🤷 Opinions Katya Michaels

Generational Crypto-Investment Gap: Why Warren Buffett Just Doesn’t Get It

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When it comes to crypto, old-school investors like Warren Buffett may not be the best guides
Generational Crypto-Investment Gap: Why Warren Buffett Just Doesn’t Get It

Investment in cryptocurrency is becoming more accessible to both experienced and novice investors, but professional guidance for trading the new asset is not readily available. The abundance of contradictory information in the media leads to further confusion, especially when well-known and respected investors like Warren Buffett voice vehement objections.

In truth, cryptocurrency is an exciting investment opportunity that shouldn’t be missed– nor should it be undertaken in ignorance. To understand how cryptocurrency investment can be approached for a safe and profitable outcome, CryptoComes spoke to Bob Loukas of Bitcoin.live, a cryptocurrency trading platform that provides expert advisement and training to its community, launching today.

Katya Michaels: How did you become interested in cryptocurrency trading and educating investors about this market?

Bob Loukas: I'm a trader going back 25 years– trading futures, forex, gold, stocks. More recently a new booming asset class has emerged where a lot of people are making a lot of money, and losing money as well, though that's probably a story that's not told too often. There is a lot of excitement, and as a trader, you want to be a part of the new asset class, the new opportunity.

From Bitcoin.live’s perspective, it’s about helping people who don't have the experience that the analysts on our platform have. They understand that trading this asset class is in many ways no different to trading other asset classes that exist today because there are the same underlying principles.

It’s such a new industry and I'm seeing a lot of younger people, a lot of millennials, getting involved, drawn in by the potential and the excitement, but they aren’t all necessarily profiting like the media may lead you to believe. With Bitcoin.live we want to bring more of a balanced, experienced voice to the cryptocurrency space, and provide the tools and help that they need to succeed.

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A steady voice for guidance

KM: What kind of media coverage and advice do you think is missing from this space?

BL: I think what's missing is a steady and experienced voice.

You've got a new breed of investors coming in and with that, some social media influencers– people in the trading space who are hiding behind the immunity that social media provides. They are coming across as professionals when they're really not.

They were able to provide trading advice in a bull market when it wasn't so much their expertise, but the fact that all ships were rising and all prices were going up.

Now it’s been exactly five months since December when the market peaked. A lot of people are losing money and those social media personalities either disappeared or they just don't have a clue on how to provide guidance to people.

Our analysts have been through the dot-com boom and the gold boom and the stock boom of 2008 and in some cases, like Peter Brandt, well before that. We want to provide the professional guidance that is lacking today.

Trading crypto vs. investing in the space

KM: Do you think for this particular asset class it is more important to understand the technology behind it or to understand the mechanisms of market trading?

BL: That's a good question because often traders who are looking at price movements over a few days or weeks fall into the trap of trying to understand and align technology, making an argument for buying something on a long-term fundamentals perspective. But really, they are going to be in and out within a week or two. Those two just don’t gel.

You need to understand if you’re a trader and you're trading price movements or if you're an investor who is looking at a coin and trying to understand whether this is a technology that's going to survive the next crash or regulatory overhead.

As an investor, you need to figure out whether it's going to be the one that gets adoption, which eventually results in utility, which eventually obviously means more of a long-term profit. So, for trading? No, it's not important to understand technology. It's about how the price is moving. If you're an investor, you really should know what you're investing in.

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Horses for courses: old and new investment strategies

KM: What do you think prevents investors like Warren Buffett from being Bitcoin enthusiasts despite their extensive experience? How can they be wrong?

BL: They’re not wrong. I think it's just a matter of someone's comfort zone and what's worked for them. Why get into another realm where they don't have the expertise? It's just too far removed from what they’ve known and what they’re best at doing.

Back in the nineties during the dot-com boom, Berkshire Hathaway stock was grossly underperforming the market because Buffett also didn't understand that technology and he basically said, I can’t invest in something I don't understand. It's a similar thing, it’s a similar dynamic. Even his investments in Apple and IBM only came very recently because they now fit his fundamental, Graham philosophy on stock investing– with cash flows, profits and a better understanding of valuation.

It's just a matter of horses for courses. People need to feel comfortable with where their money's going, and they should. If they don't understand crypto, I actually recommend that they don't make that leap of faith.

It's better to be in a world where you understand what you're investing in and why, as opposed to being completely lost.

KM: What about Bill Gates? He understands technology and was a big part of the Internet innovation period. Why is he so vehemently against crypto?

BL: I feel as if this is more of a one-off case– Microsoft was often behind the curve on technology adoption. They were very good at acquiring companies when they were falling behind and staying relevant in that sense, but they weren’t necessarily known as a forward innovator.

I think Gates doesn't really represent that group of past-generation innovators and early adopters. There are a lot of old-school tech gentlemen and founders who really embrace Bitcoin today.

I feel that Gates really adopted the Buffett mindset, and describes him as a mentor, as well.

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Investment for novices: setting specific goals

KM: With that in mind, what are the most important things that potential investors need to know and understand about cryptocurrency to help them make informed decisions?

BL:

It comes down to the question I always ask: what is your goal? Are you a trader? Are you active? Or do you just want to get some overall exposure to a new industry and not be left behind from a portfolio standpoint?

Let's take the investment side. You may just want to have about five percent of the portfolio as an investor in Blockchain. You want to be with the blue chips of crypto– obviously, Bitcoin is number one by far. Then, you also want understanding what Bitcoin is, get an overview of the technology, read the white paper. There are plenty of resources out there to understand what Bitcoin and the Blockchain technology is all about.

If you’re trading, it's about understanding risk management, trade management, the psychology of trading. There are fundamental trading skills that I feel everybody should learn if they are going to buy and sell any security or any asset class.

There are a lot of free resources out there for learning the basics. Bitcoin.live is different in that we are more analyst driven and much more tailored to crypto. We are talking about what Bitcoin is doing this week, and why, and how you could have traded the move, and what you should look out for from a risk standpoint.

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Regulatory stability will help mitigate risks

KM: How will clarity in regulation change the conditions for investment in the space? Will it legitimize crypto in the eyes of institutional investors and maybe even old school investors like Buffett?

BL: It’s two parts, in my mind. First of all, I’m more of a libertarian when it comes to regulation. I'm a capitalist, so my philosophy is very few regulations, but the ones that are implemented should make sense and should be enforced.

Second, I think we do need clarity across the board with all the agencies on what regulations are going to be put in place, and we need to get to that resolution quicker. Then, the capital markets can feel a little more confident that there's some stability in regulatory space where they can risk that capital. Right now they're concerned about making significant investments in this space because they don't know if their investment is going to get shut down by the SEC or some other regulatory body. And that's not good for the industry as a whole.

Without the lack of regulation today, there is rampant ICO scamming taking advantage of people’s gullibility. It happens in every big bull market – they're getting in as fast as they can, throwing up white papers over a weekend and raising in some cases millions of dollars.

Scams aside, some ICOs are legitimate, but they just really don't have any chance of coming to fruition over time. The intention is potentially good, but it's just not going to happen for 99.5 percent of those companies.

The more ICO failures we get, the more the Buffetts of the traditional investing world will look down on the space as being too immature for them to be seriously engaged and involved. That's just not good for the long-term viability of the industry.

Clearly defined Bitcoin cycles

KM: What are the Bitcoin’s trading cycles telling us about the asset?

BL: I've been mapping out Bitcoin cycles over the last couple of years.

I'm actually not surprised, but what we are seeing in the Bitcoin space is a very clearly defined 60-day cycle.

Of course, there are going to be shorter cycles and certainly, there will be long cycles over time, but I think we're still a little early in this technology for those to really shine and be very evident.

Right now we're near a 60-day cycle low, during which you normally get this really big “this is the end of Bitcoin as we know it” sell off. That happens every cycle low, and then you get this big reversal and swing in sentiment. Unfortunately, the cycles are telling me that we're still in a downtrend.

Even though after the cycle low we can get a really sizable rally over a month where the price can go up by $2,000 or $3,000, until I see real evidence that we’re broken out of a downtrend, I have to assume that the bear market is still in control.

That's where I see us right now– on the verge of another cycle rally, then probably another turn over the summer and into a cycle low, with maybe the end of the bear market coming in August.

But I don't know. I trade what the market is telling me as opposed to hoping and guessing where it could be.

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Bridging the crypto-generational gap

KM: A lot of people are shocked by the volatility of the crypto market as compared to the traditional stock markets. Has there been anything similar in terms of volatility, or is this the most volatile asset ever?

BL: Yes, I think it might be the most volatile, but volatility is actually decreasing pretty sharply from 2012-2014. As you get a wider adoption and you get more experienced participants from traditional markets, then you expect volatility to come down.

You also have to realize when you look at something like Bitcoin, it's not traditional in every way. Coins came on the market suddenly in 2009-10 and were traded for pennies. Nobody knew what these things were.

Gold doesn't have intrinsic value, we know that, but at least it has a couple of thousand years of relevance. This technology is just so different and new it just makes absolute sense that it’s got this type of volatility.

KM: When do you think crypto trading will become the new normal? When will we hit do you the tipping point when most people will be owning and trading cryptocurrency?

BL: There is a big divide out there. If you ask a room full of 20 and 30-year old traders, you're going to find that a big portion of them are trading cryptos only, have never traded a single stock in their life and have no interest in trading those stocks.

Then you've got the more traditional Schwab and TD Ameritrade accounts who go “Bitcoin? Crypto? What is that? Let me go onto Coinbase and try this out with my credit card.” I don't know if that divide will necessarily get bridged.

Certainly, once we get more clarity from the SEC and get more ETF product out there that can be bought and sold through a traditional broker– then I think you'll get wider adoption and more mainstream traders buying and selling crypto.

KM: It's interesting that this kind of contentious, volatile asset may actually serve as an entry point into the traditional markets for the younger traders.

BL: Exactly. The traditional brokers know that if they can offer a platform to trade crypto, they will have a customer base for decades after. And if they don’t get into this space, they're going to age with the boomers and generation X’s. So they need to get in and I think they will also put pressure on the regulatory bodies to allow them to start trading these cyber securities because they'll lose out if they don't.

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Bearish Ripple Chart Analysis Pointing Towards Short Term Price Losses: Is It Time to Sell XRP?

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After a week or so of good price growth, Ripple looks as if it could be in for a short bear run, so maybe it's time to take profit
Bearish Ripple Chart Analysis Pointing Towards Short Term Price Losses: Is It Time to Sell XRP?

A look over the charts for XRP shows some good growth since last week. However, there has been a bit of a flattening out, and even an inability to hold key support levels. This is key in trying to predict the next steps of XRP’s price, and technical analysis suggests that a small bear run could be imminent.

Ripple’s price failed to stay above the $0.3250 and $0.3200 support levels and declined against the US dollar. The price also failed to hold gains and declined recently against Bitcoin. XRP/USD could slide towards the $0.3050 support before starting a fresh upward move.

Because of these predictions, it might be time for some smart trading, selling some tokens for profit taking before looking for the bottom again and buying back in.

A look at the charts

Over the last five days, XRP peaked at $0.354 on Wednesday before correcting down and rebounding to $0.352; however, it has since fallen back to $0.342. There was some fight back from the XRP token to try and pick up those gains again over the last few days, but overall it has fallen twice, unable to maintain those support numbers.

Bearish Ripple Chart Analysis Pointing Towards Short Term Price Losses: Is It Time to Sell XRP?

After a period of trading relatively flat, and with indications showing it is struggling to hold its gains, the prediction would be that the price of the coin will face bearish tendencies in the short term.

More small drops can be expected, with undulating rises that fail to stick. It is not gloom and doom for the cryptocurrency, rather a period of correction after a good rise that set off the market growth earlier in the week.

For investors or traders, this is actually good news given that if the prediction is correct, there will be a chance for profit taking as people sell off tokens after the bull run, only to ride out the bearish run in order to buy back.

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Litecoin Price Forecast 2019: Set Sail to Break the $50 Iceberg and Swim as Far as $230

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Litecoin price forecast 2019: The coin has the chance to reach the value of $230. What are the factors contributing to LTC growth?
Litecoin Price Forecast 2019: Set Sail to Break the $50 Iceberg and Swim as Far as $230

Following Bitcoin’s path, Litecoin seems to be on the rise: it’s becoming quite popular among investors and is slowly gaining in price. There’s a very high probability that it will trade higher than $30 all year long, but what about its highest points?

Litecoin Price Forecast 2019: Set Sail to Break the $50 Iceberg and Swim as Far as $230

Focus on numbers: Litecoin’s future in 2019

Although the bearish period seems to be over, the crypto market is still highly volatile. That’s why making any short-term predictions is quite hard. However, it doesn’t discourage analytical websites and people from making their own forecasts.

Thus, according to publications on various crypto websites, Litecoin has enough potential to reach the $1,000 edge. Some articles mention the number $2,000 – it seems to be far from reality. What are these suggestions based on? It’s not clear.

However, these forecasts are on par with predictions from some experts. For example, George Tung, a cryptocurrency analyst, claims that Litecoin will reach $1,500 towards the end of 2019. Brian Kelly, the head of BK Capital Management (LLC), is sure we might witness an LTC price of $500 or even $600 by the end of this year. Though conservative, this approach seems to be close to reality.

In November 2017, Litecoin was traded at $100 and investors managed to enjoy 25x ROI. If the market is hit by the bullish wave again, the scenario can repeat: LTC might jump from its current $48 to $1,200. But what if that won’t happen?

Our guess is that Litecoin can reach the range of $150-$230 by the end of 2019. How can it crawl to such numbers? First, in August 2019, the block reward for miners will be cut by 50%, which might provoke the growth of demand for LTC.

What will kick-start Litecoin growth?

Here’s the whole gamut of factors that can make Litecoin soar separately or altogether:

  • The rate of accepting Litecoin on exchanges and online websites will gradually increase. One of the adoption examples is the Surf Air store that started accepting LTC payments.

  • Of course, Litecoin’s growth is partially defined by Bitcoin’s performance. At the moment, BTC is on the rise. However, Litecoin seems to recover from the bearish period much faster and better.

  • At the same time, while Bitcoin’s gaining in traffic, users start complaining about growing transaction fees and slow performance. That’s when their attention switches to Litecoin, with its lower commissions and better speed.

  • A big influx of traffic on Coinbase is expected – it backs three major crypto assets, including LTC.

Thus, Litecoin is getting more and more media attention, which only contributes to its growth. Some Internet users are sure that it has to reach the $50 mark to get back on track and start gaining in value. This event is definitely around the corner!

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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EOS Price Expected to Keep Rising After Doubling in Value Since December Lows

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EOS is one coin that has shrugged off its lows to double in value since December, with more growth expected
EOS Price Expected to Keep Rising After Doubling in Value Since December Lows

In the current climate, there is optimism returning to the market with Bitcoin pushing the $4,000 mark. However, a lot of this positivity has come from an altcoin rush of late. Coins such as Tron, Ethereum, Ripple and Stellar have played their part in boosting the market, but one particular coin has been striving since its lows in December last year.

EOS, a cryptocurrency that is currently ranked fourth by market cap, has quietly been going about its business, growing not only in price but also value as a blockchain company. It is showing some medium to long term bullish tendencies, outperforming many others.

The coin reached a low of $1.54 on December 7th, 2018, but at the moment, it is heading beyond the $4 mark, having doubled in value since that late last year low. It currently sits at $3.38.

Many are expecting the coin to keep growing, with its highest point touching $4.05. This move represents a 161% gain in only 74 trading days. If the bullish tendencies can continue across the markets, there is no doubt that EOS will cash in.

EOS Charts

More to come

EOS is seen as a rival to Ethereum, and because its intention is to improve upon the original smart contract blockchain, it will feel it has an edge in terms of adoption in the coming months.

It is a double-edged sword, as added adoption of the blockchain platform will help increase its reputation, which in turn will boost its price. Then, because EOS’ price is already starting to grow substantially, it will bring the platform to the fore for future blockchain applications.

If EOS can continue to offer a good blockchain service and the market keeps positive, there is every reason to believe that the coin’s price will continue to grow — and also outperform many of its rivals and other altcoins.

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Ripple XRP Price Prediction: Major Financial Services Group Sees XRP Exceeding Bitcoin’s Market Cap

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The president of SBI Holdings in Japan believes that Ripple will dominate global expansion and soon have a bigger market cap than Bitcoin
Ripple XRP Price Prediction: Major Financial Services Group Sees XRP Exceeding Bitcoin’s Market Cap

The SBI Group, a Japan-based financial services giant as well as a keen partner with Ripple for their bank settlement cryptocurrency, are bullish on the XRP token overtaking the current head of the market cap standings, Bitcoin.

The President and Representative Director of SBI Holdings, Yoshitaka Kitao, has come out and said XRP is dominating international expansion and will become global in the future. This global domination, based on XRP’s propensity to partner with major financial institutions across the globe, means Kitao sees it overtaking Bitcoin.

Bitcoin has stood at the head of the market cap standings in relation to cryptocurrency ever since it was invented some 10 years ago. Other coins have come close to knocking it off, but the decentralised coin has stood firm. But, if Kitao is right, XRP could overtake the market cap with a huge growth in price from global adoption.

International adoption

Ripple’s XRP token is as a cryptocurrency global and borderless, just as Bitcoin, because of its decentralised nature. However, Ripple has been looking to run XRP like a business with its xRapid product.

Thus, its growth is based on its adoption by financial institutions around the globe, and as this adoption grows, the worth and interest in XRP will increase, and thus its market cap will begin to rise.

“Because XRP is already beginning to become international, xRapid will be used for fund transfers in 2019. By increasing the so-called XRP’s plastic use, we anticipate that the [Ripple] market capitalization will easily exceed the market capitalization of Bitcoin,” Kiato said.

Ripple has already shown its power in growth as opposed to other major cryptocurrencies, often stealing second spot from Ethereum in the recent past. Ethereum was once a coin that was almost overtaking Bitcoin, but it is now under threat by a much more compliant and potential-full XRP token.

Better use cases

Because Ripple is trying to build XRP’s use cases for financial institutions, it has an advantage over other tokens in that it will be useful rather than just a cryptocurrency experiment. It is highly believed that once crypto finds its killer application, the price of it will skyrocket as people flock in demand.

If XRP does become more globally adopted, there will be an influx of interest in the coin and thus its price will shoot up, allowing it to overtake Bitcoin’s market cap in no time.

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EOS Price Jumps 25% as Market Flattens Out: Is There More to Come?

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The cryptocurrency market’s best performer in the last 24 hours has been EOS as the rest of the growth plateaus – what’s next?
EOS Price Jumps 25% as Market Flattens Out: Is There More to Come?

Ever since last week Friday, where there were small indications that a rally could happen, the cryptocurrency market has shown some good growth, with Bitcoin, the head of the market, topping off at just under $4,000.

What has been typical of this small rally has been the effect of some of the major altcoins in pushing the cryptocurrency market. It began with the likes of Binance Coin, Stellar and Tron, and then saw Ethereum take over, but now EOS has shown a huge 25% growth spike in the last 24 hours.

It would seem that this rally has flattened out for the moment, with a lot of the coins levelling out. It is now important to see what comes next as another rally following this levelling could be massive for the medium to long term growth of the entire market.

EOS Drive

The now-fourth biggest cryptocurrency based on market cap has advanced nearly 25 percent in the last day to reach $3.47 and is currently neck-and-neck with Litecoin, whose own value has also ballooned 11 percent since year-end 2018.

Today’s gains reflect support from the EOS community and could have something to do with Block.one, the creator of EOS, recently providing greater clarity on the roadmap.

Block.one CEO Brendan Blumer addressed some of the community concerns on social media, reminding them in a message entitled “Great Things Take Time” that there is more ahead than meets the eye.

Of course what is important to note in regards to this kind of reaction is that these altcoin projects are putting out positive news, and that is having an effect not only on the coin, but the market in general.

There is positive news being met with results which are driving the market, and this has not been seen for a long period. The bullish market tendencies being seen could be indicative of a change in the sentiment.

What next?

It is still early to call, and quite tentative, but it certainly feels like a bull run could be developing. It may be based off the altcoin news and sentiment, but Bitcoin will play a important role. The major cryptocurrency came $30 short of cracking the $4,000 mark.

If Bitcoin is able to breach that resistance, even if it is through the drive of another altcoin, it could open up a whole new level of potential gains across the market and could possibly start a new bull run.

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