Posting from the road so will be brief.

I am now ~10% in Bitcoin Cash and plan to increase that stake. Added some FCT, DCR, ARDR and ETC here. A BTC correction will pump all the other coins. Also hold some XMR but I have lost faith/patience in Monero as a whole.

4H Charts of $LISK $DASH and a few others show a rapid rise in past couple days.

$LISK bulls have no chill (not taking a position) pic.twitter.com/2K9gsVcfPn

— CoinSpeak (@coinspeak_io) August 21, 2017

That’s the precursor to what’s to come in my opinion. I believe the alt rally will be short lived. Alts are where Bitcoin bulls go when Bitcoin corrects. Alts were destroyed when Bitcoin started running. Alts will recover a bit when BTC corrects.

It’s all foreplay for Bitcoin vs Bitcoin Cash. It is going to be epic.

I am buying dips on Bitcoin Cash.

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In this blog I am going to highlight the recent Bitcoin Cash developments and share a possible scenario that could have you banking mad Bitcoin Cash.

I will endeavor to lay off the technical details but I encourage you to look up and understand any terms that are not clear to you. Bitcoin is not going anywhere. You cannot ignore it. The sooner you understand the basics the sooner you will join the early adopters in the greatest wealth transfer in history.

If you are not up to date read my prior blog posts or this excellent Medium article.

How did we get here?

Bitcoin is a protocol for exchanging value peer to peer. Bitcoin is decentralized. However, for the past several years, a small group of coders called Bitcoin Core had exclusive access to update the protocol. As markets matured there were demands for changes to the protocol which Core did not approve. After years of heated debate a group chose to split from Core and they created Bitcoin Cash. Bitcoin Cash is the same as Bitcoin except there are a few upgrades now available.

So there are two Bitcoins?

That comes down to semantics. The short answer is yes. There is Bitcoin and Bitcoin Cash. There is disagreement about which CryptoCurrency gets the benefit of the Bitcoin name/brand. As of today, Bitcoin has the most miner support so it is Bitcoin. However, that may be changing…..

What do you mean this might be changing?

Bitcoins are created through “mining”. Bitcoin mining is a process by which computers must solve difficult math problems to bring new Bitcoins into existence. There are large companies that exclusively mine Bitcoin (John McAfee’s MGTI in the USA is aggressively entering this field). Think of Bitcoin miners like Gold miners. Rather than dig into the Earth Bitcoin Miners invest resources into large scale computer operations to solve math problems that provide ROI when they are first to solve a math problem and receive a Bitcoin reward.

Imagine a Gold miner has a profitable mine. The miner has millions invested in operating the mine and they are profitable. Then one day Gold crashes and Silver rockets 100 times in price. A traditional Gold miner would be in deep trouble. With Bitcoin miners there is a key difference. If the price of Bitcoin crashes and Bitcoin Cash goes up then miners can “flip a switch” and their entire mining operation will mine the more profitable Bitcoin Cash. This would be like a Gold miner having the ability to flip a switch in their mine and dig for Silver if it were more profitable than Gold.

How would miners switching to Bitcoin Cash affect Bitcoin?

Miners provide the backbone for the Bitcoin network. If you send Bitcoin your transaction is validated and recorded on the blockchain by the miners. If Bitcoin Cash becomes more profitable to mine than Bitcoin then miners will switch to mining Bitcoin Cash and the Bitcoin network will become slower and more expensive. A vicious circle of death. Bitcoin Cash value would increase and Bitcoin would decrease, perhaps very rapidly.

Here is the important part….

If you read the Medium article linked above they mention there is an upgrade in Bitcoin Cash in how it manages changes in difficulty. Simply put, Bitcoin auto adjusts mining difficulty to maintain an equilibrium in the distribution rate of new Bitcoins. This auto difficulty adjustment is key because Bitcoin Cash is now more nimble than Bitcoin. Bitcoin Cash is also as of this week more profitable to mine than Bitcoin. This could be the tipping point. When Bitcoin Cash split from Bitcoin the programmers updated the important way Bitcoin Cash handles difficulty adjustments. Bitcoin is running the old code. Bitcoin adjusts to difficulty changes VERY slowly…..

If you understood all of the above something may have clicked. When the miners start moving to Bitcoin Cash then the Bitcoin Cash network becomes more robust and adjusts to the new miners quickly. On the flip side, when the miners leave Bitcoin there is a problem…..Bitcoin does not adjust to the loss of miners quickly. The network suffers because it operates at a much higher difficulty level with much less mining support. Bitcoin becomes slow and expensive while Bitcoin Cash becomse faster and cheaper.

This could lead to…..

It’s possible this could lead to a “flippening”. Bitcoin Cash becomes “Bitcoin”. They are two unique coins now and if the current Bitcoin network moves to mining Bitcoin Cash then you’d see Bitcoin Cash replace Bitcoin. Bitcoin Cash holders would profit. Bitcoin holders could get #rekt.

Bitcoin Cash is trading at >80% discount to Bitcoin, despite doubling this week.

I’ve already offloaded a portion of my Bitcoin for Bitcoin Cash. If the flippening happens then I have exchanged Bitcion for Bitcoin Cash at 16 to 1 and lower. Today you can exchange Bitcoin for Bitcoin Cash at 5 to 1. The flippening has the potential to be the greatest wealth transfer inside of the greatest wealth transfer in histroy. A Russian nesting doll of financial windfalls.

If you are just getting started in Bitcoin and deploying new fiat do not overlook Bitcoin Cash. To play it safe you can deploy 50% Bitcoin/Bitcoin Cash. If you are more risk friendly up your ratio of Bitcoin Cash.

Ask questions. I am traveling in Asia so responses will likely be delayed.

 

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You have to love Crypto. Besides the real world Tom Clancy shit that is the backstory on Satoshi Nakomoto (to this day people hotly debate if Satoshi Nakomoto is Craig Wright, or was Hal Finney or Dave Kleiman. By the way, 2 of these 3 gentlemen are dead) you have characters like John McAfee of McAfee Antivirus and killing your neighbor in Belize notoriety making YouTube videos of himself snorting coke with hookers and guns whilst CEO of a publicly traded company with big Bitcoin investments. (scan to 1:12 mark where the good stuff starts)

John happens to have a company called MGTI which as far as I can tell is his pet project company. It has a project in the works for a privacy phone:

Introducing the world’s first smartphone featuring hard kill switches, empowering its users to take back control of their privacy. All phones feature a built-in privacy control center giving users full control of access and functions of their phone.

That’s interesting but will likely fail. Most people don’t care about privacy.

But THIS is where things get interesting. From the Company Info webpage:

Also as part of its corporate efforts in secure technologies, MGT is growing its capacity in mining Bitcoin. Currently at 5.0 PH/s, the Company’s facility in WA state produces about 80 Bitcoins per month, ranking it as one of the largest U.S. based Bitcoin miners. Further, MGT is in active discussions with financial partners to grow Bitcoin output materially.

McAfee gets it. He’s steering his company towards Bitcoin mining. Let’s say Bitcoin doubles or triples in price. Boom, his profit on the mining investment will follow. GBTC is a publicly traded tether to Bitcoin but it’s disconnected from reality. MGTI is the sleeper stock that has potential to explode as it is discovered by the masses and the profits begin to roll in.

MGTI was up 28% today.

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Yesterday I entertained Bitcoin Bears with forecasts of doom for Bitcoin and a correction to $1,400.

Today I am here to tell you that the correction is over! I hope you got your cheap Bitcoins at $2,200. Barring any further detours, Bitcoin has reset it’s course to $10,000.

For perspective, the move from $3,000 to ~$2,200 is a correction inside a MUCH bigger move. Look at what Bitcoin has done before:

A 30% correction doesn’t concern crypto veterans. Here is a link to the chart above you can click on for live update. Notice the price goes off the chart? Bitcoin has doubled in price since that chart was created. Bitcoin is repeating larger and larger Wyckoff cycles one after another and they are happening closer and closer to each other. By 2019 I predict we’ll have $1,000 INTRADAY moves in Bitcoin price.

In all seriousness, if Bitcoin does not retrace to $2,000 (the 38% fib on chart below) from the top at $3k that is extremely bullish.

Once in a generation an investment comes along like Cryptocurrencies. This week’s drama will be a blip on the chart later this year when we’re over $5k and possibly flirting with $10,000 Bitcoin.

And … Cryptocurrencies are highly volatile. Most of the current coins won’t survive. But to the winners will go the spoils, and the spoils of this currency war will be large indeed. Therefore Crypto should be part of everyone’s portfolio.

As with any investment, consider dollar cost averaging into a position over time. If you’re lucky you’ll get some sub $2k coins.

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Putting a target on anything is a fool’s game. Well, I’m your Huckleberry.

A daily chart of Bitcoin with a fib retracement of 61.8% is ~$1400. I’d say we’re 50/50 to see $1700 price by August 1st and we’ll overshoot it to touch $1400.

However, much like baseball, there’s no crying in Bitcoin.

You either believe Bitcoin is a game changer or you don’t. Buy hold or sell. Those are your choices.

Am I concerned? Sure. And yet I know Bitcoin has been here before many times. The global macro economic situation remains bullish for Bitcoin. Japan has made Bitcoin a currency. India is warming up to Bitcoin. Bitcoin is a GLOBAL phenomenon. There will be bumps in the road to world domination.

Bitcoin remains Bitcoin’s major enemy as we move towards August 1st and the New York Agreement. The New York Agreement is the literal fork in the road and, besides the parabolic price rise, a possible cause for a rocky Summer in cryptoland.

The Bitcoin bulls are like early bulls in any sector. Ridiculed and sometimes publicly humiliated. But in the end Bitcoin will prevail. Even if you aren’t a believer can you afford to sit out a game changing financial instrument with zero exposure in your portfolio?

Make your plans to dollar cost average in under $2,000. See you in 2018 at $10,000 or I’LL SEE YOU IN HELL.

These are your future masters of finance. Prepare accordingly.

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Dennis Rodman is headed to North Korea to set himself up for a Nobel Peace Prize by smokin’ sweet Ganja with Kim Jong Un. Sponsoring the whole event is PotCoin, a digital cryptocurrency created solely for buying and selling cannabis.

PotCoin (POT) is a decentralised, open-source cryptocurrency forked from Litecoin in January 2014. It was created with the goal of becoming the standard form of payment for the legalised marijuana industry. Technically, PotCoin is almost identical to Litecoin, with just a few differences: a shorter block generation time, quicker halving schedule, and a higher maximum number of coins. As a result of its name and nature, the cryptocurrency attracted a fair amount of attention in mainstream media and, unlike most cryptocurrencies, PotCoin was deemed sufficiently notable to keep a Wikipedia page.

PotCoin price is up 90% (and rising) since the news hit yesterday. Here is the PotCoin chart overnight since the story hit mainstream media.

Also from the Gizmodo article:

But even more bizarrely, Rodman has hinted that he’s setting up a backchannel for Donald Trump to speak with Kim Jong-un. And people are taking the possibility very seriously, considering that Dennis Rodman is the only mutual friend between the two world leaders. Seriously.

Seems surreal right? Well it’s also our best shot at bringing Kim Jong Un to the negotiating table and PotCoin just put themselves on the world stage. This is a masterstroke of PR genius by PotCoin with the added benefit of possibly opening the door to US and North Korea negotiations.

420 brah.

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I’ve been blogging about Bitcoin on iBC since August 2016 when Bitcoin was trading at $586 and have been involved for much longer. I bought my first Bitcoin at $13.

If you don’t know much about Bitcoin I recommend scrolling through my previous posts to get up to speed.

Since Bitcoin is hitting the news everywhere I’m going to commit to answering questions you may have in the comments.

And yes I know the weekly chart is parabolic. It’s a bubble. It’s going to correct. Bitcoin has done this before. It doesn’t concern me.

 

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Bitcoin just enjoyed a “selling climax”. Like most climaxes people are not thinking clearly post coitus.

We are repeating Wyckoff cycles over and over. I believe the technical term is “Bitcoin is fractal like a motherfucker”.

Link to live chart below where you can play forward the realtime data on tradingview.

 

And this chart is especially hilarious because the price goes off the chart, literally. Follow the link and press play.

That’s an example of an accumulation zone and markup. These zones are getting bigger and bigger. We’re going to enter into crazytown soon. More info in the video below.

 

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Bitcoin and the Cryptocurrency market are on fire. And it’s quite possible we haven’t seen anything yet.

Here’s a two year chart. Look at the trendline.

That trendline is the beginning of the trend noted below. We are moving from Innovators to Early Adopters.. Money is flowing in. Notice we will go vertical soon (late 2017 to 2018-ish) to fulfill on the chart below.

Here’s another chart from this excellent article about the different adoption rates of various technologies. Notice the adoption window is becoming shorter and shorter. If you put Bitcoin on this chart it would be just under the first horizontal line (penetration) and be vertical (adoption rate). By 2020 I expect we’ll be well into our Early Majority stage.

Here’s a great video of James D’Angelo talking about S curves and it’s comparison to Twitter, Google and Facebook. Bitcoin will crush those returns. Keep in mind, this video is at least two years old.

Here’s my take on Bitcoin and the S curve. Buckle up buttercup, it’s going to be a wild ride.

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Bitcoin will reach $10,000. But when?

As of today, in the year of our lord 2017, several parties are battling it out for control of Bitcoin.

1. Core Developers (the team that has current access to update Bitcoin code) has declined all requests for improvements to Bitcoin code. Result: Bitcoin has not evolved.
2. Bitcoin Unlimited, SegWit etc. Groups that insist Bitcoin change code to accommodate new capabilities ASAP or Bitcoin hard forks (hard fork means Bitcoin splits in two, similar to GOOG and GOOGL, except one version would eventually die).

The result is a stalemate and frustration. Some of the smartest people on the planet are hurling infantile insults at each other via Twitter. An example:

@MrHodl fuck your mother if you want fuck.

— Jihan Wu (@JihanWu) May 15, 2016

Fuck your mother if you want fuck. Indeed. T-shirts with this quote are now available online, naturally.

Things are not as they seem though. This battle isn’t about who can update Bitcoin software. It’s much bigger than that. This is about who will control the primary digital economic asset / store of value of the future.

Will the real Satoshi Nakomoto come forward and set right his wayward vision for ‘Peer to Peer Currency’? There are rumors…..

As if that’s not enough drama customers of Bitfinex, a major Bitcoin exchange, have been having problems withdrawing cash due to “banking issues”. As a result users have been buying Bitcoin at Bitfinex so they have access to withdrawing funds via Bitcoin to circumvent the “banking issues”. This buying pressure has caused a dislocation in price. Bitfinex price for Bitcoin has run as high as $100 higher than other exchanges. This dislocation has dragged Bitcoin price upwards across all exchanges. When the Bitfinex problems are resolved (I expect Bitfinex will implode) what will happen when that buying pressure disappears. Even more important, what happens when casual Bitcoiners see their investment fall 20%?

Even with those issues, Bitcoin continues to rise in price. A correction seems overdue (even welcome) by many. Including me.

I’m still long.

 

 

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