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I've been in since May 2017, lessons learned, and some real talk.

I've only been in the crypto game since mid 2017. I remember back then when I was assessing the market, BTC was below $1k a few months earlier, LTC was around $4 that January and by the time I finally got in BTC had more than doubled to around $2,500 and LTC was $30. I thought ETH and XRP (and everything else) were just shitcoins because I didn't know shit and I just listened to the herd (Back then the argument was "Bitcoin is digital gold and LTC is digital silver and everything else is a scam.") Now, I'm pretty invested in several coins, because this market is anything but rational.
Screw off if you think otherwise. Try to think logically in this market, and you're going to get smacked in the face.
After exchanging my first fiat for crypto, in the next couple of months the market "crashed" and I was fearful. By crashed, I mean BTC went from $2,800 to $1,800. I just decided to let my cryptos ride. I pretended that money was gone, but I'd check prices every day for whatever damn reason.
I wasn't even putting that much in. Hell, I would spend more eating out and going to the bars every weekend with friends or work colleagues than I was dropping into BTC. It was pretty common that I'd drop $100 a night on sushi, beers, and Sake Bombs. But, when money you could get back loses value, it makes you feel dumb for putting money in. Logic is out the window when I can't get that $100 back from my sushi and drink purchases, but my crypto dropped 30% that week, so I was dumb for investing in crypto but not for my $500+ per month on eating out and drinking with friends.
Several weeks later, I was back to even on my crypto investments. Well shit, that was fast. Then I was suddenly up 25%. "Fuck it, I'm just putting money in. I'm not missing out."
By the the winter of 2017, I was up over 10x with my crypto speculation. My initial LTC went from $30 to over $350; my BTC went from $2,500 to $20,000. I also just threw $300-$1,000 here and there on random sub-200 market cap coins only to see them 6x in a few weeks.
I remember thinking how stupid I was for not buying during that dip down to $1,800, but how good of an investor I was because my gains. What a fucking dope I was.
I was sitting there looking at my account on December 10th, 2017. I was about to sell because I could have paid off my car and 50% of my student loans. I wasn't even using my car because I was in another country traveling.
"Nah, I can't sell. This is just the beginning; let's wait until I can pay off all my student loans" my delusional self said.
I never cashed out. I remember sitting there with a dude who had his GDAX account open after BTC "crashed" from $20k to $13k two weeks later. We just got back from surfing.
He was still sitting at $250,000 in his account and was nervous as shit. "What should I do?" he asked rhetorically. Then immediately answered himself, "It will rebound," he said, "it always does." This guy had been through the MTGOX hack and gave me plenty of advice while we surfed.
And I listened as if he was prophetic.
What a fucking dope I was.
When hopium is in the air, we all get irrational.
I still wonder about that guy and his cryptos. He went north back home for the Christmas holiday, while I headed south for more traveling, and I've never seen him again.
February 2018 was both euphoric and scary as shit. "Holy shit! BTC is under $10k I never thought it would be down here again. But it could keep dropping. But it was just $20k a month ago."
I was skeptical that it wouldn't keep dropping so I waited. Then, I didn't want to miss out. BTC was making a run from $6,500 up to testing $10k. "If it breaks $10k, I'm getting back in."
A short time later, it did break $10k, only to be hit a wall at $12k, then again...then, the inevitable crash to $6,200 happened where it fluctuated in August - November of 2018 up until, what, November 10th-ish when BCH shitfork shat out and then BTC-Shit-Vision and BTC-LMNOP started paying miners to mine their forked fork of BTC and everyone shat themselves as the market tanked yet again.
That was it for me. That was the day I stopped caring. I remember thinking how stupid I was to invest so much time in this.
You can't predict this shit.
I didn't regret investing in crypto, I regret all the time spent looking at my portfolio, trying to time the market, pretending I was some guru in my head because I threw $300 at POE when it was less than a penny and weeks later it was selling for $0.21 and could buy another trip to whatever country I wanted.
Sure, you can use TA to see what support or resistance is there, but it's still a 50-50 chance whether Fake Satoshi is going to spoof trade or some rando is going to drop three 7,000 BTC market buys to break through resistance.
So, what did I learn through this whole experience?
Other than what I've already stated (You have no way to predict whether it's breaking through resistance or crashing through support).
I just remember the main thing that has persisted this last two years. "I wish I could go back in time to when BTC was around $3,000 and LTC was $30."
When BTC dropped below, $4k that was heaven. I never thought it would get back to when I was buying when I first got into the market in 2017.
So, I bought, and I bought hard.
This time around, I have strong buy strategies and sell strategies.
They are set; no question.
For me, I'm not selling until two weeks before the LTC halving in August.
Even then, I'm only selling my LTC for BTC. Then I'll sell 25% of my BTC for fiat 2 weeks before the BTC halving in 2020.
I will never have less than my preferred number of BTC's, ETH's, LTC's and a few others.
Don't follow my advice here, I'm just saying I know what I want and what my strategy is.
You need to have a strategy to buy and strategy to sell. Be reasonable. I previously had a "strategy." It was once I could pay off my student loans with all of my crypto gains minus taxes, I would sell. Yeah, well, looking back if I would have just sold when could pay off my car and 50% of my student loans, I would have been able to invest even more when BTC was down in $3,xxx range and LTC was $22-$35, etc from December 2018 through March 2019.
DCAing is the way to go. No question. You don't need to do TA, you don't need to check your portfolio, you don't need to do shit but either 1) setup an automatic buy order with your exchange or 2) login and buy whatever you want.
You have your buy strategy (DCA at x interval) and you have your sell strategy.
Figure it out. Don't pretend you're gonna time the market. Don't pretend you're some guru.
Those people, like me, learn the hard way.
No TA, no waiting for google searches of BTC to increase, no waiting for BAKKT, no waiting for Faktoshi to shut the fuck up.
Before November 2018, I would only throw money when BTC was on a run. "Oh, we're finally on the way up. It's time to buy!" Like when it went from $2,800 up to $6,200 in the summer 2017, then from $10k to $20k in late 2017. Or when it went from $6,200 back up to $10,000 then to $11,900 in February of 2018.
I would think I could time the market. What a pathetic loser, right?
Some people grow up in this market like the cable version of themselves only to transition to the directv version. Listen to us dopes that have been there and done that.
Learn from our mistakes, but also don't think that we have all the damn answers.
Anyone that comes in here acting like the 2nd coming of Craig Wright's dumpster twin, you can be rest assured they are as delusional as Justin Sun. The problem is, even if they are delusional, this market is anything but rational, so they might just be proven right enough for you to think you should follow their advice.
This shit is crazy. Stop acting like you've got it figured out.
Nobody does, but it feels good to have confidence in this random speculation, right?
I'm here to tell you this. My life has drastically improved since November 2018 when I started viewing Crypto investments like a bill. Every two weeks, I would send money from my paycheck to my exchange. Then, I'd buy a certain amount every single week after it had cleared.
That money, is all but "gone." It was a "bill" I paid.
When the market is going down, I send more fiat and I buy more crypto. When it is rising, I still buy, but not as much; I pull back. You may say I'm trying to catch a falling knife. I just learned that the way I was investing before was bad practice. I'd rather people think I'm trying to catch a falling knife than to feel that FOMO and only buy when the market is up.
Right now for example, I'm not buying this week. Not because I think I know what hell is going to happen, but because it's my strategy to not chase a run, and to spend more when it drops.
I'll wait until next weekend and see what the market is doing.
What happens in between now and next weekend, I don't give a shit.
Could I miss out on another run? Sure, but I don't give a shit. Maybe it's because I'm 2 years in and I've seen this shit before, or maybe it's because I've been buying BTC when it was around $3,000 both in 2017 and just about a month ago, so I feel fortunate to have gotten another chance at BTC at $3,xxx.
I also learned my lesson that fakeouts happen. I've been burned enough to not give a shit about being BTC going from $3500 to $5,200 in the last, what, 5 weeks?
Been here, done it, don't give a shit.
I don't know if this helps anyone, but seeing the last two years of this shit, I don't care about some random 30% pump. I also don't care that BCH is up 86%, or ADA is up whatever it is. I'm not into them, but if you made gains, I'm happy for you.
I'm serious too.
Maybe you're new to this game, or maybe you've only been in since $20k. If so, you're still here, and there are plenty others like you. I'm not a BTC maximalist, I don't think LTC is the truth, I don't think only ETH is the dApp platform.
I don't know shit. I'm just some speculator that is speculating on some of this sit.
There are also plenty of people that were like me in 2017 that are waiting in the wings, only to buy when the market is on the rise. There are plenty more that buy when it's rising then set stop losses that whales will fish for only to wreck the market in a day then to see a bounce back even stronger while those people FOMO back in.
Also, the turd version of satoshi could start shitting in public this week and the media could write about how Satoshi is literally shitting on a physical Bitcoin as we speak and some shitcoin creator then posts a Twitter video that goes viral about how the hashrate and energy consumption of the satoshi shit-pile is not sustainable and then some whale market sells down to below the new TA shit-support level of $4,400 and then all the dopes with stop losses in that range get shit fucked only to see a spoof limit order set at $4,400 of 10,000 BTC and everyone's dick shrinks into their stomach as they hurry to Tether as BTC drops back down to $3,500 before whale #2 shit fucks your emotions with a $1,500 green dildo in a 15 minute span sees the "sell wall" disappear which starts the next FOMO run on up to $6,200 a few weeks later while TAers say "We broke out on great volume" then other TAers agree and the self-fulling prophecy starts another run only to get hit with more whale fuckers.
You can't predict this shit. Give it up.
Market goes up, market goes down, can't explain that.
With the LTC halving in August, the BTC halving in May 2020, I think we are about to get into the 2017 euphoria again though. We are getting closeTM to the point you could just thrown money at any coin and get 10x your investment.
What does "close" mean? I have no idea. Eff anyone that thinks they know. Someone could predict it is this week, next month, or after this current fakeout bull run, or in December, or next Spring, and someone will be right.
The only advice I have is to do your best to not get emotional about your money or crypto. It's going to do the exact opposite of what you think it will. Even when you try to do the opposite, crypto will shit-fuck you in your sleep.
If you believe that the sentiment is changing, and let's be real, we are in speculation phase and this is all based on hopium and belief, then DCA at certain intervals.
This isn't some cult. It's all based on sentiment. If you think people are starting to get interested, then that is a sign speculation is about to be in our favor.
If you are putting money in that needs to be rent money, do yourself a favor and just walk into a casino and put it all on red. If you win, then put your winnings in crypto. If you lose, I saved you the anguish of checking your portfolio every hour only wish you would have done the opposite of what you did.
You're welcome...
Or, do the opposite. Check the market every hour for the next 12 months only to look back and realize that you kept buying on the way up, got scared and sold on the way down, and then FUD yourself in your sleep because of your stop loss sells were triggered while whales were fishing for fear.
So, there are all of my shit thoughts. What are yours?
What are your strategies?
There are plenty of people that have been in longer than me, what are your strategies?
Are we heading for a the next bull run? Is the bottom in? Do we still have a massive, short-lived capitulation event coming?
Let's chat.
TL;DR: You can't predict this shit, just DCA, live your life, get a buy strategy, choose a sell point, make this shit as simple as possible. If you try to complicate things by predicting the next run, the next drop, the next consolidation, then you're probably going to be wrong like 99% of people. And don't be that guy that ends up $250,000 in your account in the next bull run only to see it drop down $67,000 literally a week later.
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2020 Crypto Predictions And Trends

2020 Crypto Predictions And Trends

2019 Brought Double Market Cap Figures And Stronger Adoption Of Cryptocurrencies In General
2019 has been a rollercoaster year for the entire crypto sector, with many price swings and trends changing from bearish to bullish, and vice versa.
However, 2019 was a fruitful year, as the crypto industry escaped from the bearish winter of 2018 and the consequences of the ICO boom in 2017. The sector doubled its market capitalization from January 2019, showing signs of maturing and institutional interest in the new technology.
2019 was also a year, which ran under the flag of regulatory crackdowns. Legislators from all around the world had to provide some crypto regulations, due to Facebook's Libra project launch preparations. Indeed, Facebook's Libra project sparked framework updates, which further cemented the place of cryptocurrencies and blockchain technologies in the modern-day economy.
Crypto experts made their 2020 predictions for the crypto sector. One of them states Bitcoin would reach $100,000. George McDonaugh, managing director of blockchain investment firm KR1, stated his confidence about the world's biggest cryptocurrency would increase its value tremendously.
"With the rate of adoption and new Bitcoin addresses registrations, it's imminent Bitcoin would get the push needed to be a crypto hegemon, McDonaugh added.
The other viral prediction for 2020 is the crypto sector would branch from the tech-oriented space into more traditional financial and economic areas. In the core of the forecast is the widespread adoption of blockchain technology in 2019, with a tendency for a further transition of businesses to the new model.
Wayne Chen, chief executive of Interlapse Technologies Corp, commented that the health sector would primarily benefit from the use of blockchain technology. Deloitte confirmed Chen's prediction, clarifying that the health industry would receive “enhanced security, ease of interoperability, and transparency of healthcare data”. The new model allows hospitals to exchange medical records fast and secure.
Other sectors like mining, natural resources trading, and precious metals also showed increasing interest in blockchain technology in 2019. The automotive industry would be one of the most beneficial traditional sectors, as there is a vast amount of data that has to be transmitted between parties.
2019 also marked the birth of decentralized finance (defi). Defi stands for a decentralized system for connecting borrowers and lenders without the need for middlemen, such as banks or brokers. Defi also defines new ways of granting investors with passive income via “staking”. Staking tokens for validating transactions is also at the core of the much-awaited Ethereum 2.0 update.
Defi comes even stronger in 2020 amid Facebook preparing to launch its Libra stablecoin project. Libra would be pegged to a basket of traditional currencies, as well as bonds. Libra's launch would also force the regulators to accept crypto ETF's, which would make the crypto sector more open to mainstream investments.
Wayne Chen expects a clear regulatory framework in Canada, as well as widespread recognition for the crypto sector in the institutional area. More and more governments and banks would acknowledge cryptocurrencies as a valid payment method. The other key trend to look for in 2020 is anticipated to encompass privacy, identity management and communications.
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Story about how I went from having no job, no education and in debt to financially independent in 7 years

In the summer of 2010 I was in my early 20s, took a year off from school and tried working on a business with a friend in the IT field, but the business failed. I was studying Computer Science in college, but was not doing too well. I had my credit cards maxed out at about 20k in debt due to irresponsible spending. I made some money in the past because I worked in the summer in an IT job thanks to a connection, but that opportunity went away. I was living with my parents and wanted ANY job - I was desperate. I tried to get a job at the mall in a clothing store, so I walked around handing out my resume, but failed the interviews. I even interviewed at McDonalds, but they didn't take me. I felt like a loser.

In the fall of 2010 I hit rock bottom and decided to turn things around. I quit smoking and started taking my school seriously, because I realized that it’s my only way out of the mess I was in. I realized that succeeding in business (like Bill Gates) is super hard and started doing pretty well in Computer Science. Later that year I got a job in an electronics store for a few months, at which point I was happy. Later on, I got a part time job in a field related to IT to support myself.

I graduated with debt in 2013 and got an entry level IT job in the city where I grew up, making around 50k a year. I was so happy when I got the offer, but later on I found the job to be boring. My dream was to get into Silicon Valley, so I started learning more about coding and practicing for coding interviews. I was still living with my parents and was slowly paying off my credit cards and student debts.

In early 2014, I interviewed at 2 companies in Silicon Valley and one of them gave me an offer. The salary and stocks offer was much better than I could have dreamed of, including a good signing bonus. That was one of the best days of my life.

I moved and started working. I was saving up most of my money and paying off my debts aggressively. Then, in the winter of 2015, I came across this video on Reddit about Bitcoin. It made an impression on me and I became very curious: what are all those those machines doing? I heard the word Bitcoin before, but had no idea what it was and decided to look into it seriously.

I found a great introduction on Khan Academy (which I already used when I was in school and respected it). I was blown away ... wow that's so clever, I thought. I immediately bought this audiobook, which was recently released at the time and listened to the whole thing in just a few days. I loved the book and learned so much from it: the history of Bitcoin and it discussed things like "why is money valuable at all?".

I was also randomly browsing Wikipedia around this time and came across this page from 2015. I briefly researched the top projects on that page, but what got me interested was item #2: Ethereum. I started researching it on youtube. I found these videos https://youtu.be/l9dpjN3Mwps and https://youtu.be/fbEtivJIfIU and they made SO MUCH sense to me. I also read the white paper like 5 times becoming more and more impressed every time I read it.

I became depressed when I realized that I missed the crowdsale in 2014 and there was no way to invest at that point. I thought that my chance to acquire ETH at a good price was gone forever. I was sure that after it is released the price will be much higher than the crowdsale price of 30 cents per ETH. My thinking at the time was that Ethereum is at least 10 times better than Bitcoin in every possible way and if Bitcoin market cap was a few billion, then ETH should at least match that.

When Ethereum was released in the summer, I started buying it. My debts were paid off by this point thanks to a high salary. The initial price was around $3, but was quickly falling. I was praying that the price falls more and more. The price dropped to below a dollar and I put all of my net worth into it because I thought it was an unbelievable bargain. Every extra penny I had I would put into ETH. I ended up investing around 30k. To me it was so obvious that it is much more valuable than $1 and that people were completely out of their minds for selling it for so low. It felt like people are selling gold bars for a dollar. Bitcoin market cap was a few billion, but Ethereum was something like 50 million AND it is better than Bitcoin in every way by at least 10x I kept telling myself. I remember predicting to people that it will go up 1000x in 10 years. I was talking to some friends about it at the time, but none of them bought as far as I know (until much later).

The price jumped to about $10 in the spring of 2016. I didn’t even think about selling. I held through the DAO hack and DDOS attacks, when the price dropped by more than half. I actually felt that these things are good for the system because it’s antifragile.

In early 2017 the price jumped from $10 to around $30 and I was officially a millionaire. Was I thinking about selling at this point? Hell no, it’s still undervalued! It went to 400, then dropped to 180, slashing my net worth in half and I lost like 10 million on the way down. I still felt it was undervalued at this point. It was kind of crazy: eating lunch with my coworkers, then checking the price and realizing I lost like 1 million in the past hour. And then going to meetings, discussing some bugs or features with my teammates at work.

I did not participate in any ICOs because I felt they were not a good value and if some ICO succeeds, it would be good for Ethereum anyways. I think I’m a pretty unusual crypto investor: I don’t hold any Bitcoins, only ETH and no other tokens. I only used BTC in order to buy ETH in 2015, and converted all of them to ETH ASAP. I remember a friend asking “what is so good about Bitcoin? Is there anything I can buy with Bitcoin, that you can’t with dollars”. I jokingly answered ETH.

I didn’t sell a single ETH until the price hit about $500 in the fall of 2017. At every point before $500, I thought that it was still extremely undervalued. I started selling to diversify. I ended up selling on the way up to $1400 and continued selling until it went down to about $600. I cashed out a few million dollars, about 20% of my holdings. I actually didn't feel great selling, because I still felt that the assets are still more valuable than what I’m getting for them.

After paying taxes, I diversified into stocks and bonds. According to my calculations, I can live comfortably for the rest of my life without working or selling a single ETH again. I quit my job in 2018 and traveled around the world for many months.

I think to myself, did I get lucky? Or am I some kind of investment genius and maybe I should go into angel investing? I looked around for some investment opportunities, but nothing comes close to how I felt about ETH in 2015. Back then it felt to me extremely obvious that this thing is extremely undervalued. I never got that feeling about any other investment since, even though I looked, so I never invested in anything else. I still find it surprising that people were willing to sell ETH for under a dollar just a few years ago.
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Consensus Network EP36: Buy, Borrow and Die: Bitcoin Style

Catch the full episode: https://www.consensusnetwork.io/podcastepisodes/2019/10/5/ep36-buy-borrow-and-die-bitcoin-style-1
Buck: Welcome back to the show everyone. Today my guest on Wealth Formula Podcast is Zack Prince. He's Founder and CEO of BlockFi. BlockFi bridges the gap between blockchain and the basic financial products that you're used to including interest-bearing accounts and loans. Zack, welcome to Wealth Formula Podcast. I think you we might have had you on before as a Consensus Network replay but first time on Wealth Formula Podcast specifically, so welcome.
Zac: Yeah, excited to be here, Buck. Thanks for having me. And it's good to chat with you again
Buck: Yeah so remind me how you got into this you know Bitcoin stuff in the first place, I mean you were as I understand you were a traditional finance guy right so where did the blockchain part come in?
Zac: Sure so I was I was working at a company in the FinTech world that provided data and technology solutions to institutional investors that wanted to participate in some of the new online lending platforms, whether they were real estate platforms or consumer lending platforms, and I kind of became the FinTech guy amongst my friend group and people would ask me you know should I invest in these real estate deals on fund rise or buy loans from Lending Club and I started writing a blog to share the information more efficiently with my friends basically and I started expanding a little bit writing about Robo advisory and some other things that were going on in the FinTech space and that's what led me to Bitcoin, and this is back in early 2015. I didn't start BlockFi until 2017 because I started following the market in the background, still working in traditional financial services in FinTech and then in early 2017 it started to feel like mainstream adoption was starting to happen in the crypto ecosystem. I'm started going to some meetups in New York City because at a certain point my wife said Zac, you're talking about crypto all the time and you're talking to me about it and I don't want to talk about it so you should find some other people to talk about this with. And the meetup composition started to change and in 2016 when I started going to these meetups it was the early crypto adopters you know libertarians, computer scientists and then in early 2017 I started to see some venture capitalists, some guys who had just left their job at Wall Street still wearing a suit, some more entrepreneurs and it was a really exciting time in the ecosystem, things like the Enterprise Ethereum Alliance were getting announced which had participation microsoft and a lot of other you know fortune 500 companies and I had started to believe in it. I was drinking the kool-aid a little bit so I decided to find a way to get involved in the space full-time and that's what led me to start BlockFi.
Buck: So I have to imagine that the response you got from the traditional finance people around that time when you started talking about the blockchain space and when you started being more and more involved with that was probably not a very positive response initially or did you did you experience some of that sort of you know rejection initially to what you were doing?
Zac: Yeah absolutely. But you know throughout my career this is now kind of the third emerging technology industry that I've worked in. I was originally an advertising technology starting like you know 15 years ago and I was in FinTech specifically the online lending side of FinTech which in its early days was called peer-to-peer lending and now in crypto. So having to do a lot of education explain it you know why something isn't crazy and it might work and here's why and here's the value proposition and here's what it is, I've gotten very used to that and comfortable with it. But yeah there were a lot of people who are like you know I've heard Bitcoin is only used by drug dealers and money launderers. I've heard that I'm supposed to care about blockchain and not Bitcoin. And you know at BlockFi we’re providing financial products into the market so it's a heavily regulated business so we also had to communicate with regulators. We had to explain to state regulators, federal regulators why what we were doing with Bitcoin and other cryptos than when you're doing these same types of things with assets that they're more familiar with.
Buck: So when you were talking to people back in, I don't know I guess 2016/17 and it's not a long time ago, it's only two years ago, but I have to imagine that the response or the you know the approach that people take to you when you speak to investors is very different. Has it become more mainstream in that regard for you know for big money investors?
Zac: It's absolutely become more mainstream you know the end of 2017 Q3/Q4. Point was going on that parabolic run it started to get covered everywhere, I mean it was on CNBC every day it was in Bloomberg New York Times Wall Street Journal. If you were paying attention to the financial industry and markets you heard about Bitcoin at that time if you hadn't heard about it before. So from a baseline of awareness perspective it got a lot better and then in 2018 you had a number of positive developments for the sector including one that I think is probably the most noteworthy which is that Bitcoin futures were listed on the CME the institutional investor perspective that's massive. You now have a well regulated well known super trustworthy venue where you can get exposure to this asset class, you also had companies like Grayscale bringing products to the market which are accessible to certain types of investors and their low bridge accounts and you started to see some adoption from companies like FinTech companies like Robin Hood and Square making Bitcoin available on their platforms. So the conversation has absolutely changed a lot and it's become less about whether or not this is something that's going to continue to exist whether or not it's something that was just a bubble and is going to die and now it's more about ok how is it going to get used how big could it get what are the interesting applications of it and what could have potentially disrupt in the traditional financial ecosystem.
Buck: So you know we had obviously following this you know pop in 2017, you know I actually like you kind of really got into this early 2017 so timing was pretty good I guess now regards. Good or bad depending how you look at it but I was there before before the parabolic move. And then we have you know then we followed this up with a crypto winter and and you know who knows if we're done with it, I guess we certainly are much better off than we were. You know a unit buddy it's funny Zac I don’t know if you remember this but I was about to, we'll talk about BlockFi specifically in a minute but, I was about to use BlockFi for borrowing because I like this idea of borrowing you know collateralized debt and collateralized debt on assets and buying something else. So I was about to do it and then Bitcoin lost a clip and I was like literally and I remember I was just emailing with somebody somebody over there and I was like sorry dude I guess I just sold it, I just sold all that Bitcoin I had and you sent one email back to me and it said “capitulation” but it you know and so now we're looking back at these we go down from 3,000 back up you know been sort of flirting around this 10,000 and it seems like we're kind of maybe that we're stuck there, maybe we're kind of out of winter, maybe we're in a holding pattern but it seems like to me that since that two years not only is the awareness increase but the development of the ecosystem itself is so much further advanced than it was in 2017. Is this an unusual case where the technology and maybe even the infrastructure is actually outpacing the price?
Zac: You know it's really hard to say. I would argue that in some ways it's typical. In other industries that showed a lot of promise where investors could you know participate maybe a little bit ahead of the adoption curve you saw crazy price run ups with the tech bubble and you know ‘99-2000 being the one that's kind of top of mind in recent memory and then on the other side of things, are we behind where the price should be now? It's really hard to say because this is kind of like a commodity type asset built on a payment network and valuing that is challenging and there's not a perfect model for for doing it today. It's not as easy as something that's cashflow producing but I'm incredibly bullish. I'm on record as saying at the beginning of this year that Bitcoin has only had one year in its 10-year existence where it had a lower low than the year before and parted this year around the low price for 2018 and I predicted that we would in the year had a higher price than where we started the year pretty soon and now we're up and you know around 300 percent from where we started the year. As that happens in investing is people frequently look at things on a year-to-year performance basis and when people are looking at Bitcoin even if all we do is stay around 10 K from here when they're looking at how Bitcoin performed rather than other relative to other assets at the end of 2019 it's probably going to look fantastic. And you also have an event coming up and in the summer of next year called The Halvening where basically the supply that's produced by miners is going to get cut in half and so if you believe in the stock the flow type models of valuation for Bitcoin that is usually a very big driver of price appreciation.
Buck: I believe May of 2020, right?
Zac: That's right.
Buck: In May of 2020. Can you just talked a little bit about that just so people know because people hear about it, I've been talking about it but I don't think that it really explained it.
Zac: Yeah and you know I'm not I'm not a computer scientist so I can explain it in a you know in a very simple…
Buck: No one else here is either.
Zac: So basically the way that new Bitcoin is created is through this process called mining. And it's analogous to mining gold except instead of finding a place in the earth where gold exists and then getting your trucks and mining equipment and digging it out of the ground, the way bitcoin is mined is using this computer program and there is now specialized computer hardware that's built specifically and optimized for mining Bitcoin. And you have this network of machines around the world where the input is energy into the mining hardware and the output is new Bitcoin and those miners are what provides the power for the payment network a Bitcoin to run and when we say that there is this event called The Halvening, what that basically means is that the output that's built into the Bitcoin program that the miners are receiving as their payment for contributing energy to the network, is going to get cut in half. So the miners are going to have the same you know relative input but the amount that they're receiving is going to get cut in half for that input. This should, if the demand side for Bitcoin remains equal, it should drive up the price and historically Bitcoin has had three of these Halvening events in its lifetime so far I believe and around each Halvening you have seen you know six months before or six months after a pretty material run up in price.
Buck: Yeah so it also goes along with that sort of that the entire idea that Bitcoin unlike you know other assets including gold is it's a deflationary asset ultimately and and that's one of the things that makes that happening really significant. Apart from and I have one more question before we get to block five which is apart from the Halvening, you know thing that's happening, what is maybe the biggest development or upcoming thing that's coming up that makes you the most bullish on the future of Bitcoin or blockchain in general?
Zac: Sure so I think I wouldn't actually point to any one specific thing, I would point to two broad trends. So one is institutional adoption and participation in the asset class and the other is better ramps for retail participation into the asset class and just focusing here you know on the US market because it really is an international story but just in the US market. In September we should have Bakkt launching their futures platform. Bakkt is owned by ICE, the Intercontinental Exchange, and there's a big core difference between their futures and the current futures that are available on the CME in that futures on Bakkt platform are going to be physically settled so that means that actual Bitcoin is going to be needed to facilitate the trading on Bakkt’s platform which does not happen on CMEs exchange so that's that should be a very positive catalyst in terms of demand for physical Bitcoin that could have an impact on the price. Also on the institutional side this year I believe earlier this year, the first pension fund made an investment into an asset management vehicle that was focused on investing in Bitcoin and private equity opportunities in the Bitcoin and blockchain sector. So that will be a trend.
Buck: Which pension fund was it?
Zac: It was in North Carolina so I think it was like the North Carolina Firefighters and the group that raised the money from them was Morgan Creek Digital it’s actually invested in BlockFi by Anthony Pompliano Twitter and Mark Yusko so that's on the institutional side. And then on the retail side you've seen FinTech companies like Square and Robin Hood offer Bitcoin trading to their users. But soon you will also have companies like TD Ameritrade E-Trade and others offer Bitcoin to their users sometimes be a partnership sometimes because they've built it directly. You also at some point might see progress made in terms of an ETF getting approved that would give retail investors in the US market exposure to Bitcoin in a really easy and familiar way. All of those things are tremendously positive catalysts and the caliber of people working on them only continues to increase. Talent was attracted into the sector very, very rapidly these days.
Buck: You know one question that leads me to is that all of this is happening with Bitcoin for the most part. Are alt coins in your opinion is that market coming back or is that something that we're gonna see probably select you know group of tokens projects emerge and then the rest will kind of just get left in the dust, what do you think?
Zac: I mean I'll tell you exactly what I'm doing with my portfolio and then I'll provide a bit more color. So my asset allocation in the crypto side of my investing is I'm like 90% Bitcoin 5% Ethereum and 5% B&B; which is the Binance right. So I'm super bullish on Bitcoin. I think that you know there's a chance that Ether makes a comeback specifically I think that a lot of the stable coins that have been launched have been built on Ethereum if you're not familiar with stable coins it's basically the concept of a dollar but on a blockchain which could be really really powerful because it creates the opportunity for the delivery of US dollar denominated financial services at a global scale not using the traditional banking rails. And then B&B; I mean Binance is the biggest and most successful exchange they have a history of innovating, creating new products, going fast and so I'm taking a bit of a flyer with them but I'm 90% Bitcoin. I don't think that I'm not bullish on any of the other all coins frankly I struggle to see you know the big upside I have heard whispers in the community that there's kind of like a new wave of altcoins 3.0 might emerge, you know could see some some good returns similar to what some of the ICOs did in 2017 but it's not an area of focus for me. So that's my view.
Buck: Yeah let's talk about BlockFi. Remind us exactly what BlockFi is.
Zac: Sure so we're a wealth management platform for crypto investors. Today we have two products that we offer. One product is analogous to a savings account from a traditional bank where you're able to earn interest on your holdings except on BlockFi, the assets instead of being dollars are bitcoin and Ether and we don't have FDIC insurance so it's not exactly the same risk profile as a savings account at a bank, but conceptually you're able to hold Bitcoin and an account with BlockFi and earn interest on it paid in Bitcoin every month. That's one product that we have. The second product that we have which you are alluding to earlier offers our clients the ability to borrow dollars secured by the value of their cryptocurrency and it's analogous to a securities backed loan or a liquidity access line in the traditional world except instead of securities we're taking Bitcoin or other digital assets as collateral and lending it rates as low as four point five lending USD that rates as low as four point five percent a year.
Buck: I wanna pick these apart a little bit if you don't mind. In terms of this savings account first of all is it just bitcoin or is it bitcoin, Ethereum?
Zac: We actually support three assets in the interest account currently Bitcoin, Ether and GUSD which is the stable coin from Gemini.
Buck: Got it. And talk about the interest because it's not one flat interest rate right it's different depending on how much cryptocurrency actually is held?
Zac: Correct so there's a tiered interest rate structure. Currently on Bitcoin for balances up to ten Bitcoin, we offer a six point two percent annual yield and for balances above ten Bitcoin it's a 2.2 percent annual yield. On Ether, for balances up to two hundred Ether it's a 3.3 percent annual yield and balances above two hundred Ether is 0.5% annual yield and for GUSD the stable coin it's an eight point six percent interest rate with no tier so yeah those are the different rates.
Buck: Why did, I mean was it just a matter of like an issue with people dumping like a thousand Bitcoin and trying to get six you know 6% of that, was it just too hard to you know make that a long-term part of the business model or why did the higher levels end up changing to a lower rate?
Zac: Sure so I wanted to function of market conditions and to it's a function of supply and demand. So we launched the interest account in March of this year. We were just starting to come out of the bear market and one of the things that happened as we switched from being in a bear market to being in a bull market is the futures switched from being in backwardation to contango which basically means that our institutional borrowers the groups that we lend to that enable us to pay the rate to depositors had less of a need they had less demand to borrow and they were willing to pay lower rates to borrow crypto than they were when we were building and planning to launch this product. The second thing that happened is we were surprised to the upside in terms of the level of interest that we received from depositors and especially depositors with very large sums of cryptocurrency. So to give you an example you know within a day or two of making the product available publicly, we had a number of groups that were depositing 5, 10, 15, 20 million dollars worth of Bitcoin and so the supply-demand that we have to manage is, the amount that we have on deposit relative to the size of this market that will borrow Bitcoin size of the market that will borrow Bitcoin is partially a function of market sentiments partially a function of number of trading venues and the liquidity profile and it's partially a function of you know BlockFi’s efforts in terms of sales and client development relationship management. So the supply side got a little bit ahead of the demand side on deposit and how much there was available to borrow so we made a few tweaks. We want to keep the 6%, 6.2% rate on Bitcoin available to as many people as possible for as long as possible so that's why we went with the tiered structure where we made it available on balances up to 10 and reduced it for balances above that.
Buck: Got it and the interest on that, when you say 6.2 percent that six point like it's all denominated in Bitcoin, you're not paying cash out right?
Zac: Correct so to use round numbers to provide an easy example you start on January first with a hundred Bitcoin in an account, by the subsequent January first you will have 106 point 2 Bitcoin in your account.
Buck: Yeah and that that's kind of neat too because then you're you know you're also getting potentially the upside of that you know I mean they made 6% but if you if you're really bullish on the market you could be potentially looking at a lot more than 6% on your money. How about in terms of the, is there like a you know do you do it sort of a month-to-month or six month or month you know year-long contracts for these things?
Zac: It's month-to-month. So the rates are subject to change on a monthly basis. We provide notifications at least a week in advance before the end of one month on what the rates will be for the subsequent month and people are able to you know withdraw any time without penalty. We reserve up to 7 days to process withdrawals but we've never taken more than one business day to process a withdrawal so they're pretty quick but not instant for security reasons and yeah it's pretty flexible.
Buck: How about the lump in the lending side how does how does that work? So now I've got like 10 Bitcoin and so I would deposit that I guess and you guys I understand that maybe that that goes into like a Gemini account or something, is that still how it works?
Zac: Correct so we have a partnership with Gemini for custody. So when you log into a BlockFi account you'll have a deposit address. When you send Bitcoin to that deposit address it actually goes directly into storage with Gemini. Gemini was the first custodian in the crypto sector to receive insurance against cyber hacks on their platform. They were also the first custodian to get to complete a SOC 2 compliance audit and they have a really long track record of custody billions of dollars worth of crypto without ever having any issues. So it goes directly to Gemini and then you're able to interact with block-wise platform to take any actions that you might deem necessary. So you can view your interest payments you can withdraw you can deposit more you can also take out a loan. So in terms of taking out a loan, if you have ten Bitcoin that's worth roughly a hundred thousand US dollars at this point in time, you can borrow up to fifty percent of that value in a US dollar loan which can be funded be a wire or stable coin and then the structure of those loans is that you make interest-only payments on the amount that you borrowed throughout the duration and you can prepay at any time without penalty.
Buck: And what's the typical you said it was four point six.
Zac: We have interest rates as low as four point five. The interest rates on borrowing USD vary according to your initial loan to value ratio. So if you have a hundred thousand dollars worth of Bitcoin we actually have three loan-to-value ratio options. You can borrow at a 50 percent initial loan-to-value ratio which would mean you're borrowing 50k, the interest rate on that will be eleven point two five, if you borrow thirty five percent of the value so 35k the interest rate is seven point nine, and if you borrow twenty five percent of the value of the interest rate is four point five percent per year.
Buck: Got it. In terms of you know the technical, so you basically pay that on a month-to-month basis and then in terms of contracts, are those also month-to-month loans or how does that work?
Zac: Those are one-year term loans well now it's the ability to renew without repaying the principal at the end of the term at current rates and our rates for those loans have always come down so far. So it's a one-year term loan BlockFi committed for a year at that rate your payments stay the same but you can prepay at any time without penalty.
Buck: Right. When do you do when would you do an actual sort of I guess a cap will call like what loan-to-value because you can go up to say you're borrowing at you know you're borrowing at the lowest rate you know you're at 4.5% you're borrowing see you know just for round numbers 100 Bitcoin you borrowed or you said 10 Bitcoin hundred thousand dollars but you only borrowed twenty-five thousand dollars at four point five percent, what if Bitcoin you know loses 50 percent of its value then what happens?
Zac: Well you wouldn't have a margin call based on on that example. If your loan to value ratio hits 70 percent that's when we have a margin call and the way the margin call works is our clients have the option to either post more collateral, pay down the loan using USD or some of the collateral that's posted for the loan or take no action. If they take no action there's a 72-hour window where we'll wait to see if the price recovers, if it does then no action is required, if the price keeps going down further then we will initiate a partial collateral sale to rebalance that LTV to a healthy level at the end of that window.
Buck: So in terms of the clients that you see doing this kind of stuff, I mean who are you seeing borrowing because you don't have a cap I mean you can on the borrow side, I mean and the rates don't really change like if you're depositing a hundred Bitcoin you're getting the same rate differences as somebody who's depositing ten for borrowing right?
Zac: That's right.
Buck: So who are the people who are putting I mean what are these businesses that are putting are using these loans who are the typical clients?
Zac: Sure so it's a mix of retail and corporate. On the retail side we actually did a survey recently on use cases and the number one use case about a third of our borrowers expressed is that they were using the funds that they borrowed to start a business, which we were really excited about. So the other popular use cases were investing in real estate, investing in other types of traditional assets like stocks and bonds, home improvement, larger purchases, vacations were all used cases, paying down higher cost debt was another use case, and then on the corporate side the loans are used for operating capital. So we have some mining companies that borrow from BlockFi. Other types of companies who you know maybe have crypto denominated inventory like exchanges or crypto ATM businesses our frequent borrowers from BlockFi and our loan sizes rearranged from you know as low as five thousand dollars all the way up to seven figures. So it's a pretty diverse group of borrowers.
Buck: So recently it sounds like you guys partnered with another company called Casa. What is Casa and I guess how does that benefit both companies?
Zac: Sure. So Casa is a leader in fighting self sovereign storage solutions for cryptocurrency owners so if you're alone that owns Bitcoin and to use a gold analogy. If you want to own gold but you keep it in your vault or in your backyard you want to have physical possession of it yourself if you want to do that same type of custody with Bitcoin. Casa has a solution that makes that really easy. Our partnership with Casa provides mutual benefits to clients on either side. So Casa clients are able to receive some discounts in terms of accessing BlockFi products and vice-versa BlockFi clients are able to receive discounts in terms of accessing kasam products and over time we'll build some things in to the user experience specifically on Casa’s platform that will make it you know a bit more seamless to interact with BlockFi products while you're on their platform. In general that partnership strategy is something that you'll see more of we think there are in the ecosystem that are specializing in areas that BlockFi's not focused on and doing things where we can provide benefits to clients on both sides is a win-win for us then and our clients.
Buck: Last thing I want to ask you about, last time I spoke to you, you had talked about the idea of potentially Bitcoin backed credit cards meaning like you know getting Bitcoin back instead of miles or dollars back. You guys any closer to that, because I definitely want one of those cards.
Zac: I'm so glad you brought it up. We're definitely closer, but we're not you're not going to have the card until like Q3 of next year probably. It's getting worked on, these things you know for better or worse they take a long time launching a credit program is no small feat you know we're working on it. We've identified some of the key partners that we'll be working with to bring that product to market it is going to happen and I share your sentiment like I wish I had it now.
Buck: Yeah seriously that'd be great. Well listen it was great talking you. So it's BlockFi.com and it's spelled like block and then fi and tell us you know tell us the process of doing is pretty simple okay how long does it take to apply for these things…
Zac: Yeah I mean nothing takes any time really. So you could come in and start earning interest and get a loan from us all in under five minutes. And we also have a client service team that's super responsive in in terms of communication however you want to communicate with them, over email, over the phone, over text message so you know don't don't hesitate to reach out to us. We're also on twitter. My twitter handle is BlockFiZac and our company twitter handle is @therealBlockFi so we're very active on those platforms and happy to chat with you there as well.
Buck: Zac Prince, thank you very much for being on Wealth Formula Podcast today.
Zac: Thanks for having me, Buck, I appreciate it.
Buck: We’ll be right back.
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Wealth Formula Episode 179: Buy, Borrow and Die: Bitcoin Style

Catch the full episode: https://www.wealthformula.com/podcast/179-buy-borrow-and-die-bitcoin-style/
Buck: Welcome back to the show everyone. Today my guest on Wealth Formula Podcast is Zack Prince. He's Founder and CEO of BlockFi. BlockFi bridges the gap between blockchain and the basic financial products that you're used to including interest-bearing accounts and loans. Zack, welcome to Wealth Formula Podcast. I think you we might have had you on before as a Consensus Network replay but first time on Wealth Formula Podcast specifically, so welcome.
Zac: Yeah, excited to be here, Buck. Thanks for having me. And it's good to chat with you again
Buck: Yeah so remind me how you got into this you know Bitcoin stuff in the first place, I mean you were as I understand you were a traditional finance guy right so where did the blockchain part come in?
Zac: Sure so I was I was working at a company in the FinTech world that provided data and technology solutions to institutional investors that wanted to participate in some of the new online lending platforms, whether they were real estate platforms or consumer lending platforms, and I kind of became the FinTech guy amongst my friend group and people would ask me you know should I invest in these real estate deals on fund rise or buy loans from Lending Club and I started writing a blog to share the information more efficiently with my friends basically and I started expanding a little bit writing about Robo advisory and some other things that were going on in the FinTech space and that's what led me to Bitcoin, and this is back in early 2015. I didn't start BlockFi until 2017 because I started following the market in the background, still working in traditional financial services in FinTech and then in early 2017 it started to feel like mainstream adoption was starting to happen in the crypto ecosystem. I'm started going to some meetups in New York City because at a certain point my wife said Zac, you're talking about crypto all the time and you're talking to me about it and I don't want to talk about it so you should find some other people to talk about this with. And the meetup composition started to change and in 2016 when I started going to these meetups it was the early crypto adopters you know libertarians, computer scientists and then in early 2017 I started to see some venture capitalists, some guys who had just left their job at Wall Street still wearing a suit, some more entrepreneurs and it was a really exciting time in the ecosystem, things like the Enterprise Ethereum Alliance were getting announced which had participation microsoft and a lot of other you know fortune 500 companies and I had started to believe in it. I was drinking the kool-aid a little bit so I decided to find a way to get involved in the space full-time and that's what led me to start BlockFi.
Buck: So I have to imagine that the response you got from the traditional finance people around that time when you started talking about the blockchain space and when you started being more and more involved with that was probably not a very positive response initially or did you did you experience some of that sort of you know rejection initially to what you were doing?
Zac: Yeah absolutely. But you know throughout my career this is now kind of the third emerging technology industry that I've worked in. I was originally an advertising technology starting like you know 15 years ago and I was in FinTech specifically the online lending side of FinTech which in its early days was called peer-to-peer lending and now in crypto. So having to do a lot of education explain it you know why something isn't crazy and it might work and here's why and here's the value proposition and here's what it is, I've gotten very used to that and comfortable with it. But yeah there were a lot of people who are like you know I've heard Bitcoin is only used by drug dealers and money launderers. I've heard that I'm supposed to care about blockchain and not Bitcoin. And you know at BlockFi we’re providing financial products into the market so it's a heavily regulated business so we also had to communicate with regulators. We had to explain to state regulators, federal regulators why what we were doing with Bitcoin and other cryptos than when you're doing these same types of things with assets that they're more familiar with.
Buck: So when you were talking to people back in, I don't know I guess 2016/17 and it's not a long time ago, it's only two years ago, but I have to imagine that the response or the you know the approach that people take to you when you speak to investors is very different. Has it become more mainstream in that regard for you know for big money investors?
Zac: It's absolutely become more mainstream you know the end of 2017 Q3/Q4. Point was going on that parabolic run it started to get covered everywhere, I mean it was on CNBC every day it was in Bloomberg New York Times Wall Street Journal. If you were paying attention to the financial industry and markets you heard about Bitcoin at that time if you hadn't heard about it before. So from a baseline of awareness perspective it got a lot better and then in 2018 you had a number of positive developments for the sector including one that I think is probably the most noteworthy which is that Bitcoin futures were listed on the CME the institutional investor perspective that's massive. You now have a well regulated well known super trustworthy venue where you can get exposure to this asset class, you also had companies like Grayscale bringing products to the market which are accessible to certain types of investors and their low bridge accounts and you started to see some adoption from companies like FinTech companies like Robin Hood and Square making Bitcoin available on their platforms. So the conversation has absolutely changed a lot and it's become less about whether or not this is something that's going to continue to exist whether or not it's something that was just a bubble and is going to die and now it's more about ok how is it going to get used how big could it get what are the interesting applications of it and what could have potentially disrupt in the traditional financial ecosystem.
Buck: So you know we had obviously following this you know pop in 2017, you know I actually like you kind of really got into this early 2017 so timing was pretty good I guess now regards. Good or bad depending how you look at it but I was there before before the parabolic move. And then we have you know then we followed this up with a crypto winter and and you know who knows if we're done with it, I guess we certainly are much better off than we were. You know a unit buddy it's funny Zac I don’t know if you remember this but I was about to, we'll talk about BlockFi specifically in a minute but, I was about to use BlockFi for borrowing because I like this idea of borrowing you know collateralized debt and collateralized debt on assets and buying something else. So I was about to do it and then Bitcoin lost a clip and I was like literally and I remember I was just emailing with somebody somebody over there and I was like sorry dude I guess I just sold it, I just sold all that Bitcoin I had and you sent one email back to me and it said “capitulation” but it you know and so now we're looking back at these we go down from 3,000 back up you know been sort of flirting around this 10,000 and it seems like we're kind of maybe that we're stuck there, maybe we're kind of out of winter, maybe we're in a holding pattern but it seems like to me that since that two years not only is the awareness increase but the development of the ecosystem itself is so much further advanced than it was in 2017. Is this an unusual case where the technology and maybe even the infrastructure is actually outpacing the price?
Zac: You know it's really hard to say. I would argue that in some ways it's typical. In other industries that showed a lot of promise where investors could you know participate maybe a little bit ahead of the adoption curve you saw crazy price run ups with the tech bubble and you know ‘99-2000 being the one that's kind of top of mind in recent memory and then on the other side of things, are we behind where the price should be now? It's really hard to say because this is kind of like a commodity type asset built on a payment network and valuing that is challenging and there's not a perfect model for for doing it today. It's not as easy as something that's cashflow producing but I'm incredibly bullish. I'm on record as saying at the beginning of this year that Bitcoin has only had one year in its 10-year existence where it had a lower low than the year before and parted this year around the low price for 2018 and I predicted that we would in the year had a higher price than where we started the year pretty soon and now we're up and you know around 300 percent from where we started the year. As that happens in investing is people frequently look at things on a year-to-year performance basis and when people are looking at Bitcoin even if all we do is stay around 10 K from here when they're looking at how Bitcoin performed rather than other relative to other assets at the end of 2019 it's probably going to look fantastic. And you also have an event coming up and in the summer of next year called The Halvening where basically the supply that's produced by miners is going to get cut in half and so if you believe in the stock the flow type models of valuation for Bitcoin that is usually a very big driver of price appreciation.
Buck: I believe May of 2020, right?
Zac: That's right.
Buck: In May of 2020. Can you just talked a little bit about that just so people know because people hear about it, I've been talking about it but I don't think that it really explained it.
Zac: Yeah and you know I'm not I'm not a computer scientist so I can explain it in a you know in a very simple…
Buck: No one else here is either.
Zac: So basically the way that new Bitcoin is created is through this process called mining. And it's analogous to mining gold except instead of finding a place in the earth where gold exists and then getting your trucks and mining equipment and digging it out of the ground, the way bitcoin is mined is using this computer program and there is now specialized computer hardware that's built specifically and optimized for mining Bitcoin. And you have this network of machines around the world where the input is energy into the mining hardware and the output is new Bitcoin and those miners are what provides the power for the payment network a Bitcoin to run and when we say that there is this event called The Halvening, what that basically means is that the output that's built into the Bitcoin program that the miners are receiving as their payment for contributing energy to the network, is going to get cut in half. So the miners are going to have the same you know relative input but the amount that they're receiving is going to get cut in half for that input. This should, if the demand side for Bitcoin remains equal, it should drive up the price and historically Bitcoin has had three of these Halvening events in its lifetime so far I believe and around each Halvening you have seen you know six months before or six months after a pretty material run up in price.
Buck: Yeah so it also goes along with that sort of that the entire idea that Bitcoin unlike you know other assets including gold is it's a deflationary asset ultimately and and that's one of the things that makes that happening really significant. Apart from and I have one more question before we get to block five which is apart from the Halvening, you know thing that's happening, what is maybe the biggest development or upcoming thing that's coming up that makes you the most bullish on the future of Bitcoin or blockchain in general?
Zac: Sure so I think I wouldn't actually point to any one specific thing, I would point to two broad trends. So one is institutional adoption and participation in the asset class and the other is better ramps for retail participation into the asset class and just focusing here you know on the US market because it really is an international story but just in the US market. In September we should have Bakkt launching their futures platform. Bakkt is owned by ICE, the Intercontinental Exchange, and there's a big core difference between their futures and the current futures that are available on the CME in that futures on Bakkt platform are going to be physically settled so that means that actual Bitcoin is going to be needed to facilitate the trading on Bakkt’s platform which does not happen on CMEs exchange so that's that should be a very positive catalyst in terms of demand for physical Bitcoin that could have an impact on the price. Also on the institutional side this year I believe earlier this year, the first pension fund made an investment into an asset management vehicle that was focused on investing in Bitcoin and private equity opportunities in the Bitcoin and blockchain sector. So that will be a trend.
Buck: Which pension fund was it?
Zac: It was in North Carolina so I think it was like the North Carolina Firefighters and the group that raised the money from them was Morgan Creek Digital it’s actually invested in BlockFi by Anthony Pompliano Twitter and Mark Yusko so that's on the institutional side. And then on the retail side you've seen FinTech companies like Square and Robin Hood offer Bitcoin trading to their users. But soon you will also have companies like TD Ameritrade E-Trade and others offer Bitcoin to their users sometimes be a partnership sometimes because they've built it directly. You also at some point might see progress made in terms of an ETF getting approved that would give retail investors in the US market exposure to Bitcoin in a really easy and familiar way. All of those things are tremendously positive catalysts and the caliber of people working on them only continues to increase. Talent was attracted into the sector very, very rapidly these days.
Buck: You know one question that leads me to is that all of this is happening with Bitcoin for the most part. Are alt coins in your opinion is that market coming back or is that something that we're gonna see probably select you know group of tokens projects emerge and then the rest will kind of just get left in the dust, what do you think?
Zac: I mean I'll tell you exactly what I'm doing with my portfolio and then I'll provide a bit more color. So my asset allocation in the crypto side of my investing is I'm like 90% Bitcoin 5% Ethereum and 5% B&B; which is the Binance right. So I'm super bullish on Bitcoin. I think that you know there's a chance that Ether makes a comeback specifically I think that a lot of the stable coins that have been launched have been built on Ethereum if you're not familiar with stable coins it's basically the concept of a dollar but on a blockchain which could be really really powerful because it creates the opportunity for the delivery of US dollar denominated financial services at a global scale not using the traditional banking rails. And then B&B; I mean Binance is the biggest and most successful exchange they have a history of innovating, creating new products, going fast and so I'm taking a bit of a flyer with them but I'm 90% Bitcoin. I don't think that I'm not bullish on any of the other all coins frankly I struggle to see you know the big upside I have heard whispers in the community that there's kind of like a new wave of altcoins 3.0 might emerge, you know could see some some good returns similar to what some of the ICOs did in 2017 but it's not an area of focus for me. So that's my view.
Buck: Yeah let's talk about BlockFi. Remind us exactly what BlockFi is.
Zac: Sure so we're a wealth management platform for crypto investors. Today we have two products that we offer. One product is analogous to a savings account from a traditional bank where you're able to earn interest on your holdings except on BlockFi, the assets instead of being dollars are bitcoin and Ether and we don't have FDIC insurance so it's not exactly the same risk profile as a savings account at a bank, but conceptually you're able to hold Bitcoin and an account with BlockFi and earn interest on it paid in Bitcoin every month. That's one product that we have. The second product that we have which you are alluding to earlier offers our clients the ability to borrow dollars secured by the value of their cryptocurrency and it's analogous to a securities backed loan or a liquidity access line in the traditional world except instead of securities we're taking Bitcoin or other digital assets as collateral and lending it rates as low as four point five lending USD that rates as low as four point five percent a year.
Buck: I wanna pick these apart a little bit if you don't mind. In terms of this savings account first of all is it just bitcoin or is it bitcoin, Ethereum?
Zac: We actually support three assets in the interest account currently Bitcoin, Ether and GUSD which is the stable coin from Gemini.
Buck: Got it. And talk about the interest because it's not one flat interest rate right it's different depending on how much cryptocurrency actually is held?
Zac: Correct so there's a tiered interest rate structure. Currently on Bitcoin for balances up to ten Bitcoin, we offer a six point two percent annual yield and for balances above ten Bitcoin it's a 2.2 percent annual yield. On Ether, for balances up to two hundred Ether it's a 3.3 percent annual yield and balances above two hundred Ether is 0.5% annual yield and for GUSD the stable coin it's an eight point six percent interest rate with no tier so yeah those are the different rates.
Buck: Why did, I mean was it just a matter of like an issue with people dumping like a thousand Bitcoin and trying to get six you know 6% of that, was it just too hard to you know make that a long-term part of the business model or why did the higher levels end up changing to a lower rate?
Zac: Sure so I wanted to function of market conditions and to it's a function of supply and demand. So we launched the interest account in March of this year. We were just starting to come out of the bear market and one of the things that happened as we switched from being in a bear market to being in a bull market is the futures switched from being in backwardation to contango which basically means that our institutional borrowers the groups that we lend to that enable us to pay the rate to depositors had less of a need they had less demand to borrow and they were willing to pay lower rates to borrow crypto than they were when we were building and planning to launch this product. The second thing that happened is we were surprised to the upside in terms of the level of interest that we received from depositors and especially depositors with very large sums of cryptocurrency. So to give you an example you know within a day or two of making the product available publicly, we had a number of groups that were depositing 5, 10, 15, 20 million dollars worth of Bitcoin and so the supply-demand that we have to manage is, the amount that we have on deposit relative to the size of this market that will borrow Bitcoin size of the market that will borrow Bitcoin is partially a function of market sentiments partially a function of number of trading venues and the liquidity profile and it's partially a function of you know BlockFi’s efforts in terms of sales and client development relationship management. So the supply side got a little bit ahead of the demand side on deposit and how much there was available to borrow so we made a few tweaks. We want to keep the 6%, 6.2% rate on Bitcoin available to as many people as possible for as long as possible so that's why we went with the tiered structure where we made it available on balances up to 10 and reduced it for balances above that.
Buck: Got it and the interest on that, when you say 6.2 percent that six point like it's all denominated in Bitcoin, you're not paying cash out right?
Zac: Correct so to use round numbers to provide an easy example you start on January first with a hundred Bitcoin in an account, by the subsequent January first you will have 106 point 2 Bitcoin in your account.
Buck: Yeah and that that's kind of neat too because then you're you know you're also getting potentially the upside of that you know I mean they made 6% but if you if you're really bullish on the market you could be potentially looking at a lot more than 6% on your money. How about in terms of the, is there like a you know do you do it sort of a month-to-month or six month or month you know year-long contracts for these things?
Zac: It's month-to-month. So the rates are subject to change on a monthly basis. We provide notifications at least a week in advance before the end of one month on what the rates will be for the subsequent month and people are able to you know withdraw any time without penalty. We reserve up to 7 days to process withdrawals but we've never taken more than one business day to process a withdrawal so they're pretty quick but not instant for security reasons and yeah it's pretty flexible.
Buck: How about the lump in the lending side how does how does that work? So now I've got like 10 Bitcoin and so I would deposit that I guess and you guys I understand that maybe that that goes into like a Gemini account or something, is that still how it works?
Zac: Correct so we have a partnership with Gemini for custody. So when you log into a BlockFi account you'll have a deposit address. When you send Bitcoin to that deposit address it actually goes directly into storage with Gemini. Gemini was the first custodian in the crypto sector to receive insurance against cyber hacks on their platform. They were also the first custodian to get to complete a SOC 2 compliance audit and they have a really long track record of custody billions of dollars worth of crypto without ever having any issues. So it goes directly to Gemini and then you're able to interact with block-wise platform to take any actions that you might deem necessary. So you can view your interest payments you can withdraw you can deposit more you can also take out a loan. So in terms of taking out a loan, if you have ten Bitcoin that's worth roughly a hundred thousand US dollars at this point in time, you can borrow up to fifty percent of that value in a US dollar loan which can be funded be a wire or stable coin and then the structure of those loans is that you make interest-only payments on the amount that you borrowed throughout the duration and you can prepay at any time without penalty.
Buck: And what's the typical you said it was four point six.
Zac: We have interest rates as low as four point five. The interest rates on borrowing USD vary according to your initial loan to value ratio. So if you have a hundred thousand dollars worth of Bitcoin we actually have three loan-to-value ratio options. You can borrow at a 50 percent initial loan-to-value ratio which would mean you're borrowing 50k, the interest rate on that will be eleven point two five, if you borrow thirty five percent of the value so 35k the interest rate is seven point nine, and if you borrow twenty five percent of the value of the interest rate is four point five percent per year.
Buck: Got it. In terms of you know the technical, so you basically pay that on a month-to-month basis and then in terms of contracts, are those also month-to-month loans or how does that work?
Zac: Those are one-year term loans well now it's the ability to renew without repaying the principal at the end of the term at current rates and our rates for those loans have always come down so far. So it's a one-year term loan BlockFi committed for a year at that rate your payments stay the same but you can prepay at any time without penalty.
Buck: Right. When do you do when would you do an actual sort of I guess a cap will call like what loan-to-value because you can go up to say you're borrowing at you know you're borrowing at the lowest rate you know you're at 4.5% you're borrowing see you know just for round numbers 100 Bitcoin you borrowed or you said 10 Bitcoin hundred thousand dollars but you only borrowed twenty-five thousand dollars at four point five percent, what if Bitcoin you know loses 50 percent of its value then what happens?
Zac: Well you wouldn't have a margin call based on on that example. If your loan to value ratio hits 70 percent that's when we have a margin call and the way the margin call works is our clients have the option to either post more collateral, pay down the loan using USD or some of the collateral that's posted for the loan or take no action. If they take no action there's a 72-hour window where we'll wait to see if the price recovers, if it does then no action is required, if the price keeps going down further then we will initiate a partial collateral sale to rebalance that LTV to a healthy level at the end of that window.
Buck: So in terms of the clients that you see doing this kind of stuff, I mean who are you seeing borrowing because you don't have a cap I mean you can on the borrow side, I mean and the rates don't really change like if you're depositing a hundred Bitcoin you're getting the same rate differences as somebody who's depositing ten for borrowing right?
Zac: That's right.
Buck: So who are the people who are putting I mean what are these businesses that are putting are using these loans who are the typical clients?
Zac: Sure so it's a mix of retail and corporate. On the retail side we actually did a survey recently on use cases and the number one use case about a third of our borrowers expressed is that they were using the funds that they borrowed to start a business, which we were really excited about. So the other popular use cases were investing in real estate, investing in other types of traditional assets like stocks and bonds, home improvement, larger purchases, vacations were all used cases, paying down higher cost debt was another use case, and then on the corporate side the loans are used for operating capital. So we have some mining companies that borrow from BlockFi. Other types of companies who you know maybe have crypto denominated inventory like exchanges or crypto ATM businesses our frequent borrowers from BlockFi and our loan sizes rearranged from you know as low as five thousand dollars all the way up to seven figures. So it's a pretty diverse group of borrowers.
Buck: So recently it sounds like you guys partnered with another company called Casa. What is Casa and I guess how does that benefit both companies?
Zac: Sure. So Casa is a leader in fighting self sovereign storage solutions for cryptocurrency owners so if you're alone that owns Bitcoin and to use a gold analogy. If you want to own gold but you keep it in your vault or in your backyard you want to have physical possession of it yourself if you want to do that same type of custody with Bitcoin. Casa has a solution that makes that really easy. Our partnership with Casa provides mutual benefits to clients on either side. So Casa clients are able to receive some discounts in terms of accessing BlockFi products and vice-versa BlockFi clients are able to receive discounts in terms of accessing kasam products and over time we'll build some things in to the user experience specifically on Casa’s platform that will make it you know a bit more seamless to interact with BlockFi products while you're on their platform. In general that partnership strategy is something that you'll see more of we think there are in the ecosystem that are specializing in areas that BlockFi's not focused on and doing things where we can provide benefits to clients on both sides is a win-win for us then and our clients.
Buck: Last thing I want to ask you about, last time I spoke to you, you had talked about the idea of potentially Bitcoin backed credit cards meaning like you know getting Bitcoin back instead of miles or dollars back. You guys any closer to that, because I definitely want one of those cards.
Zac: I'm so glad you brought it up. We're definitely closer, but we're not you're not going to have the card until like Q3 of next year probably. It's getting worked on, these things you know for better or worse they take a long time launching a credit program is no small feat you know we're working on it. We've identified some of the key partners that we'll be working with to bring that product to market it is going to happen and I share your sentiment like I wish I had it now.
Buck: Yeah seriously that'd be great. Well listen it was great talking you. So it's BlockFi.com and it's spelled like block and then fi and tell us you know tell us the process of doing is pretty simple okay how long does it take to apply for these things…
Zac: Yeah I mean nothing takes any time really. So you could come in and start earning interest and get a loan from us all in under five minutes. And we also have a client service team that's super responsive in in terms of communication however you want to communicate with them, over email, over the phone, over text message so you know don't don't hesitate to reach out to us. We're also on twitter. My twitter handle is BlockFiZac and our company twitter handle is @therealBlockFi so we're very active on those platforms and happy to chat with you there as well.
Buck: Zac Prince, thank you very much for being on Wealth Formula Podcast today.
Zac: Thanks for having me, Buck, I appreciate it.
Buck: We’ll be right back.
submitted by Buck_Joffrey to u/Buck_Joffrey [link] [comments]

Why GPU Prices Went Up And Where They Will Go In The Future (Informed Speculation)

I am seeing a lot of comments in this sub in regards to the GPU apocalypse 2.0. I wanted to shed some insight about what is going on and what I believe is going to happen in the future. As a long time lurker in this sub, I believe in speaking the truth and getting past all the bs.
First, I need to tell you guys right now. I am a miner. I have 16 1070s and 12 1060 3gbs mining in unison in my basement (which most veteran miners would consider a mid-sized operation). My personal gaming rig is still powered by my GTX 980 and I mine with it as well when I am not using it. All that being said, I have been in the mining game for years and I saw this apocalypse coming with the climbing profitability (which is why about three weeks ago I ordered 12 1060s). In July, when the GPU apocalypse 1.0 happened, everyone was happy because a 6x1070 rig could make you upwards of $20 a day. Then when everyone started mining it dropped to $15 on average, then again to $12. In late November to early December I started to see a huge but gradual climb to over $20 a day again. I admitted all of that to establish myself as a mining veteran, NOT to troll anyone. If you want to try and predict GPU apocalypse 3.0 yourself, visit whattomine and calculate what 6x1070s are making and compare them to the numbers I have above. If they start to climb near $20 a day, you will know winter is coming again.
For the GPU market, I strongly believe that the market in the next few years will shift. There are two reasons for that. The first is I think that GPU mining is here to stay. Remember that our profitability is NOT completely linked to crypto prices, but in the difficulty of a particular coin. If the difficulty of ethereum were to double today and the price stay the same, I would be mining zcash etc. Even if the prices of ALL coins tanked, it wouldn't affect my profit as much as many of you seem to think it would. The reason is because when the reward goes down, many stop mining a coin and so the difficulty drops. It's just human behavior. That is why most days I make the exact same amount of USD $$$ even though the price of most coins shot up. It IS possible for profitability to drop as hard as it's went up recently, but the low profitability would cause a new coin to utilize all that untapped hashrate. There is a huge financial incentive to tap into all of this GPU power, and that is why I strongly believe it is going to continue to be profitable long term. Just look at how much etheruem has eaten into the Bitcoin dominance by market cap in the past year or two.
The second reason is I believe that this generation of cards has experienced demand the likes of which we have never seen! I mean seriously, those of us that got into PC gaming in the last 10 years, we have not seen demand like this EVER. Like you guys have been saying, this is going to cause a VERY healthy second hand market soon, which is a great thing. If the Volta profitability from the Titan V is anything to go by, that manufacturing process is going to be the new go-to for crypto mining. The only reason the Titan isn't coveted by crypto miners is the price. At 200w it's crypto numbers are actually the strongest per watt of anything out there (which will very likely translate down into the next gen 1080, 1070, and 1060 respectively). I don't think everyone is gonna just shut off their rx 570s, 1060s, 1070s, and 1080s just to upgrade to Volta, but all NEW rigs in the future will obviously be built with the best tech. Those old rigs will stay powered on until they are literally unprofitable to run OR they are so low-profit that they are no longer worth the effort to maintain.
For the two reasons above (continued profitability and better GPUs in the future) I do believe we are heading towards a situation where crypto miners get the latest gen cards and gamers get one generation back. The FPS/$ on the used market has mostly always been better than the new market, but we are heading for a time where that effect is going to be compounded. I strongly believe the go-to-cards for gamers once Volta spreads to miners is going to be rx 570-1080ti depending on budget.
One final piece of bad news is there is a new floor to GPU prices. Miners will ALWAYS buy whatever is going to ROI fastest and make the most money. If 1070s dropped to 100 bucks and Volta 2070s are $450 but only twice as good, we will demand 1070s until the price goes up beyond $200. That's just an example, but you get the idea. I think that second hand GPUs for the previous gen will be selling for slightly less than what they were MSRP at launch.
Personally, mining has changed my life for the better. My wife is preggo and we are about to move to a single income family because of the revenue generated by mining (about $100 every day with the cards listed above). I don't understand why gamers aren't subsidizing their purchase of GPUs by mining with new, easy software like Nicehash then cashing it out. I get not everyone has the up-front capital to get a 1080ti for $1300, but why not get a 1060 3gb for a little under 300 then set it to mine when you aren't using it? After a few months you will have made the price of your GPU under 200 despite electricity costs. Another benefit is technically you mining with that 1060 will decrease the profit of miners like me slightly. If you really wanna affect the bottom line of miners, mine with the cards you already have. It increases the difficulty and makes profit lower MUCH more so than a drop in price would. There is plenty of profit to go around. I would say you could buy games on steam with the resulting Bitcoin, but they eliminated that. You CAN buy from Newegg straight up or even from Amazon at a discount using purse.io in order to justify the extra price for the card. There are a TON of options of how you can spend your BTC.
I certainly don't know everything, but if you guys have any questions please let me know and I will try my best to answer them. I am sure an even more experienced miner will jump in if I don't know the answer and respond as well.
TL;DR: GPU apocalypse 2.0 happened because the profit of 6x1070s passed $20 per day again (all cards are high profit but I use 1070s as a reference). I believe gamers are going to get one generation of GPU back starting when the full Volta stack comes out.
submitted by compound-interest to pcmasterrace [link] [comments]

Charlie Lee liked tweet - rare insight into Lee's expectations for the future of Litecoin

So my twitter app tells me when people I follow like tweets. I happened to catch that Charlie Lee liked the below tweet yesterday and I think it gives some rare insight into Charlie Lee's thoughts on a topic that he doesn't like to talk about very much and that is the price of LTC.
https://preview.redd.it/dzi1bfg2dy311.png?width=1790&format=png&auto=webp&s=0784bcc0e2cecbfa80be9dfd25e5cb6360f70106
The tweet he liked is a link to an interview with Clif High, whom I didn't really know anything about before watching the video. He seems to be another trade analysis type person and while I do not believe wholeheartedly in TA when it comes to crypto, I agree 100% with what he says in respect to overall sentiment toward crypto.
In the interview, High is asked his prediction on top 5 market cap coins by the end of 2018. He says that Bitcoin & Litecoin are his definite picks for top 5 marketcap coins by year end - with the rest being a little more difficult to decide.
When asked "why Litecoin" by the interviewer, who seems to be the typical "Charlie Lee sold - I saw it online and did no research after that" parrot, High states that Litecoin is a clone of bitcoin and that regardless of whether or not Lee sold his coin, it is technically solid and is ready to go/well positioned for larger players to easily adopt it when they finally decide they need to be accepting/working in crypto.
High expects there to be large announcements and developments in the crypto world in the fall/winter and that Litecoin will be a direct benefactor.
He does a much better job at explaining it here: https://youtu.be/ZXX9U4BaMdk?t=1h3m9s
Anyway, I think the simple fact Lee liked this tweet and the content of the interview can give you some pretty good insight into where the creator himself sees this coin going.
Lee obviously doesn't like to tweet/talk and insist upon his expectations for Litecoin - and thats a good thing. Speak soft and carry a big stick.
submitted by inthecrypto to litecoin [link] [comments]

Top Trading Cryptocurrency Pairs of 2018: Changelly Analytics

Top Trading Cryptocurrency Pairs of 2018: Changelly Analytics
The year 2018 was not as fortunate for the cryptocurrency market as 2017. On the one hand, due to the market downfall, dozens of cryptocurrencies lost in value. On the other – this crypto winter helped to crystallize more strict rules towards industry regulations, and also triggered to leave those market players who are not ready to interact with the emerging realities.
Changelly formed the ratings of the top-10 most popular crypto trading pairs along with the most sold cryptocurrencies and most bought cryptos of 2018. You are welcome to read this overview to find out what was this year like for the exchange service and its users. Hopefully, this overview will help you to make some useful conclusions or even to forecast your further behavior in the crypto field.

Top-10 Cryptocurrency Trading Pairs of 2018

Just a small reminder: one of the key concepts of the cryptocurrency market is a Crypto Trading Pair. It is formed when you decide to exchange one crypto asset for another. Below are top-10 crypto trading pairs in 2018 according to Changelly crypto exchange service:
https://preview.redd.it/dgqhaf6lz7r21.png?width=1024&format=png&auto=webp&s=5ec885e91d3b36ce44c994e45a202df54af361df
As you can see from the infographic, the first two places are shared between the BTC-ETH and ETH-BTC crypto trading pairs with the total exchange volume of 24.7% and 20.5% respectively. In the cryptocurrency market, all trading pairs usually contain these headliner currencies. This is explained by the fact that the crypto market participants keep their savings in BTC or ETH. Accordingly, when a person decides to buy cryptocurrency, which seems the most promising, he or she exchanges Bitcoin or Ethereum for the destination crypto, let’s say ABC. Thus, a crypto trading pair BTC-ABC or ETH-ABC is formed.
Another crypto project which turned to be the rookie of the year is XRP. Crypto trading pair BTC-XRP takes the third place in Changelly rating. Also, XRP is still on the 3rd position in the cryptocurrency market rank. XRP started 2018 at the mark of ~USD 3.00, and during the year the rate was waving between USD 0.2 and USD 1.00. After the winter’s cryptocurrency market boom the next biggest hype around XRP peaked in autumn 2018 when the XRP market cap increased twice from US$11 billion to US$22 billion.
However, there are more crypto assets worth paying attention to. Firstly, it’s the currencies which appeared as a result of a hard fork of the Bitcoin blockchain such as Litecoin. The virtual asset appeared as a result of BTC blockchain split in October 2011. However, the trading pair LTC-BTC takes the fourth stage in crypto pair rating and points the fact that in 2018 a vast amount of LTC holders preferred to exchange their LTC savings back to BTC.
The other trendy crypto of the last year is DogeCoin. The fifth position in the rating takes BTC-DOGE trading pair, which shows the opposite situation if to compare with LTC-BTC trading pair. So, which factors motivated hundreds of crypto enthusiasts to exchange their BTCs in favor of the Shiba Inu coin? The first price spike occurred on the edge of 2017 and 2018 which was entirely predictable in the context of crypto hype momentum. The coin’s price reached $0.017 in comparison to $0.001 in November 2017. The second spike happened on the edge of the August and September 2018, when the Dogecoin raised from its low of $0.0025 to almost $0.05. The below-mentioned factors became the moving force for DOGE price and value significant increase:
  1. The appearance of DOGE on the Yahoo Finance platform
  2. Dogecoin listing on Poloniex exchange
  3. The ‘Dogethereum’ bridge release

Top-10 Most Sold Cryptocurrencies in 2018

https://preview.redd.it/c1ql74gqz7r21.png?width=1024&format=png&auto=webp&s=24de3f9f40c44ca6ef9ec193b39b971861fb8339
Despite all the ups and downs of the market along the previous year, the pioneer cryptos didn’t change. Such giants like Bitcoin and Ethereum formed the entire industry in its roots, so along 2018 BTC and ETH were keeping the leading positions as the most sold and bought assets on the crypto market.
The fourth position goes to Monero or XMR with a total selling volume of 7.1%. As you probably know, Monero distinctive feature is total anonymity. On the one hand, this is the superpower of cryptocurrency which has been moving the blockchain industry forward from the very beginning. On the other hand, the time has shown that the abuse of anonymity became a disruptive power, following increased incidents of using Monero for money laundering. Thus, the decision to eliminate Monero from Changelly was motivated primarily by security reasons. As you can see from the diagram, Monero takes the 4th position in the top-10 most sold cryptos on Changelly even though the asset was switched off from the service in autumn 2018.
The last but not the least cryptocurrency in Top-10 most sold cryptocurrencies rating is USDT. The first stablecoin pegged to USD fiat currency caused quite a stir along 2018. A sharp drop in price occurred in the middle of October 2018. Anonymous attackers provoked the accident to increase the price of other cryptocurrencies.

Top-10 Most Bought Cryptocurrencies in 2018

There’s an interesting observation if to compare diagrams with the most sold and most bought crypto assets of 2018. In both cases, BTC and ETH took the 1st and the 2nd places respectively. However, along 2018 the trend to sell Bitcoin contrasted with the trend to buy Ethereum.
https://preview.redd.it/7qyggmq008r21.png?width=1024&format=png&auto=webp&s=35dd0dc46e6be226c652d4350c3f5733709a5ebd
The total value of sold BTC is 42.8% against 16.6% of sold ETH, while the chart of the most bought cryptocurrencies shows only 34.5% of BTC against 24.3% of ETH.
There is another prominent altcoin we haven’t mentioned yet. Bitcoin blockchain split made much noise back in 2017. As a result, the new cryptocurrency BCH was born. The hard fork took effect on 1 August 2017. In November 2018 Bitcoin Cash was hard forked again and split into Bitcoin Cash and Bitcoin SV. The confrontation of two communities surrounded the occasion. Following the network split, BCH market cap dropped dramatically. However, starting with the middle of December 2018, the market volume was partly compensated.
The fourth place in the most bought cryptocurrency rating takes Litecoin. Despite the descending LTC price trend along 2018, 8% of Changelly users took their chance on Litecoin. And as we can see now investment in LTC back in 2018 paid off at the beginning of 2019. As the Litecoin price increased almost three times from the beginning of the year.

Takeaways

To sum it up, let’s take a look at all the graphics once again. What do we see?
  • Even though the cryptocurrency market is quite volatile the pioneer cryptos take the lead. The statistics show that Bitcoin, Ethereum, and XRP take the 1st, the 2nd, and the 3rd places respectively on Changelly.com as well as on Coinmarcketcap;
  • Besides BTC and ETH, the most bought cryptocurrencies along 2018 were BCH and LTC;
  • The statistics also show that high-profile events frequently form the crypto market cap, whether it’s a hard fork (like in case with BCH) or a stablecoin release (like the USDT release). There is no smoke without fire;
  • At the same time such cases like the one with Litecoin clearly illustrates that even when its long bearish trend for a coin, the price reversal can happen any moment;
  • Moreover, following the research, we can see that there are a lot of long-standing cryptocurrencies that take place in the top-10 rating. No matter the hype, such factors like the technology behind the crypto, and the time of cryptocurrency existence can make it worth investing.
submitted by changelly_com to CryptoCurrency [link] [comments]

In the winds of crypto winter

This is the best tl;dr I could make, original reduced by 82%. (I'm a bot)
Now Bitcoin is down to $3200 and counting, other cryptocurrencies are down well over 90%, and worst of all, none of the billions of dollars which poured into cryptocurrencies during the bubble have led to anything even remotely like a killer app.
We're going to see sizable numbers of both cryptocurrencies, and the businesses built on them, simply collapse.
In fact we're seeing that already: Steemit has laid off 70% of its staff, and even mighty Consensys has cut 13%. Of the more than 2000 cryptocurrencies tracked by CoinMarketCap, hundreds upon hundreds will wither into disuse until their liquidity turns to ice and their price to zero.
Which will be the privacy-preserving cryptocurrency: Monero, ZCash, or an upgraded Bitcoin? Here it's easier to see room for all three, but it's by no means guaranteed.
We'll see more regulatory tightening, more fines, more bans, and, I predict, at least one case of serious criminal fraud by a major player in the cryptocurrency world.
My final prediction: cryptocurrencies will become seen as a weird alternative space for the 1% of hardcore traders, believers and techies, like Linux desktop users until we finally emerge from the crypto winter.
Summary Source | FAQ | Feedback | Top keywords: cryptocurrency#1 see#2 more#3 crypto#4 even#5
Post found in /technology, /btc and /cryptonewswire.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

Investment Bank Doomsayers Predict Crypto Extinction Event in “Mass Market Wipe Out”

Cryptocurrency market observers may be calling for an impending bull run, but despite total market cap surging beyond the $430 billion mark, some financial analysts remain unconvinced. According to investment banking company GP Bullhound, cryptocurrency prices are set to suffer a massive 90% correction that will lead to a “mass market wipe out” in the next 12 months.
In a recent report entitled “Token frenzy, the fuel of the blockchain”, GP Bullhound analysts have presented a bearish prediction that despite the impending maturation of ICO funding and the establishment of “token of assets” offerings as a new “killer app,” cryptocurrencies are headed toward an extinction event that very few companies will survive:
“Cryptocurrencies will experience a heavy correction of up to 90 per cent in the next 12 months and very few companies will survive this correction. While this correction will be critical to cutting through the hype, its lack of impact on financial institutions will create new phenomena that we have never seen in any previous bubble burst”
2018 Will Overturn the ICO Model
The GP Bullhound report, although bearish at first glance, does present a nuanced perspective of the current state of the cryptocurrency ecosystem that highlights some of the most pressing issues facing the blockchain sector today.
One of the most notable calls presented within the report is the inevitable maturation of the ICO market, with an emphasis on the increasing presence of large-scale ICOs.
The report also predicts the launch of the first corporate ICO within the next 12 months, anticipating the creation of an alliance of several corporate entities within the luxury goods, automotive, or raw materials sector:
“This (corporate) ICO will also likely be the first ICO based upon a consortium chain which will see several corporates join forces in a private, permissioned blockchain before setting the protocol free for the wider universe of early adopters”
A key element of the GP Bullhound “year in blockchain” outlook is the restructuring of the ICO model. The report highlights the inefficiency and unsustainability of the current ICO model, stating “no longer will companies be able to launch an ICO off the back of a white paper.” According to GP Bullhound, the key to successful ICO execution will involve organization track records, transparency, and founder credibility.
ICO performance statistics provided within the GP Bullhound report
The report also predicts that sale of tokens in initial coin offerings will become defunct. The purpose of token issuance, according to GP Bullhound, is to create network effects — a goal that the sale of tokens “with no utility value” is unable to achieve efficiently. As current airdrop models demonstrate immediate impact and rapid growth, GP Bullhound predicts that airdrops will become the “new normal” for token distribution.
Crypto-Decimation Will Lead to Survival of the Fittest
Despite the negative outlook of the report, GP Bullhound present the “mass market wipeout” not as a true extinction event, but as a “thinning of the herd,” predicting that after the “‘crypto-winter” passes, growth dynamics for the precious few survivors will be unprecedented.
One of the most interesting points presented by the investment firm in the report is the breakdown of key issues facing blockchain technology that must be overcome in order to enable mass adoption. According to GP Bullhound, scalability, exchange decentralization, the promotion and implementation of secure privacy protocols, effective governance, and consensus efficiency are pivotal to the wide-scale adoption of distributed ledger technology.
GP Bullhound’s predictions regarding the disruption of the ICO model and the emergence of a new token distribution paradigm are in line with the current movement of the ICO market, which is experiencing increasing pressure from regulatory bodies around the world. As investors adapt and respond to fraudulent or unsuccessful ICO models, de facto requirements for the launch of an ICO are beginning to manifest that reflect the predictions made by the investment firm regarding the future ICO model.
The potential occurrence of a “mass market wipe out,” however, is debatable. The GP Bullhound report itself anticipates a “paradigm shift” that brings greater levels of venture capital and smart money into the blockchain industry — specifically at a pre-ICO level:
“Average equity funding pre-ICO will rise to over USD 20m for successful ICOs in 2018”
The destiny of altcoins may very well fall in line with GP Bullhound’s predictions of a wipeout — Ethereum co-founder Vitalik Buterin has explicitly stated that many altcoin valuations are “far ahead of accomplishments,” which could potentially result in a dramatic and sudden correction.
Source

#Cryptocurrency #ICO #Blockchain #TokenSale #daico #w12 #Token #AI #coin #bonus #platform #bitcoin #ethereum #crypto #currencies #project #marketplace #cryptotrading #icoinvest #iconews #technology #platformmarket #Bank #GPBullhound #USD

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Morning Coffee

The White House will roll out a long-awaited infrastructure plan today, which already faces hurdles in Congress because it doesn't offer as much new federal funding as Democrats want, or directly address how to pay for the effort. President Trump will propose spending $200B over 10 years, mostly in the form of grants designed to encourage states and cities to raise their own money for infrastructure projects, hoping to spark $1.5T in new investment.
Economy
Following last week's roller coaster ride, U.S. stock index futures are up by 1.2%, but with yields on U.S. 10-year Treasury paper touching a four-year top of 2.885%, it's too early to sound an all-clear on volatility. Another upcoming challenge will be the release of U.S. consumer price data on Wednesday - given that it was fears of faster inflation, and thus more aggressive rate rises, that triggered the global rout in the first place.
"There is a clear path forward [on NAFTA] and we're working very hard together on that path," said Canada's Justin Trudeau, capping a U.S. tour Saturday in Los Angeles. "Let's not step back from the progress our countries have made... A generation later, it can be morning in North America." He also identified several tough issues - including Chapter 11 investor-state dispute panels, U.S. proposals for the auto sector, and a U.S. demand for a sunset clause.
Longest blackout in U.S. history... An explosion at an electric substation threw much of northern Puerto Rico into darkness late Sunday in a setback to fully restore power to the territory more than five months after Hurricane Maria. Just last week, Fluor (NYSE:FLR) confirmed that its crews supporting the U.S. Army Corps of Engineers have helped to restore power to more than 232K customers throughout the island since arriving in October.
North Korean leader Kim Jong Un has invited South Korean President Moon Jae-in to Pyongyang "at an early date", potentially setting up the first meeting of Korean leaders in more than a decade. Moon steered clear of any immediate commitments in response to the North's offer, saying he hoped to "create the environment" for such a summit to take place. The development extends a thaw in cross-border relations that saw the two Koreas' athletes march together under a unified flag at the Pyeongchang Winter Olympics.
Stocks
Comcast is considering a new offer for Twenty-First Century Fox's (NASDAQ:FOXA) assets despite an agreement in December to sell them to Walt Disney (NYSE:DIS) for $52.4B, WSJ reports. Its original bid was reportedly around $60B, but there were concerns that a deal could face antitrust challenges. Comcast (NASDAQ:CMCSA) might even be prepared to remove certain assets from the deal, or zero in on something in particular, such as European pay TV giant Sky (OTCQX:SKYAY).
Walt Disney is also changing the admission price for its U.S. theme parks, raising the cost of some single-day tickets by almost 9%. Theme parks are Disney's (DIS) second-largest division, bringing in $18.4B in revenue and $3.8B in operating income for the fiscal year that ended in September. In other news, Alibaba (NYSE:BABA) has signed a deal to offer Disney shows on its Youku video streaming platform.
Broadcom has secured as much as $100B of debt financing for its attempted takeover of Qualcomm (NASDAQ:QCOM), WSJ reports. Locking down funding for the deal would remove a major question mark over the hostile bid, which if successful would be the biggest technology takeover ever. Qualcomm and Broadcom (NASDAQ:AVGO) intend to meet Wednesday to discuss the potential deal.
In a sale overseen by the Chinese government, Blackstone (NYSE:BX) may be reacquiring some assets from Anbang, including New York's Waldorf Astoria hotel and Strategic Hotels & Resorts, Bloomberg reports. Blackstone scored big in 2016 when a company it owned - Hilton Worldwide - sold the Waldorf for a record $1.95B. Less than two years later, Blackstone sold its stake in Hilton to China's HNA Group.
1 of every 13 visits to the doctor last week was for fever, cough and other symptoms of the flu, tying the highest level of the virus seen in the U.S. since the swine flu of 2009. "This is a difficult season, and we can't predict how much longer the severe season will last," said Dr. Anne Schuchat, acting director of the CDC. Deaths from influenza and pneumonia, which are closely tied to each other in the winter months, were also responsible for 1 of every 10 deaths last week, and that's "likely to rise."
OxyContin maker Purdue Pharma is stopping to promote the drug and other opioids to doctors amid a series of state and municipal lawsuits that blame the company for contributing to the opioid epidemic. It will also cut its U.S. sales force by more than 50%, to about 200 people, while remaining representatives "will no longer be visiting offices to engage in discussions about opioid products." Related tickers: JNJ, ENDP, TEVA, ABC, MCK, INSY, DEPO, AGN, ALKS, MNK, AMPH, PFE, TTNP, BDSI, DRRX, CARA, COLL, EGLT, PTIE, ACUR, PTX, ACRX,IPCI, KMPH, TRVN, CXW, BDSI, OPNT
Citigroup is setting up an innovation center in London in one of the first investments by a big U.S. bank since Brexit, FT reports. The location will house 60 technologists, as well as the EMEA unit of Citi ventures and employees from across the company's businesses. Despite the move, Citi (NYSE:C) has picked Frankfurt for its new post-Brexit EU headquarters.
One of the final fines for banks involved in the financial crisis looks to be nearing resolution. The U.K. Treasury has held secret talks with U.S. officials aimed at accelerating a multibillion dollar fine for Royal Bank of Scotland (NYSE:RBS) that would finally draw a line under its pre-bailout misconduct, Sky News reports. While RBS has already set aside £2.4B to cover the DOJ penalty, some analysts predict a fine could be higher than £5B.
Credit Suisse faces a U.S. class action lawsuit over $1B in writedowns it took in 2015 and 2016 linked to its trading division, leading to a drop in share price and costing investors millions, SonntagsZeitung reports. The plaintiffs in the case include the pension funds of fire departments and police departments in the U.S. city of Birmingham. According to Credit Suisse (NYSE:CS), the case is "without merit."
Warren Buffett's footprint is expanding to Dubai. Berkshire Hathaway Specialty Insurance (BRK.A, BRK.B) has established an office in the Dubai International Financial Center after gaining a license from the regulator. The insurer also has Asian regional hubs in Hong Kong, Singapore, Malaysia and Macau as it seeks to win over new clients in the region.
Unilever is threatening to pull back its advertising from popular tech platforms, including YouTube (GOOG, GOOGL) and Facebook (NASDAQ:FB), if they don’t do more to combat the spread of fake news, hate speech and divisive content. According to Unilever's (NYSE:UL) annual report, the consumer-products giant is one of the world's largest advertisers, spending more than $9B last year to market its brands such as Lipton, Dove and Knorr.
Amazon paid about $90M to buy the maker of Blink home security cameras late last year, in a bet on the startup's energy-efficient chips, sources told Reuters. Analysts had thought the deal related to smart delivery program Amazon Key, but it may have centered on lowering production costs and lengthening the battery life of the Amazon (NASDAQ:AMZN) Cloud Cam and Echo speaker. Blink says its cameras can last two years on a single pair of AA lithium batteries.
Takata's U.S. unit has reached a settlement with representatives of those fatally injured by defective air bags, paving the way for the company to exit Chapter 11 bankruptcy and move forward with a reorganization plan. At least 16 people have died and more than 180 have been injured due to Takata's (OTCPK:TKTDQ) inflators, which touched off the largest series of automotive recalls in U.S. history.
"The response from our customers regarding our new full-size SUVs has been exceptional," said Joe Hinrichs, president of global operations for Ford (NYSE:F). As a result, the automaker will expand production of the Expedition and Lincoln Navigator by approximately 25%. According to research firm AutoData, Navigator sales surged 88.6% in January.
Emirates has firmed up an order to buy as many as 36 Airbus (OTCPK:EADSY) A380 aircraft worth as much as $16B at list prices, ensuring production of the world’s biggest passenger jet for at least the next decade. The order, for 20 of the double-decker planes with an option for 16 more, was originally announced on a provisional basis in mid-January. Deliveries are due to begin in 2020.
Airbus has also halted all deliveries of its Pratt & Whitney-powered (NYSE:UTX) A320neo after the latest disclosure in a series of flaws with the next-generation engine, according to IndiGo, the company's biggest customer for the aircraft. EASA has warned of a new issue on the troubled engine program that may be connected to several in-flight shut downs, Bloomberg reports, and as many as 11 of the 113 delivered Pratt-powered A320neos (OTCPK:EADSY) have been grounded.
Space station privatization? The White House plans to stop funding the ISS after 2024 and is working on a transition plan that could turn the station over to the private sector, The Washington Post reports. NASA already subcontracts certain ISS support operations, such as supply flights carried out by SpaceX (Private:SPACE) and Orbital ATK (NYSE:OA), while Boeing (NYSE:BA) operates the station for NASA, which costs the agency $3B-$4B per year.
Weekend Reads PRO+ Weekly Digest: Focusing On Stocks To Buy On A Pullback
Marketplace Roundtable: Don’t Get So Emotional, Baby: Fear & Greed Trader On Tackling Market Turbulence
Today's Markets In Asia, Japan -2.3%. Hong Kong -0.2%. China +0.8%. India +0.9%. In Europe, at midday, London +1.1%. Paris +1.3%. Frankfurt +1.5%. Futures at 6:20, Dow +1.2%. S&P +1.2%. Nasdaq +1.2%. Crude +1.7% to $60.20. Gold +0.5% to $1322.10. Bitcoin +7.2% to $8651. Ten-year Treasury Yield +5 bps to 2.88%
Today's Economic Calendar 2:00 PM Treasury Budget
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Shocking Bitcoin Prediction: Craziest Scenario for $10 Trillion BTC BITCOIN Halving 2020 Prediction! Will BTC Pump!? This Model Predicts a $100 Trillion Bitcoin Market Cap! (PlanB S2F Model) Estimating FUTURE VALUE Of Your Coins - MARKET CAP ... Crypto market (Bitcoin) prediction! Low is coming!

The market is quite volatile, though, with significant events in the cryptocurrency world indirectly influencing BTC price. Although the famous John McAfee’s prediction of Bitcoin reaching $1 mln by 2020 is a little too ambitious, it is indeed expected to grow soon. Some countries like Germany, China, Tunisia, and Turkey have expressed the ... Bitcoin's technology and Bitcoin's price is still in the very early stages of a nascent market. In fact, by all estimates, there is currently around $90 trillion of total money in the world, and currently, Bitcoin's market cap is around $70 billion, meaning Bitcoin’s current market cap represents less than 00.08% of the world's total money ... Bitcoin price prediction for 2019, 2020, 2024 by WalletInvestor According to this resource, the price of Bitcoin by the end of 2019 will reach $11000. In a nutshell, they believe that the price of the coin will only rise over time. Let’s take a look at how the coin will fluctuate each year: Bitcoin is perhaps the most reliable cryptocurrency in the world. It does not leave the first line of all ratings, even here on Changelly, trading pairs with Bitcoin are leading.This is not surprising, because after going through all the ups and downs, Bitcoin has been the leader in the global crypto industry for more than 10 years. Bitcoin Price Prediction Summary. Bitcoin is said to be worth anywhere from $14,000 to $1,000,000 by industry experts such as Tom Lee, Vinny Lingham and John McAfee. Keep in mind that price predictions are guesses at best, and certainly shouldn’t be taken as financial advice. For more details on the various predictions keep on reading, here’s what I’ll cover: Tom Lee’s Bitcoin Price ...

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Shocking Bitcoin Prediction: Craziest Scenario for $10 Trillion BTC

Bitcoin ( BTC ) hitting a $1 trillion market cap by 2025 is “conservative,” and those levels should hit in less than two years. That was according to Blockst... It predicts a fair BTC price of $55,000 after the halving and a $100,000 closer to the halving in 2024. It also predicts a BTC market cap of $100 trillion when the SF of Bitcoin will be around ... This video I published to my community on February 27th (as every Thursday to bring 1 month ahead forecast to main 3 coins of cryptocurrency market cap) As I guided members since end of December ... Today we are going to be discussing a crazy scenario for Bitcoin approaching a ten trillion dollar market cap. It's not that far fetched. If you would like to be highlighted on my channel please ... Will your $0.01 Siacoins be worth $1000 some day? You can use Market Cap to gauge the likelihood that will happen. Watch my video to learn more!! Also please...

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