Crypto Is Dead, Long Live Crypto

Crypto is dead. Everything you knew, gone. The major players of yesterday, irrelevant. The rules of the game, destroyed. Up is down. Down is up.

Here is a final look at the previous lords of Crypto: the Neckbeards. They were gentle guardians of the fertile Crypto plains during the Paleolithic period. They roamed the crypto exchanges as doe eyed benign beings of innocence. Rarely leaving their basement, they devolved into human cavefish. Left to their limited options for social interaction they engaged in the the great Troll Wars of 2017 on Twitter and Reddit. The neckbeards ceased to adapt. They are now functionally extinct.

The new Lords of Crypto are … the long tail of society. Your Grandmother and her Florida retirement community armed with Ameritrade accounts, the Uber driver, the barista, and the millenial shitheel next door are the new lords of crypto. Surprised? Did you think I was going to say Wall Street?

The crypto genie is out of the bottle. Wall St is attempting to get it’s hooks in via CBOE, CME, GBTC and other traditional finance instruments but society finally has a way to overturn the status quo. As the meme goes, “THIS IS GENTLEMEN.”

Allow me to preemptively say fuck you to the inevitable trolling I’ll get in the comments. I had GBTC in the iBC Stock of the Year contest. How did your shitty call go? You wanna fuck with me now. Bring it. I’ll fuck you up in 2018 too.

But we cool, if you’re cool. I’d rather help you make a shit ton of money than have to hear your critiques of my crypto game. All I have to say  is….”Scoreboard”. If that irks you, hate the game don’t hate the playa. You can still get your 20x on in 2018. I invite you to come along on the journey.

Where was I? Ah yes, making shitty analogies: if dotcoms were a coal fired train then the crypto universe is a custom built 220mph bullet train. What I’m saying is…. Everything is accelerated. Days are minutes. Weeks are days. Gains are obscene. Losses will be catastrophic. Rising from the ashes will be a new world ordered on Crypto.

Don’t get complacent. We’ll run farther and longer than you think possible. We’ll crash so hard your unborn kids will feel it. Then we’ll take over the world.

Everyone fears Wall St will take over but it won’t. Crypto is worldwide. It can’t be sliced into tranches of shitty debt and CDO’d to death. Wall St can short it, but they will get run over by Grandma’s knitting club talking about blockchain and HODL in the long run. The long tail wins. A million Grandmas with Ameritrade accounts are greater than Lloyd Blankfein.

Play the long game. Don’t chase price. Read Fly’s book. Troll me at your own risk.

On the markets, BCH is up 20% today and forming a nice bull flag. I posted charts on my Twitter.

I’ll post something with meaningful content later. Maybe.

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Tethers are a Cryptocurrency that are designed to be pegged to the USD. They are created out of thin air (sound familiar to USD) and mostly used on the Bitfinex exchange. Issuing a currency pegged to the USD from nothing is a very dangerous game. From the Tether website:

Tether converts cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the Yen.

On certain exchanges you can’t sell for USD. You can only sell for Tehters which are ticker USDT. Since Tethers are supposedly pegged to USD the assumption is Tethers are as good and safe as dollars. Surprise, they very likely are not!

There is a dedicated twitter account that has been warning about the influence of Tethers on Bitcoin price for months. Bitfinex has started legal proceedings against this individual. I’m not clear what they are charging him with but he’s a thorn in their side. This person has been closely tracking the correlation to when new Tethers are issued to moves in Bitcoin price.

Today there is an article about a subtle change in a popular Bitfinex employee Twitter profile.

A pseudo-anonymous individual going by the nickname of Bitfinexed noticed that a symbol used to indicate that someone has been silenced by simply no longer showing the symbol (warrant canary) was today no longer showing for Ellis.

This symbol is often used to say, while not saying, that something has happened, gaining prominence after it came to light NSA uses gag orders.

While this proves nothing it’s an interesting development in a story that’s been ongoing. This individual has not tweeted since his the canary disappeared from his Twitter profile.

Is there merit in the structural problems of Tethers? Keep in mind that Bitfinex was hacked earlier this year. Were Tethers used to keep them afloat and have they further abused them? No one knows yet.

This is a potentially explosive story if it’s true. Also remember that CBOE opens trading on Bitcoin this week AND Bitcoin has another difficulty adjustment in <3 days. The out of control fees will be going higher.

I remain irresponsibly allocated in Bitcoin Cash (see below for main reason). I have a small position in EOS and will rebuild a position in XMR when an opportunity arises. I am braced for mass fuckery and can survive a zombie apocalypse style dip in Crypto. Can you?

 

The two coins with bigger market cap than $BCH do not work as currencies. pic.twitter.com/RS4LyLiBR3

— Coinspeak (@coinspeak_io) December 14, 2017

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Litecoin is up almost 300% in four days. Why?

Some say Litecoin is undervalued vs Bitcoin. Litecoin is a Bitcoin fork that will often integrate new features before Bitcoin. It is joked that Litecoin is Bitcoin’s testbed. Maybe the run is because Charlie Lee, the founder of Litecoin, was on CNBC. Or some people see Litecoin as silver to Bitcoin’s gold.

While Litecoin is comparatively cheap and fast vs Bitcoin (especially when transaction volume on Bitcoin is high) the biggest factor in my opinion is Litecoin is one of the three coins listed on Coinbase (BTC, ETH, LTC). Coinbase is the largest exchange in the US. With that limited exposure it’s natural the lowest priced asset catches a bid, especially in this frothy environment. Coinbase was adding 100,000 new users a day in November. This new money can buy one of the three coins they list: Bitcoin, Ethereum and Litecoin. They are buying to be in the market, they are not buying based on an astute evaluation of the nuanced differences between Coinbase’s offerings.

Given those choices many pass on Bitcoin due to price. Ethereum has been in the news with network problems and is over $400. Litecoin looked cheap at $60 last week.

This youtuber sold his house to buy Litecoin when it was ~$4. Congrats to this guy.

In the meantime Bitcoin has stalled around $17,000. Bitcoin is carrying the biggest market cap, is on the news daily, is listed on the CME and it’s weekly chart is vertical.

If Bitcoin falters expect the market to follow. Crypto has had extreme gains in Q4, even by Crypto standards. When the pundits talk Crypto non stop you know the price action is unsustainable.

I am not calling a top (yet). I don’t think you can, but this price action raises a flag to me. Is Bitcoin accumulating for the next push or in distribution for a sell off? I have charted predictions from 17k to 48k in this current move. We’re in unknown territory. We are in the early stages of a tremendous shift but there will be violent swings.

Here’s what I do know. A coin on Coinbase has a big leg up in Crypto. In the near future (possibly by Jan 1st) Coinbase is adding more coins to its offering. I expect rapid price appreciation for these coins. One of those coins will Bitcoin Cash. Along with opening trading Coinbase will be granting access to Bitcoin Cash to any user who had Bitcoin on Coinbase during the fork on August 1st. Many may sell, but I think there will be more buyers than sellers. Get ahead of that event if you can.

 

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Bitcoin breaks $15,000 and everyone is an expert. It’s amazing how that happens. I wonder where all these experts were when I recommended it last Summer. I look forward to you all sharing your wealth of information and insights based on the CNBC article you just read.

Moments ago I received a call from a friend saying he was introduced to a Crypto opportunity where he makes money whether the price goes up or down! Well that sounds amazing. I am deleting my blog and twitter asap and sending him all my money to manage.

So, here’s the list of posts you can read before I delete everything. Limited time only. The experts are here. I’ll just let them take me the rest of the way.

Sept 8 2016 Bitcoin vs Gold  (BTC was $630 when this was posted)

Sept 19 2016 Man sells house for Litecoin (LTC was $4 then, it hit $200 today)

Nov 7 2016 Calling the $1,000 roll when Bitcoin passed $750

Dec 6 2016 – Final Warning to buy under $1000

I think you get the idea.

Fly has hinted at a Crypto Bootcamp. What do you guys think? Tell Fly if you want this or if you’re content to coast on the what Brian Kelley and Jim Cramer tell you. I’m just a guy who’s been publicly calling the shot for over a year, what the fuck do I know?

 

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You’ve got to be fucking kidding me. I posted this yesterday.

I will eat my own dick if BTC doesn't hit 20k by tomorrow midnight.

— Coinspeak (@coinspeak_io) December 7, 2017

We topped at $19,700. Life is cruel. Bon Apetit I guess.

We are experiencing an “accelerated buying opportunity”. Haha no, we’re not. We may be in for a $10,000 candle. We’re currently forming a $5k doji on the HOURLY. Insane.

Luckily as a veteran of the crypto wars I am 100% dead inside. $5,000 hourly candles? Fucking bring it. DO YOUR BEST. I have stared into the void. I am fearless.

I also own ZERO Bitcoin right now so this is pure entertainment for me.

 

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The Bitcoin party won’t stop. Crypto traders are doing virtual keg stands on Twitter waving their dicks around showing pictures of new houses they bought with Magic Internet Money.

Yes, we’re all getting rich and you’re not.

Bitcoin is over $16,000 this morning. I’ll say what you’re thinking: “that’s retarded”. However, as Warren Buffett said, “the market can stay retarded longer than you stay solvent”. Do not try to call a top on this. Ask me how I know.

So, is Bitcoin a Parabola, Paradigm shift or Ponzi?

If you said all of the above you are correct!

Parabola is easy to prove. Here’s the weekly chart. It’s top kek.

 

Is Bitcoin a Paradigm Shift? Turn on CNBC and watch the pontificators pontificate about Bitcoin endlessly. But that means little. Watch this video I made from April 2017.

The video shows the adoption rate of new technologies. Crypto is in the early stages of S Curve adoption. Cryptocurrency is PROGRAMMABLE money. Yes, this leads to hilarious CATastrophes like CryptoKitties wrecking the Ethereum network but it also opens the door to some Star Trek shit in the near future. Bitcoin is an incredibly deep rabbit hole. If you get anything from my blogs just get that Crypto is bigger than the Internet and comparatively we’re still in AOL days. You will bend the knee or have your dick guillotined.

Is Bitcoin a Ponzi? At this point, yes. Bitcoin has printed a $5,000 Weekly candle. It’s Thursday. Like any good ponzi it’s hard to say how high it will go. Crypto needed an enema. This will be a colon cleanse of epic proportions. When it happens you want to be ready.

Oh, and Sunday night CME opens futures. I suspect that will be disastrous. However, the Street may decide to build the ponzi to fleece their clients before pricking the bubble.

My top picks are BCH, XMR and EOS. I tweeted trades on XMR and EOS that returned great gains past couple weeks. Follow me here: https://twitter.com/coinspeak_io

 

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On the move today so I am going to share some videos.

I was on the local news yesterday.

Older vid I did on Bitcoin entering parabolic phase.

For your entertainment:

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BTC is currently trading at $9650. Up ~15% this weekend. $10k is our god given right at this point.

I made a vid on what I think will happen from a TA perspective.

Part two is here:

I moved from BTC to BCH in August and September. BTC has been a great performer.  BCH has been better.

BCH is ~$1700. I believe if it breaks $1750 in this FOMO environment it will quickly move to $2100. Keep an eye on that level the next 48 hours.

MGTI and GBTC should go full retard Monday morning.

The entire cryptoverse needs a good correction but that doesn’t mean BTC won’t hit 20k by Christmas first. Sounds ridiculous. Totally possible.

My hourly portfolio swings in this volatility now exceed the dollar value of my base investment by 200%. The gains in crypto are real.

Keep an eye on the BTC substitutes LTC and VTC. When BCH resumes gaining ground on BTC the BTC substitutes will have huge moves.

I remain irresponsibly allocated long in BCH confident that BCH will reign supreme and Monero will have an epic 2018.

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There will be no rest this weekend for Bitcoiners.

Bitcoin Core (AKA BTC) will have a scheduled “difficulty adjustment” sometime on Saturday. A “DA” occurs every 2016 blocks. During this time the algorithm for mining difficulty adjusts according to current conditions to maintain a consistent rate of new blocks/bitcoins into the system.

There are rumors that the mining power for Bitcoin will shift shortly after this adjustment to Bitcoin Cash (AKA BCH). This would cause big problems for Bitcoin as Bitcoin would become slow and (more) expensive while also being the furthest distance possible from the next difficulty adjustment to make up for lost mining power. This sudden shift in mining power could lead to a death spiral for Bitcoin Core.

This might be the beginning of the “flippening” where Bitcoin Cash replaces Bitcoin as the dominant crypto currency.

One way for BTC to counter this is if BTC price continues higher so it is more profitable to mine than BCH. And look, BTC is at all time highs.

If you haven’t hedged your BTC position with BCH you have a few days left. I don’t know if this will happen as outlined. It’s been publicly discussed in many communities so it should not be a surprise. I expect that Bitcoin Core has a contingency plan.

None of the above may take place, but if it does you’ve been warned.

I personally do not think it would be healthy for crypto in general to have a fast and violent flippening. It would be very disruptive. People would lose a lot of money (BCH holders would get rich very quickly tho) and it would set the ecosystem back. It would be better for Bitcoin Cash to eat Bitcoin’s lunch over the next several months. Then there could be an orderly transfer of wealth with the earliest adopters making the greatest profits.

Bitcoin Core is not defenseless. Things will get crazy. This is more than a battle for today’s digital tokens. It’s a battle for who influences the future of money.

Better to have your Bitcoin affairs in order prior to Saturday.

I remain irresponsibly allocated in Bitcoin Cash.

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You will see a lot of articles on Bitcoin this week. This is what you really need to know.

Bitcoin Core forked from Bitcoin Cash. That’s right. You will hear that said the other way around in 99% of articles, tweets etc but Bitcoin Core altered the way digital signatures are handled to:

1. Keep an artificial block size limit in place
2. Provide capability to add a paid service called Lightning Network on top of Bitcoin to solve the problem created in #1

This basic change in how Bitcoin operates means Bitcoin Core is a fork of the original code and that Bitcoin Cash retains the characteristics that made it a 100B market cap with eyes on further exponential growth.

The facts around Core vs Cash are hotly disputed but people are slowly waking up to the truth.

Here’s more about why this distinction between coins matters and who will win (and where to put your funds).

Bitcoin Core promises to solve the scaling problem using SegWit to enable the “Lightning Network”. The Lightning Network is a second layer solution designed to handle transactions (for a fee of course!) and then using Bitcoin only as a settlement layer. Do you see the problem yet? It negates the primary features of Bitcoin. Bitcoin becomes captured by Blockstream, the proponents of SegWit and the Lightning Network. Blockstream will make billions from this scenario. Oh, did I mention several of the Bitcoin Core developers are also Blockstream employees? Blockstream intends to be the vampire squid of Crypto.

Think of money. Then think of Visa. Visa would love to eliminate money! The Lightning Network is like Visa. If Lightning Network were enabled Blockstream would be grifting from every transaction on the Bitcoin network.

Bitcoin Cash promises to solve the scaling problem by increasing the block size. This allows scale using Bitcoin Cash quickly and cheaply without a thrid party involved. This keeps the promise of what made Bitcoin appeal to many early adopters as well as protecting Bitcoin’s resistance to control, censorship and corruption.

So, what’s been going on? A war. I’ve been posting about Bitcoin Cash for a few months. It had a ridiculous spike and retrace even for the wild west of Crypto. But in a few months that will be a blip on the chart. Crypto veterans have seen the craziest things and we’re practically immune. Crypto is changing the world and rewriting the rules of money. It’s going to be fucking messy for a while.

Predictions are a fool’s game but I’m a fool. I expect that BCH resumes it’s climb in next 48 hours and BTC will not reach $7,000 again. In a few months BCH will be king and BTC will be #rekt.

Caveat emptor, motherfuckers.

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