Darryn Pollock

What is the Future of Futures in the Cryptocurrency Market Ahead of ETH’s Entry?

Next up could be Ethereum futures, but the independent and interdependent relationship between coins in the cryptocurrency market could cause an interesting dynamic
What is the Future of Futures in the Cryptocurrency Market Ahead of ETH’s Entry?

Cryptocurrency futures being offered by traditional financial services like CBOE and CME have played a big part in the growth and expansion of cryptocurrencies across the globe. The lead up to 2017’s high of $20,000 was predeceased around this institutional welcoming to cryptocurrency, but where does it end?

Now, there is news that CBOE will be looking at launching Ethereum futures as the one year Bitcoin futures anniversary approaches. It is an interesting product to launch, mostly because of the dynamic of the cryptocurrency market which sees coins both moving independently from each other, but also interdependently.

Commentators have already made their thoughts known on what the ETH futures could do, and it does not sound ideal for cryptocurrency growth in general, but more importantly, are more and varied futures a good thing, and where can they stop?

Tom Lee’s vision for ETH futures

While the Ethereum future is still more of a rumor than a secure fact, there are people who are already breaking down the impact it could have on the volatile cryptocurrency market. Tom Lee has said that ETH futures could actually be damaging for Ethereum, but a positive for something like Bitcoin.

His reasoning is that market bears, which currently focus on shorting BTC, would switch to its main rival, Ethereum. So, while this will help Bitcoin rise up free of shorters, it will have a damaging effect on Ethereum.

Bigger than that

The problem is, while people will call Ethereum a rival or a contender to Bitcoin, the truth of the matter in the nascent market is that the majority of coins all move in a similar way as the head- Bitcoin.

It is still very much a cryptocurrency market that moves in relation to news and happening in and around it, in comparison to something like company stocks and assets. Those who invest in something like gold know that they can also back or short Apple stocks as an alternative and these two investable assets will move totally independently of each other.

It is not the case like that for different cryptocurrencies. There are of course instances where certain coins will move totally separately from Bitcoin and the general market sentiment, but it is rare, and usually based directly on news affecting the coin.

What does the futures market hold?

So, if futures start affecting some of the bigger cryptocurrency assets, starting with Ethereum, where does it end? And will it be as effective as Lee expects, or will it be a bit of a damp squib. There may be a lot more shorters on Ethereum if the opportunity arrives, but will there be enough to make its movement different from Bitcoin.

For instance, if Bitcoin is granted an ETF, which many think will help it skyrocket in price, will that movement not take the ETH market along with it? But if Lee’s dissertation is right, ETH could be bogged down in shorts.

And, if more coins start becoming part of the futures market, what will the link and interdependence do there? Could this reshape the entire cryptocurrency market, and essentially break the hegemony that Bitcoin has over the movement of the market.

But, if it does work like that, will it not be a bad thing for the market as the shorters will have a lot of power to keep coins down and this could damage emerging and building cryptocurrencies which need as much help as possible to grow if their intentions are to be met.

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Cryptotips Darryn Pollock

5 CryptoComes’ Cryptotips on How to Evaluate ICOs

💡 Cryptotips
ICOs have become extremely popular investment opportunities as the boom of cryptocurrencies have spread to the mainstream. They do however require a lot of security and evaluation.
5 CryptoComes’ Cryptotips on How to Evaluate ICOs

Cryptotip #1

Development team- The people behind the ICO will tell a lot about whether or not it is a viable and a potentially successful investment. Look for real people, with real names and do your research on them, especially on LinkedIn or GitHub.

Cryptotip #2

Trawl through Bitcointalk.org- This message board offers insights into the more technical side of things and most ICOs will put up an ANN- announcement board. It allows for potential investors to get some deeper insight into the project and to ask questions directly to the developers.

Cryptotip #3

Read the white paper- The white paper is the point of all information for an upcoming project, it is the promise, and the plan the ICO hopes to take. Make sure you understand it, it makes sense to you, and you believe it.

Cryptotip #4

Diversify- Cryptocurrency investment in itself is a risk, and ICO investment is an even bigger one. Make sure if you are branching into ICO investment that you are not simply backing one horse. Spread out and look for a number of promising projects.

Cryptotip #5

Research- There is so much hype and excitement in the world of ICOs that it is easy to get sucked in without doing the proper legwork. Learn all you can before you shell out any sort of investment.

Cryptotips
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Darryn Pollock

Bitcoin Can Boast Incredible Stability, But Interest Also Hits a Low

There are big claims about Bitcoin being more stable than NASDAQ, DOW and S&P 500, but its Google searches are also way down — are they linked?
Bitcoin Can Boast Incredible Stability, But Interest Also Hits a Low

Those who have been in the cryptocurrency space for some time now would not flinch if the price of Bitcoin dropped by 40 percent — or even rose by that — in a day since they are accustomed to its wild volatility. However, that volatility has almost totally abated with the price of the major cryptocurrency barley shifting more than a $100.

Some are seeing this as a cause to celebrate since it shows that the once criticized asset on volatility has actually been more stable than NASDAQ, DOW and S&P 500 in the last month. However, a drop in interest has also come with this low volatility.

Google searches for Bitcoin have hit a low last seen in May 2017 which could be a cause for concern as it potentially points to a loss of interest in the cryptocurrency. There has also been evidence — in what has been labeled Satoshi Cycle — that as interest grows, so does the price of cryptocurrencies.

Is there a change that the two are actually related? The low Google searches indicating low interest can also be interpreted as a low desire to trade and have an active and energetic market.

Remarkably low volatility

Looking around at the usual steady and secure stock market, there has been some volatile movements which next to Bitcoin even look wild. The Dow plunged into negative territory for 2018 following Wednesday’s 600-point drop, and the Nasdaq Composite Index posted a 4.4 percent slide, the largest single-day loss since August 2011. Meanwhile, Bitcoin has posted a $40-spread within the past 24 hours.

Over the past month, Bitcoin has traded in the range between $6,686 and $6,248.

A lot of this concern of the traditional markets has to do with fears over an impending financial crisis, which is a good news for Bitcoin in any respect and even more so in the light of seeing it so steady and trusting currently.

Getting bored

However, at the same time, the general interest in Bitcoin via its Google searches is at a massive low that stretched back to May 2017. So, while there is a worry about traditional stocks, there is no real correlation to investors looking towards now steady Bitcoin as an alternative.

Moreover, the loss of interest would also suggest that there is no real price rise on the horizon as almost every price spike has been accompanied by a spike in Google searches.

Is there a link?

Low volatility, while mostly being seen as a positive, may not be that good if it is linked to a loss of interest from traders and investors who are needed to keep the market thriving. At first, it was the high volatility swings that added to the interest in the market and saw a rush of money into cryptocurrency.

However, if the next wave of adoption won’t be like the first one, then perhaps this is one way for institutionalized investors to see the cryptocurrency as an alternative should a financial crisis come. And, if that is the case, then the link between the two could well play in the cryptocurrencies greater favor.

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🎓 Trading Guide Andrew Strogoff

Cryptocurrency Trading Signals, How to Choose and to Use Them

Trading Guide
Cryptocurrency trading signals, their features, how to choose them
Cryptocurrency Trading Signals, How to Choose and to Use Them

Novice cryptocurrency traders have to learn many things including trading strategies, analysis types, trading psychology etc. This is not the easy way to do. Moreover, this knowledge and those skills do not guarantee that trader will succeed.

Some investors try to start earning even without knowledge. They find cryptocurrency trading signals and follow them hoping that those alerts will give them instant and constant profit. This article is related to crypto trading signals and their features. We are going to cover several aspects including advantages and disadvantages of free and premium signals.

Types of cryptocurrency trading signals

Before we start to classify trading signals, we would like to pay attention to their nature. There is nothing mysterious about this phenomenon as many newcomers thing. Cryptocurrency trading signals are the result of traders or machine analysis.

How do they appear? Let’s suppose a trader has conducted his own analysis and realized that BTC/USD is going to rise in the next couple of days. He issues this signal to the community or sells it to his or her subscribers.

As for machine signals, they are coming from automatic trading systems. Those algorithms forecast future price fluctuations.

Let’s get down to free and premium signals. The first group involves fees meaning traders have to pay some amount in order to receive signals. There are several providers currently and traders can choose one of them or even a couple. Everything depends on the fee that one has to pay to get access to the signals.

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Some investors (especially newcomers) think that premium signals are a kind of trading Grail and they will be useful in all market situations. Those traders think that they pay for services and will receive high-quality signals. However, the truth is that those premium services cannot guarantee 100 percent results in all situations. Why?

The main reason is that they are provided by humans and as we know, “errare humanum est.” No one can predict markets in all situations and without errors. Moreover, there are many scam signal projects that promise to provide iron-clad results for their subscribers.

We recommend traders learning everything about markets and price fluctuations but if you want to use those signals, we can give some advice on how to choose them.

The first sign of a good and quality service is an open chat group where users can discuss signals and the beginners are able to see whether they are worth their attention.

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Another way to choose such products is to test them on demo. Some providers offer trial periods allowing users to find out if their system is really working and is profitable.

The next thing to pay attention to is testimonials from those who have already used this or that service. However, you need to understand that some providers spend a huge amount of money to promote their products and they do their best to “buy” their reputation. They purchase first places in different ratings and pay bloggers to write positive articles about them.

Free cryptocurrency trading signals are also provided and you can find them easily on different websites and social medias. However, they have even lower quality than premium ones. The most important thing you need to understand is that nobody is in charge of those services. They have no obligations towards their users and make even more mistakes.

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Where to find cryptocurrency trading signals

Those who want to use such opportunities, are frustrated sometimes as they don’t know where to find signals. We are not going to provide you with websites and social media groups here, but we are going to prompt how to look for them.

The first place to find those alerts is special websites issuing trading signals to their subscribers. They are both premium and free. You can also look through some closed communities. However, they are mostly premium meaning you will have to pay for membership.

There are also several forums where you can find entry points. They are free to enter and to look through. Sometimes, traders share their opinions there and those who look for crypto trading signals, may find some interesting ideas.

Another way to get help in trading is to use professional analysis services. They can be found on different special websites.

Finally, you can use special software and bots in order to improve your trading results. Those bots and other algorithms gather information from different sources and provide users with useful data.

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Telegram and crypto trading signals

This is a rather new source of crypto trading signals. There are several Telegram groups providing entry points to subscribers. Special bots allow traders to receive signals. Subscribers may use them for free, but there are also some premium bots.

The good news here is that there are many bots in Telegram. The bad is that only a few of them are worth your attention. We are going give some recommendations on how to choose a Telegram bot or signal group:

  1. Before you enter the group, pay attention to the source, where you have found information about it. This website should be trustworthy.

  2. The next step is inner channel analysis. Pay attention at bot’s activity, the number of subscribers and their behavior.

  3. Look at the number of subscribers as compared to the number of views. If those figures are increased artificially, the number of views will be significantly lower than the total number of subscribers.

  4. Another important criterion to pay attention to is whether the team of the project makes reports after they issue signals. Professional signal providers issue such reports so that subscribers can understand whether alerts work or not.

  5. Finally, pay attention to the possibility to contact providers.

The main advantage of Telegram signals is that they are issued frequently and you can find alerts for different currency pairs.

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Cryptocurrency pump trading signals

This is another type of crypto signals. Pump strategy is known for its risks. However, profits also maybe significant and some traders look for crypto pumps in order to significantly increase their profits.

What is pump and how to find it? This is an artificial price growth of any coin. Currency is pumped in order to attract other traders’ attention to it. The more coin is in demand, the higher its price will be. Pump&Dump requires high trading volumes and is often organized by a group of traders.

Pump is considered a scam, however, there are different points of view. Let’s see how traders organize it. Pump has two main stages– informational attack and exchange activities. Pumpers release news on the coin they want to pump in future.

That news looks like insider information and includes recommendations on which currency to buy and when.

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Informational attack is done via social medias and messengers like Telegram. The main idea of such activities is to attract attention to the coin and to trigger demand growth. When investors interest is high, the price goes up.

In order to support the coin, pumpers make a kind of “wall” preventing cryptocurrency from declining. When targets are reached, pump traders start to dump the price meaning they sell the coin and earn money. As for ordinary investors, they are to get rid of their assets in a very fast manner. Otherwise, they risk losing their money.

Pump&Dump strategies may have several stages. When the price goes down, pumpers may start to buy the coin and support it. This will be another wave. Once targets are reached, pump traders sell crypto again. However, everything depends here on other players’ behavior. If they recognize pump, they can leave the coin.

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How to protect yourself from pump signals

As we have previously mentioned, pump signals may result in huge profits, but risks to lose significant funds are high as well. We are going to provide you with a brief guide on how to determine those pump&dump signals and how to avoid them.

Attention and caution are keys. The cryptocurrency market is “young” and may suffer from speculative activities. The liquidity is low, which allows pumpers to conduct their activities. The main features of pump are the following:

  1. This strategy is often used for cheap and low liquidity cons. It is almost impossible to pump and dump Bitcoin due to high volumes.

  2. Pay attention to different exchanges. If the price of the coin remains almost unchanged on other trading places, the risks of puma p are higher.

  3. Pump can be detected when you read news about this or that coin. If one group promotes crypto, this is one of the features of a future pump.

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How to read cryptocurrency trading signals

We have described already types of signals that can be used in crypto trading and warned readers about pump&dump. It is time to find out, how to read crypto signals properly.

Typical trading signal in the cryptocurrency industry has four keywords– Buy, Sell, Term, Link.

Buy means the price at which you purchase the coin. This is the first part of every signal, which is based on analysis. Sell is the exit point, meaning the level at which it is better to get read of the coin.

Term is an approximate term of reaching the target. As for the link, it connects with exchange and coin.

Below we offer some recommendations that will help traders to read signals and how to react to them properly.

  1. You need to see the situation on the chart. It is recommended to avoid buying a coin if its growth is less than five percent.

  2. It is better to avoid buying a coin if its growth surpasses 15 percent. This recommendation is less important than the first one as altcoins may show huge uptrends.

  3. Go through different social media in order to find signals from experts in the crypto market.

  4. Finally, it is recommended to check coins rate at coinmarketcap. Higher ranked coins are better to trade as they have higher liquidity. They are also better protected from pump&dump due to higher volumes.

Should novice traders and investors use cryptocurrency trading signals

Before we place the full stop in this article, we are going to give some more advice for beginner traders. Many beginners want to start their careers using trading signals. However, we advise learning more about trading first.

Why is it important to get knowledge? If you want to do trading or investing professionally, you need to learn about the crypto market and coins’ price fluctuations first. You can use trading signals, but it is important for you to understand what is going on before taking any decision.

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Cryptocurrencies’ Day Trading Guide

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Day trading features and specifics, how to become successful intraday trader
Cryptocurrencies’ Day Trading Guide

Day trading attracts many traders from all over as this is an opportunity to earn more money in a relatively short period of time. Unlike long-term investing, day trading means placing orders every day and close positions within 24 hours.

Day trading may be compared to a full-time job. A trader places an order within a short period of time and closes them once his targets are reached. With the development of cryptocurrency trading, this style became even more popular due to the high volatility of digital assets.

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Main features of day trading

When a trader wants to practice intraday trading, he or she needs to understand the main specifics of this trading style. They are the following:

  1. All positions should be opened and closed within one day. Most day traders prefer to hold their orders for a couple of hours. Once the signal comes, it works for a couple of hours before the momentum fades.

  2. High speed of decision making. Day traders have to think and act fast as they have not much time to place an order. If they have lost an opportunity to enter the market, they will have to wait until the next signal comes.

  3. Precise entry points. Day traders have to find the best entry points ever. This style of trading means that you don’t need to stay in the market all the time. The only thing you have to do is to find the best entry points, to place orders and to close positions once your signal is done.

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Seven pieces of advice for cryptocurrency day trading

There are several secrets and strategies of intraday trading that may be useful for every investor. We are going to cover the most important ones.

Imbalance of supply and demand

Cryptocurrency day trading means that you need to find entry points within one day and profit from them. In order to find the best entry points, one has to look for the imbalance between bulls and bears as such situations may provoke huge price changes.

In case of the rise of demand, cryptocurrency runs higher and traders have an opportunity to buy. When supply exceeds demand, cryptos decline to offer opportunities for short sellers to get profit.

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Price targets setting

For beginner crypto day traders, it is crucial to set price targets meaning you always need to know where you will jump off the market. By calculating your trading reward in advance you may set your risk level as well in order to follow risk/reward ratio, established in your trading strategy.

Let’s say you see that BTC/USD will run upwards from $6,500 for a couple of hours. Before you jump in the market, you need to find the closest resistance point on the hourly chart in order to calculate your trading potential. For example, the closest resistance on the hourly chart is at $6,350. This means that your target level will be there.

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Risk/reward ratio 1:3

Cryptocurrency day trading is similar to traditional intraday speculations meaning you best money management strategy is when you risk less and can earn more. Several beginner traders do the same mistake when they put risk/reward ratio at 1:1.

This strategy is wrong as you don’t know the percentage of your winning and losing trades in advance. By increasing the reward component in your money and risk management strategy, you simply increase your chances to be above zero in long-term even if your strategy is not the best one.

Be patient

When you look streams from exchanges or some movies on trading, you may see that speculators are always on the run and they can do many things in just one second. However, the truth is out there as a trader has to be patient and wait for a good opportunity to come before taking any decision.

Cryptocurrency traders do not trade every minute of a day as it is impossible. To tell the truth, there are few trading opportunities within 24 hours as the price may make a couple of serious movements during the day. The rest of the day, trader will do other things related to his family, official job or even hobbies.

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Don’t be afraid of trading

One of the most important thing cryptocurrency day trader needs is to fight his own fears and avoid situations when he or she is paralyzed by his own forecasting results. Crypto day trading requires speed from investors meaning you have to act in a fast manner once you have found a trading signal. If you wait too much or start thinking too much, you will simply lose the signal and will have to find another one, which may came the next day.

Do not overheat your funds

Cryptocurrency day trading is a good opportunity to earn more money. However, some traders forget about money management and place orders risking more than they can afford. This may lead to both high profits or huge losses.

Professional traders are not gamblers. They always think about how to protect their money before doing anything on the market. The first rule of a successful trader is not to earn, but to save his funds.

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Avoid investing too much in a single trade

Intraday trading is full of opportunities. There are several crypto coins that may attract your attention. However, if you invest too much into one of them, you will lose the opportunity to trade the others. In addition, risking too much per one trade leads to bigger losses as we have already mentioned.

Those are the main advices and strategies for intraday trading. However, we would like you to pay attention to some other important things that every successful trader needs to follow.

Self-discipline

We have already mentioned self-discipline in our previous articles speaking about trading psychology and other important trading features. However, for intraday cryptocurrency traders, self-discipline is the key factor of success.

What does it mean to stay self-disciplined in intraday trading? First of all, to stick to your strategy in order to avoid overtrading and placing orders when there is no clear signal.

Why do so many traders lose their intraday cryptocurrency battle? The main reason here is that they simply break their own rules. In general, most of unsuccessful trades are results of lack of discipline.

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Be ready to adapt to any situation

Short term intraday cryptocurrency trading requires adaptability from every trader and investor. There are no two trading days that are alike. This may pose big problems for those who just use their strategies according to their textbook “prescription”.

It is to mention that every strategy has its examples in the past, but when you deal with it in real-time, the result may be pretty different. Professional crypto traders always know where to use their trading strategies and where to avoid using one or another.

When there is a trend, it is better to apply trend following system while during the range fluctuations, traders need to implement special flat strategies.

Using this or that trading system does not mean that you will be in the market 24/7. Traders need to make a kind of premarket analysis meaning they have to understand whether the current conditions allow them to trade or it is better to do nothing “sitting on the hands”.

Be mentally tough

Day trading cryptocurrencies is not a simple task to do. You will have to face many issues including losses. Losing trades accompany every trader on his way to fortune. Moreover, trading cryptos every day, you will have losses almost on daily basis.

What is the main difference between successful and unsuccessful traders? It is not about winning all the trades or being unbeaten for long period of time. It is about taking more money in profit trades and losing less when the forecasts are wrong.

What does it mean for trader to be mentally tough? First of all, investor needs to squeeze every drop from a trend meaning to stay in market until the opposite signal comes. Many beginner traders attempt to close their positions once the price rises above their breakeven level. However, this approach is totally wrong as the most you take in one single trade, the better your results will be.

It may seem strange but traders are able to have stable profits even if they lose trades. Let’s say you have one loosing and one winning trade within one day. If you stick to 1:3 risk/reward ratio, you will end be earning as your losses will be less significant than profits.

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Let’s suppose you have lost $100 in your first trade but won $300 in the second. You net profit will be $200 (without trading fees naturally as we do not treat them in this article).

When trading cryptos on daily basis you need to be prepared for losing streaks as well meaning there will be times when you will close several trades without profits. This is another serious test for your mental skills as well. Only those who have ability to resist to emotions are able to overcome all the issues.

Have your own opinion

Intraday cryptocurrency traders have to rely on themselves only as they have not enough time to consult experts opinion or look for some outer signals and trading alerts. When a trader is in the beginning of his career, he always need some help coming from books, articles, videos etc. However, once he is able to create his own strategy, he is to start working independently.

To tell the truth, a trader is a lone wolf who is searching for his prize alone without any help. Best crypto traders have their own market opinion and are able to forecast quotes without paying attention at what experts will say.

Independence from others’ view is important not only for the reason that you will have to take fast decisions. When you rely on some people who do forecasting, you almost avoid to use your own strategy. This may result in having serious issues once those who provided you with signals disappear.

You should be independent not only from the outer opinion or recommendations, but from the indicators and different trading techniques as well. What does it mean? Cryptocurrency day traders should never forget that the price is the key to any analysis.

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Sometimes you can find those investors who rely on their indicators more than they rely on price. This way is wrong as only the price matters when you trade cryptos especially when you work with hourly charts.

Plan your next steps in advance

Intraday trader has to plan his steps in advance as he needs to take decisions in a very fast manner. Naturally, day trading is much harder than any other strategy as it requires more skills and full control over emotions.

Those who stick to the past, have fewer chances to win. Planning the next step in advance means you need to have a strategy that will allow you to find entry points when you finish your last trade.

KISS (Keep it stupid simple)

This is one the most popular rules among professional traders. Many beginners think that successful traders use some kind of Holy Grail strategies that are very difficult and are built on several trading tools. However, the truth is that the most profitable strategies are the simplest ones, especially for intraday crypto traders.

Successful traders use KISS method as they have lots of things to do while trading and they need to significantly simplify their systems in order to make decisions right in time and not several minutes after the signal comes.

Final words

Intraday cryptocurrency trading is not as easy as it may seem at first glance. Many beginner traders try it but they lose as they are not prepared for this rhythm of trading.

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Joseph Young

Forget Bitcoin: Christmas Lights in US Spend More Electricity Than Countries

Electricity consumption in Bitcoin mining is misunderstood and Christmas lights spend just as much
Forget Bitcoin: Christmas Lights in US Spend More Electricity Than Countries

In 2015, the Center for Global Development reported that Christmas lights in the U.S. consume more electricity than entire countries, resonating recent reports on the excessive usage of energy by Bitcoin.

According to Phys.org, 6.63 billion kilowatt hours of electricity is consumed on a yearly basis by Christmas lights hung on trees, rooftops, and homes. The level of electricity consumption by Christmas decoration easily surpasses that of developing countries like El Salvador and Ethiopia.

Bitcoin is Hurting the Environment Narrative

For years, the mainstream media and researchers have condemned the usage of electricity by Bitcoin. Several comparisons between the energy consumed by Bitcoin mining centers and countries were made to portray the large-scale energy consumption of the digital asset.

However, the same argument was made against gold when fiat money or cash was first introduced many decades ago.

In a paper submitted to the Mises Institute, Stephan Livera stated that the critics against the use of energy by gold did not take into account the energy, resources, and electricity used by various service providers that are required to sustain the accessibility to fiat money.

Livera noted that the argument against gold did not consider the following factors, citing the work of Roger Garrison’s “The ‘Costs’ of a Gold Standard”:

“(1) the costs imposed on society by different political factions attempting to gain control of the printing press, (2) costs imposed by special interest groups who persuade controllers of the printing press to misuse their authority (print more money) for the benefit of special interests, (3) inflation-induced misallocations of resources as a result of misused monetary authority, and (4) costs incurred by businessmen in their attempts to predict what the monetary authority will do in future.”

Critics of Bitcoin could consider the level of energy consumption by the digital currency as excessive and unnecessary. But, critics fail to consider what mining Bitcoin actually offers; it is not merely generating more supply of BTC but processing transactions and verifying payments.

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Hence, if the use of energy of fiat is to be compared with Bitcoin, the resources used by the central bank, commercial banks, political factions that attempt to gain control of the printing press, ATMs, and many other factors have to be considered; and when all of the factors are combined, they are significantly larger than the resources consumed by BTC.

“Bitcoin’s computationally costly design gives stronger resistance to forgery, inflation, and theft. This is due to the difficulty of production, and also to easy-to-verify dynamic of Proof of Work schemes,” Livera added.

Inaccurate Assessment

Critics often assume that the usage of electricity by Bitcoin miners will continue to grow exponentially throughout the years to come, disregarding variables that include:

  1. Increase in supply of renewable energy

  2. Increase in efficiency of ASIC miners

  3. Increase in reserve of electricity

The same concept could be applied to Christmas lights. If Christmas lights continue to spend more energy at the same rate it has increased by over the past decade, it could have a devastating impact on the environment. But because most things do not increase linearly or at an identical rate in the long-term, it simply cannot be predicted accurately.

Products for entertainment spend more energy than a consensus currency that is used to process $8 billion a day, which with social scalability offers decentralization, resistance to forgery, and manipulation.

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