Wednesday, February 14, 2018

Litecoin Cash – Scam or Legit??

For those who aren’t yet aware, there is a Litecoin fork (first ever) that’s supposed to occur on the 18th or 19th of this month, just a few days away.

Supposedly you can receive 10 Litecoin Cash (LCC) for each LTC you possess at the time of the fork.  This has caused much speculation and has people scrambling to buy LTC prior to the fork.

On the LTC chart, you can see that it just had a major breakout higher and has shot back above $200/coin:


As you can see on that chart, the downtrend has clearly been broken to the upside, it is a very bullish chart.

Note how similarly to BTC, LTC touched the 200 day moving average and has bounced producing a new buy signal on the daily MACD.

But is LCC a scam or is it legit?

According to Litecoin Founder, Charlie Lee, it is a SCAM.  Here are his recent tweets on the subject:


Clearly, Charlie believes it to be a scam.  In fact, he like many others, believe people doing these forks and using the Litecoin or Bitcoin names are inherently weak for trying to piggyback on the name and not doing their own coding and marketing.  I agree with this philosophically.

Most forks piggyback not only on the name, but they use the open source Bitcoin code – in fact that’s exactly what Charlie Lee did, he copied the BTC code, made a few changes, changed the name, and has made millions off it.  Okay, that’s the way open source is, and the BTC source code is far and away the most proven and secure.

Now, when I go to the LCC official website, I find that they list many benefits, including the fact that old BTC mining software will be able to mine LCC.

Their website is respectful and seems to be looking after people’s interest with their “safe fork” discussion.  However, there is no whitepaper and the team is very young and thin with only 4 members.

From the LLC website, here is an LCC comparison table:


Note that Charlie Lee says not to give them your LTC keys in order to claim your LCASH.  I would agree, at least at a minimum I would wait to see if in fact people are successfully claiming them, and that an LCASH wallet actually materializes.

Regarding this, the LCC team seems to agree by stating a truism, “Firstly, NEVER paste private keys that hold any currency into ANY website or wallet in order to claim forked coins (including ours). Practice responsible forking: 1. Wait for the fork; 2. Move your Litecoin to a new address; 3. Use the private key for the "old" address to claim your Litecoin Cash.”

One thing is for certain, with Charlie Lee at Coinbase, don’t expect Coinbase to distribute LCC to your account automatically!  Thus if you wish to claim your LCC, you must ensure that you have your LTC in your possession, inside your own LTC wallet off any exchange (I use Trezor).  Then move the LTC to another wallet or an exchange, then use the old and now empty wallet keys to claim your LCC.

So, I do think there is a high probability that this is a scam, at a minimum it is a fast and loose copy/modification of the LTC/BTC source code.  That said, I do have my LTC off exchange and will be able to claim my LCC once proven.  I will wait and watch before attempting to claim my LCC tokens.  If I am successful, I will immediately sell them since there is no whitepaper, and since the “team” looks to be profiting with minimal effort on their part.  Then I’ll use the proceeds of that sale to purchase LTC.

Best,

Nate

Tuesday, February 13, 2018

The Lightning Network

Boy am I a fan!  My hope is that this year Segregated Witness and the Lightning Network will radically change the speed and cost of transacting with Bitcoin. 

But wait, there’s more… Lightning also can accommodate cross-block transactions.  This is HUGE, a game changer, because it means that we’ll be able to trade one another different coins directly with NO MIDDLEMEN.  This, and other technologies like Atomic trading and Plasma, mean that days are numbered for exchanges (except to get dollars if required, they are certainly not desired). 

Not only that, but as Andreas Antonopoulos points out in the video below, the Onion Routing will ensure true PRIVACY.  This is also a game changer – it means that we can truly claim our personal monetary and fiscal sovereignty by righting a huge wrong that has been held over humanity’s heads by central bankers.  Namely that they can see everything you do, but you can see nothing they do.  This turns that inside out, in a proper rule of law manner.  Banking secrecy by private individuals illegally given the right to produce unlimited quantities of money is ENDING, and I say “YAY!”  

This fact alone will bring BILLIONS of people worldwide into this new system of “banking.”
Right now lighting is running in a test mode with test nodes.  A node is simply the entire ledger that resides on your computer so that as transactions occur the ledger that exists on your computer can be compared and verified by other ledgers on other computers to verify transactions.  The more nodes, the more robust, and the more decentralized the network is.

Once verified, hopefully later this year, Lightning will release a final version of their node software that likely will include incentives for people running a full Lightning node.  I currently run a full Bitcoin node on my computer and will also run a Lightning node when it is released.  I’ll write more about running your own node later, it’s certainly easy to do and actually doesn’t require any expertise and very little energy and bandwidth – I don’t even notice my computer is running it.

The following video describes roughly how the Lightning Network works:
 

This video is an interview with Lightning CEO Elizabeth Stark:
 

And this video is with Andreas Antonopoulos who answers questions about the lightning network:
 

Monday, February 12, 2018

Video:  More Trace Mayer – BTC Lightning Adoption and Claiming Your Personal Monetary Sovereignty

This is another very interesting interview with Trace Mayer.  Well worth the time, he covers the Lightning Network on top of Bitcoin and how it will speed transactions and lower costs.  He also covers the possibility of Atomic trading, but most importantly discusses how to claim your personal sovereignty now that the monopoly on money has been broken!

Bitcoin Market Update – Breakout with Historic Buy Signals!


Nate Update: 

I have returned from two weeks of very fun off-road motorcycle riding in Southern Utah.  That’s the good news. 

The bad news is that I had a 30+ mph encounter with a boulder and the boulder won – launching me into a head/back landing that resulted in 3 fractured ribs and 3 compression fractures in my vertebrae! 

Painful for sure, but thankfully I will heal - hopefully with little or no lasting damage.  Soft tissues are already better, but bones take longer to heal. In the meantime, my energy level is returning already, but not quite what it was, so expect a slow ramp back up into things.

Bitcoin Breakout:

Bitcoin (also as a proxy for the rest of the Crypto market) is breaking out from a descending wedge pattern as seen clearly on the Daily chart below:


A descending wedge is a coil, the breakout higher should be strong – I would like to see buying pick up over the next several days to confirm the breakout.  Note that two days ago price broke the downtrend line, but that line was retested and now prices have bullishly reversed yesterday’s downside move.

There are two historic buy signals on this chart!

First note that the volume on the day prices bottomed at $6,000 was heavier than the surrounding volume – that is a positive. 

More importantly, since 2015 there have only been two prior instances of BTC price actually touching or going below the 200 day moving average (dma).  You can see that prices fell below that average for a few days.  The 200 dma is a very important long term indicator for Bitcoin because it’s hard to tell how far ahead of itself prices are at any point in time.  But at the $20,000 peak price, BTC was almost 4X the 200 dma!  That was a historic over valuation at that level.

EVERY TIME (as in 100% of the time) that prices have been below the 200 dma, it has been a perfect entry point to buy Bitcoin!  Thus, NOW (or any level below or close to the 200 dma) is the right time to be buying via that indicator alone.

Now note on that chart the MACD.  Those low MACD figures represent a historic BTC low.  And if you look at the red circle you will see that from those historic low levels the ‘fast’ has crossed over the ‘slow’ thus indicating a BUY SIGNAL on the Daily MACD.  Note that the weekly MACD is still on a sell, but that the monthly MACD never went to a sell, and is still on buy signal.

The chart below is a WEEKLY BTC chart.  It shows a strong bottom-like Doji candlestick, often seen at bottoms.  The price moving out of the wedge and up from the cross is bullish:



Now please take a good look at the following chart.  I have replaced the MACD indicator at the bottom with RSI (Relative Strength Indicator).  There have been seven instances since the beginning of 2015 where the RSI has touched or dipped below the 30 level.  Just look at the last two times!  Had you bought on each low, the return from July of last year to the next high was 178%, but the return from the September low was a staggering 621%!


So, should you buy when the RSI dips below 30?  YOU BET!  That just happened, again, a good place to buy.  Note that the data for BTC doesn’t go back in time far enough to have useful data on the weekly and monthly chart for RSI.

All these indicators tell me that this chart is bullish, that it is time to get money back to work in the BTC market, keeping in mind that the rest of the Crypto space follows Bitcoin.  I expect to see the overall BTC Market Cap skyrocket from here:

Market Cap Total

Note that total Crypto market cap was cut in half, bottoming just below $400B.  Today it is at $426B, I expect that we will cross the Trillion Market Cap line prior to the end of July.

Best,

Nate

Tuesday, January 23, 2018

Trace Mayer about Bitcoin’s (Initial) $2.8 Million Value Proposition…

Can't say enough about how spot on Trace Mayer is in this most excellent video.

Not only is the well spoken Trace Mayer right about bitcoin’s value proposition, but he thoroughly understands money, the history thereof, and the criminality that is the current central banking system.

Note the immutability of Bitcoin compared to other Cryptos… Video is well worth the time.
 

Monday, January 22, 2018

Update – Real People Possess Real Bitcoin! Futures and ETF Edition…


*Note: I will be traveling for the next two weeks and will be unable to make posts on a regular basis until I return.

Downward pressure on the entire space obviously continues.  There has been a series of H&S patterns as well as bearish flags that have all worked to take prices lower.  There is one pattern that is still targeting the $8,400 range, that target has not been reached and is still valid.  Here’s the Big Picture Daily chart:


Here’s a 30 minute chart, I can’t remember seeing a chart that had so many well developed H&S patterns in such close proximity:


There is a definite psychology to Head & Shoulder patterns, these are classic patterns and actually do not look contrived or manipulated to me.  If you want to see contrived, just look at a chart of the DJIA, S&P500, or NASDAQ.  There you will find manipulation, historic overvaluation, and a classic bubble.

So the question then is: Are the banks manipulating the price of Bitcoin (and by extension other coins as well)?  

There certainly are a lot who think so – and it doesn’t help that the top was put in the day Bitcoin futures began trading!  The fear of Bitcoin manipulation looks like this:

At about $5,000 BTC the banks start buying actual BTC like crazy rapidly running the price up.  Jamie Dimon, CEO of JPM, calls BTC a “fraud” in order to intentionally drive the price down.  Meanwhile JPM and other banks are buying with both fists (they can simply materialize Dollars after all).  They buy hard running up to the opening day of the futures market.

On opening day they short BTC like crazy via the new futures market and begin selling their actual Bitcoins, thus driving the price back down in order to profit on their futures bets…  Once they run out of BTC to sell, they will flip that trade, begin buying, rinse, repeat, rinse, repeat.

That’s the thinking, but is that reality?

First of all, there is no doubt that it should be understood that banks and bankers are NOT your friend.  Nor are they the friend of humanity – period.  So none of that is beneath them, for sure.
This seems “foggy” to most people, so let’s examine the mechanics involved in both Futures and ETFs:

FUTURES

Futures are EXACTLY like gambling – they are, in fact, legalized gambling.  They are a bet on the future price of an underlying asset – be it gold, silver, oil, Bitcoin, or whatever.

The CME Group is the exchange that handles trades of Bitcoin futures.  An important aspect of their futures contracts is that all settlements are in CASH, NOT BITCOIN.  This means that they do NOT need to own any Bitcoin in order to settle payment. 

There are rumors going around that the banks have made deals with the exchanges in order to use Bitcoin held by the exchanges as backing for those futures contracts.  This is not necessary since the banks can and do settle all BTC futures contracts in Dollars – remember, banks can simply turn on their printer to make more Dollars, they don’t have to own BTC.  They are running a betting parlor, a gambling side show that has ZERO function on behalf of a proper society.

This is not to say that there aren't legitimate uses for some futures, there are – like airlines and other businesses who use them to hedge the price of oil.  But a need to hedge the price of BTC?  Not yet (but big players who accept BTC as payment may want to hedge in the future).


So if the regulators think its okay to trade BTC futures, why would they turn down every application to date to create an ETF?

Oh yes, we’ve heard their excuses – you know, they are trying to “protect us.”  LOL

ETFs

No, they don’t give a rats behind about you or me losing our money!  They steal it every chance they get, it’s a laughable proposition that some banker or regulator is “protecting” the public.

There are two types of Exchange Traded Funds (ETFs).  One type is just a piece of paper where the scammers who organize it claim to follow the price of the underlying asset – gold, silver, real estate, bonds, whatever.  They take exorbitant fees all along the way, and thus these paper tigers rarely, if ever, maintain the value anywhere near equal to the actual underlying.  Why would you own them over the underlying?  Only for short term trades so that you don’t have the hassle of taking possession – that’s it.  Oh, and you can leverage these (the slippage is even more pronounced over non-levered ETFs).

The other type of ETF is one whose charter documents require the company to actually own the underlying asset in an amount (close to) equal with the amount of funds deposited into the ETF.  This is like GLD and SLV – they are required to actually buy physical gold or silver.

And this is EXACTLY what the banks and regulators DO NOT WANT!  Why?

Because, unlike any other asset on the planet, and especially unlike any financial asset on the planet, Bitcoin is strictly limited in quantity!  That means that if money goes into an ETF that is required to buy it, then the price will rise, it will draw more interest, and that interest will weaken their power and control.  That’s the real reason.

This is a very important point – When you invest in any paper financial asset, you are buying something from them… and then they simply make another, and another, and then 10 trillion more!

But Bitcoin, nuh, uh!  No sir.  You buy a bitcoin and there is no making a new one – no replacing it, no forging it, no hacking it.  The decentralized trusted ledger makes this possible – and it is a revolution for humanity.  So imagine a BTC ETF that requires the fund to own actual BTC… There are only 16 million BTC, what do you think pumping millions and billions more into BTC via ETFs will do? 

I highly doubt they will allow it anytime soon – maybe a pure paper ETF, that would take money that otherwise may have found its way into the actual underlying.  And that is why paper dollar settled futures and ETFs only - they are a-okay in diluting Bitcoin as it brings them wealth, power, and control.  But they will strictly attack anything that promotes the underlying BTC - watch for this, it will become clear.

What they really care about is that they know Bitcoin and the coins that aren’t issued or controlled by them erode their power base.  They are losing control, and they know it.  It’s very small right now, and they intend to keep it that way if they can.

I can assure you and them that they have lost already – it’s only a matter of time.

PLEASE – For the sake of humanity – do not put a single dollar into any paper BTC product!!  Those who do are as complicit as those who make them – karma will take care of them in the end.

REAL PEOPLE OWN REAL BITCOIN – and they take the actual coin off the exchange and put it in their own electronic wallet – that way the exchanges cannot “FRACTIONALIZE” BTC which I can tell you they all do. 

REAL PEOPLE POSSESS REAL BITCOIN!

Be Real – I’ll return in a couple of weeks for more.

Nate

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