Bitcoin Price Keep Fluctuating-Why Does It - https ...
Bitcoin Price Keep Fluctuating-Why Does It - https ...
Explained: What causes the Rise and Fall of Bitcoin Price ...
Bitcoin Price Fluctuations - Why Are They So Significant ...
Bitcoin Price Fluctuation in Figures - From 2009 Till Date ...
What Causes Volatility In Bitcoin? - FXCM UK
Why Bitcoin Has a Volatile Value?
Price fluctuations in the bitcoin spot rate on cryptocurrency exchanges are driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). More recently, a volatility index for bitcoin has also become available. Known as the Bitcoin Volatility Index, it aims to track the volatility of the world's leading digital currency by market cap over various periods of time. Bitcoin's value has been historically quite volatile. In a three-month span from October of 2017 to January of 2018, for instance, the volatility of the price of bitcoin reached to nearly 8%. This is more than twice the volatility of bitcoin in the 30-day period ending January 15, 2020. But why is bitcoin so volatile? Here are just a few of the many factors behind bitcoin's volatility.
Bad News Hurts Adoption Rate
News events that scare bitcoin users include geopolitical events and statements by governments that bitcoin is likely to be regulated. Bitcoin's early adopters included several bad actors, producing headline news stories that produced fear in investors. Headline-making bitcoin news over the decade or so of the cryptocurrency's existence includes the bankruptcy of Mt. Gox in early 2014 and, more recently, that of the South Korean exchange Yapian Youbit. Other news stories which shocked investors include the high-profile use of bitcoin in drug transactions via Silk Road that ended with the FBI shutdown of the marketplace in October 2013. All these incidents and the public panic that ensued drove the value of bitcoins versus fiat currencies down rapidly. However, bitcoin-friendly investors viewed those events as evidence that the market was maturing, driving the value of bitcoins versus the dollar markedly back up in the short period immediately following the news events.
Bitcoin's Perceived Value Sways
One reason why bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency. Bitcoin has properties that make it similar to gold. It is governed by a design decision by the developers of the core technology to limit its production to a fixed quantity of 21 million BTC. Since that differs markedly from fiat currency, which is dynamically managed by governments who want to maintain low inflation, high employment, and satisfactory growth through investment in capital resources, as economies built with fiat currencies show signs of strength or weakness, investors may allocate more or less of their assets into bitcoin.
Uncertainty of Future Bitcoin's Value
Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and method of value transfer. A store of value is the function by which an asset can be useful in the future with some predictability. A store of value can be saved and exchanged for some good or service in the future. A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another. Bitcoin’s volatility at the present makes it a somewhat unclear store of value, but it promises nearly frictionless value transfer. As a result, we see that bitcoin's value can swing based on news events much as we observe with fiat currencies.
Large Currency Holder Risks
Bitcoin volatility is also to an extent driven by holders of large proportions of the total outstanding float of the currency. For bitcoin investors with current holdings above around $10M, it is not clear how they would liquidate a position that large into a fiat position without severely moving the market. Indeed, it may not be clear how they would liquidate a position of that size in a short period of time at all, as most cryptocurrency exchanges impose 24-hour withdrawal limits far below that threshold. Bitcoin has not reached the mass market adoption rates that would be necessary to provide option value to large holders of the currency.
Security Breaches Cause Volatility
Bitcoin can also become volatile when the bitcoin community exposes security vulnerabilities in an effort to produce massive open source responses in the form of security fixes. This approach to security is paradoxically one that produces great outcomes, with many valuable open source software initiatives to its credit, including Linux. Bitcoin developers must reveal security concerns to the public in order to produce robust solutions. It was a hack that drove the Yapian Youbit to bankruptcy, while many other cryptocurrencies have also made headlines for being hacked or having stashes of cryptocurrencies stolen. As an early example, in April 2014, the OpenSSL vulnerabilities attacked by the Heartbleed bug and reported by Google security's, Neel Mehta, drove Bitcoin prices down by 10% in a month. Bitcoin and open source software development are built upon the same fundamental premise that a copy of the source code is available to users to examine. This concept makes it the responsibility of the community to voice concerns about the software design, just as it is the responsibility of the community to come to consensus about modifications to that underlying source code as well. Because of the open conversation and debate regarding the Bitcoin network, security breaches tend to be highly publicized.
High-Profile Losses Raise Fear
It is worth noting that the aforementioned thefts and the ensuing news about the losses had a double effect on volatility. They reduced the overall float of bitcoin, producing a potential lift on the value of the remaining bitcoin due to increased scarcity. However, overriding this lift was the negative effect of the news cycle that followed. Notably, other bitcoin gateways looked to the massive failure at Mt. Gox as a positive for the long term prospects of bitcoin, further complicating the already complex story behind the currency’s volatility. As early adopting firms were eliminated from the market due to poor management and dysfunctional processes, later entrants learn from their errors and build stronger processes into their own operations, strengthening the infrastructure of the cryptocurrency overall.
High-Inflation Nations and Bitcoins
Bitcoin’s use case as a currency for developing countries that are currently experiencing high inflation is valuable when considering the volatility of bitcoin in these economies versus the volatility of bitcoin in USD. Bitcoin is much more volatile versus USD than the high-inflation Argentine peso versus the USD. That being said, the near frictionless transfer of bitcoins across borders makes it a potentially highly attractive borrowing instrument for Argentineans, as the high inflation rate for peso-denominated loans potentially justifies taking on some intermediate currency volatility risk in a bitcoin-denominated loan funded outside Argentina. Similarly, funders outside Argentina can earn a higher return under this scheme than they can by using other debt instruments, denominated in their home currency, potentially offsetting some of the risks of exposure to the high inflation Argentine market.
Tax Treatment Lifts Volatility
According to the Internal Revenue Service (IRS), bitcoin is actually considered an asset for tax purposes. This has had a mixed impact on bitcoin's volatility. On the upside, any statement recognizing the currency has a positive effect on the market valuation of the currency. Conversely, the decision by the IRS to call it property had at least two negative effects. The first was the added complexity for users who want to use it as a form of payment. Under the new tax law, users would have to record the market value of the currency at the time of every transaction, no matter how small. This need for record keeping can understandably slow adoption as it seems to be too much trouble for what it is worth for many users. Secondly, the decision to call the currency a form of property for tax purposes may be a signal to some market participants that the IRS is preparing to enforce stronger regulations later. Very strong regulation of the currency could cause the adoption rate of the currency to slow to the point where it is not able to achieve the mass adoption that is critical for its overall utility in society. Recent moves by the IRS are not clear as to their signaling motives and therefore have mixed signals to the market for bitcoin.
Bitcoin Broker Understand the Benefits of CryptoCurrency Trading
Bitcoin is a cryptocurrency, which can be spent, saved, or invested, and it can be stolen too. Trading with Bitcoins was considered to be risky, but the current trends show that it has become a big hit the binary options sector. This decentralized currency is not regulated by any Government, or by any central authority. What determines the price of Bitcoins? Bitcoin's price is determined according to the supply and demand ratio. Price increases when the demand increases, the rates plummet downwards when the demand falls. Bitcoins in circulation are limited, and new ones are created at a very slow rate. Since it does not have enough cash reserve to move the market price, its price can be extremely volatile. Bitcoin trading is popular because of -
Low inflation risk - Inflation is the biggest issue for traders, because all the currencies lose some of their purchasing power when the reserve banks keep printing more currency. With Bitcoin minting system being limited to just 21 million Bitcoins, it hardly gets impacted with inflation.
Low collapse risk - Currencies fluctuations depend on government trade policies, which at times cause hyperinflation, and even lead to the collapse of currency. Bitcoin is a virtual universal currency, which is not regulated by any government.
Simple, safe and cheap - The Bitcoin payments take place between peer-to-peer without any intermediary, which is why it is simple and cheap.
Easy to carry - Bitcoins worth million dollars can be carried in your pocket, in a memory stick. This cannot be done with gold or cash.
Untraceable - Issuance of Bitcoin is not regulated by any government, so the risk of seizure is nil.
Binary options Bitcoin trading platform bitcoin binary options are getting familiar with popularity of these Bitcoins, and its constant fluctuating values. Therefore they are using this opportunity to offer traders with the latest volatile crypto-currency as an additional payment method. Bitcoin brokers providing crypto-currency as trading option include -
One touch option - Bitcoin trading can be done with AnyOption or one-touch option. For example the current popular currency pair is BTC/USD.
SetOption - The latest option available for asset trading is BITCOIN/USD.
Bitcoin brokers provide a simple trading online platform. All you have to do is visit their website, enter your details, and create an account. You can start with demo account to understand the market action. The trading screen is simple.
Pick the price direction (UP/DOWN)
Select the timeframe
Is Bitcoin trading secure? Bitcoin network is possibly the world's vast spread computing project. The most common weakness here is the user errors. Bitcoin wallet files can get lost, stolen, or deleted accidentally just like any other files in the digital form. However, users can use sound security strategies to protect their cash. Alternatively, you could choose the service providers who offer high-level security, as well as insurance against loss or theft. We provide latest information on Bitcoin brokers and online trading platforms on our website. Please visit our website to check out the broker reviews in order to make the right choices.
Rebasing, new money, old money, the stable value, and value fluctuations.
Hello all. I have seen several people comparing ampleforth to bitconnect, so here is the simplified formula: (Oracle Price – Target Price) / 10 supply change every 24 hours. Now so long as the price fluctuations are under this amount, we never run the risk of dropping into negative territory. Now, look at the chart. What are our fluctuations? The biggest fluctuation was the 13 july 2020, from 3.46 to 1.86. Now, is this due only to the rebase? No. If you look up on the days before that, we had a massive run up. This looks like a normal market pattern cycle that got burst. But did hodlers lose? No. The marketcap just keeps going up. So, what could cause the price to dip below $1? Well, if we reached $1, and the marketcap stagnated, then a whale *COULD* crash the market. However, there are several things to consider here. First, when we reach a stagnated market value, ampleforth will have taken a strong competitive edge against tether and usdc. That means its volume will be absolutely massive. Second, it requires more money to crash an asset than it requires to jack an asset's prices up. Psychology lesson. Most people are bad traders because they treat risk and reward differently. They hold losing positions hoping the losing position will come back, and they hesitate to take winning positions if there is a chance of loss. This risk adverse mentality has an application here. Also, the lower number of say .90 is a numerically lower number than say 1.15. And trading lesson... the spot price of an asset is determined by active traders. Not by actual hodlers. Traders are necessarily reactionary. We cannot see the future. And when the price fluctuates, non market participants tend to become active market participants. This is why small price moves can spark feagreed runs. At ampleforth's target price of $1, it is going to be difficult for any one trader to crash the market, and we will NOT see price drops to .5 as a normal occurrence. If we do, there is an arbitrage that traders like me WILL do if it happens. Basically since we know that below $1 the rebase is a negative event, we will do the opposite of current actions with trading. The current trading strategy that eliminates risk while at the same time maximizes returns is to jump in with tether 5 minutes before rebase, and jump out and crash the market with the new 10% supply. Under $1, the strategy would be to buy and jump in. Right before rebase, traders sell, and then buy back in after rebase. People who are saying ampleforth is a bad investment are probably wrong. There are reasons it won't crash sub $1 when it has lots of users, and there are ways the market can remedy the situation. Now.. the ampleforth rich list IS disturbing. Just like satoshi nakamoto holding 10% of bitcoin is disturbing. However, they are a respectable crypto company, and they have plans for at least coinbase and binance, and I do not see them flash dumping on the market. That isn't to say they might sell. I am saying that if they do sell, they will do it in a nice respectful manner that does not crash the market, and doesn't cause lots of slippage for them.
How EpiK Protocol “Saved the Miners” from Filecoin with the E2P Storage Model?
https://preview.redd.it/n5jzxozn27v51.png?width=2222&format=png&auto=webp&s=6cd6bd726582bbe2c595e1e467aeb3fc8aabe36f On October 20, Eric Yao, Head of EpiK China, and Leo, Co-Founder & CTO of EpiK, visited Deep Chain Online Salon, and discussed “How EpiK saved the miners eliminated by Filecoin by launching E2P storage model”. ‘?” The following is a transcript of the sharing. Sharing Session Eric: Hello, everyone, I’m Eric, graduated from School of Information Science, Tsinghua University. My Master’s research was on data storage and big data computing, and I published a number of industry top conference papers. Since 2013, I have invested in Bitcoin, Ethereum, Ripple, Dogcoin, EOS and other well-known blockchain projects, and have been settling in the chain circle as an early technology-based investor and industry observer with 2 years of blockchain experience. I am also a blockchain community initiator and technology evangelist Leo: Hi, I’m Leo, I’m the CTO of EpiK. Before I got involved in founding EpiK, I spent 3 to 4 years working on blockchain, public chain, wallets, browsers, decentralized exchanges, task distribution platforms, smart contracts, etc., and I’ve made some great products. EpiK is an answer to the question we’ve been asking for years about how blockchain should be landed, and we hope that EpiK is fortunate enough to be an answer for you as well. Q & A Deep Chain Finance: First of all, let me ask Eric, on October 15, Filecoin’s main website launched, which aroused everyone’s attention, but at the same time, the calls for fork within Filecoin never stopped. The EpiK protocol is one of them. What I want to know is, what kind of project is EpiK Protocol? For what reason did you choose to fork in the first place? What are the differences between the forked project and Filecoin itself? Eric: First of all, let me answer the first question, what kind of project is EpiK Protocol. With the Fourth Industrial Revolution already upon us, comprehensive intelligence is one of the core goals of this stage, and the key to comprehensive intelligence is how to make machines understand what humans know and learn new knowledge based on what they already know. And the knowledge graph scale is a key step towards full intelligence. In order to solve the many challenges of building large-scale knowledge graphs, the EpiK Protocol was born. EpiK Protocol is a decentralized, hyper-scale knowledge graph that organizes and incentivizes knowledge through decentralized storage technology, decentralized autonomous organizations, and generalized economic models. Members of the global community will expand the horizons of artificial intelligence into a smarter future by organizing all areas of human knowledge into a knowledge map that will be shared and continuously updated for the eternal knowledge vault of humanity And then, for what reason was the fork chosen in the first place? EpiK’s project founders are all senior blockchain industry practitioners and have been closely following the industry development and application scenarios, among which decentralized storage is a very fresh application scenario. However, in the development process of Filecoin, the team found that due to some design mechanisms and historical reasons, the team found that Filecoin had some deviations from the original intention of the project at that time, such as the overly harsh penalty mechanism triggered by the threat to weaken security, and the emergence of the computing power competition leading to the emergence of computing power monopoly by large miners, thus monopolizing the packaging rights, which can be brushed with computing power by uploading useless data themselves. The emergence of these problems will cause the data environment on Filecoin to get worse and worse, which will lead to the lack of real value of the data in the chain, high data redundancy, and the difficulty of commercializing the project to land. After paying attention to the above problems, the project owner proposes to introduce multi-party roles and a decentralized collaboration platform DAO to ensure the high value of the data on the chain through a reasonable economic model and incentive mechanism, and store the high-value data: knowledge graph on the blockchain through decentralized storage, so that the lack of value of the data on the chain and the monopoly of large miners’ computing power can be solved to a large extent. Finally, what differences exist between the forked project and Filecoin itself? On the basis of the above-mentioned issues, EpiK’s design is very different from Filecoin, first of all, EpiK is more focused in terms of business model, and it faces a different market and track from the cloud storage market where Filecoin is located because decentralized storage has no advantage over professional centralized cloud storage in terms of storage cost and user experience. EpiK focuses on building a decentralized knowledge graph, which reduces data redundancy and safeguards the value of data in the distributed storage chain while preventing the knowledge graph from being tampered with by a few people, thus making the commercialization of the entire project reasonable and feasible. From the perspective of ecological construction, EpiK treats miners more friendly and solves the pain point of Filecoin to a large extent, firstly, it changes the storage collateral and commitment collateral of Filecoin to one-time collateral. Miners participating in EpiK Protocol are only required to pledge 1000 EPK per miner, and only once before mining, not in each sector. What is the concept of 1000 EPKs, you only need to participate in pre-mining for about 50 days to get this portion of the tokens used for pledging. The EPK pre-mining campaign is currently underway, and it runs from early September to December, with a daily release of 50,000 ERC-20 standard EPKs, and the pre-mining nodes whose applications are approved will divide these tokens according to the mining ratio of the day, and these tokens can be exchanged 1:1 directly after they are launched on the main network. This move will continue to expand the number of miners eligible to participate in EPK mining. Secondly, EpiK has a more lenient penalty mechanism, which is different from Filecoin’s official consensus, storage and contract penalties, because the protocol can only be uploaded by field experts, which is the “Expert to Person” mode. Every miner needs to be backed up, which means that if one or more miners are offline in the network, it will not have much impact on the network, and the miner who fails to upload the proof of time and space in time due to being offline will only be forfeited by the authorities for the effective computing power of this sector, not forfeiting the pledged coins. If the miner can re-submit the proof of time and space within 28 days, he will regain the power. Unlike Filecoin’s 32GB sectors, EpiK’s encapsulated sectors are smaller, only 8M each, which will solve Filecoin’s sector space wastage problem to a great extent, and all miners have the opportunity to complete the fast encapsulation, which is very friendly to miners with small computing power. The data and quality constraints will also ensure that the effective computing power gap between large and small miners will not be closed. Finally, unlike Filecoin’s P2P data uploading model, EpiK changes the data uploading and maintenance to E2P uploading, that is, field experts upload and ensure the quality and value of the data on the chain, and at the same time introduce the game relationship between data storage roles and data generation roles through a rational economic model to ensure the stability of the whole system and the continuous high-quality output of the data on the chain. Deep Chain Finance: Eric, on the eve of Filecoin’s mainline launch, issues such as Filecoin’s pre-collateral have aroused a lot of controversy among the miners. In your opinion, what kind of impact will Filecoin bring to itself and the whole distributed storage ecosystem after it launches? Do you think that the current confusing FIL prices are reasonable and what should be the normal price of FIL? Eric: Filecoin mainnet has launched and many potential problems have been exposed, such as the aforementioned high pre-security problem, the storage resource waste and computing power monopoly caused by unreasonable sector encapsulation, and the harsh penalty mechanism, etc. These problems are quite serious, and will greatly affect the development of Filecoin ecology. These problems are relatively serious, and will greatly affect the development of Filecoin ecology, here are two examples to illustrate. For example, the problem of big miners computing power monopoly, now after the big miners have monopolized computing power, there will be a very delicate state — — the miners save a file data with ordinary users. There is no way to verify this matter in the chain, whether what he saved is uploaded by himself or someone else. And after the big miners have monopolized computing power, there will be a very delicate state — — the miners will save a file data with ordinary users, there is no way to verify this matter in the chain, whether what he saved is uploaded by himself or someone else. Because I can fake another identity to upload data for myself, but that leads to the fact that for any miner I go to choose which data to save. I have only one goal, and that is to brush my computing power and how fast I can brush my computing power. There is no difference between saving other people’s data and saving my own data in the matter of computing power. When I save someone else’s data, I don’t know that data. Somewhere in the world, the bandwidth quality between me and him may not be good enough. The best option is to store my own local data, which makes sense, and that results in no one being able to store data on the chain at all. They only store their own data, because it’s the most economical for them, and the network has essentially no storage utility, no one is providing storage for the masses of retail users. The harsh penalty mechanism will also severely deplete the miner’s profits, because DDOS attacks are actually a very common attack technique for the attacker, and for a big miner, he can get a very high profit in a short period of time if he attacks other customers, and this thing is a profitable thing for all big miners. Now as far as the status quo is concerned, the vast majority of miners are actually not very well maintained, so they are not very well protected against these low-DDOS attacks. So the penalty regime is grim for them. The contradiction between the unreasonable system and the demand will inevitably lead to the evolution of the system in a more reasonable direction, so there will be many forked projects that are more reasonable in terms of mechanism, thus attracting Filecoin miners and a diversion of storage power. Since each project is in the field of decentralized storage track, the demand for miners is similar or even compatible with each other, so miners will tend to fork the projects with better economic benefits and business scenarios, so as to filter out the projects with real value on the ground. For the chaotic FIL price, because FIL is also a project that has gone through several years, carrying too many expectations, so it can only be said that the current situation has its own reasons for existence. As for the reasonable price of FIL there is no way to make a prediction because in the long run, it is necessary to consider the commercialization of the project to land and the value of the actual chain of data. In other words, we need to keep observing whether Filecoin will become a game of computing power or a real value carrier. Deep Chain Finance: Leo, we just mentioned that the pre-collateral issue of Filecoin caused the dissatisfaction of miners, and after Filecoin launches on the main website, the second round of space race test coins were directly turned into real coins, and the official selling of FIL hit the market phenomenon, so many miners said they were betrayed. What I want to know is, EpiK’s main motto is “save the miners eliminated by Filecoin”, how to deal with the various problems of Filecoin, and how will EpiK achieve “save”? Leo: Originally Filecoin’s tacit approval of the computing power makeup behavior was to declare that the official directly chose to abandon the small miners. And this test coin turned real coin also hurt the interests of the loyal big miners in one cut, we do not know why these low-level problems, we can only regret. EpiK didn’t do it to fork Filecoin, but because EpiK to build a shared knowledge graph ecology, had to integrate decentralized storage in, so the most hardcore Filecoin’s PoRep and PoSt decentralized verification technology was chosen. In order to ensure the quality of knowledge graph data, EpiK only allows community-voted field experts to upload data, so EpiK naturally prevents miners from making up computing power, and there is no reason for the data that has no value to take up such an expensive decentralized storage resource. With the inability to make up computing power, the difference between big miners and small miners is minimal when the amount of knowledge graph data is small. We can’t say that we can save the big miners, but we are definitely the optimal choice for the small miners who are currently in the market to be eliminated by Filecoin. Deep Chain Finance: Let me ask Eric: According to EpiK protocol, EpiK adopts the E2P model, which allows only experts in the field who are voted to upload their data. This is very different from Filecoin’s P2P model, which allows individuals to upload data as they wish. In your opinion, what are the advantages of the E2P model? If only voted experts can upload data, does that mean that the EpiK protocol is not available to everyone? Eric: First, let me explain the advantages of the E2P model over the P2P model. There are five roles in the DAO ecosystem: miner, coin holder, field expert, bounty hunter and gateway. These five roles allocate the EPKs generated every day when the main network is launched. The miner owns 75% of the EPKs, the field expert owns 9% of the EPKs, and the voting user shares 1% of the EPKs. The other 15% of the EPK will fluctuate based on the daily traffic to the network, and the 15% is partly a game between the miner and the field expert. The first describes the relationship between the two roles. The first group of field experts are selected by the Foundation, who cover different areas of knowledge (a wide range of knowledge here, including not only serious subjects, but also home, food, travel, etc.) This group of field experts can recommend the next group of field experts, and the recommended experts only need to get 100,000 EPK votes to become field experts. The field expert’s role is to submit high-quality data to the miner, who is responsible for encapsulating this data into blocks. Network activity is judged by the amount of EPKs pledged by the entire network for daily traffic (1 EPK = 10 MB/day), with a higher percentage indicating higher data demand, which requires the miner to increase bandwidth quality. If the data demand decreases, this requires field experts to provide higher quality data. This is similar to a library with more visitors needing more seats, i.e., paying the miner to upgrade the bandwidth. When there are fewer visitors, more money is needed to buy better quality books to attract visitors, i.e., money for bounty hunters and field experts to generate more quality knowledge graph data. The game between miners and field experts is the most important game in the ecosystem, unlike the game between the authorities and big miners in the Filecoin ecosystem. The game relationship between data producers and data storers and a more rational economic model will inevitably lead to an E2P model that generates stored on-chain data of much higher quality than the P2P model, and the quality of bandwidth for data access will be better than the P2P model, resulting in greater business value and better landing scenarios. I will then answer the question of whether this means that the EpiK protocol will not be universally accessible to all. The E2P model only qualifies the quality of the data generated and stored, not the roles in the ecosystem; on the contrary, with the introduction of the DAO model, the variety of roles introduced in the EpiK ecosystem (which includes the roles of ordinary people) is not limited. (Bounty hunters who can be competent in their tasks) gives roles and possibilities for how everyone can participate in the system in a more logical way. For example, a miner with computing power can provide storage, a person with a certain domain knowledge can apply to become an expert (this includes history, technology, travel, comics, food, etc.), and a person willing to mark and correct data can become a bounty hunter. The presence of various efficient support tools from the project owner will lower the barriers to entry for various roles, thus allowing different people to do their part in the system and together contribute to the ongoing generation of a high-quality decentralized knowledge graph. Deep Chain Finance: Leo, some time ago, EpiK released a white paper and an economy whitepaper, explaining the EpiK concept from the perspective of technology and economy model respectively. What I would like to ask is, what are the shortcomings of the current distributed storage projects, and how will EpiK protocol be improved? Leo: Distributed storage can easily be misunderstood as those of Ali’s OceanDB, but in the field of blockchain, we should focus on decentralized storage first. There is a big problem with the decentralized storage on the market now, which is “why not eat meat porridge”. How to understand it? Decentralized storage is cheaper than centralized storage because of its technical principle, and if it is, the centralized storage is too rubbish for comparison. What incentive does the average user have to spend more money on decentralized storage to store data? Is it safer? Existence miners can shut down at any time on decentralized storage by no means save a share of security in Ariadne and Amazon each. More private? There’s no difference between encrypted presence on decentralized storage and encrypted presence on Amazon. Faster? The 10,000 gigabytes of bandwidth in decentralized storage simply doesn’t compare to the fiber in a centralized server room. This is the root problem of the business model, no one is using it, no one is buying it, so what’s the big vision. The goal of EpiK is to guide all community participants in the co-construction and sharing of field knowledge graph data, which is the best way for robots to understand human knowledge, and the more knowledge graph data there is, the more knowledge a robot has, the more intelligent it is exponentially, i.e., EpiK uses decentralized storage technology. The value of exponentially growing data is captured with linearly growing hardware costs, and that’s where the buy-in for EPK comes in. Organized data is worth a lot more than organized hard drives, and there is a demand for EPK when robots have the need for intelligence. Deep Chain Finance: Let me ask Leo, how many forked projects does Filecoin have so far, roughly? Do you think there will be more or less waves of fork after the mainnet launches? Have the requirements of the miners at large changed when it comes to participation? Leo: We don’t have specific statistics, now that the main network launches, we feel that forking projects will increase, there are so many restricted miners in the market that they need to be organized efficiently. However, we currently see that most forked projects are simply modifying the parameters of Filecoin’s economy model, which is undesirable, and this level of modification can’t change the status quo of miners making up computing power, and the change to the market is just to make some of the big miners feel more comfortable digging up, which won’t help to promote the decentralized storage ecology to land. We need more reasonable landing scenarios so that idle mining resources can be turned into effective productivity, pitching a 100x coin instead of committing to one Fomo sentiment after another. Deep Chain Finance: How far along is the EpiK Protocol project, Eric? What other big moves are coming in the near future? Eric: The development of the EpiK Protocol is divided into 5 major phases. (a) Phase I testing of the network “Obelisk”. Phase II Main Network 1.0 “Rosetta”. Phase III Main Network 2.0 “Hammurabi”. (a) The Phase IV Enrichment Knowledge Mapping Toolkit. The fifth stage is to enrich the knowledge graph application ecology. Currently in the first phase of testing network “Obelisk”, anyone can sign up to participate in the test network pre-mining test to obtain ERC20 EPK tokens, after the mainnet exchange on a one-to-one basis. We have recently launched ERC20 EPK on Uniswap, you can buy and sell it freely on Uniswap or download our EpiK mobile wallet. In addition, we will soon launch the EpiK Bounty platform, and welcome all community members to do tasks together to build the EpiK community. At the same time, we are also pushing forward the centralized exchange for token listing. Users’ Questions User 1: Some KOLs said, Filecoin consumed its value in the next few years, so it will plunge, what do you think? Eric: First of all, the judgment of the market is to correspond to the cycle, not optimistic about the FIL first judgment to do is not optimistic about the economic model of the project, or not optimistic about the distributed storage track. First of all, we are very confident in the distributed storage track and will certainly face a process of growth and decline, so as to make a choice for a better project. Since the existing group of miners and the computing power already produced is fixed, and since EpiK miners and FIL miners are compatible, anytime miners will also make a choice for more promising and economically viable projects. Filecoin consumes the value of the next few years this time, so it will plunge. Regarding the market issues, the plunge is not a prediction, in the industry or to keep learning iteration and value judgment. Because up and down market sentiment is one aspect, there will be more very important factors. For example, the big washout in March this year, so it can only be said that it will slow down the development of the FIL community. But prices are indeed unpredictable. User2: Actually, in the end, if there are no applications and no one really uploads data, the market value will drop, so what are the landing applications of EpiK? Leo: The best and most direct application of EpiK’s knowledge graph is the question and answer system, which can be an intelligent legal advisor, an intelligent medical advisor, an intelligent chef, an intelligent tour guide, an intelligent game strategy, and so on.
Critical risk nobody is considering when staking Ampleforth..
Read the TLDR if you dont want to read all this. With bitcoin their is an incentive to stay in the network ("staking" your fiat in bitcoin) because the farther the price of bitcoin goes down, the greater an incentive it would be to buy the coin because the price is lower. Because of the increasingly greater incentives to buy bitcoin at an increasingly lower price, there would be no drying up of incentives for buying bitcoin, so bitcoin will never go too extremely far down. However, with this coin things are different. When things start to dry up or the price goes down, when people decide to pull out, not only will the market cap go down but there is an opposite incentive compared to a decrease in price for bitcoin. If you are still staking while people stop staking and start selling because the price is going down, you will be disproportionately and exponentially effected. For example lets say that the rewards are 20% ampleforth and then the next day rewards are -20% ampleforth. If 20% of users stop staking because -20% is too much of a loss then rewards become -25% ampleforth instead for the remaining users. Maybe -25% ampleforth is too much for some users so another 20% stop staking and the rewards are now -31.5% ampleforth. Notice that the negative rewards become exponentially severe as people leave. This effect will start to become severe and people will be forced to leave staking (and perhaps also have an incentive to sell if they think the price is high at like $3 going to $1 or 1$ going to 50 cents) unless they want to lose everything. At some point, the daily % loss is so much that you will need to leave the network or else become completely liquidated and lose everything. Either that or people will realize network participation is so volatile that they simply will not want to stake, and staking is the difference between stable coins and this coin. If people dont want to stake because of exponential volatility, then the market cap goes darastically down. I personally dont know what happens if the market cap goes exponentially down, but I personally dont think people will want to stake in a network that feels like gambling where one day you could earn exponential amount, and other days you can lose an exponential amount. And if people dont stake, then things become even more volatile, and the more volatile things become there would be an even greater incentive to not participate in the network. Its a feedback loop. Right now, everyone is participating in the network, so its hard to imagine people needing to decide whether or not to stake ampleforth, but at some point people will begin to make this decision. I know there is incentives to particpating for longer periods in the network, but I also dont think those incentives are enough given the overwhelming exponential gains and losses that could be incurred from people joining and leaving the network. If the price goes lower than the rebase, and less people are staked because of decrease in price, you will be catching a falling knife because of the low liquidity, which cause you to take extreme losses which are disproportional to the decrease in market cap. This wouldnt be an issue if the liquidity was the same as demand started to rise, because when market cap goes back to its original level and liquidity is the same, you would make up for the temporary losses. However, when the price goes up, I am going to guess many more people will be staked so you will be more likely to make much less than the amount that you lost. This is different than bitcoin where you will always make as much as you lost if the price goes back to its original level. There are positive incentives to stay ("stake") in a network for coins with fluctuating prices, but those incentives dont exist for this coin and are actually the opposite in this case. Im curious what everyone thinks about this theory. Let me know your thoughts. TLDR: The fact that market liquidity can change means lower liquidity when prices go down and higher liquidity when prices go up. Because of lower liquidity when prices go down and higher liquidity when prices go up, if you have 100 Ampleforth when the market cap is 2 trillion, and prices go to 500 billion, you might have actually less ampleforth than you originally had when market cap goes to 2 trillion again because of the low liquidity when prices go down and high liquidity when prices go up, as long as you stay staked when it goes to 500 billion and back. I think this is likely to happen because I think liquidity will always be lower when prices go down than when they go up. The fact that you can lose ampleforth just because prices go down and back means that people will not want to hold when prices go down / go under $1. And this will cause massive reinforcing instability.
AMA AT DETECTIVE ID (25/06/2020) Before welcoming any questions, I would like to briefly introduce STATERA PROJECT. Statera is a smart contract deflationary token pegged to a cryptocurrency index fund. By including STA in an index fund with Link, BTC, ETH, and SNX you can buy one token and access the price action of four of the leading cryptocurrencies. You can also invest directly in the index fund (balancer pool) and receive the benefits of fees and BAL tokens paid to you while also having an automatically balanced fund. Lastly the deflationary mechanics of STA increases the chance for positive price action while decreasing beta (volatility). This is all found in a smart contract that is fully decentralized, the founders can no longer augment the contract in any way and this has been confirmed by a third party code audit through Hacken. Q1 : please explain in more detail about Statera, what is the background of this project? and when was it established? The dev of this project had previously created another deflationary token BURN. When the Balancer Labs released the Balancer Protocol, he had an idea to combine the two, deflationary token and a pool of tokens, making the first deflationary index fund. It started in the end of May and on the 3rd iteration, May 29th - a trustless version was launched that we see today. As briefly explained earlier, STATERA or STA is an Index Deflationary Token built on Ethereum blockchain; Index: Contains a token suite of world class leading crypto assests BTC, ETH, LINK, SNX with STA. Deflationary: On every transaction of STA 1% of the transacted amount is sent to 0x address on ethereum, burned forever, thus reducing the circulating supply of STA Index+Deflationary: STA is mixed with BTC, ETH, LINK SNX in a portfolio, backed by liquidity on a protocol known as balancer (balancer.finance) This platform serves as a market maker for the token suit. The Index suite is of equal rate of 20%, that is 20% of BTC, ETH, SNX LINK and STA, Thus, anytime there is an increase in value of any of those coins or tokens, balancer automatically trade them for STA in order to keep the token suit ratio balanced. And anytime there is an increase in the value of STA, the same process applies. while doing this trade, it enables further burning on every transaction, thus facilitating more token scarcity. In addition to this, Statera was deployed with contract finalised, that is, the index suite can not be altered, It is completely out of Dev's control. Q2 : What are the achievements that have been obtained by Statera in 2020? And what goals do you want to achieve in 2020? By this we assume the questionnaire is asking for a roadmap! First, the project is barely a month old, and within just a month, our liquidity has grown from $50,000 to over $400,000 currently above $300,000. Among the things we have accomplished so far is the creation of market value for STA's Balancer liquidity pool token BPT, which is currently over $1000 per one BPT. Regarding what we set to achieve: The future is filled with many opportunities and potentials, currently, we are working on a massive campaign to introduce our product to the outside world. We have already made contact with different and reputable forums and channels regarding marketing and advertisement offers, some which we are currently negotiating, some which we are awaiting response. All we can say for now is that the Team is working hard to make this the Investment opportunity every crypto enthusiast has been waiting for. Statera has the goal of putting cryptocurrency into every portfolio. We believe we have a product that increases the returns of investing in cryptocurrencies and makes it easier to diversify in this space. We have done so much in June: articles, how to videos, completed the audit, tech upgrades like one token liquidity additions, and beginning our many social communities. We have been hard at work behind the scenes but things like sponsorships, features, and media take time, content makers need days if not weeks to develop content, especially the best of the best. We are working tirelessly, we will not disappoint. We have plans for 2020-2025 and will release those in the next month. They are big and bold, you’re going to be impressed by the scale of our vision, when we say “Cryptocurrency in every portfolio” we mean it. In 2020 more specifically we are focused on more media, videos, product offerings, and exchanges. Q3 : What is the purpose of STA token? How can we get STA? The purpose of STA is an investment in the first deflationary index fund. The whole index's value rises from these aspects: 1. The index funds (WBTC,WETH,SNX,LINK) appreciate in value 2. When the index tokens are traded, the pool receives transaction fees - 1% 3. STA burns on transactions, so it's deflationary nature increases its value as the total supply drops 4. Balancer rewards Index holders with BAL token airdrops every week You can invest via the 'Trade' links in stateraproject.com website. Easiest way is to do it using ETH. The monetary policy of our token is set in stone and constantly deflationary. This negative supply pressure is a powerful mechanism in economics and price discovery. Through the lowering of supply we can decrease your beta (volatility) and increase your alpha (gains). Our token is currently only top 40 in liquidity on Balancer, however our volume is top 10! You want to know why? Because Statera works. Statera increases arbitrage, volume, fees, BAL rewards, and liquidity. Our liquidity miners in our Balancer pool are already making some of the highest BAL rewards on the platform, one user we spoke with made 18% in June, that’s over 150% APY! Our product is working, 100% (or you could say 150%), and when people start to see that, and realize the value, the sky's the limit. Q4 : can we as a user do STA mining? The supply of STA doesn't increase anymore, it only decreases due to the burn feature. So there is no way to mine anymore STA. Only way to acquire the tokens is via an exchange. The monetary policy of our token is set in stone and constantly deflationary. This negative supply pressure is a powerful mechanism in economics and price discovery. Through the lowering of supply we can decrease your beta (volatility) and increase your alpha (gains). Our token is currently only top 40 in liquidity on Balancer, however our volume is top 10! You want to know why? Because Statera works. Statera increases arbitrage, volume, fees, BAL rewards, and liquidity. Our liquidity miners in our Balancer pool are already making some of the highest BAL rewards on the platform, one user we spoke with made 18% in June, that’s over 150% APY! Our product is working, 100% (or you could say 150%), and when people start to see that, and realize the value, the sky's the limit. Q5 : The ecosystem of a public chain has a lot to do with the level of engagement and participation of third-party developers. How does Statera support the developers? Not really. Our project is focusing on investment opportunities for the cryptocurrencies. The cryptocurrency tokens that are not used and are just sitting in a wallet can work for you by being added to an index fund and appreciate in value over time. First off, what we have created is a new asset class, I’ll repeat that, a new asset class. This asset has never existed: “Deflationary Index Fund,” what does that mean for finance? What will developers do with this? It’s hard to give a finite answer. We hope there are future economic papers on our token and what it means to be a deflationary index fund. With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? Being fully decentralized it is up to our community to make this happen, social engagement and community are key. We are constantly bringing community members onto our team and rewarding those that benefit the ecosystem. in addition, Statera is a fully community project now. Paul who is the current team leader was an ordinary member of the community weeks ago, due to his interest and support for the project, he started dedicating his time to the project. Quite a number of community members are also in the same position, while Statera was developed by an individual, it is being built by the entire Statera community Community Questions (Twitter): Q1 From: @KazimKara35 The project tells us that the acquisition and sale of data between participants is protected by code of conduct and how safe is deployed on the blockchain, but how do you handle regulations while operating on a global scale? Statera is decentralized token, similar to other utility crypto tokens and same regulations apply to it as others. his is actually a benefit of our decentralized nature. This isn’t legal advice, however in the past regulating bodies have ruled that the more decentralized a project is, especially from launch, the less likely they are to be deemed a security (see: Ethereum). This means they can be traded more freely and be available on more platforms. We are as decentralized as you can be. The data itself is all secured through the blockchain which has been shown to be a highly secure medium. We do not store any of your data and as long as you follow best practices in blockchain security there are no added security risks of using Statera. We don’t, and literally can’t, hold anymore personal information than is made available in any blockchain transaction. and that "personal information" is more likely than not just your ethereum wallet address, no "real world" data is included in transactions Q2 from: @Michael_NGT353 What is Mechanism you use On your Project sir? Are you Use PoS,PoW or other Mechanism Can you explain why you use it and what is Make it Different? Our token is an ERC-20 token and it's running on the Ethereum blockchain. The Ethereum's POW mechanism is currently supporting the Statera token We run on Ethereum, so we are currently PoW. With ETH 2.0 we will hopefully be PoS this year (hopefully). We use it because ETH has over 100 million addresses and around a million daily transactions. We are currently at about 1,900 token holders, we are just touching the edge of what is possible in this market. We chose the biggest and the best network available right now to launch our product. We think the upside is huge because of this choice. Being the biggest network it is also one of the most secure, no high risk vulnerabilities have been found in Ethereum or in our code (we've had our code audited by a third party, Hacken, and you can read their audit on our Medium page), so we also have security on our side Q3 From : @Ryaaan_Nguyen Can you list some of Statera outstanding features for everyone here to know about? What are the products that Statera is focusing on developing? As mentioned earlier by GC, First off, what we have created is a new asset class, I’ll repeat that, a new asset class. This asset has never existed: “Deflationary Index Fund,” what does that mean for finance? What will developers do with this? It’s hard to give a finite answer. We hope there are future economic papers on our token and what it means to be a deflationary index fund. With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? We touched on this a bit in the question on what makes us special compared to other exchanges. We have created a product that synergizes with Balancer Pools creating a symbiotic relationship that improves the outcomes for users (our product can also synergize with future DeFi products). By including STA in an index fund with Link, BTC, ETH, and SNX you can buy one token and access the price action of four of the leading cryptocurrencies. You can also invest directly in the index fund (balancer pool) and receive the benefits of fees and BAL tokens paid to you while also having an automatically balanced portfolio (like an index fund with dividends). Lastly, the deflationary mechanics of STA increases the chance for positive price action while decreasing beta. We want to package Statera with assets across the whole cryptocurrency space, with an emphasis on DeFi. We also want everyday people to be able to invest quickly in crypto while also feeling reassured their investment is set up to succeed. We are focused on developing a name brand that people go to first and foremost when investing in crypto: cryptocurrency in every portfolio. This is all found in a smart contract that is fully decentralized, the founders can no longer augment the contract in any way and this has been confirmed by the third party code audit. This is a feature in and of itself, some argue that Bitcoin’s true value is in it’s network effect, first mover advantage, and immutability. Statera is modeled on all three of those and has those features in spades. The community now owns our token, the power in that, giving finance and power to the people, is why we are here. Q4 From : @futcek What do you think about the possibility of creating new use cases in DeFi space for existing real world assets by using crypto technology? What role do you see in this creation for Statera? I think my answer above actually answers this perfectly, Statera in and of itself is a “new use case”, a “deflationary index fund” has never existed, I’ll copy and paste the other relevant part: “With the addition of synthetic assets and oracles you can put any asset into the DeFi space: Gold, Nikkei 225, USD, etc. STA can be combined with any assets and bring the benefits of it’s ecosystem and deflationary mechanism to that asset. STA, the token itself, also gives you access to the price action of any asset it is paired with. Put simply STA’s balancer pool(s) give you a benefit in holding them, and STA’s price will reflect it’s inclusion in Balancer Pool(s) (and possibly future financial instruments), so STA is a bet on DeFi as a whole. When we say as whole, we mean as whole: what happens if you include STA in a crypto loan, or package it with a synthetic S&P 500 token, or use it as fee payment in a DeFi platform? Being fully decentralized it is up to our community to make this happen, social engagement and community are key. We are constantly bringing community members onto our team and rewarding those that benefit the ecosystem.” Statera is a way to make your investment more successful, and owning Statera let's you benefit from other people using it to make their investments more successful (a self feeding cycle). Q5 From : @Carmenzamorag Statera's deflationary system is based in that with every transaction 1% of the amount is destroyed, would this lead to lack of supply and liquidity in the long term future? How would that be fixed? The curve of supply is asymptote, meaning that it will never reach zero. The idea is that the deflationary process will slowly decrease the supply of STA, which – combined with a fixed or increaseing demand – will result in STA appreciating in value. Evidently, as the STA token increases in value, the amounts of STA being traded will slowly decrease: The typical investor might buy 10.000 STA at the current rate, but in the future (proportional to an increase in the valueation of STA) this number will tend to decrease, hence the future investor might only buy 1000 STA. This of course results in less STA being burned. Additionally, STA is divisible to the 18th decimal, why – even if the supply was to reach 1 STA – there would be a sufficient supply. Well this would be a question for a Mathematician, and luckily we’re loaded with them (as seen above)! I’ll try to illustrate with an example. 1% of 100 million is 1 million, 1% of 10 million is 100,000. As we go down in supply the burn is less by volume. What also happens at lower supply is higher prices (supply and demand economics). So those 1 million tokens burned may be worth $20,000, but by the time overall supply is at 10 million those 100,000 tokens may also be worth $20,000 or even more. This means you transact “less”, if you want to buy 1 Ether now with Statera you need 8,900 STA which would burn 89 tokens. If Statera is worth $100 you only need 2.32 statera (.023 tokens burned). Along with this proportional and relative burn decrease, tokens are 18 decimals long, so even when we get to 1 token left (which mathematically would take decades if not centuries, but that is wholly dependent on usage), you are still left with 10 to the 18th power, or one quintillion “tokens”. So it’s going to take us a while to have supply issues :) Nuked Phase (3rd Part) Q) What is your VISION and Mission? Our working mission and vision: Mission: Provide every investor with simple and effective ways to invest in cryptocurrency. Decrease volatility and increase positive price pressure in cryptocurrency investments. Lower the barrier to entry for more advanced investment tools. Be a community focused and community driven cryptocurrency, fully decentralized by every meaning of the word. Vision: We aspire to put “cryptocurrency in every portfolio”. We envision a world where finance is given back to the people and wealth building strategies withheld only for affluent individuals are given to all. We also strive to create an investment environment based on sound monetary policy and all the power that comes with a sound asset. Q) What are the benefits of STA for its investors in long term? Does STA have Afrika as an important area for its expansion? We have ties to Africa and see Statera as a way for anyone and everyone to invest in cryptocurrency. The small marketcap of statera makes it's price low and it's upside massive. Right now if you wanted to be exposed to the price action of four cryptocurrencies (BTC, ETH, Link, SNX) Statera is a way to gain that exposure in a way that has a huge upside, compared to the other four assets, there are risks in investing in any small cap but with those risk come outsized rewards (not investment advice and all answers are solely my opinions 😊) Q) In the long run, why should we trust and follow STATERA? How do you raise awareness and elimination of the doubts of investors / partners / customers?. You're really asking "How do I trust myself and other crypto investors" The project is FULLY decentralized, it is now in the hands of the community. We would venture a guess that the community wants their investment to succeed and be worth more in the future, so you are betting on people. wanting to make themselves money on their own investment. This is a pretty sure bet. The community being active and engaged is key, and we have short term and long term plans to ensure this happens Q) No one can doubt the strength of #Statera. But can you tell us some of the challenges and difficulties you're presently facing? How can you possibly overcome them? We're swinging outside our weightclass, we don't see litecoin or SNX, or any other crypto product as our competition. Our competition is NASDAQ, Fidelity, etc. We want to provide world class financial instruments that only the wealthy have access to in the traditional world to everyone. Providing liquidity, risk parity, being paid to provide liquidity, unique value propositions, are all things we want to bring to everyone. However we are coming up in a hectic space, everyday their is fud and defamation on the web, but that is the sandbox we chose to play in and we aren't grabbing our ball and going home. We can tell you that we will not disappoint and fighting all the fud that comes along with being a small and upstart project only fuel our fire. Building legitimacy is our largest challenge and looking at our audit, financial report, and some things you will see in the coming weeks, we hope you see we are facing those challenges head on. Q) What is the actual uniqueness of #Statera.??? Can you guys please explain tha advantages of #Statera over other projects.?? When we launched there were no other products like ours. There are now copies, and we wish them the best, but we have the best product, hands down. Over the next couple weeks this will become apparent, if it hasn't already, also a lot of the AMA answers dug deeper into our unique value proposition, especially the benefits we provide to Balancer Pools which shows the benefits we would provide for any index fund. We are a tool to improve cryptocurrency investing Q) Fragmentation, layering and cross-chain are three future solutions for high-performance blockchains. Where is Statera currently? What are the main reasons for taking this direction? We operate on the Ethereum chain, as it upgrades our services and usability will upgrade. We are working on UI and more user friendly systems to onboard people into our ecosystem Q) How STATERA plan to make room and make this project known in the world of crypto, full of technology and full of new projects very good in today's market? We think we have a truly innovative product, which - when first understood - appeals to most investors. Whether you want a high-volatility/medium-risk token like STA or whether you are more conservative and simply just plan on adding to the Statera pool BPT (which is not nearly as volatile but still offers great returns). We plan on making Statera known to the crypto world through a marketing campaign which slowly will be unravelled in the comming days and weeks. If interested, you can check out an analysis of the different investment options in the Statera ecosystem in our first financial report: https://medium.com/@stateraproject/statera-financial-reports-b47defb58a18 Q) Hello, cryptocurrencies are very volatile and follow bitcoin ... and does this apply to Statera? or is there some other logic present in some way? is statera token different from a current token? Are you working on listings on other exchanges? Currently uniswap is somewhat uncomfortable for fees. We are also on bamboo relay, saturn network, and mesa. Statera will be volatile like all cryptocurrency, this is a small and nascent space. But with the deflationary mechanic and balancer pool, over time, as marketcap grows it will become less volatile and more positively reactive to price. Q) Security is one of the most essential characteristics for a project to get reputation. How can #Statera Team assure to their community that users assets and investments will stay safe from unwanted agents? We have been third party audited by the same company that worked with VeChain to audit their code. Our code has been shown to be bulletproof. Unless Ethereum comes up with a fatal security flaw there is nothing that can happen to our contract (there is no backdoor, no way for anyone to edit or adjust the smart contract). Q) Many investors see the project from the price of the coin. Can you give us advantages why Statera is so suitable for long-term investment? and what makes Statera different from other similar projects? Sometimes the simplest solutions are the most effective. A question you can ask is “What if this fails”? But you can also ask, “What if this succeeds”? Cryptocurrency is filled with asymmetric risks, we think if you look into the value proposition you will find that there is a huge asymmetric risk/reward in Statera, and we will make that even clearer in our soon to be released litepaper. You are on the ground floor of a simple but highly effective solution to onboarding people into defi, cryptocurrencies, and investing. Our product reduces volatility and increases gains (decreases beta and increases alpha in investor terms), which is highly attractive in any investment. The down side is there but the upside outweighs it exponentially (asymmetric risk) Q) What your plans in place for global expansion, are Statera focusing on only market at this time? Or focus on building and developing or getting customers and users, or partnerships? Can you explain this? We have reached out to influencers in other countries and things are in the works. We have also translated documents and are working on having them in at least 4 languages by the end of July. We were founded globally, our team is global, and we are focused on reaching all 7 billion people. Q) Now in the cryptofield everyday there are new projects joining in the Blockchain space. They are upgraded, Well-established and coming up with innovative technology. How Statera going to compete with them? What do you think, one day Statera will become useless And will be lost into the abyss of time for not bringing any new technology? We are the first of our kind, no one had a deflationary index fund before us. Index funds will be the future of crypto (look at the popularity of etfs and indexes in the traditional markets). We are a tool to make your index function better and pay you more. As long as people care about crypto index funds they will care about the value STA brings to that. We have an involved and long term plan to reach dominance over a 5 year span, this is not a flash in the pan, big things coming Q1. You say that the weight and proportions of your tokens are constant. So how have you managed to prevent market price speculation from generating hypervolability in your token price? Do you consider yourselves a kind of stablecoin? Q2. How many jurisdictions allow the use of Stratera products and services? Are they available for Latin America? @joloroeowo The balancer ensures an equal ratio of 20% amongst the five tokens included in our fund. This, however, does not imply that the tokens are stable. Rather, the Balancer protocol helps mitigating price fluctuations. Q) How can I as a Statera participant participate in liquidity mining, and receive BAL as reward? What are the use cases of $STA token, and how are users motivated to buy and hold long term? The easiest way is to go to stateratoken.com and click trade then BPT. You can also buy all five tokens and click on portfolio then add liquidity. Balancer is working on a simpler interface to add liquidity with one token, we are waiting on them. I think we explained the use cases above Q) What do you plan have for global expansion, is Statera currently focused solely on the market? Or is it focused on building and developing or acquiring customer and user or partnership relationships? Can you explain it? We are currently working on promoting the project and further develope our product, making it lucrative for more new investors to join our pool and invest in the STA token. Q1) Statera have 2 types of tokens, so can you tell me the differences between STA and STAC ? What are their uses cases? Is possible Swap between them? Q2) Currently the only possible Swap or "exchange" possible is Uniswap, so you do have plans to list the STA token into a more Exchanges? STAC is obsolete, we only have STA and BPT (go to our website and click on trade) stateratoken.com BPT gives you more diversification and less risk, STA gives you more volatility and more chance for big gains. Q2 we are on multiple exchanges (4), bamboo relay, saturn, and mesa we do have plans for future exchanges but the big ones have processes and hoops to jump through that can't be done so quickly Q) What business scenarios can STATERA support now? In which industries can we see the mass adoption of STATERA technology in the near future? Statera increases the effectiveness of your cryptocurrency investments. Specifically it makes cryptocurrency index funds function better, netting you higher returns, which we have already seen in just one month of implementation. Right now, today, you can buy our BPT token and increase the functionality of holding a crypto index fund. In the future we want every single web user to see and use our product Q) Do you plan to migrate to other platforms like Tron, BinanceChain, EOS, etc. if it is feasible?? Migrating our current contract is not. Starting new offerings on those other chains could be possible, they aren't on our radar currently but if the community requests them we are driven by our community Q) ETH Blockchain is a Blockchain have many token based in it, i have used ETH blockchain long time and i see it have big fee and need much time to make a transcation so Why you choose to based STA in ETH blockchain not other like Bep2 or Trc20 ? Simply: 100 million addresses, 1 million transactions a day. The more users we have the more we will benefit our community. We hope ETH 2.0 scaling will fix the problems you mention. Q) No one achieve anything of value on its own, please can you share about Statera present and future partnerships that will drive you to success in this highly congested crypto space? We have a unique product that no one else has (there are people who have copied us). We can't announce our current and future partnerships yet, but they will be released soon. Our future hopes of partnerships are big and will be key to our future, know we are focused on making big partnerships, some you may not even be thinking about. Q) According to the fact that your algorithm causes 1% of each transaction to be destroyed, I would like to know, then, how you plan to finance yourself as a project in the long term? The project is now in the hands of the community and we are a team of passionate people volunteering to help promote and develope the Statera ecosystem. But then, how do we afford running a promo campaign? We have lots of great community members donating funds that goes to promoting the project. In other words, the community helps financing the project. And so far, we have created a fantastic community consisting of passionate and well-educated people! Q) There are many cryptocurrency startups were established by talent teams, but they got problem in raising capital via token sales due to many factors as bear market, bankrupt etc. This leaded their potential startups fail. So how will Statera break these barriers and attract more funds from outside crypto space? We are community focused and community ran. When you look at centralized cryptocurrencies you can see the negative of them (Tron, ADA, etc.) We believe being fully decentralized is the true power position. You the owner of statera can affect our future and must affect our future. This direct ownership means people need to mobilize and organize to push us forward, and it is in their best self interest to do so. It's a bet on our community, we're excited about that bet Q) What business scenarios can STATERA support now? In which industries can we see the mass adoption of STATERA technology in the near future? Statera increases the effectiveness of your cryptocurrency investments. Specifically it makes cryptocurrency index funds function better, netting you higher returns, which we have already seen in just one month of implementation. Right now, today, you can buy our BPT token and increase the functionality of holding a crypto index fund. In the future we want every single web user to see and use our product Q) Why being a hybrid of a liquidity pool and an index fund? What are the main benefits about this? By being a liquidity pool the exchange side of the pool (balancer also functions as an exchange) gives you added liquidity for more effortless, effective, and cheaper rebalancing. You also benefit from getting paid the fee when people use the exchange AND getting paid BAL tokens that are worth $15-20 USD. These are not benefits you get with an index fund, meanwhile the liquidity pool rebalances just like an index fund would Q) Which specific about technology and strategy of #STA that make you believe it will be successful and what does #STA plan do to attract more users in the upcoming time? I think the idea behind Statera is truly ingenious. We have made an index fund, which investors are highly(!) incentivised to invest in, namely because the ROI, so far, has been huge. An increase in the pool liquidity (index fund) indirectly translates into an increase in the price of STA, why we think the STA token - combined with its deflationary nature - will increase in the long run. The mechanism behind this is somewhat complex, but to better get an understanding of it, I suggest you visit our medium page and read more about the project: https://medium.com/@stateraproject
MCS | What is the Dual Price Mechanism in Perpetual Contracts?
\This post has been written by Hedgehog, an MCS influencer and one of Korea's famous cryptocurrency key opinion leaders.* https://preview.redd.it/twb3l1k289n51.png?width=1024&format=png&auto=webp&s=c8fe8cbb2c1c6190a70ea84be51392109d745d4b #Be_a_Trader! Greetings from MCS, the derivatives trading platform where traders ALWAYS come first. As a cryptocurrency perpetual contract trader, you may have seen the index price and the mark price at least once while trading. It seems that many traders are confused about the differences between the index price and the mark price, so I will explain these two prices and the dual price mechanism used in perpetual contracts.
🎯 What is the Dual Price Mechanism?
The dual price mechanism consists of the mark price and the last traded price. This mechanism protects traders from damages caused by market manipulation, lack of liquidity, or differences in spot prices and futures prices. It also provides a fair trading environment for all traders on MCS, and is used to minimize the price gap between spot prices and the perpetual contract prices. In order to fully understand the concept of mark price, you first need to know the concept of index price.
🎯 Index Price
You can think of the index price as a spot price. The MCS cryptocurrency derivatives exchange refers to a total of 7 exchanges to calculate the BTC/USDT index price, and the exchanges are Binance, Bitfinex, Huobi Global, OKEX, Bittrex Global, HitBTC, and Poloniex. So basically, the index price of the MCS BTC/USDT perpetual contract is the average price of the same cryptocurrency pair's prices on the aforementioned 7 global exchanges.
🎯 Mark Price
The mark price is the price reflecting the status at-the-moment of the MCS exchange to the index price. The mark price is also known as the fair price in some exchanges. The formula for calculating the mark price is "Index Price * (1 + Funding Basis)", and the formula for calculating the funding basis is "Current Funding Ratio * Time Remaining Until Funding Settlement / Funding Interval". Since the calculated mark price represents a more accurate perpetual contract price, the MCS cryptocurrency derivatives exchange uses this mark price as a measure to trigger the liquidation.
🎯 Last Traded Price
The last traded price is the market price of a pair (like BTC/USDT) on the MCS exchange. In short, it refers to the most recent price of the actual trade on MCS. If you have understood the concepts of each of the above terms, this question will pop up in your head: "so, why do we need a dual pricing mechanism?" Let me answer that question with an example.
🎯 Why Use The Dual Price Mechanism
[Example] The mark price and the last traded price are at similar levels of 10,000 USDT and 10,001 USDT, respectively. At this time, Bob wants to enter a short position with 100x leverage using his entire Bitcoin inventory on MCS. At that moment, the last traded price suddenly drops to 5,000 USDT causing the rapid fluctuation in price. Nevertheless, the mark price remains at 10,000 USDT. In this situation, if the last traded price was used as a measure of liquidation, most of the long-positions with leverage would have been liquidated. Therefore, in order to prevent unfair liquidation like the case above, MCS applies the dual price mechanism. I am a Bitcoin margin trader, Hedgehog. Thank you for reading this post. 🔸 MCS Official Website : https://mycoinstory.com 🔸 MCS Telegram : https://t.me/mycoinstory_en Traders ALWAYS come first on MCS. Thank you. MCS Official Twitter (EN):https://twitter.com/mycoinstory_mcs MCS Official Facebook:https://www.facebook.com/MyCoinStory.official
The Ultimate Guide to Binance Leveraged Tokens | Binance News
Leveraged Tokens (LT) will eliminate this trade-off and allow users to safely use leverage without having to worry about liquidation risks and save effort when managing a leveraged investment position. Although LT in the past time is widely known for its advantages, it is also extremely controversial and causes misunderstanding from users. Compared to traditional leveraged margin products, LT has much less profitability in the long term. Despite these shortcomings, LT still receives a lot of attention from global users. So, Binance took action to fix the problems of existing tokens and launched Binance Variable Leveraged Tokens (BLVT). https://preview.redd.it/nb9vhdxpqxg51.jpg?width=750&format=pjpg&auto=webp&s=3476e5a653ec49932253e127f325394da1bcec28 What is Binance Variable Leveraged Tokens? Binance Variable Leverage Tokens (BLVTs) - Binance Mobile Leverage Tokens - are designed to overcome the limitations users often encounter in traditional leveraged tokens. Unlike the existing LTs, BLVT does not maintain a “fixed” level of leverage. Instead, BLVT uses a mobile lever frame that ranges from 1.5x to 3x. It can be traded on the Binance spot market and derives its value from the Binance Futures non-term BTC contract. Currently, there are two types of BLVT: BTCUP and BTCDOWN.
BTCUP allows users to get a leveraged return of 1.5 to 3x as the price of Bitcoin increases.
In contrast, BTCDOWN allows you to make money when the price of Bitcoin falls.
The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May
The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May May 25, 2020 SHARE0 Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%. Meanwhile, Network Demand Score which is a metric incorporating network velocity, transaction value, fees, and miner’s rolling inventory, climbed to 6/6 following the bitcoin halving meaning the network is growing stronger which could also be a sign that “we’re in a longer-term bull market.” Since March 12th, just before the massive sell-off, this score has remained above a 3/6 reflecting growing strength in network activity and instilling confidence in the ongoing uptrend for the bitcoin price. 3 Reasons why fees skyrocketed One component of this indicator, bitcoin on-chain fees has been surging like crazy. Last week, Bitcoin average transaction fee climbed to $7, last seen in February 2018. This has the miner revenues from fees rising to the levels not seen for more than 2 years. But this week, it also dropped 55% to $3.13. The increase in transaction fees, which is increasingly becoming more important for Bitcoin network security, has been because of the unconfirmed transactions piling on in mempool. A decline in hash rate following halving caused fewer blocks to be found and will continue until the next difficulty adjustment has been one of the reasons behind this jump in fees. The other reason is the large fluctuations in bitcoin price which has traders sending coins between exchanges. Ather reason is a “mysterious entity which has been consolidating outputs at the highest fee rates, driving up fees for everyone,” pointed out Serrrgej Kotliar, CEO Bitrefill. Who is this “Crazy1o1”? Over the weekend Kotliar shared how, for the past 14 days, this mysterious entity has consolidated a lower-bound of 720 thousand outputs, 5 MB per day, more than BitMEX. Since May 1st, this entity named “Crazy1o1” has spent around 804k UTXOs and has paid more than 104BTC in mining fees during this time, noted Laurent. “On some days, these fees are equivalent to 10-12% of all the fees received by miners,” he said. Laurent along with others suspect this entity to be the cryptocurrency exchange Coinbase. Earlier this month, it was also found that crypto derivatives exchange BitMEX is making the bitcoin network expensive for everyone and its own users are paying 6.8% of total daily transaction fees. Prepare for the next bull market All of this a “decent fire drill for what might happen if we see another bull market,” said Kotliar. Grubles from Blockstream said, “ON-CHAIN FEES AND BTC PRICE MOVEMENTS CHART. YOU CAN SEE THAT BIG MOVEMENTS RESULT IN PEOPLE RUSHING TO TRANSACT (ALMOST CERTAINLY TO/FROM EXCHANGES), PUSHING FEES UP FOR OTHER NON-TRADER USERS WHO NEED UNCENSORABLE / IRREVERSIBLE TRANSACTIONS.” The fees reached its all-time high at over $55 during the peak of the bull market in December 2017. As such in the next bull market, a 5x growth in on-chain transactions should be expected. But given that batching, one of the many ways the network has been scaled is here, it will prevent the pressure on the network from getting worse than 2017. But exchanges will need to be prepared for this.
﷽ The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people. The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets. Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.
Stock Market Crash
The Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially. All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity. Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses. Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely. So, why inflate the economy so much? Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value. Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat. Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis. Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.
Economic Analysis of Bitcoin
The reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero. Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology. Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value. Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block. Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer. Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed. Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin. Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public. A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved. Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely. Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.
Trading or Investing?
The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY). In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing. The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors. Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market. According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains. We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.
Technical Indicator Analysis of Bitcoin
Technical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
Volume – derived from the market itself, it is mostly irrelevant. The major problem with volume for stocks is that the US market open causes tremendous volume surges eradicating any intrinsic volume analysis. This does not occur with BTC, as it is open twenty-four-seven. At major highs and lows, the market is typically anemic. Most traders are not active at terminal discretes (peaks and troughs) because of levels of fear. Volume allows us confidence in time and price symmetry market inflection points, if we observe low volume at a foretold range of values. We can rationalize that an absolute discrete is usually only discovered and anticipated by very few traders. As the general market realizes it, a herd mentality will push the market in the direction favorable to defending it. Volume is also useful for swing trading, as chances for swing’s validity increases if an increase in volume is seen on and after the swing’s activation. Volume is steadily decreasing. Lows and highs are reached when volume is lower.
Therefore, due to the relatively high volume on the 12th of March, we can safely determine that a low for BTC was not reached.
VIX – Volatility Index, this technical indicator indicates level of fear by the amount of options-based “insurance” in portfolios. A low VIX environment, less than 20 for the S&P index, indicates a stable market with a possible uptrend. A high VIX, over 20, indicates a possible downtrend. VIX is essentially useless for BTC as BTC-based options do not exist. It allows us to predict the market low for $SPY, which will have an indirect impact on BTC in the short term, likely leading to the yearly low. However, it is equally important to see how VIX is changing over time, if it is decreasing or increasing, as that indicates increasing or decreasing fear. Low volatility allows high leverage without risk or rest. Occasionally, markets do rise with high VIX.
As VIX is unusually high, in the forties, we can be confident that a downtrend for the S&P 500 is imminent.
RSI (Relative Strength Index): The most important technical indicator, useful for determining highs and lows when time symmetry is not availing itself. Sometimes analysis of RSI can conflict in different time frames, easiest way to use it is when it is at extremes – either under 30 or over 70. Extremes can be used for filtering highs or lows based on time-and-price window calculations. Highly instructive as to major corrective clues and indicative of continued directional movement. Must determine if longer-term RSI values find support at same values as before. It is currently at 73.56.
Secondly, RSI may be used as a high or low filter, to observe the level that short-term RSI reaches in counter-trend corrections. Repetitions based on market movements based on RSI determine how long a trade should be held onto. Once a short term RSI reaches an extreme and stay there, the other RSI’s should gradually reach the same extremes. Once all RSI’s are at extreme highs, a trend confirmation should occur and RSI’s should drop to their midpoint.
Trend Definition Analysis of Bitcoin
Trend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail. Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form. A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.
Time Symmetry Analysis of Bitcoin
Time is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding. Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading. Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure. Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price. Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not. We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in. What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
Daily Lows Mode for those Months: 1, 1, 2, 4, 12, 17, 18, 24, 25, 28, 29, 30
Hourly Lows Mode for those Months (Military time): 0100, 0200, 0200, 0400, 0700, 0700, 0800, 1200, 1200, 1700, 2000, 2200
Minute Lows Mode for those Months: 00, 00, 00, 00, 00, 00, 09, 09, 59, 59, 59, 59
Day of the Week Lows (last twenty-six weeks):
Weighted Times are repetitions which appears multiple times within the same list, observed and accentuated once divided into relevant sections of the histogram. They are important in the presently defined trading time period and are similar to a mathematical mode with respect to a series. Phased times are essentially periodical patterns in histograms, though they do not guarantee inflection points Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows. Therefore, we have two primary dates from our histogram. 1/1/21, 1/15/21, and 1/29/21 2:00am, 8:00am, 12:00pm, or 10:00pm In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations. The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year! Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market. Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020. The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX. Therefore, our timeline looks like:
2/14/20 – yearly high ($10372 USD)
3/12/20 – yearly low thus far ($3858 USD)
5/9/20 – T-Theory true yearly low (BTC between 4863 and 3569)
Zhuoer Jiang: Talk about the difference between BTC, BCH and BSV
https://preview.redd.it/kcdq7qrjnyd51.jpg?width=570&format=pjpg&auto=webp&s=af67bd46683fbe3ffa6c081d490d69598dd83bbb 1. When do you contact Bitcoin? What do you think of the blockchain industry? I came into contact with Bitcoin in October 2013. At that time, I was making game aids, which involved the issue of collecting money from Taiwan and Southeast Asia. The reason for cultivating the blockchain industry is that blockchain is the only industry that can provide economic freedom. The blockchain is decentralized and has no control center, so no one can eliminate it, so it provides economic freedom. The counter-example is Qvod player. Although Qvod player also has tens of thousands of nodes, it is centralized. As long as the control center is killed, the Qvod player network will die. (QvodPlayer is a Chinese-based video-on-demand playback software, using P2P technology, users can watch online film and television programs through buffering. In mainland China, QvodPlayer has a huge number of users. Due to the use of a dedicated transmission protocol, QvodPlayer is used by some users to download banned videos, such as violent or pornographic videos, and politically sensitive videos. In addition, pirated movies are rampant in QvodPlayer) I am not a Bitcoinist. As long as other tokens provide economic freedom, I will buy them with real money. My position portfolio is BCH 40% + BTC 30% + ETH 20% + economically free innovative currency 10%, and I think that ETH is likely to exceed BTC in total market value in this bull market. 2. What is the difference between BTC, BCH and BSV? The easiest thing to see is the difference in block size. BTC blocks have been locked at about 1MB, while BSV advocates infinite blocks. BCH advocates a moderate block size, which cannot exceed the carrying capacity of an ordinary computer. The current value is about 32MB. Both BTC and BSV have gone to extremes. The BTC development team, Core, pursues extreme decentralization, resulting in too small blocks and high transaction fees. In the last bull market, a transaction fee was as high as hundreds of thousands of yuan, which caused a large number of BTC users to flow out to BCH, ETH and other tokens. Some people think that BTC can rely entirely on stored-value users instead of using users to survive. This is impossible. If there are no users, there are no stored value users. For example, gold is obviously more suitable for storing value, but almost everyone has bank deposits, except for the elderly, almost no one uses gold to store value. To People usually use paper money to store value, and naturally they also use paper money to store value. It is impossible to use paper money to store value with gold, and it is impossible to use paper money for small transactions and gold for large transactions. Currency has a scale effect, and it must be a winner takes all. BSV has gone to the other extreme. The blockchain is enough to store transaction data, but if the blockchain is used as cloud storage, no amount of space is enough. Think about how many resources the world has to store. The result is that the performance requirements are too high, the number of nodes is drastically reduced, and the foundation of the blockchain, which is decentralization, is lost. In the end, it falls into the same fate as the Qvod player. To Behind the different block sizes are the differences in the spirit of the three. Just like during the Opium War, the difference between Britain and China's Qing Dynasty was not a superficial weapon, but a complete political, economic, and technological gap behind it. Both BTC and BSV are irrational and religious to a certain extent. BTC advocates a deadlock block size, and BSV advocates a deadlock protocol. The two are very similar. In terms of rational development and serving users, BCH has won. For example, the issuance of tokens is an important function and rigid demand of the blockchain. Tokens can already be issued on BCH through several protocols such as Wormhole and SLP, while BTC and BSV cannot yet. This is a huge difference in development. 3. Under what circumstances can BCH exceed BTC? BCH has to wait for users to slowly develop until the number of users and transactions exceed BTC. Although under normal circumstances, the currency has a scale effect, this situation is unlikely to happen, but BTC made a fatal mistake, and locked the block and locked the user. What if BTC expands like BCH? First of all, BTC cannot be expanded because the expansion requires a hard fork, regardless of whether it is within the community or the Core, it must adhere to 1MB, insist on extreme decentralization, and BTC must be able to run on the Raspberry Pi. The result is that the expansion advocates in BTC and Core re-hard fork. Isn't this the plot of the hard fork of BCH from BTC in 2017? So what are these "advocates" doing hard forking again? Just go straight to BCH. Therefore, BTC must undergo a hard fork to expand, so it cannot be expanded. So BCH only needs to catch up, which is a fixed goal. I estimate that in this bull market, BCH can exceed the number of users. At that time, BCH had a solid foundation of users and communities. The price increase only increases the price of BCH, the value of BCH is determined by the number of users, and the price fluctuates around the value. 4. Will BCH hard fork happen? What impact will it have on us later? The BCH community has recently had a lot of discussions on the issue of miner donations, which reflects the decentralization of BCH. If BCH is controlled by bitmain, why it took a long time for bitmain to implement this problem? Conversely, if CSW wants to modify something on BSV, it can be passed immediately. 5. Do you think BCH is worth long-term ownership? I often say: "Ask God in the short term, and the number of users in the long term." The longer the time, the more worth holding BCH. BCH is developing rapidly due to the correct route. I just gave an example. There are already several schemes for issuing tokens on BCH, but neither BTC nor BSV have one. Part of it is because BSV locks the protocol and is not convenient for development. The other part It is because the BSV community has inherited the characteristics of CSW and only speaks big words and does not do practical things. Therefore, it is definitely worth holding for 1 to 2 years, and the rate of increase is likely to be higher than that of BTC. I predict that the highest point of this round of bull market for BCH will rise from about 3.6% of BTC to 10% to 20% of BTC. 8. Free Q&A "Will Bitcoin die due to quantum computers or other reasons?" Certainly not, at best, replace a quantum-resistant algorithm. Looking at it now, quantum computers will not be practical for a long time. And I think quantum computers may not be able to solve the NP problem, that is, the current asymmetric encryption problem, which may not be possible mathematically. "The impact of the proliferation of contract transactions on currency prices?" The currency price is ultimately determined by the number of users, not by speculative users. The proliferation of futures trading has happened long ago. From 2016 to 2017, in the presence of a large number of futures trading, BTC rose 100 times. "Will you be notified when you escape?" I will definitely not inform. I have already made predictions. I think the bull market may end in the second half of 2021. Or conversely, this bull market may last for two to three years, and two years are more likely. Why not notify? Most of my clients are miners, and the currency price directly affects the income of the miners. If the currency price drops due to my notification, the interests of my clients will be damaged. "Recommended regular investment in 2019, what strategy is recommended in 2020?" This year's bull market has begun, and it must be a full position investment. The cost of regular investment to buy coins later is very high. "Is it better to speculate or to mine now?" Most people can't insist on holding the token from start to finish. Most people are in the middle of the bull market, or even sell it at the beginning, and then miss the entire bull market. Only miners, no matter what level of miners, will hold the token from beginning to end. During the entire bull market, miners are very profitable. Miners will certainly not sell the goose that lays golden eggs like mining machines in the bull market, so miners tend to make more. The earliest miners are basically still active in the market, and their wealth is free, while the earliest holders of coins are almost gone.
https://federationofglobalmerchants.com/2020/08/14/gold-and-silver-where-do-they-go-from-here/ Investors know by now that one of the leading indicators of an unstable and unpredictable stock market is a surge in the price of precious metals like gold and silver. In February, amidst the COVID-19 pandemic, the markets officially entered a recession, even though just months later several of the major indices have reached all-time highs. It was a brief dip into recessionary territory, but this sort of volatility is what gives investors hesitation in putting their money into the stock market, rather than something that is perceived to be more stable. Gold future contracts are selling well above $2000 per ounce for the rest of 2020 and well into 2021 as well showing that investors are confident that gold will continue to rise in price. Silver is also surging reaching new all-time highs on a daily basis. So investors may be curious as to how to get into this red-hot market, especially as the markets continue to fluctuate. Gold: For centuries now gold has been literally the ‘gold-standard’ of currency and wealth. Dating back all the way to around 40,000 B.C. in Spanish caves, gold is a naturally occurring element that has both fascinated and lured people for as long as barter systems and wealth has been recorded. Currently, gold is enjoying its highest valuations in history as investors flock to the stability of the precious metal through various streams. So what is the allure of gold and why is it so stable? Warren Buffett once said, “Gold is a way of going long on fear.” That is quite a statement from perhaps the greatest investment mind of our generation. But what does this mean for the novice investor? Even the most successful blue-chip stocks can crash. Obviously the more prominent and profitable companies with mega market caps will not crash as easily as smaller companies, but given the volatility of the pandemic, we can see anything happen. But as stock markets fluctuate on a daily basis, the price of gold remains mostly stoic. Not as manipulatable as stock prices, gold is as steady as it gets for investors. What makes gold so stable? It is a combination of factors, first and foremost, it is a physical and tangible element which makes it possible for people to store and stockpile. It does not corrode or wear down over time, making it durable and ensuring that the value remains. There is also a finite supply of it in the world. This reinforces that it will always keep a certain level of valuation as the supply is kept in check. Today, as the Federal Reserve tries desperately to pump money into the American economy to stave off a global recession and keep companies afloat. Printing more American dollars helps in the interim, but it is a temporary band-aid for the bigger problem. As more of the dollar gets created the more it gets devalued as a form of currency. This is another reason why gold is skyrocketing. The two valuations always work inversely to each other, so as the greenback continues to plummet, the price of gold will continue to surge which makes perfect sense if one thinks about it. The value of gold is priced in American dollars per ounce, so if the value of an American dollar retreats, the cost of gold will rise in response. So how can investors take advantage of the current state of gold? In the age of internet investing, there are plenty of ways to invest in gold or anything in that matter. Most American platforms give inventors the ability to buy fractional shares of companies. While this comes in handy for expensive stocks like Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), or Tesla (NASDAQ:TSLA), it also allows investors to diversify their funds across multiple companies to form a basket approach to an industry. There are also plenty of ETFs or Exchange Traded Funds, available for investors to consider. These funds have the diversification of a mutual fund or index fund, but trade like individual stocks. Here’s a few of the better gold ETFs to consider if you are looking to get into the industry:
IAU – iShares Gold Trust: One of the better known gold ETFs out there, iSHARES is a reputable brand with great overall market performance. The fund has returned over 17% to inventors already this year, and with the price of gold projected to continue to rise, this fund should keep delivering for investors into next year.
DGL – Invesco DB Gold Fund: Another well known and reputable ETF, the Invesco Gold Fund has slightly higher fees than iSHARES but has also had a slightly better return so far this year.
IAUF – iShares Gold Strategy ETF: Another iSHARES ETF, this one has parts of IAU, as well as gold futures contracts, to get a long term forecast of the price of gold so the investor gets exposure to a wider range of gold options.
There are dozens of other ETFs available for investors that cover everything from miners to the finished products. Mining company stocks are another great way to get exposure. As the demand for gold increases, these mining companies should see a rise in their revenues and eventually, their profits as well. These changes will be reflected in their stock prices and we have already seen some of this already this year.
ABX – Barrick Gold: One of the largest gold mining companies in the world, this Canadian company has seen healthy gains in their stock price so far in 2020. Over the last 52 weeks, Barrick investors have enjoyed a 131% increase in stock price. With mining projects ongoing in Canada, America, Australia, South America, and Africa, Barrick has already announced that it is on track to achieve guidance this year despite closures from COVID-19.
FNV – Franco-Nevada Gold: This stock price rose almost 15% in July alone. Franco-Nevada operates as a funding company to gold mining companies, rather than actually doing the mining themselves. Sustainalytics, a guidance and analysis company, rated Franco-Nevada number one amongst 104 precious metal companies.
NEM – Newmont Goldcorp: The largest gold stock by market-cap and the only stock to trade on the S&P 500, Newmont is probably the safest company for gold investors to invest in. On top of steady returns and low volatility in the stock price, the company pays a fairly healthy dividend as well.
With gold at all-time highs, we can begin to question how high the precious metal may go. With a second wave of the coronavirus making its way around some parts of the world, and America, still making its way through their initial wave, the uncertainty that exists in today’s markets may continue into 2021. Some Wall Street analysts have forecast gold to rise as high as $10,000 per ounce, but that seems like a little ambitious. Gold has just recently hit all-time highs at $2000 per ounce and to imagine that it can run up another 500% in the next few years seems far-fetched at this point in time. That would require the markets to enter an extended bear-market, which of course is possible after a decade of a bullish run, but it would also require the American dollar to continue to be further devalued. Gold is pegged to continue to rise for the rest of this year though and well into 2021. That means investors and analysts are foreseeing a further devaluation of the American greenback as well as continued volatility in the markets and economy. Is gold a safe haven? Some people believe it is, but if you are an investor that enjoys high returns over long periods of time, investing in precious metals may not be for you. Investors love the stability of gold but the returns are never astronomical, with the last few months being an exception. It helps to have a portion of your portfolio dedicated to precious metals to diversify and protect you from any sudden market corrections, but investors should not be looking at gold as a short-term way to get wealthy. Silver: The other precious metal that has been flying sky-high of recent months is silver, the eternal younger brother to gold. Mined from silver-ore, it is a highly malleable metal that was once valued higher than gold by the Ancient Egyptians. Today, it is relatively low in price per ounce compared to gold, reaching all-time highs recently of just under $30 per ounce. Silver is another stable alternative to gold, and at lower prices, it may be a little more affordable for the novice investor to jump into. Like with gold, silver has an inverse relationship to the American dollar, and to all currencies in general. Again, this is another reason why silver is hitting all-time highs right now, with silver future contracts predicting a steady rise to mirror gold, well into 2021. There is also something that Wall Street calls the gold silver ratio, which is exactly what it sounds like: the ratio of the price of gold per ounce to the price of silver per ounce. This ratio has historically moved together, which makes logical sense if both precious metals are independently moving inverse to paper currencies. Historically, the gold and silver prices do move together though as the general ratio has been in the range of 17:1 to 20:1. Silver also has numerous ways for investors to get involved in, including silver mining and production companies, as well as the ever popular silver ETFs. These Exchange Traded Funds have gained popularity amongst retail investors in recent years as a way of purchasing a diversified product as a single equity with low costs, and no trading fees if your platform allows it. Here are a few of the better performing silver ETFs that investors can look into adding to their portfolios if they are interested in the precious metal:
SLV – iShares Silver Trust: Probably one of the better known silver ETFs, this is fully backed by silver bullion and coins held in a vault. While usually fairly steady, this ETF has enjoyed a 52-week increase of 152% with much of that coming in the last few months.
SIVR – Aberdeen Standard Physical Silver Shares ETF: Very similar to SLV but with lower fees, this is an ideal fund for novice and experienced investors to get into as they start to diversify their portfolios.
DBS – Invesco DB Silver Fund: Again another stable ETF for investors to get into, and another good performing one as well. Just as with their gold ETF, Invsco focuses on silver futures contracts for this fund, so it is a nice long-term play if investors are bullish on silver.
Just as with gold, investors can get a slice of the silver pie by buying shares of silver mining companies as well. Here are a few of the top silver mining company stocks that investors can look into adding to their portfolios.
PAAS – Pan American Silver Corp.: This Canada based miner is focussed on the exploration, development, extraction, refining, processing, and reclamation of silver. They operate mines in Peru, Mexico, Bolivia, and are developing more as well for the future.
WPM – Wheaton Precious Metals: Another Canadian based company that deals with miners of gold, silver, palladium, and cobalt. Wheaton is not a direct miner, rather they purchase these precious metals from other mining companies.
AG – First Majestic Silver Corp.: Canadian companies seem to be dominating the silver industry, and First Majestic is another of those. This company focuses mainly in Mexico for gold and silver.
Silver may never be as popular as gold for investors to keep track of but the two precious metals move in a synchronized fashion, and both are looked upon by investors as safe havens for their money when the market is in flux. The rest of 2020 seems like a wildcard right now, with many analysts expecting a further correction to the markets at any point. There seems to be an inevitability to a market crash of some sort, whether it is as big as the one that happened back in February and March, remains to be seen. Investors are looking at the precious metal industry to hold their funds to wait out any sort of correction or crash. If this does happen, we may expect a pullback in precious metals too as investors selloff to get back into some stocks at their low levels. Such is the ebb and flow of the economy during turbulent times like the current one we are in. At the same time, what if a market correction does not happen? Will the uncertainty continue or will investors feel relatively secure in the way the markets are progressing? This could cause a reduction in the demand for silver and gold, culminating in lower prices in the future. Of course this also depends on the Federal Reserve diminishing their rate of printing paper currency to bailout the economy, which does not seem like a reality in the short-term at least. Another point of contention for investors is the ongoing economical and political tensions between China and America. The two world powers have been feuding for the past couple of months over various things, but it escalated as China social media app Tik Tok gained popularity in North America. It was alleged that TikTok was sending data and information from mobile phones back to China, though nobody is sure of their intended use of this data. Regardless, the markets have stumbled several times lately because of this. Both sides have threatened economic sanctions and the banning of certain product use in each country. The prices of silver and gold have shot up as the tensions have escalated between the two governments, as investors flock to the precious metals. Many of the biggest companies on the major stock indices rely on China for materials or production, so any sort of breakdown in supply chains could cause an enormous change to their stock prices. An example of this is a sudden 5% correction in the price of Apple (NASDAQ:AAPL), as it was thought that iPhone sales would decline if China’s chat platform WeChat was banned in America. There are other factors that may have an effect on gold and silver prices as well. In this modern economy, many of the retail investors have trended towards younger adults with a sudden influx of income. Popular platforms such as Robinhood combined with increased time at home during the quarantine, have caused retail investor usage to skyrocket during the pandemic. Many of these investors are more lured in by the shiny new objects of cryptocurrencies like Bitcoin. Perhaps we will start thinking of these cryptocurrencies as a modern day version of precious metals one day, as many investors and some analysts, believe that Bitcoin may be a safe haven in the future. Already, the price of Bitcoin has risen above $12,000 in August, mirroring the highs of gold and silver. If the demand for Bitcoin rises higher than the demand for precious metals, we may see an investor migration to cryptocurrencies rather than tangible metals. Conclusion: Gold and silver are staples of our global economy, and will continue to be so as long as the demand for precious metals exists. In times of uncertainty, gold and silver are viewed as safe relative to the volatility of the stock market. Sure, their prices can vary as well, but because they are tied to a less dynamic valuation that is based on an inverse relation to paper currency, their prices will not and can not fluctuate as much as the liquidity of individual stocks. As long as the world remains in flux, there will be a general feeling of instability, especially for global markets. A second wave of COVID-19 in the third or fourth quarter of 2020 could prove to be enough to push the markets over the edge and into another recession. The bull market has been rallying for over a decade now, with astronomical gains over the last few years, especially for sectors like the big tech FAANG stocks. Another factor to consider is what a Biden government could bring to the world if he is elected over President Donald Trump in October. A new government could ease some of the tensions with China, as well as within America itself. These are all big what ifs, and could all have potential impacts on the economy and the world. As long as all of these factors are up in the air, investors will be looking to gold and silver as ways of stabilizing their portfolios and protecting their finances from a potential market crash in the future.
The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May
Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%. Meanwhile, Network Demand Score which is a metric incorporating network velocity, transaction value, fees, and miner’s rolling inventory, climbed to 6/6 following the bitcoin halving meaning the network is growing stronger which could also be a sign that “we’re in a longer-term bull market.” Since March 12th, just before the massive sell-off, this score has remained above a 3/6 reflecting growing strength in network activity and instilling confidence in the ongoing uptrend for the bitcoin price. 3 Reasons why fees skyrocketed One component of this indicator, bitcoin on-chain fees has been surging like crazy. Last week, Bitcoin average transaction fee climbed to $7, last seen in February 2018. This has the miner revenues from fees rising to the levels not seen for more than 2 years. But this week, it also dropped 55% to $3.13. The increase in transaction fees, which is increasingly becoming more important for Bitcoin network security, has been because of the unconfirmed transactions piling on in mempool. A decline in hash rate following halving caused fewer blocks to be found and will continue until the next difficulty adjustment has been one of the reasons behind this jump in fees. The other reason is the large fluctuations in bitcoin price which has traders sending coins between exchanges. Ather reason is a “mysterious entity which has been consolidating outputs at the highest fee rates, driving up fees for everyone,” pointed out Serrrgej Kotliar, CEO Bitrefill. Who is this “Crazy1o1”? Over the weekend Kotliar shared how, for the past 14 days, this mysterious entity has consolidated a lower-bound of 720 thousand outputs, 5 MB per day, more than BitMEX. Since May 1st, this entity named “Crazy1o1” has spent around 804k UTXOs and has paid more than 104BTC in mining fees during this time, noted Laurent. “On some days, these fees are equivalent to 10-12% of all the fees received by miners,” he said. Laurent along with others suspect this entity to be the cryptocurrency exchange Coinbase. Earlier this month, it was also found that crypto derivatives exchange BitMEX is making the bitcoin network expensive for everyone and its own users are paying 6.8% of total daily transaction fees. Prepare for the next bull market All of this a “decent fire drill for what might happen if we see another bull market,” said Kotliar. Grubles from Blockstream said, “ON-CHAIN FEES AND BTC PRICE MOVEMENTS CHART. YOU CAN SEE THAT BIG MOVEMENTS RESULT IN PEOPLE RUSHING TO TRANSACT (ALMOST CERTAINLY TO/FROM EXCHANGES), PUSHING FEES UP FOR OTHER NON-TRADER USERS WHO NEED UNCENSORABLE / IRREVERSIBLE TRANSACTIONS.” The fees reached its all-time high at over $55 during the peak of the bull market in December 2017. As such in the next bull market, a 5x growth in on-chain transactions should be expected. But given that batching, one of the many ways the network has been scaled is here, it will prevent the pressure on the network from getting worse than 2017. But exchanges will need to be prepared for this.
Simply put, when the price of bitcoin goes up, the price of altcoins drops in fiat value and ruins further in connection to BTC. This happens in light of the fact that, with BTC value development, altcoins’ reserve is pushed to bitcoin. In such a case, just altcoins having solid help can keep up its position. Bitcoin price and value history. Not until 2013, over 95% of the market with bitcoins were in all United States Dollars (USD, US $).. In April 2013, the bitcoin unit price dropped from $266 to about $50, soon after it rose to around $100.. Around June in the same year 2013, the price dropped steadily again to $70.. Within a few weeks, the price began to recover and got to $140 on 1st October. SAN FRANCISCO — Bitcoin has been in a bull market like few the world has ever seen. At the beginning of the year, the price of a bitcoin was below US$1,000 (S$1352). It hit US$5,000 in October ... This is a guest post by Mary Ann Callahan, a journalist at UK-based cryptocurrency exchange Cex.io, in which she shares her insight into possible reasons for such a wild Bitcoin price' fluctuation. Since Bitcoin, its underlying technology and everything related to it are difficult to understand, many investors try to avoid buying Bitcoin. However, those who are interested in it have even more questions. For example, they are very interested in the question of why the price of Bitcoin fluctuates so much, and how to use it to make a profit.
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