🕵️‍ ICO Watch Eric Eissler

Past-ICO Review: Cryptolending seems to fail

👁 ICO Watch
Lending gets a lift with Lendorid, but the dispersed team and unclear roadmap tell a different story
Past-ICO Review: Cryptolending seems to fail

Sometimes descriptions are so complex that it is best to use the company’s own words to describe what it is. So without further delay: “Lendroid is a non-rent seeking, trust-independent, open protocol enabling decentralized lending, margin trading and short selling on the Ethereum Blockchain. It aims to solve the shortcomings of centralized exchanges by creating a globally shared lending pool, and a symbiotic off-chain infrastructure supported by incentivized participants.” So back to the world of finance and lending, Lendroid seeks to capitalize on the efficiency and decentralized aspects provided by Blockchain.

Financials

In a 24-hr period, Feb. 21-22, 2018 to be exact, Lendroid raised $47 mln. It’s token, LST, is a utility token which did not have much value, to begin with, but, has been on a steady decline since its debut. Opening at $0.014483 on March 25, its entry was also its all-time high. At the time of writing, it is currently trading at $0.001420, a steep loss. According to CoinMarketCap, Lendroid’s market cap is undetermined and its daily trade volume is around $350. Therefore, it is not getting much action on the exchanges. The economy of Lendroid is built around the utility-token LST (ERC20). By means of LST creditors and traders pay to Relayers and Wranglers. In addition, a part of LST is paid in the form of a commission for the platform development and its maintenance.

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Who’s who, no really

The Lendroid website does have the team listed, but after looking at some third-party sites, it could be determined that there are some people working in their Singapore headquarters. However, all the main players are located all around the world, which is a bit strange for a startup company.

Vignesh Sundaresan- Project lead (LinkedIn says Lead and Architect)

Sundaresan is a Blockchain entrepreneur and an open protocol architect and YCombinator alumni. Before Lendroid, he has worked in various Blockchain initiatives. With more than three years of working with Bitcoins and 1.5 years of experience working on Ethereum based solution. He co-founded Bitaccess in 2013 and built the software and team that scaled the Bitaccess ATM network.

Paul Martens- Brand & UX (LinkedIn says Brand Ambassador)

Part-time brand ambassador at Lendroid. Upgrading look-and-feel of the company and helping productize the powerful Lendroid protocol with tech leads.

Vii Sundaram- Teach Lead

Could not be verified on LinkedIn

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Progress Bar- loading

While there is not an official roadmap on the website, there are several progress bars for all of the features Lendroid plans to offer:

All of these features are still in the early phase of development with each feature averaging 25 percent completion. Lendroid is still in the early phases of development with no set goal of mainnet or product launch in sight.

Red flags raised

With the lack of team centralized in one place and the company not active on social media much, raises red flags about their seriousness. Furthermore, with a worthless utility token, daily trade volumes of $350 and no indicated market cap on CoinMarketCap is worrisome. They are not going to attract much business, investment, or attention (positive in this case). It is safe to say, that until they can make progress on their product and increase their numbers, few will be interested in investing or using this product as intended.

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📈 Pricewise Andrew Strogoff

Bitcoin, Ethereum, Ripple, EOS, NEM Drop As Facebook Euphoria Disappears: Price Analysis, July 11

Pricewise
Bears again gain control over the market
Bitcoin, Ethereum, Ripple, EOS, NEM Drop As Facebook Euphoria Disappears: Price Analysis, July 11

Bears ruin bullish hopes as the price declined on Tuesday and went downwards. It seems like all top 20 altcoins test their June lows. Facebook euphoria disappeared and sellers regain control over the market.

There is some interesting and important news that we would like to mention. The first one comes from Bancor exchange. Famous trading platform was hacked. Around $24 mln in crypto was stolen. This news may cause the wave of sales in the crypto market.

Another interesting thing to pay attention to is the report, issued by crypto experts. They note that Bitcoin and other cryptos may become the next step of money evolution. Experts underline also that cryptocurrencies may become new mainstream payment method within the next ten years.

Bitcoin (BTC/USD) price analysis, July 11

Bitcoin loses more than five percent in the past 24 hours. The currency pair has broken the uptrend and targets its month lows. Sellers are controlling the market currently and are able to push BTC/USD even lower as we can see some upcoming bearish signals on the chart.

BTC/USD 4H Chart

As for the current situation, Bitcoin successfully tested the ascending trend line from the above and went downwards. BTC/USD passed the closest support area at $6,510 and went even lower. Bitcoin reached the next support area at $6,329 on Wednesday.

We think that BTC/USD is likely to develop its downtrend in the nearest future as bulls have lost their control over the market. The currency pair forms a bearish flag currently, which means that the next target may be set at $6,071.

However, is bulls make an attempt to counterattack, they will be able to change the situation in their favor and reach the resistance area at $6,510 at least.

Ethereum (ETH/USD) price analysis, July 11

Ethereum went downwards on Tuesday as the currency pair has lost nearly seven percent in the past 24 hours. This is a bad news for buyers as Ethereum targets June’s lows currently. The uptrend was broken and we can see that Ethereum still has some potential to develop its downtrend.

ETH/USD 4H Chart

The currency pair has made a breakout of the green ascending trend line without any troubles showing that sellers control the market currently. ETH/USD has broken through a couple of supports at $473.39 and $453.24 and $431.42.

We think that Ethereum is able to develop its downtrend in the nearest future. The currency pair is likely to make a breakout of the closest support at $431.42 and move lower, targeting the next support at $417.28 at least. There is a bearish flag on the chart, which is a signal for bears to develop their progress.

Is Ethereum able to go upwards? In case of good news or bulls regaining control. However, this scenario is less probable.

Ripple (XRP/USD) price analysis, July 11

Ripple follow the other major cryptocurrencies on its way downwards. The currency pair has lost more than four percent in the past 24 hours but shows some signs of further downtrend to develop. XRP/USD targets June’s lows and is able to reach them in the nearest future.

XRP/USD 4H Chart

Ripple went downwards on Tuesday and crossed a couple of support areas at $0.4744 and $0.4495. The currency pair fluctuates below $0.4495in the moment of writing and we think that XRP/USD is able to reach the next support in the nearest future.

We have a bearish flag on the chart, which confirms our bearish thoughts. The currency pair is able to test the closest support area at $0.4232 in the nearest future. If bears are successful, they will be able to push XRP/USD even lower.

AS for the alternative, the less probable scenario is growth towards the closest resistance area at $0.4744.

EOS (EOS/USD) price analysis, July 11

EOS has lost almost seven percent in the past 24 hours and looks bearish. The currency pair changed its tendency and is able to reach June’s lows in the nearest future. EOS/USD follows its the allies as the whole market suffers from negative news.

EOS/USD 4H Chart

EOS has broken through a couple of support areas at $8.29 and $7.65 and seems to develop its downtrend. The currency pair stays close to the support area at $7.10 and is testing it currently. There is no price action nor graphic pattern signals but EOS will follow its allies once they decide to resume their downtrend.

As for scenarios, we think that EOS/USD is likely to reach the next support area at least. The currency pair will establish new lows, in this case, offering bears huge chances to develop their progress.

The bullish scenario is less possible currently, however, if buyers take control, they will be able to reach the resistance at $7.65 at least.

NEM (XEM/USD) price analysis, July 11

NEM has lost almost seven percent in the past 24 hours. The currency pair has broken its uptrend and seems to target June’s lows. Bears control the market currently and are able to develop their progress.

XEM/USD 4H Chart

The currency pair went downwards on Tuesday and retreated from $0.1873 area. XEM/USD reached the next support at $0.1682. It fluctuates there in the moment of writing. We have a clear bearish flag meaning sellers are ready to develop their progress.

As for the scenarios, the most probable for the nearest future is decline towards the next support area at $0.1539. XEM price is able to reach it on Wednesday-Thursday. Bullish scenario is less probable, but if buyers take control, they will be able to drive XEM/USD towards the resistance at $0.1873.

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Good-Bye Blockchain, Hello DLT: The New Voices Have Spoken

A report by Forrester Research claims that DLT is the new kid on the block in the minds of most up-and-coming fintech players
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Of late, scientific research has been contributing more and more to the general rhetoric of the Blockchain movement. Only last week, a report put forth by the Ethereum-backed ConsenSys and Whiteblock declared that EOS was not a Blockchain company at all, merely a cloud-storing service, an accusation that caused big waves in the crypto community, naturally. Now, another report claims that the actual term Blockchain is being abandoned altogether by many up-and-coming players in favor of the new term, DLT.

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The Report and its Makers

Forrester Research is a research facility based in Massachusetts, the United States, in a town called Cambridge (not to be confused with the one in UK), which is also home to the world famous MIT and Harvard University. The company was founded long before the term Blockchain even appeared on the horizon, all the way back in 1983, by the businessman George F. Colony, whose personal motto is:

“When I meet with a client, I have one mission: to tell them something they don’t know.”

Colony himself is a graduate of Harvard University and a frequently quoted figure in many well established publications, among them The Economist, The New York Times, and The Wall Street Journal.

With their annual revenue exceeding 300 million USD, Forrester Research is regularly hired by companies related to the world of technology for the purposes of their market research and strategic planning. Forrester’s latest report tackles the inner workings and the hidden tendencies of the crypto world.

What is DLT?

The report, co-authored by Martha Bennett, a Forrester analyst, states that, according to the research conducted, more and more companies are opting for the term DLT instead of the usual term Blockchain.

What is DLT?

DLT stands for Distributed Ledger Technology, which underneath is little different to the more common Blockchain; however, many new companies are said to have chosen to label themselves as DLT because presumably:

a) The term Blockchain, while tremendously overhyped, is rather less descriptive, whereas DLT is much more so from the vantage point of the actual technology, even if, at present, the term is less known;

b) With so many ICO scams and scandals in the news, the term Blockchain carries with it a substantial amount of unwanted baggage, i.e. “negative wild west connotations”, which many new companies would, now doubt, want to shed;

and

c) Furthermore, some companies may not be “eligible” to call themselves Blockchain, as standards, albeit varying, have already been set. In contrast, with the term DLT, new companies may, indeed, be able to find their footing, according to Bennett:

“The networks that are live or under development vary greatly and frequently lack key characteristics that many regard as essential components of a blockchain.”

Moving on

Of course, the paper by Bennett et al is reporting a trend, not the absolute numbers. In other words, to give an example, the fastest growing economy in the world is not necessarily the largest economy in the world, only the rate itself may be highest. Likewise, simply because the term DLT is now becoming more popular among new players does not mean that there are more DLT companies around; in fact, the opposite is true. A quick search engine inquiry on Google returns over 200 million hits for “Blockchain”; on the other hand, the term “DLT” returns a mere 1.5 million hits, as of right now.

Be that as it may, the trend is here, so let’s see how the future unfolds over the next several months: we may yet be in for a surprise.

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Bitcoin Cash (BCH) Rolls Downhill Ahead of Hard Fork

Twice a year, the BCH network is scheduled for regular upgrades and performance improvements, but this time the team did not reach a consensus
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As soon as traders got word of the expected hard fork (set for Nov. 15), Bitcoin Cash climbed to a high of $638 (and even higher on some exchanges). However, this move was short-lived, and now BCH is trading around $480, a 23% drop for the last 7 days.

Twice a year, the BCH network is scheduled for regular upgrades and performance improvements, but this time the team did not reach a consensus. This means the blockchain will most likely split into two separate coins, and the market is getting ready for it. If you want to benefit from the extra coins created by the fork, now is high time for you grab some Bitcoin Cash. However, keep in mind that said fork may have an unexpected impact on both resulting coins... and it may not even happen.

Charts at a Glance

Charts at a Glance

Bitcoin Cash has been sinking like an ax in a lake ever since it reached the high at 640. It has even dropped through the psychological level at 500, almost without flinching (it bounced around a bit, but nothing substantial) and now looks like it might head lower.

The next destination seems to be the previous resistance now turned support at 450, but the Relative Strength Index is approaching oversold. The position of the RSI by itself is not a strong indication that the drop will reverse, but if we consider the support level (450), we could see a bounce from this level. However, the technical aspect is secondary given the scheduled fork, so extreme caution is recommended.

Support zone: 450 followed by 415

Resistance zone: 500 (although this is not yet confirmed resistance)

Most likely scenario: choppy in the short term, depending on how the fork is received – extreme caution recommended

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Alex Morris

Top Gaming Cryptocurrencies: How to Earn Cryptocurrency While Playing Games

U.Today brings fun to the burgeoning industry in the search for the best gaming cryptocurrency? What gaming coin deserves the highest prize? We’ve reviewed them all!
Top Gaming Cryptocurrencies: How to Earn Cryptocurrency While Playing Games

The global game market is expected to hit $128.5 bln as early as in 2020. This mammoth-size industry is only getting bigger, and many are trying to make top-dollar out of it. That creates a ground for a cross-over between the gaming space and cryptocurrencies (a nascent industry that was worth a whopping $800 bln during the market peak in January).

U.Today has defined the best gaming cryptocurrency on the market that is currently making waves in the industry.

image

WAX Coin

WAX is the platform that is supposed to be a decentralized marketplace for gamers. The idea is not new — there is already a fully centralized OPSkins marketplace, but this time the task is to completely decentralize it. This ‘old wine in a new bottle’ approach is supposed to bring more transparency and streamline the transaction process. It seems like the creator of this project tapped into the right market since a whopping 55 percent of millennial gamers already own crypto.    

image

While the project sounds promising, decentralized games are struggling big with adoption (CryptoKitties probably has more developers than players as of now).  

Currently, the token is sitting at 65th place on CMC with a market cap of $62.4 mln (that’s a tremendous downfall since January, when its market cap exceeded $1.3 bln). Nevertheless, it had a rather big spike back in June with even Wall Street titan Mike Novogratz being ‘amazed’ by the intersection of crypto and the gaming industry.

Cryptocurrency

Rank (CMC)

Market capitalization

Price

WAX (WAX)

66

$63.3 mln

$0.067

Enjin Coin

Enjin is a powerful gaming community platform with nearly 20 mln gamers using it. They issued the Edjin Coin in order to make it the universal cryptocurrency in the gaming world. This ERC-20 token is supposed to be the backbone of a huge virtual goods marketplace. Users buy and sell items across thousands of games.

Apart from tackling the issues that are connected to exchanging different gaming items, the network makes transactions much faster. Meanwhile, the Enjin Smart Wallet allows users to store multiple altcoins while providing users with an extra layer of security.

image

The platform is suitable for powering crypto collectible dApps (it’s a beginner-friendly platform, so you don’t have to be a high-profile Solidity developer in order to grasp the gist). Game developers can also make sure of smart contracts.

Unlike WAX, Enjin uses an already existing Blockchain, so the main issue is to convince gamers to use it. However, there is more than enough space in decentralized gaming for both of these projects to survive.    

Cryptocurrency

Rank (CMC)

Market capitalization

Price

Enjin Coin (ENJ)

143

$20.4 mln

$0.026

ION

Does the idea that you can be paid for simply playing video games sound too utopian?

The highly ambitious projects are creating a full-fledged gaming economy that could unite players and game developers of different caliber — from indie groups to billion-dollar giants in the likes of EA.

The ION coin is based on the static PoS algorithm (according to the project’s white paper, they reject Bitcoin’s PoW because of excessive power consumption).    
 

image

As more people get on board, the ION economy (‘Ionomi’) continues to grow. The coin will acquire a lasting transactional value if there is a constant influx of users.

Cryptocurrency

Rank (CMC)

Market capitalization

Price

ION (ION)

387

$5.4 mln

$0.254

Crycash

Crycash is somehow similar to ION — gamers are able to earn crypto by simply having fun and completing numerous challenges. The project looks rather solid, and there is a good reason to believe that Crycash (CRC) may be up to a ten-fold increase.    

Crytek, a big-name German game developer, is the company behind this project. It acquired a high-profile status after the Crisis anthology. It is also worth to mention the Warface integration.

image

The coin that is earned during the game could be used for making different in-game purchases. The developers hope that it could serve as an incentive for players to spend more time on the game.

GameCredit is yet another example of such platforms (it serves a similar purpose of creating a universal cryptocurrency for gaming).   

Cryptocurrency

Rank (CMC)

Market capitalization

Price

CryCash (CRC)

1086

$158,775

$0.034

GTCoin

GTCoin (Game Tester Coin) is a unique coin that creates a bond between game developers and those who consume their product. In order to earn GTCCoin, users (you guessed it) have to test games in order to reveal different bugs.

This is a win-win situation — developers can hone some weak spots in the game, and players are able to get their hands on exclusive content while simultaneously earning coins.

This is shaping app to be a robust platform for uniting people that are involved in the process of game creation.

image

Other alternatives include:

  • FirstBlood rewards, a fairly similar project, rewards players for participating in gaming matches with the 1ST token. The project aims to bring cryptocurrency mainstream adoption closer while simultaneously enhancing transparency in the global gaming market.

  • One also should mention a $40 mln project called Refereum that rewards players with cash prizes for being involved in the game.   

  • MobileGo offers more than simply rewarding content creation with tokens – it is a global platform for conducting decentralized eSports tournaments. As the name suggests, MobileGo extends far beyond PCs, offering a competitive gameplay on a mobile phone.       

Cryptocurrency

Rank (CMC)

Market capitalization

Price

GTCoin

375

$5,7 mln

$0.007

RevolutionVR

RevolutionVR, as its name suggests, is making a revolution in the gaming industry (to be precise, in its small niche — virtual reality).

They strive to accelerate the adoption of video game cryptocurrencies, and they place an emphasis on the development of high-quality VR games.

The current VR games are not really affordable, and RevolutionVR tries to tackle this issue of high prices — that would eventually allow increasing the number of consumers. Players around the globe will be able to enjoy a high-quality gaming experience without the need to own a powerful computer at home. Moreover, it also promises to be more powerful than modern PC solutions.

RVR, the network’s native token, is already listed on numerous exchanges.   

We are not supposed to give you investment advice, but it goes without saying that virtual reality represents the future of the gaming industry, and there is a chance that RevolutionVR could spearhead this progress.

image

Cryptocurrency

Rank (CMC)

Market capitalization

Price

RevolutionVR

447

$3.9 mln

$0.019

Unikoin Gold

Unikoin Gold deserves an appearance on this list simply because many big-name investors are already backing this project, including American millionaire Mark Cuban, who earlier criticized Bitcoin due to its volatility. So, what makes these investors tick?

The eSports industry has a huge potential, and it comes as a no surprise that many are trying to capitalize on that. Unikoin is one of the new betting platforms that allows putting money on a slew of popular games such as Overwatch, Counter-Strike and so on.

image

It circumvented the prohibition on betting in fiat currencies by issuing their own token. During the ICO, it raised an eye-popping $110 mln, making it one of the most successful ICOs.  

Mark Cuban is really picky when it comes to putting his name on the list of investors of a certain project.

HEROcoin (PLAY) is also a platform that has the potential to disrupt online betting. Meanwhile, Ethbet (EBET) stands out among the rest of similar projects by offering the highest returns on the global dicing market.   

Cryptocurrency

Rank (CMC)

Market capitalization

Price

Unikoin Gold (UKG)

428

$4.31 mln

$0.03

Decentraland (MANA)

Decentraland is a popular virtual reality platform whose native token (MAGA) is on the CMC list of top 100 biggest cryptocurrencies. With Decentraland, you are able to create your own virtual reality network. It is supposed to be a Blockchain-based alternative of such hit games like Skyrim and Fallout.     

image

Unlike the majority of other projects on this list, Decentraland has been around for a relatively long span of time — the first development milestone was reached back in 2015.

The games that allow its players to live in alternative realities are growing at a rapid pace, and such technologies as 3D and Blockchain are already poised to reshape this sector.

Cryptocurrency

Rank (CMC)

Market capitalization

Price

Decentraland (MANA)

63

$65.7 mln

$0.062

The problem with gaming coins

To sum everything up, we should point out a single problem that relates to all of the aforementioned gaming coins — the pace of adoption. These projects are still in the early stage of their adoption, and they still haven’t managed to reveal their full potential. There is also a place for more global questions — will Blockchain produce a palpable impact on the gaming industry? Will dApps ever see the light after the front-loaded success of CryptoKitties?

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Could Two Sheriffs Share Same Town? Analyst on Role of Bitcoin in Coming Financial Crash

Opinions
Can cryptocurrency replace the US dollar as a protected asset for the XXI century?
Could Two Sheriffs Share Same Town? Analyst on Role of Bitcoin in Coming Financial Crash

Prosphero Platform’s top analyst on Bitcoin’s role in the impending global monetary crisis.

At the beginning of the year, Bitcoin had a significant fall from its peak value, and its recovery has been slow causing panic every time the price falls below $6,000. According to Bloomberg, altcoins value took a harder hit: about 70 percent of alts lost more than 90 percent of their cost. Amidst strategic uncertainty, every participant of the crypto market is trying to predict what will happen next.

My analysis of the future of Bitcoin’s exchange rate stems from searching for the logic behind crypto's current situation. For the central system of global exchange which is the American economy, the crypto market is a subculture. However, the subculture is not isolated; instead, it relies on the logic of trends that emerge at the global level of macroeconomics.

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A macroeconomics look

The period of “paradise” in the financial markets ended around the beginning of 2018 when a program called quantitative tightening (QT) was launched to correct the balance of the Federal Reserve.

This large pump that drains liquidity led to a devaluation of all peripheral currencies, crypto included.

For several months now, the US has been sweeping the world clean of the dollar, regularly increasing the Fed’s stake, and refusing to refinance previous loans, all of which leads to a rise in the dollar’s value. All other fiat currencies have automatically devalued under the stress of large amounts of commercial debt held in the dollar. Due to the constant outflow of capital and a lack of adequate reserves, it is becoming more and more difficult for nations to pay back debts to their foreign partners.

As a result, the end of the first half of 2018 saw a rise in the US dollar compared to other currencies. Some of those fell short by a small percentage; others were crushed by a significant amount (Turkey’s, for example). It’s useless to compare crypto to some island full of economic-anarchists isolated from the world economy, and that the strong turbulent currents of the market are of no concern to them.

This week the US regulator withdrew another $10 bln from the system. The Federal Reserve’s balance is now $4.305 tln, which is almost $200 bln less than its peak value. In other words, the amount of available liquidity in the system is rapidly falling—there is a compression of credit. What is scarier is that starting July, the Fed will be withdrawing even more money to the amount of $40 bln per month. What this means is that every month the Fed will squeeze more money from the market than the European Central Bank puts into it (30 bln euros), thereby stopping any increase in liquidity, even for other comparative currencies. As a result, the amount of money freely in circulation is getting less and less, which leaves many banks practically suffocating, and the situation is growing worse.

How exactly does this affect the stock market? For the seventh session in a row, the Dow Jones has closed in the red. Recently, 30 US blue-chips have been performing poorly compared to the rest of the pack (S&P500, Nasdaq, Russell). The growth that we have seen in the US exchange is gradually dying out, and there are increasing signs that the bullish market started in March 2009 is coming to an end. In other words, a terrible turn of events is approaching.

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The final hour

When the first big financial institutions fall, the people will ditch the failing stock market in flocks. The fall of these institutions will result from the suffocating effect of rising interest under the Fed’s accelerated pump. Deutsche Bank is one example of a soon-to-fall institution comparable to Lehman Brothers. While the names of the victims may vary, the fact remains that the deflationary spiral of QT will lead to the collapse of several big players considered “too big to fail.”

And now, during this final hour, we arrive at a dramatic showdown—will Bitcoin take the initiative during this time of panic and become the protected asset for investors who are running from the burning stock market? Or is Bitcoin just as destined as other peripheral currencies, like the Turkish Lira or Brazilian Real, to be the first to burn in the fire of the global crisis?

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Cash deficit

This is the key question of this entire layout. The current situation is rather clear: for now, Bitcoin is operating like any other peripheral currency that is moderately weakened by the actions of the American vacuum.

There is no extra cash on the market (for the rise of crypto), and there won’t be any.

This is confirmed by other subtle indicators showing a growing deficit of collateral for debt in the global banking system. So which will blow up faster under such a contradictory economic policy, the stock market, or the rising US national debt?

The next question is, where will the multi-billion dollars of capital find escape in this era of digital postmodernism? The answers to both questions are not clear. That is why when we reach the transformation point of the marginal markets because the Fed’s vacuum, everything can suddenly change. It is this point of bifurcation that will become the moment of truth for Bitcoin, gold, and other currencies—and which of them will become a protected asset for the 21st century?

Crypto as a possible way out

Recently Ron Paul, a former US Congressman who ran for president in 1988, made a sensational statement. He suggested that the US should consider the possibility of replacing the dollar with a combination of two assets—gold and cryptocurrency.

A scenario where the asset is replaced with gold and cryptocurrency is entirely plausible. This alternative would eliminate the shortcomings of the current financial model, which is rapidly approaching a deadlock. Paul blames the government and large corporations for creating the catastrophic economic situation, and he sees Bitcoin’s independence as pivotal in preventing future crashes.

Steve Bannon, multimillionaire and former White House Chief Strategist has also spoken in favor of the launch of an entirely new cryptocurrency that would compete with the US dollar.

Similar ideas that propose replacing the compromised money with cryptocurrency are rampantly spreading; Steve Bannon and Ron Paul are not the first to suggest a complete alternative to the infamously printed US dollar.

The eccentric billionaire and Bitcoin enthusiast John McAfee recently announced the release of his private fiat currency that is backed by other cryptocurrencies. In a Twitter post, he describes the main idea of his project:  

What's odd is that tomorrow night I am going to make an announcement of the new "McAfee Coin", based on a radical new concept: Fiat currencies (collectible) backed by crypto- the reverse of what banks are attempting. Seriously.”

This idea is the same as the Paul’s, who is going to lobby for the release of a similar coin that would be not private, but a federally funded project.

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Growing problems with fiat

Bureaucratic obsession with total compliance and the mania of AML has swept the world, and it is the biggest problem that international trade faces. Curiously, UN data shows that global drug trafficking is at its highest historical point.

In other words, the modern methods of fighting money laundering and financial terrorism are not generating meaningful results, except that they are tremendously lowering the productive work of financial organizations. Transaction costs and problematic payments are becoming a growing avalanche.

Today a tremendous burden is shackling the growing global economy. I would not at all be surprised if the original cause of the looming crisis happens to be this excessive regulation and modern witch hunt. Iran has already officially announced that it will use bitcoin for its trading accounts upon the imposition of new sanctions, and some countries are already doing this unofficially albeit in a very limited amount. The process of distancing from the madness of the regulators is not yet clear, but it is in the making and gaining momentum!

To say anything of Bitcoin’s future in the long term, we must await the imminent monetary crisis that will engulf the market around 2019 and 2020. It is then and only after the fact that the fate of Bitcoin and other cryptos will be decided.

For now, in the short term, Bitcoin is fated to suffer constant pressure (an extended flat period at best), behaving like any other typical peripheral currency of a developing country.

This town ain’t big enough for the both of them: while the dollar rules the world, the volatile and unpredictable Bitcoin will not be considered a viable alternative to US dollar. It will remain a dubious refuge for the speculators, and the many that are marginalized in the global economy.

Moreover, only the end to the grand monetary gridlock that is sadly led by the US will show us which asset will become protected and have its price skyrocket by the hundreds or even thousands.

If I am correct in my prediction, then yes, it could very well be the case that one Bitcoin will be worth one mln dollars. However, it is important to note that those one mln dollars will not be worth the same by then as they are now.  

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