak around $14000 in July. This descending wedge is narrowing or tightening by the week and price is now near the top of it. Since price broke up out of this descending wedge pattern, we have seen some further explosive “uptrend” and much more bullish momentum. After all, price range has been tightening like a coiled up spring for the past weeks and now we are seeing signs of the explosion or breakout that usually follows such a descending wedge pattern with its shrinking price fluctuation.

I, like the majority or herd, was looking for still further downward price movement in what looked like a bearish capitulation, and I was waiting before buying in at lower prices. But as usual the herd is generally wrong and when the majority say one thing, the opposite usually happens. What a maverick bitcoin is.

Experts will tell you though that bitcoin will do this predictably whenever CME Futures trading expires, and today was just such a day, but then who of us remembers these dates and details. Well, the astute and insightful bitcoin fanatics do. The signs were there for those who can read them. Bullish divergences were forming in the daily RSI, which was ticking up while price was sliding down, and RSI usually calls it correctly, regardless of price in these cases.

Interestingly price had initially been stopped just short of the crucial 200 day Moving Average, which is a critical point to determine whether we are in the bull or bear phase. At first I wanted to see if if it can indeed break up through the descending wedge as well as the 200 daily EMA, and it didn’t disappoint. The boom time is upon bitcoin bulls today. The first half of this year saw price above this indicator, suggesting a bull market, which I thought would take us all the way to the new ATH beyond $20000. But when we dropped below the 200 D EMA in late September about a month ago, it looked bad because that is a clear sign of the bull run ending and the bear market returning, even if for only a brief while.

Well that “while” has lasted a month, and has just ended – since price continued its spike and pushed above $8900. Stopping just $100 short and retracing was not enough. Close but no cigar, so I didn’t get too excited initially. We needed to actually see a literal crossing of the line first to confirm our hopes. And cross the line we did – in massive style, making a 40% pump within 24 hours. If that is not a parabolic bull market then I don’t know what is. Actual price levels may vary depending on which charts you examine. I’m looking at the BTC/USDT Binance chart, though others may differ fractionally in price levels. Generally the picture is the same though.

Bitcoin price chart from TradingView showing 40% price pump in 24 hours

Looking at CoinMarketCap we can see that most of the altcoins were also pulled up in unison with bitcoin as usual. This will make everyone very happy, as they see their favorite investments and projects all get a much needed boost. The altcoin market is in a desperate situation as far as price or value is concerned, not that price is a real indicator of value in a cryptocurrency project. Price is often clouded by sentiment, and we should rather look at fundamentals to see the real value of a project, along with actual usable tech or product that solves one or other problem in the finance or larger world.

Most of the altcoins also claimed a 10% gain or thereabouts. Ironically all the stable coins were the only ones to show an actual decline for a moment, and were actually priced at $0.98 during the peak of the first pump, which is a 2% drop, present in USDT, USDC, Paxos, TUSD and even Dai. They have all since stabilized back at their peg to the dollar, but it certainly looked odd for a while as they were the only ones in red while all the rest pumped into the double digits mostly. For a change bitcoin led the charge, and the altcoins tried to keep up as best they could.

I must put in a jibe here at Steem if I may because, despite all the bullish upsurge in most coins – up to 10-20%, Steem only managed a mere 4% at first, and then despite a 20% pump compared to bitcoin’s 40%, has settled at a mere total of 8% climb in price compared to bitcoin’s 28% so far since the retracement, which leaves me wondering if there is any hope for the once great innovative crypto-based social media sight. Others are now overtaking it in numerous ways as its heyday seems to have evaporated like a puff of steam actually. There are others on a much better “uptrend” compared to the sinking steemship. Something about the design and model of steem is just a bit suspect to me. And I’m not alone in seeing this.

Of course in BTC value none except for a few anomalous outliers gained in value as they mostly were unable to keep up with bitcoin’s parabolic upsurge in price today. But let’s remember in conclusion that bitcoin is not making these moves by itself. Today’s pump coincided with a significant event in the investor calendar, namely the expiration of the CME futures trading, and this seems to occur repeatedly, so correlation does indeed imply causation in this particular case. In other words the bitcoin landscape is not what it was and is changing constantly with the arrival of newer investment tools from the mainstream financial world.

And this, in my opinion, in a bad thing for crypto. These “financial tools” or services are actually somewhat morally questionable. And some of them – like futures trading, margin trading, leverage trading – sometimes don’t actually deal in physical bitcoin (there’s an oxymoron for you). Not that bitcoin is physical as it’s digital and beyond physical but you get the idea. No actual bitcoin is traded when dealing in some of these tools. Only price is speculated upon, with profit made if you guess the correct market direction and price. You don’t buy or sell any of the 18 million bitcoin available.

And as a result, these tools or services for speculators or traders actually inflate the hypothetical amount of bitcoin that can be speculated upon or the amount of trading that can go on way beyond the 18 million bitcoin for sale currently (besides those lost of course, or in Satoshi’s wallet). And if you do trade in bitcoin with these tools, the leverage of 100x hugely and artificially inflates the amount of so-called bitcoin used in these trades to way beyond 18 million currently in circulation. It makes it appear as if there are more bitcoin and thus messes with the real scarcity.

These leverage trades on Bitmex and other exchanges are so huge and inflated by 10-100x margin, that they end up swaying the overall price for all of us, when they get liquidated for example. The industry is complex and expert investors can explain it with more detail, but overall there is cause for concern regarding all these fringe or sideline products and channels for trading around bitcoin or about bitcoin price without actually buying or selling actual bitcoin. It skews the trading table for all of us and manipulates the price. That’s how whales control the market if they want to. These financial tools are questionable, though speculators and gamblers are addicted to them, so they will probably always be there. Maybe I’m not experienced enough in the industry to appreciate them, so do your own research and find out how deep the rabbit hole goes.

Bitcoin flash crash 5% in 5 mins – is there more to come?

Yesterday’s bitcoin flash crash from around $8000 to $7300 was sudden and appeared to occur over the space of an hour, but if you look at the smaller time frames you can see that the bulk of the drop – a full 5.15% occurred within a space of 5 minutes.

The drop has been received as a cause for concern by some but it’s part of the cycle that carries all existence. The beauty of the bitcoin price is seen in its Fibonacci patterns of price action. In fact all existence operates under the Fibonacci pattern. It’s in nature, art, music, math and all else. It’s the music of the spheres…and of the price action in the bitcoin charts.

At present the drop to this point means that we have broken the month long support around $7700 and are likely to fall in price to the next support level. Some look to past levels of prolonged trading activity as levels of support, like around $6000 -6500 where we saw massive price stagnation for many weeks in late 2018. So this current drop could be the fall of price to the next support around mid $6000, and I wouldn’t be surprised if it plays out like that over time.

This bearish forecast is supported by the fact that we are currently sitting below the 200 day EMA moving average and have been in a downtrend since 26 June, when price peaked around $14000. So we are approaching a 50% drop since then, which sounds huge because it is. That is, however, normal for bitcoin though, and I wouldn’t be surprised if we go lower. All of this on the way to the moon in the long term of course.

After watching charts for two years now, I’m still only a beginner, learning daily with study and experience of chart observation. So don’t take my opinions as advice in any way. This is merely my personal subjective view based on TA. There is also a bullish case that bitcoin price rebounds here around $7200, which is the bottom of the current three month-long descending wedge, since the peak at $14000.

The fact that the first half of this year brought us such a massive parabolic bull run, would suggest that in response, a massive retracement back to the earlier lows of the year might be a natural part of bitcoin’s cycle. One more drop to the lower support before the next bull run. I’m considering buying in now but not all at once. I prefer to DCA or dollar cost average, and buy a little now at this dip but wait for a possible lower dip to buy in still more then.

As you can imagine, the bitcoin price drop took most of the altcoins down along with it. Some by as much as 10% drop in a flash. The correlation between all the other cryptocurrencies and bitcoin itself is at a high point lately. With all the altcoins, including Ether, taking still more of a knock, it looks like alt season is a thing of the past. Some alts may return, but not to their former glory and not as many of them.

One cryptocurrency that is making huge leaps forward are the stable coins. In fact it looks like USDTether is dominating the markets. If you think about it for a moment, these stable coins are basically digital dollars, or crypto dollars. In other words the dollar has already gone digital and crypto, even if not used by the government yet. Although in certain states in America you can pay your municipal bills in crypto.

So these stable coins are a blessing and a curse because they are also taking a lot of focus and capital away from bitcoin, suppressing the price. The printing of such huge masses of Tether could be seen as a cause for concern. People flock to them as a safe haven when bitcoin and the alts drop at times like today. And the alts drop because traders sell them fast back into bitcoin to prevent further losses. So the race is on between Tether and bitcoin as to who gets the market cap. Tether could turn out to be the poison chalice to crypto because now traders are not keeping bitcoin but selling it for Tether to capture profits.

It’s completely understandable that Tether would become so popular as a tool and a store of value. It is apparently backed one to one by dollars but forensics has concluded that it is only 75% backed by dollars, so Tether is an artificially inflated cryptocurrency that is acquiring the bad qualities of the fiat dollar, in that it is just printed, imaginary or imitation money with less to back it that we are led to believe. The fiat dollar has nothing but military might to back it and Tether is backed by only three quarters in dollars. Thus a quarter of Tether is fake. And these are old figures from a year or more ago stored in my memory from articles I read.

Curiously Facebook CEO MZ is before the US senate hearing today defending the Libra coin as backed one to one by a “basket of currencies” and other highly liquid asses, whatever that means. Libra is not getting much support though, understandably. It’s a race by corporations and countries to see who can get their digital currency out first. China could beat America in that regard. In China there is already an equivalent of Facebook’s Libra coin, and it runs on Wechat and Alipay, their equivalent of WhatsApp and PayPal to a degree. Those two corporations are of course largely government-controlled, so the one-party dictatorship state has the reigns there. Nobody wants a private company handling all our financial and other data, when they have been known to use our data for profit and possibly monitoring.

So my personal conclusion is that the bitcoin industry – as far as trading and making money is concerned – is manipulated by whales and other questionable actors, and yet has a life of its own and has never disappointed when it comes to new ATHs after each “halving”. With an overall fall of close to 8% already today in this flash crash, the downtrend in bitcoin price may not be over. We will hear rumors of what caused the sudden crash because 5% in 5 minutes is a bit suspect. Something happened to the network there. We have stabilized for now so buy the dip, as they say, or short this trend if you’re day trading. Up or down – there is always money to be made in bitcoin’s price volatility – if you have the knack.

Virtual reality gaming on the Ethereum blockchain with ERC721 tokens

Have you heard of Ethereum’s ERC721 tokens? The are also known as NFT – non fungible tokens, which means that they are one of a kind items, each one is unique and original. This is yet another new and innovative use of the Ethereum blockchain and platform, which might appeal to collectors, gamers and crypto investors who like to diversify their portfolio.

Fungible means that you can swap one for another, like a fiat currency, or even Bitcoin. One Bitcoin is the same as any other Bitcoin in value. So you can buy any Bitcoin and it will be the same as any other, regardless of where it has been, who owned it, who mined it or anything else. However, non-fungible means that each item is unique and original.

So the NFT ERC721 tokens on the Ethereum platform are original and one of a kind. Each one is the only one like it and it keeps its unique qualities throughout. The most popular such token is the CryptoKitties, where each “Kitty” or item is unique and will always remain as it is. Other such tokens now emerging are – for example – Flowers. An ideal place to see these interesting variety of non-fungible crypto tokens on the blockchain is at opensea.io. A brief glance showed over 170 various different types of non-fungilbe or collectible tokens available. They would appeal to gamers and many of the tokens are items a gamer can use in various games. Some are characters, some are objects your character might use and some tokens are plots of land.

Virtual reality platforms like Decentraland, which has its own cryptocurrency called MANA, trade plots of land available in the game. It is a VR platform (virtual reality) powered by the Ethereum blockchain. Another new one is Sonmium Space. These two are both VR game spaces where one can buy plots of land. And it’s not just about gaming, since the items bought can be invested in and later traded for a profit on the open blockchain market. Somnium has just over 5000 virtual spaces for sale while Decentraland has hundreds of thousands of items on sale. So now you can buy your land – albeit virtual!

The very first ERC721 – CryptoKitties – caused a stir when it first emerged because it slowed down the transaction speed on the Ethereum blockchain considerably. Enough to disgruntle traditional crypto traders. It seems they are challenging the transaction capacity and as a result the scaling requirements and challenges are being brought to the fore. Sharding and Casper are new implementations on the Ethereum blockchain which are hoped will speed transactions up. We need thousands of TPS (transactions per second) to really be a viable ecosystem, and to make the industry attractive to investors and also daily users – those who actually want to buy and sell using their ETH or other cryptocurrency as a means of exchange, not just a store of value.

A friend gave me some gifts this week of a CrytpoKitty and a Flower, so I’m amped to find out more about the mass of ERC721 tokens now available. Regular Ethereum is ERC20 and this is something similar but different. There are practically hundreds of thousands of individual such ERC721 tokens now available it seems. Their value ranges from 0.001 to 1 ETH or more, depending on their qualities, age, etc. The amazing thing about the actual CryptoKitties and the Flower, is that they can be bred with others and you can actually grow your collection by mating them together like a farmer.

What an amazing way to literally make new tokens. In this way they become an investment and there is money to be made breeding and then increasing your collection and thus your crypto holdings. Gaming has come a long way and this is the next level of a hybrid of activities available on the Ethereum blockchain. Somnium is actually auctioning their 5000 plots this week. There are three days left to make your bid to get a plot for yourself. Average price is 0.75 ETH and there are seaside as well as hilltop plots available on the virtual map. This brings gaming together with investing and trading, where real money is now involved with the chance of real profit, even though it’s in the gaming environment.

We have come a long way in crypto, thanks to Ethereum and this is still just the beginning. I think ETH will do really well still in future as a result. There are few platforms or blockchains like it today, with all the service it provides. In fact some experts I have come across are saying that it was the Ethereum platform that really spurred on the last bull run in late 2017, sending Bitcoin to its ATH of around $20 000. And the coming next level, called “DeFi” and further developments on the Ethereum blockchain are exactly the thing that is going to spur on the next imminent bull run and new ATH beyond $20 000 for Bitcoin. Hopefully it will also push ETH to new ATH too.

So check out the websites mentioned and find out more about the virtual reality available to us, where crypto is the currency and having fun while making money is the name of the online game.