Crypto News: Urgent Alert Update!

WILL BTC BE THE NEW US DOLLAR? part II

Update :

This is an urgent alert to all our members and VIP members.

Today we continue where we left off last week, in part two of our article, of the BITCOIN and will it actually be the new USD in years to come.

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Can Bitcoin Become THE NEW US DOLLAR $$$ — PART II

part II {con’t} below….

Bearish views on bitcoin rarely argue with these design characteristics, however. They typically focus on current limitations, arguing that bitcoin will never achieve the requisite level of stability, transaction capacity, security, ubiquity of merchant acceptance, governmental blessing, and trust to function as an alternative currency and payment system.

Slowly but surely, though, bitcoin is addressing these limitations. Some examples:

• Stability: The December 2017 launch of bitcoin futures on the Cboe and CME enables short selling of bitcoin, which is essential to reducing volatility over the long term.

• Capacity: An oft-quoted statistic by bitcoin bears: The bitcoin network processes only seven transactions a second, while the Visa network, for instance, does about 65,000. So, bitcoin is not usable for making payment transactions day-to-day, because the system can’t handle the volume. This is currently true, but keep an eye on the nascent, but promising, Lightning Network initiative, currently in test mode. If it is successful, bitcoin’s processing capacity would jump to thousands of transactions a second, making the system much more viable for making payments.

• Security: Perhaps the biggest Achilles’ heel of bitcoin is security. Not security of the network itself. Rather, securely storing the cryptocurrency so it can be readily accessible, while still safe from hackers. It’s a tricky one, hence the recent high-profile crypto heists (e.g., Coincheck, Coinrail).

• Progress is being made, however: Dozens of offline hardware wallets custom-designed to enable individuals to securely (and anonymously) store cryptocurrencies are available on Amazon for less than $100. Earlier this year, Noble Bitcoin launched a fully-insured cryptocurrency custodian service, using a Texas-based cold storage location that already houses gold, silver and platinum.

• Merchant aceptance: Dozens of bitcoin merchant processing services, which enable merchants to take bitcoin, already exist (BitPay, BitPOS, Coinbase, etc.). While low today, as consumer demand and comfort with the system grow, merchant acceptance will naturally follow.

• Governmental blessing: Despite the theoretical threat it poses to fiat currencies (such as limiting a government’s ability to enact monetary policy), few countries outright ban bitcoin. Many major countries—including the U.S., Japan, Australia and many in Europe—are sorting through how to appropriately classify it: a commodity vs. currency vs. security. This classification, I believe, will establish the regulatory and legal frameworks for cryptocurrencies, which then will enable secondary services, like insurance, which help build consumer trust.

While the price of bitcoin is having a tough 2018, quietly, in the background, the bitcoin system is making steady progress toward becoming a viable, universal alternative currency.

Ms. Ellis is partner and senior equity analyst at MoffettNathanson LLC, covering payments, processors and IT services. Email her at reports@wsj.com.

NO: Speculators May Use Them, but Not the Average Consumer

Timing is everything, and you simply can't time the crypto market with any consistency over the long run, even our members who claim our crypto chatter bot is highly accurate in calling the big ups and downs in the market, we have to admit this is not financial advice and we do not actually know what happens next, we are just formulating information prescribed to us from text, and chatter picked up on the blockchain, and handing that data over to you when we feel it necessary. You can get the full releases here and back issued calls as well below…..

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How could we measure the domination of cryptocurrencies? Many vocal enthusiasts point to the current hypnotic price action.

in 2018 the total notional valuation of bitcoin and other cryptocurrencies is suspect since the value (measured in U.S. dollars) is in no way related, or attributable, to a utility-driven value. This is quite intersting since some governing bodies, keep hinting that it is.

In other words the actual price of bitcoin is not related to its EVERYDAY use.

While they will likely continue to find their place in portfolios of speculators and already-wealthy investors, the current crop of cryptocurrencies like bitcoin is not designed to meet the usability expectations for the average consumer. And that’s on purpose.

10 year ago, we can say that Bitcoin was trying to solve a problem in allowing unidentified participants to send “electronic cash” to other unidentified participants on a payment network that provided no insurance, customer support or means of recourse. But cryptocurrencies owners usually live in an environment where the identities of participants are known and where legal recourse is expected. Consequently, that would mean that cryptocurrencies ARE NOT really solving an existential problem in peoples life today. Its just there as a sort of alternative. I am sure you will agree, you might own bitcoin, but how many times have you fallen back on this, and how often has this saved your ass, or helped you in a life threatening situation.

A recent analysis from Chainalysis, which aggregated payment activity of the 17 largest coin-payment providers, found that the bitcoin blockchain processed about $70 million in payments for the month of June. A Morgan Stanley notefrom last summer found that merchant adoption is virtually zero.

Bitcoin and altcoin owners typically accrue coins as speculators, it probably doesn’t matter if merchants’ support for coin payments grows in the future. These speculators typically already have access to other forms of payment that they use instead.

This means that a majority of coins are now being housed in centralized locations, coin exchanges and other crypto wallet either offline or online, even iphone wallets—where the private key for controlling coins is managed by a trusted third party—instead of physically spread across the entire user base. Because of these large concentrated coin holdings, to date, all but a handful of the major cryptocurrency exchanges and wallets have been compromised, some more than once. And victims are left holding the bag without a plan on what to do if their coins are stolen?.

Many bitcoin hodlers also argue that bitcoin can enable secure, arm’s-length transactions. But bitcoin has been here for about 10 years and the cryptocurrency still has less daily user activity than Venmo, Square Cash, WeChat Pay and other fast growing mobile-payment platforms ( neither open source nor decentralized.)

As a result, over the past several years a number of vocal promoters have attempted to switch the narrative—promoting cryptocurrencies like bitcoin as functioning the way gold traditionally has. But this is revisionist history. If functioning as an electronic form of gold—not an electronic form of cash—was the original goal, the design of cryptocurrencies would have allowed for an elastic money supply. But at the moment, there is a fixed amount of bitcoins that can be created.

JPMorgan and Citi, estimated that less than $10 billion of real money from investors actually moved into any cryptocurrencies last year. Since then, retail investors likely have been tapped out, hence the price decline following the peak of the price bubble in December and January.

The Federal Reserve estimates that in aggregate, all of the payments, clearing and settlement systems in the U.S. process about 600 million transactions a day (valued at about $12.6 trillion). Bitcoin confirms about 300,000 transactions a day, the aggregate value of which is dubious and a matter of debate since it can be difficult to slice the data.

Another challenge we are faced right now is with cryptocurrency exchanges that support a form of price discovery for a virtual coin that is typically measured by regulated sovereign currencies. This is a real problem because the futures contracts for bitcoin in the U.S. are settled in dollars, instead of delivering the underlying bitcoin. To settle a contract in the markets against a price index constructed over and derived from a quasi-regulated retail market is an open invitation for all sorts hacking, and lollygagging.

The SEC who we have heard alot from in recent times, continually highlight that this chronic lack of transparency and surveillance does not protect crypto investors. It’s why there are still no bitcoin ETFs in 2018, and we do feel that its partly due to the fact the SEC want to manipulate the price of bitcoin anyway.

If we are measuring things in terms of real money, the coin bubbles will likely reflate and deflate in the next few years, but when we take in context all the information as a whole about bitcoin and cryptocurrencies in general, I am sure you can understand that NO, we doubt a coin like bitcoin can become the dominant form of payments for mainstream users in todays world. But it will become a good alternative in the future.

Have a great day.

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