Bitcoin, Gold, Silver And Armageddon

It will seem strange to many but there are a lot of people preparing for the end of the world. It’s not just the prepper community that has Armageddon anxiety, it’s quite a common thing. Who is to blame anyone for expecting the worst when the media pours out a never-ending flood of doom and gloom and desperately upsetting news? You must be desensitized, thick skinned, tough as nails or extremely carefree to be able to consume what the media throws at you and not end up at least taking some notice of the never-ending cascade of end of times news stories.

If global warning isn’t going to get us, an asteroid isn’t going to strike, a plague thawing from Siberian ice sheets about to scythe us down, it will be the civil war in America, the collapse of the dollar, peak oil, no oxygen in the oceans, the 1%, a pantheon of local and international politicians, terrorists, dirty bombs and perhaps the much predicted second coming itself that will holocaust.

It’s not surprising that there is a whole demi-monde of enterprises supplying the salve to an anxious audience.

A one year’s worth of food supply for four people can be yours for only $5,000.

Not many people take their end of the world survival that seriously and it would make for a tricky storage problem for a city dweller, who might have to sacrifice their second bedroom or all available closet space to have such reserves close at hand. So for many, the answer is to stick gold in a sock, as the only ticket out of trouble after the mobs are marauding after the plague-carrying asteroid has struck.

Sadly, this is a bad miscalculation, as many sad cases discovered during the second world war. A gold coin might buy you a bar of soap or nothing at all if the nightmare scenario some are delirious about were to strike.

Gold is not good for much in extreme circumstances.

If you are going to go down this road of planning for the worst you need to think in terms of gradients.

Level 1. Economic dislocation

Bitcoin, gold, silver: If you lay this in for such an outcome, when it strokes all these instruments will spike. In a 2007-2008 crisis the key issue is counterparty risk. Bitcoin (BTC) and platinum group metals (PMGs) are a good way of keeping your assets out of the hands of counterparties that might implode. Bitcoin is faster to transact and easier to hold than gold and silver but it makes sense to hold some of all.

Level 2. Personal dislocation

Bitcoin: Need to bug out, because the walls are closing in? Bitcoin is the way to go. Taking much gold through the airport is not going to work.

Level 3. Widespread war

Bitcoin, gold and silver: Silver is probably a favorite here because silver, especially silver coins are great for small transactions. Gold is too high value for most transactions and flashy. Bitcoin is useful because it can work globally and is an easy carry.

Level 4. The losing side of widespread war

Bitcoin and some silver: The risk of being plundered or having it appropriated is high, so…

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XRP set to end 2019 as the worst performing major crypto of the year

The past 12 months have been a trying time for Ripple’s XRP cryptocurrency and the XRP Army.

As we near the end of 2019, XRP has lost almost 93 percent of its value since its all-time high, and the cryptocurrency is set to close out the year as the worst-performing coin among the top 10 by market cap. According to data from analytics site Coinlib, the price of XRP has dropped 51 percent since the beginning of the year.

Close behind XRP is Bitcoin Cash (BCH), which has lost around 49 percent of its value. Bitcoin, on the other hand, is so far the best-performing coin of the year, having gained 17 percent since the start of 2019.

In terms of its place among market leaders by market capitalization, Ripple’s XRP has shown some stability. While it managed to reach the runner-up spot in the rankings for a few days this year, the token has largely remained in a solid third place among the top cryptocurrencies in the market—despite its sharp drop in price.

During the months of October and November, XRP started to show signs of growth, challenging the rest of the market, which remained bearish at the time. However, whatever joy experienced by the XRP Army was short-lived. After breaking resistance levels at $.30 per token, the price of XRP has since fallen back to minimum levels.

The annual Swell conference put on by Ripple, which was expected to revitalize interest in the coin and potentially lead to another rally, also failed to deliver on those expectations. Based on social media sentiment, however, the…

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Why Did Satoshi Nakamoto Choose 21M as Bitcoin’s Maximum Supply?

Bitcoin is famous for being a deflationary currency. Its total circulating supply is capped at 21M and can never be altered. Although many have discussed the reasons for instituting a maximum cap, few know about why Satoshi chose 21M as the benchmark.

Luckily, we have many documents from the early days of Bitcoin to better understand this question. For starters, the total number of satoshis in circulation (21M BTC x 100,000,000) is an IEEE floating-point number. This makes computation far easier which is why these numbers are commonly used in computer operating systems.

Essentially, 21M was chosen because it makes computation simpler. 21 is also a triangular number which makes it especially attractive. For example, if you were to stack 6 blocks on 5 blocks on 4 blocks, and so on, you could create an equilateral triangle of 21 blocks total.

However, there are other reasons for the 21M benchmark. In an archived message from Satoshi, the mysterious Bitcoin founder calls it a “difficult choice because once the network is going it’s locked in and we’re stuck with it.” Here is his full statement on the matter:

If you imagine it being used for some fraction of world commerce, then there’s only going to be 21 million coins for the whole world, so it would be worth much more per unit. Values are 64-bit integers with 8 decimal places, so 1 coin is represented internally as 100000000. There’s plenty of granularity if typical prices become small. For example, if 0.001 is worth 1 Euro, then it might be easier to change where the decimal point is displayed, so if you had 1 Bitcoin it’s now displayed as 1000, and 0.001 is displayed as 1.”

Judging from these early writings, Satoshi actively entertained the possibility of…

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Bitcoin Suddenly Jumps Almost $1,000 In Minutes

Bitcoin and other major cryptocurrencies, including ethereum, Ripple’s XRP, litecoin, and bitcoin cash, have suddenly leaped, with bitcoin rising almost $1,000 in just minutes.

Bitcoin climbed from $7,070 per bitcoin to $7,801 on the U.S.-based Kraken exchange, a rise of around 10%.

The bitcoin price has swung wildly over the last few months, with many pointing to low trading volumes as the reason for the increased volatility.

The bitcoin price jump sent the value of the world’s combined cryptocurrencies back over $200 billion.

The reason behind the latest bitcoin price move was not immediately clear, although earlier today some $400 million worth of bitcoin was moved between wallets, according to a bot that tracks big trades.

The bitcoin price has previously been moved by so-called cryptocurrency whales moving large amounts of tokens and the market is more vulnerable to this when trading volumes are low.

Meanwhile, bitcoin and cryptocurrency traders and investors are hoping December will bring a so-called Santa rally, with bitcoin previously recording some of its biggest moves higher toward the end of the year.

Over the last few weeks, bitcoin and crypto heavyweights have been predicting a sudden price surgetechnical data is looking positive, and recent developments suggest 2020 could be a big year for bitcoin

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Is This Why Bitcoin, Ethereum, Litecoin, And Ripple’s XRP Suddenly Rocketed Over Thanksgiving?

Bitcoin, ethereum, litecoin, Ripple’s XRP, and bitcoin cash, the top five cryptocurrencies by value (excluding stablecoin tether), leaped over the U.S. Thanksgiving holiday weekend.

The bitcoin price climbed from under $7,000 per bitcoin to almost $8,000 in just two days, with ethereum, litecoin, Ripple’s XRP, and bitcoin cash all making similar gains (despite some worrying news from elsewhere in Europe).

The reason for the sudden rally was not immediately clear, however, reports that banks in Germany will be able to sell and store bitcoin and other cryptocurrencies from next year might be behind the latest uptick.

From 2020, German banks can support the sale and custody of bitcoin and other cryptocurrencies, local business newspaper Handelsblatt reported.

Germany’s Federal Council passed the law at the end of last week, with the new regulation expected to come into force on January 1 2020.

Today, German banks are not allowed to sell bitcoin and cryptocurrencies and the bill would overhaul the status quo.

The news was welcomed by the local bitcoin and crypto industry, as well as the banking association BdB, which said the new regulation makes it possible for investors to invest in crypto-values ​​via domestic rather than foreign funds, could help prevent money laundering and terrorist financing, and allow “experienced” credit institutions to protect investors.

“Germany is well on its way to becoming a crypto-heaven,” Sven Hildebrandt, head of the blockchain and crypto consulting firm DLC, told the newspaper in comments translated through Google. “The German legislator is playing a pioneering role in the regulation of crypto-truths.”

Bitcoin’s epic 2017 bull run, which saw the bitcoin price surge from under $1,000 per bitcoin at the beginning of the year to almost $20,000 in under 12 months, was largely due to expectations the traditional financial industry was about to wade into crypto.

When banks and financial institutions failed to buy into bitcoin as much as some had hoped the price fell sharply throughout 2018.

Over the last year, institutional money has gradually flowed into bitcoin and cryptocurrency, however…

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What is HEX and why should Bitcoin holders care?

One of the more notable upcoming projects in the crypto space I’ve been particularly looking forward to is HEX, developed by early Bitcoin adopter Richard Heart.

Although I do not agree with all of the project’s assumptions, I personally believe it’ll be a pretty cool experiment at least.

Please remember, as usual, that this is not financial advisement, and I’m not suggesting that any crypto-enthusiasts out there should put money into HEX.

The aim of this article is simply to explain what the project is, how it works, and why Bitcoin hodlers should care.

Essentially, if you hold Bitcoin in your personal wallet, such as an Electrum, Trezor, or Ledger, you can mint your own HEX.

The cost? Signing a Bitcoin transaction.

What is HEX?

To put it in simple terms, according to Richard Heart, HEX tokens are essentially time deposits made over the Ethereum network.

If Bitcoin can replace digital gold, perhaps HEX could indeed replace digital time deposits. If you’re looking to better understand time deposits, please read this post here.

According to Investopedia, “A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD).

“The deposited funds must remain in the account for the fixed term to receive the stated interest rate. Time deposits are an alternative to the standard savings account, and will usually pay a higher rate of interest.”

Essentially, you lock up your HEX for a fixed period (a minimum of about one year) to receive a share of the remaining tokens in the pool.

I’ll discuss how tokens are allocated later, but let me underline why HEX is trying to break into the time deposits market.

As you can read on the HEX website:

“CDs are worth more than gold, credit card companies, and cash. CDs pay higher interest than savings accounts, requiring money be deposited for a fixed time. Banks profit on poor customer service, early withdrawal fees, and auto-renewing you at worse rates.”

How does HEX work?

HEX is an ERC-20 token. This means that HEX tokens are essentially smart contracts built over the Ethereum network.

Richard claims HEX had to be built on Ethereum because the protocol is better and safer than BTC – something I completely disagree with.

I love Ethereum, but not because it’s safer or better than Bitcoin. It helps people deploy new ideas instantly – that’s the value proposition.

Perhaps in time Ethereum will become as secure as BTC, although I highly doubt it since scalability requires some trade-offs (like decentralisation or security).

Nonetheless, that is not the point of this article. I agree HEX had to be built on Ethereum, but for different reasons like flexibility and the ability to run extra functionality.

The only point of HEX is to give Bitcoin (and Ethereum hodlers as well) the chance to make extra gains. Simple stuff.

How to get HEX

There are currently two ways to get HEX. The first is free and just requires you to hold Bitcoin prior to the Bitcoin blockchain snapshot, taking place Monday December 2 2019.

You’ll need to sign a transaction proving you are the owner of the private keys for your addresses. According to the website, there are five easy steps:

  1. Install MetaMask on your browser.
  2. Go to the ‘Claim’ tool on
  3. Open your BTC wallet and sign the statement given to you by the Claim tool.
  4. Paste the signature into the Claim page.
  5. Click ‘Submit’.

The second way is to send ETH to the “adoption amplifier” – a smart contract that converts ETH to HEX on a daily basis.

You can also use referral links (Richard is the master of referrals) in order to…

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Bitcoin’s Consolidation To End-Up In a Huge Weekend Move?  

It took just a few hours after we posted our previous Bitcoin price analysis, and Bitcoin broke out nicely the $7400 resistance, which is the neckline of the inverse head and shoulders pattern.

Since then, Bitcoin quickly made a move to our next mentioned resistance level of $7700 and quickly got rejected. Over the past 40 hours, Bitcoin is trading under the tight range of $7400 to $7700.

From the bullish side, after such a massive move ($6800 to $7700), a correction or consolidation was expected. So far, the correction is healthy, as confirming the $7400 as support. The bottom line is that it’s safe to say that holding up the last level, the $7400, and the direction for Bitcoin’s short-term is up.

Another thing to note is the significant descending trend-line, which is marked on the following daily chart (the one that started forming as Bitcoin reached its 2019 high during June). The trend-line is slowing Bitcoin’s pace in its way North.

Just a reminder, the inverse head, and shoulders pattern granted Bitcoin a further target of $8300. Of course, this doesn’t mean the target will be reached for sure, but so far, the settings look healthy for Bitcoin to continue upwards.

And last, the CME Futures monthly expiration is taking place in the next hours (16:00 UTC). Usually, this event has a significant short-term influence on the price of Bitcoin.

Total Market Cap: $206 billion

Bitcoin Market Cap: $136.8 billion

BTC Dominance Index: 66.4%

*Data by CoinGecko

Key Levels to Watch

– Support/Resistance: Following the breakout of the $7400 resistance (the “neckline”), the next level of resistance lies at $7700, which was tested twice over the past 48 hours. This also contains the 1-day’s short-term descending trend-line.

In case Bitcoin can make it, then further resistance lies at $8000, before reaching the $8300 target and the $8400, which is also the 50-days moving average line (marked pink on the 1-day chart).

From below, the first level of support is the $7400 level. Further down is $7300, along with the 4-hour MA-50 (marked in pink line). Below lies the good old $7000 benchmark.

– The RSI Indicator: The RSI also had done a nice breakout of the descending channel, as mentioned in our previous analysis. Following that, the RSI is getting very close to the 44-45 horizontal resistance.

– Trading volume: The volume is declining over the past week. This can be the settings for the next big move of Bitcoin that may reach out at any time.

BTC/USD BitStamp 4-Hour Chart


BTC/USD BitStamp 1-Day Chart


The post Bitcoin Price Analysis: BTC’s Consolidation To End-Up In a Huge Weekend Move?   appeared first on CryptoPotato.

Source: Crypto Potato

What to tell your family about bitcoin this Thanksgiving

Every holiday conversation about cryptocurrency over the last few years boils down to one question: Should I buy some?

Whether your grandma corners you in the kitchen or your uncle nudges you during dinner, it seems everybody wants to know if they can make a quick buck off bitcoin. Hope springs eternal. As you settle in for the Thanksgiving weekend, you can welcome these inquiries because Quartz has you covered with an easy guide.

How’s bitcoin doing these days?

Tell your family: The market is bouncing back.

This year has been delightfully kind to bitcoin buyers, providing an 88% return year-to-date. If you bought one bitcoin on Jan. 1, 2019, your investment (of $3,750) would now be worth about $7,000.

Of course, that gamble would have peaked near $12,000 in August before tapering off rather dramatically. November, in particular, has been a tough month for the digital currency, with bitcoin falling to a six-month low.

Why the sudden drop in prices?

Tell your family: China is cracking down (again).

Some analysts have blamed the downturn on China, which—after briefly embracing blockchain—renewed its crackdown on cryptocurrency exchanges. Since late 2017, the country has officially banned crypto trading, but a thriving underground economy remains for over-the-counter, or person-to-person, swaps. China has expressed opposition to mining, the energy-intensive process used to confirm transactions and earn new bitcoin. (There’s also a chance the country could issue a digital yuan, but that remains to be seen.)

Do you think bitcoin will bounce back?

Tell your family: Most likely.

Yes. In crypto, volatility is the name of the game. If I were a betting man, I’d say bitcoin may even reach $20,000 again. The most enthusiastic crypto watchers are waiting for May 2020, when bitcoin’s issuance rate—the speed at which new units enter circulation—is expected to drop sharply. Currently, mining bitcoin provides a “block reward” of 12.5 bitcoins ($90,000). Soon enough though, that reward will programmatically halve to 6.25 bitcoins, a process that will intermittently repeat.

Eventually, the reward will…

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Is Bitcoin like a commodity or like an equity?

The big question for Bitcoin: Is Bitcoin like a commodity or like an equity?

I say it’s a big question because commodities bubble and when they do, they follow a series of mini booms and busts that shrink in scale over an extended period.

After the commodities bubble of the early 1970s, commodities bubbled every few years until in the end the commodity market was as dead as a dodo.

It would be unfortunate if Bitcoin was like commodities in that way.

Equities bubble and technology stocks bubble every few years. While it isn’t necessarily the same technology that froths up, it is still the same sector. These booms grow with the economy and only get bigger. In the recent two tech bubbles the same big names have appeared: Amazon, Apple and Microsoft, and that is the kind of model that Bitcoin believers want from their crypto assets.

Right now, Bitcoin certainly looks like a commodity after an initial bubble was followed by a recent and tremendous rally. This progress looks rather like a commodity aftershock. Yet commodities collapse after a bubble because the mining companies over invest in mining more of the thing and then dump a glut onto the market causing a price collapse. These price slumps force mines out of business, creating a drop of supply that in turn creates a price spike and the cycles repeats. Underneath it all is the march of technology making the basic process ever cheaper, undercutting prices and swelling production.

This isn’t how crypto mining works.

Bitcoin might be the new gold, but gold is not like Bitcoin.

Last year, 14 million ounces of gold was mined worth about 2.5 million bitcoin. Next year and for every year to come as far as we are concerned, that much gold is likely to come out of the ground. Now in value terms the amount of future bitcoin that is ever going to be produced is currently worth less than 18 months of future gold production.

The controlled supply mechanism of bitcoin is one of many excellent features designed into the asset from the start and this is what separates BTC’s investment dynamics from those of a commodity. What is more, new bitcoin supply is set to get more and more scarce, until it stops for all intents and purposes.

Yet a proof-of-work crypto, like bitcoin, is not equity-like either. It is a share of nothing, just like a dollar is not a share in America.

While quite a few people would like it otherwise, gold is not a currency and conversely Bitcoin is not a commodity or equity-like; it really is a unique asset type that remains poorly understood.

Bitcoin is an extremely rare asset, with strong branding, tremendous volatility and several use cases. It is gaining growing acceptance and does many of the jobs gold does, only better.

Gold, on the other hand, is a commodity with practical uses and is hoarded by governments for a very simple and important reason.

Gold is the only currency acceptable in war and while paper may work for an obviously winning side, gold is the only money acceptable when the outcome of a conflict is in question. This is why governments stash gold, even today.

While gold remains the ultimate currency for warfare, bitcoin is…

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Did Bitcoin Price Find a Bottom?

The past week was one of the worst for Bitcoin. The coin’s price had seen a $2000 decline over the past seven days.

This morning Bitcoin recorded another new low since May 17 – at $6513 (Bitstamp). However, the cryptocurrency didn’t spend much time at those price levels, and over the past hours, we are witnessing a decent comeback in green:

As of writing this, Bitcoin is trading $700 above the daily low, whereas the current daily high almost touches $7300 (~$800 intra-day price increase).

The positive outcome could be a Hammer candle on the daily chart, which is known a bullish reversal pattern. Of course, there is still enough time till the daily candle close, but so far, it looks promising.

Added to the above, we had mentioned the significance of the mid-term ascending trend-line, which was started forming in April this year. As of writing this, the candle’s body is safely above it. Actually, any daily close above $6800 will be considered bullish for Bitcoin and might signal a temporary end to the past week’s severe declines.

Total Market Cap: $195.6 billion

Bitcoin Market Cap: $129.8 billion

BTC Dominance Index: 66.4%

*Data by CoinGecko

Key Levels to Watch

– Support/Resistance: Following the recent gains, Bitcoin is now facing the significant $7300 – $7400 resistance area, which was a clear boundary for Bitcoin over the past three days. In case of a break-up, the next resistance lies at $7700. In order for Bitcoin to return to the bullish track, it will need to at least get over the $8000 benchmark and confirm it as support by creating a higher-low.

From below, $7000 had become the first resistance turned support level. In case Bitcoin goes lower, then $6800 is the next support level, along with the significant ascending trend-line (as mentioned above). Further below is $6500, which is the daily low.

Further down lies $6000 – $6200, that should serve as a strong demand zone, in case Bitcoin gets there

– The RSI Indicator: After falling from 25, the RSI found support around 20, which is the lowest RSI level since November 2018. As can be seen on the following chart, the RSI is facing resistance around the 30 level, along with a descending trend-line (marked). This can stop the party for a while.

The stochastic RSI oscillator finally produced a bullish cross-over at the oversold territory. However, the oscillator hadn’t entered the neutral territory so far.

– Trading volume: Friday ended up with the highest volume since October 26, Saturday, and Sunday saw a minor amount of volume – may be because of the weekend. If the bulls plan on a reversal, then today’s volume candle better closes with a high amount of volume.

BTC/USD BitStamp 4-Hour Chart


BTC/USD BitStamp 1-Day Chart


The post Did Bitcoin Price Find a Bottom? BTC Is Back Above $7K Following $700 Daily Gains (Analysis & Overview) appeared first on CryptoPotato.

Source: Crypto Potato