iBankCoin
CAPS LOCK IS CRUISE CONTROL FOR AWESOME
Joined May 7, 2012
64 Blog Posts

When will Bitcoin reach $10,000?

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:

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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Bitcoin D Day approaches

Bitcoin is facing it’s own Brexit. Here’s what you need to know.

Similar to US Government, Bitcoin has three branches governing it: Developers (Legislative), Miners (Executive) and Users (Judicial).

Legislative power: The Developers create new code (Laws).

Executive power: Miners run the version of Bitcoin that is in the best interest of Miners. They can work with any party of Developers they choose, even if those Developers are not status quo.

Judicial power: Users choose to buy or sell Bitcoin (affecting supply/demand/price) including any versions created in a hard fork.

This is important because the three branches of Bitcoin are at war right now. A powerful subset of Miners are threatening to force a hard fork of Bitcoin. Think Apple splitting into two companies: Apple and Orange. Which stock would you buy and which stock would you sell? Now you are thinking like a user of Bitcoin.

The arguments between branches are so ridiculous that Vinny Lingham sold 90% of his Bitcoin and is encouraging other Users to defend Bitcoin by selling now to put pressure on Miners. An example of a well known User exercising proactive Judicial power.

If this subset of Miners cause a contentious hard fork it means consensus could not be reached. A contentious hard fork is like a big fat VETO by the Miners. It’s bad for Bitcoin and confuses the market.

If a hard fork happens the Users (Judicial branch) will settle the matter via price discovery (demand being the ultimate arbitrator, like the Supreme Court). I believe the fork of Bitcoin called Bitcoin Unlimited will die off. The cost will be substantial and there will be no winners, only survivors.

Despite the damage, Bitcoin will bounce back quickly. Bitcoin has been declared dead so many times it’s truly an example of “What is dead may never die.”

I am still long.

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Dotcom 2.0: Cryptocurrencies in a bubble

Ethereum, DASH and Monero are the #2, #3 and #4 Cryptocurrencies by market cap behind Bitcoin. They are also in a huge bubble that’s been created the past few weeks. Here are some numbers:

Ethereum: up 178% in 30 days
DASH: up 350% in 30 days
Monero: up 60% in 30 days

 

 

When Bitcoin is up the “alt coins” trend down or sideways. When Bitcoin is down, the alt coins trend up. Recent news about the SEC denying the Bitcion ETF, continued contentious debate over a scaling solution for Bitcoin, the Bitcoin Unlimited bug and now Vinny Lingham calling for lower Bitcoin prices have set the alt coin market on fire. Twitter is full of Crypto traders FUDing and FOMOing from coin to coin. If you think trading stocks in they dotcom heyday was crazy try the 24/7 crypto market. Ethereum was up 30% in a 12 hour stretch this week!

This won’t end well for anyone except maybe Bitcoin longs. Bitcoin is antifragile. It’s been through this before. Bitcoin has an ecosystem and most importantly it is used as a store of value and money. The same cannot be said for Ethereum, DASH or Monero.

Very few companies survived massive runs in their market cap during the dotcom bubble. I expect the same of Cryptocurrency. When this alt coin bubble pops, and it will, those bubble profits will make their way back to Bitcoin.

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Bitcoin is back

Bitcoin shrugged off the SEC’s decision to deny the Bitcoin ETF. Bitcoin is now back to prices seen…earlier this month. The absolute horror.

Bitcoin has been declared dead more times than Freddy, Jason and the T800 combined. 125 times in fact.

Here is why the SEC really rejected Bitcoin. A few select quotes:

The SEC doesn’t protect retail investors from anything, least of all bitcoin. It protects big megabanks from prosecution and competition. How can we be sure? Because pump and dump scams are everywhere. A nothing company with zero employees can merge into a shell by technical SEC rules and then start blasting ads to first time investors. This is all perfectly fine. Banks don’t buy into these scams. Retail dumb money does. No protection there.

But Credit Suisse for example can go on and issue double leveraged short term VIX futures shares like the TVIX that are more volatile and explosive than a bucket of antimatter. A bitcoin ETF though would be “too dangerous” for consumers, but the TVIX, the bane of all aggressive novice shorters who dream of making it rich quick, that’s perfectly wonderful, because it’s issued by Credit Suisse.

A bitcoin ETF is way too dangerous, but triple leveraged bear and bull ETFs issued by investment management behemoths with literally trillions of dollars under management, are fine and ubiquitous. Any teenager old enough to open a brokerage account can click a button and buy any of them and the fund decay all goes to the Big Boys. They’re fine because they are backed by Big Money, the same guys who can so easily influence who gets nominated to financial regulatory agencies.

So, good riddance to the SEC.

The biggest threat to Bitcoin is Bitcoin. Bitcoin is software that has a consensus mechanism built in to handle upgrades. To keep it simple, consensus can be reached in a couple of ways and requires majority of miners, users or exchanges to agree on what software version to run. Today a version called Bitcoin Unlimited was attacked via a bug shutting down a majority of miners running the Bitcoin Unlimited version of software.

Why did this happen? Because the selfish fucks at Bitcoin Unlimited want Bitcoin to be Visa over fucking night. They are willing to kill the goose that lays the golden eggs and they shill daily for a hard fork of Bitcoin. They released untested code and got hammered for it. That this happened today is a great thing. Bitcoin Unlimited loses credibility and the case for SegWit, or at least a controlled and well tested fork, is reinforced. Suck it Bitcoin Unlimited.

Gramatik has a song out about Satoshi Nakomoto, the anonymous creator of Bitcoin. “We buying whips with cryptocurrency.”

BULLISH.

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Bitcoin ETF DENIED by SEC

UPDATE: ETF denied. Bitcoin dead cat bounced off $1,000. I think we’ll have a final capitulation spike down and then resume upward trajectory for rest of 2017. 4 years in the making and the entire ETF drama will be forgotten by next week.

——

The SEC decision regarding the Winklevoss Bitcoin ETF is due March 11 (Saturday). Expect an announcement around 430PM EST today.

In anticipation, Bitcoin had a $170 5 min candle today. $170 in FIVE MINUTES. Even for Bitcoin that is ridiculous. $1200 > $1360 > $1190. Bitcoin is a rodeo bull, just try to hang on.

 

I expect either $2,000 or $1,000 Bitcoin within 7 days. I am leaning that the ETF is denied and we test $1,000. I’m a buyer post announcement either way. If denied, we’ll have a buying opportunity and the entire ETF will just be a blip on the chart by Q2 2017.

However, if the ETF is approved then we’re in uncharted territory. Buy the rocket and hold on.

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$COIN ETF decision approaches

March 11 marks the day the SEC will hand down it’s decision on the Winklevoss backed Bitcoin ETF $COIN.

Bitcoin has rallied on the rumor of approval and fresh capital hitting Bitcoin via an ETF. As a result, Bitcoin touched on all time highs. There are two numbers to crack for Bitcoin to be in uncharted territory: the Mt Gox Exchange high of $1265 and parity with gold.

If the ETF passes some are predicting Bitcoin will fast track $5,000+. Bitcoin’s “market cap” is ~18B, or just slightly larger than TWTR. A Bitcoin ETF would cause a strong rally. Do I recommend COIN? No, I recommend you hold your own Bitcoins over an ETF the same as I recommend holding your gold over GLD.

If the ETF fails Bitcoin is still Bitcoin. Bitcoin may see a 20% correction. Buy Bitcoin there.

I don’t believe the ETF will pass and I think that’s the right decision. Bitcoin is still evolving. Labeling Bitcoin as a commodity via ETF would be like labeling AOL in early 90’s as “the Internet”. The Internet evolved bigly from the early days of AOL. Bitcoin is in that kind of early phase.

My advice? Stop masturbating for 20 minutes and invest a few minutes to improve your mind and impact your piker bank account long term. Buy a hardware wallet. Buy some bitcoins. You’ll be an early adopter and find out how easy it is to use digital currency. You can use purse.io to name your own discount on Amazon by paying in Bitcoin. The key is to start now.

Oh, we also have this thing called a debt ceiling coming March 15th. That could really set off some fireworks with Bitcoin price as Trump and Congress twitterjerk themselves into a budget war.

(HOUSEKEEPING) I’ve been bashing GBTC for over a year. In a comment section somewhere I stated GBTC was an OK buy if you only had retirement accounts and wanted Bitcoin exposure. I am revoking that comment and reinstating that GBTC is complete garbage.

 

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Bitcoin longs Ramsay Bolton’ed

The news about the PBOC investigating exchanges is verified true and is being blown into a FUD tornado, or FUDNADO, if you will. In a world full of FUD it’s no surprise.

Filtering the noise…..the Exchanges are not Bitcoin any more than the S&P500 is Google. Nothing has changed about Bitcoin.

Exchange regulation is a sign of Bitcoin’s increasing influence and legitimacy.

I won’t be surprised if PBOC closes an Exchange. It’s long term irrelevant. Barring that this may be last time we see 700’s. Bitcoin has survived Mt Gox, Cryptsy and Bitfinex.

Either way we are definitely separating the longs from the wannabes here.

And anything is possible. Bitcoin is risky. Don’t fuck around with it if you can’t handle it AND if you don’t have at least a few coins you may be missing the opportunity of the century.

As you were, fuckheads.

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BITCOIN IS DEAD

Tips hat to OA for his well timed Bitcoin sell. Excellent as usual.

Now, for the rest of the Internet declaring Bitcoin is dead please review these other 120 obituaries written about Bitcoin going back to 2010.

You see, Bitcoin is a Sewer Rat. Bitcoin has been declared dead and crawled out of the grave many times to continue to rise in value and credibility.

No entity or government controls Bitcoin. No Fed, no PBOC, no EU. Just pure market dynamics. Bitcoin is not dead, it’s just getting started. And like many disruptor in early stages, Bitcoin is volatile as fuck. Caveat Emptor. If you can’t stand the heat, get out of Bitcoin. To the early adopters go the greatest rewards.

And for the newcomers, here are some FACTS:

  • Bitcoin is the best performing currency 6 of last 7 years.
  • Bitcoin is at ~16B USD market cap. Slightly larger than Twitter. 10x that is peanuts in financial world.
  • There will only ever be 21 million Bitcoins. That’s .003 per human on the planet.
  • BTC is easily divisible to .00000001
  • A $1 trillion market cap in Bitcoin is $62,500 PER BITCOIN
  • Capital flight from China has been closely linked to Bitcoin.

Bitcoin could retrace to ~$720, which takes us all the way back to … late November. If that’s the case I’ll be buying by the boatload. See you at $10k.

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New Year, New Market Cap High in Bitcoin

On December 7th with Bitcoin at ~$770 I posted you had your last chance to buy before a run to $1,000.

Today Bitcoin hit $1,000. That’s ~25% return in less than 30 days.

What now? Well, here’s a possible scenario:

screen-shot-2017-01-01-at-1-33-40-pm

I don’t like the vertical upward trend. It’s too volatile, however the long term trend is the cup and handle. Target: $1,400 for a buy and hold. It’s going to be very choppy so if you act have a strong hand and you’ll be rewarded nicely.

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This is your Final Warning

Bitcoin is ready to explode. This is your last chance to get on board before we visit $1,000 and beyond.

This vid starts with an ex FB exec redpilling the audience with Bitcoin. Then we have Richard Branson and a few other folks talk about Bitcoin.

Chartporn:

screen-shot-2016-12-07-at-4-03-24-pm

That is BTCUSD vs FANG. BTCUSD is cucking FANG. In fact, BTCUSD is cucking everything. And Bitcoin is just getting started.

screen-shot-2016-12-07-at-5-02-51-pm

U.S. markets are at the effect of central bankers desperately easing to keep the public placated and it’s worked with market ATH but it hasn’t solved anything. When all else has failed CB have resorted to BTFD. Everything from the central bankers is fake news, designed to keep those in power atop the heap. Employment, inflation, GDP…all fake to promote a message with an agenda that the sheeple are OK. In reality, trillions are given to banks making every one of your dollars worth less.

Tbe banks are backstopped by the government. Imagine the horrible decisions you’d make if you knew there were NO consequences. You won’t go to jail, in fact, you’ll likely be richer! Combine that environment with ample cocaine use and you have our current situation.

The graft perpetrated on the public by banks and governments is coming to an end. Those market ATH will not be sustainable and it’s a long way down. Best case scenario, there is a heavy rotation into infrastructure under #MAGA. However, MAGA will only make a new bubble and it’s net output depends on taxes. MAGA is not salvation, only another mirage.

How long have we been collectively waiting for the shoe to drop in the market? Fuck the market. At a minimum, put some of your funds into Bitcoin. Make Bitcoin your smallest allocation. Or fucking kick yourself next year for not buying cheap insurance when Bitcoin moons and the market implodes.

Still think Bitcoin is a joke? Tell that to the list of bitcoin wallets on this page, some of which hold over $95,000,000. If Bitcoin is good enough for them it’s good enough for your piker balance.

Bitcoin ATH is a measly ~$12B market cap. $12B is PEANUTS in the financial world. The upside is ridiculously huge. Do you realize our monetary system stopped evolving in the tech equivalent of the pony express. Try to send a wire recently? It takes days and costs $50! It’s ridiculous. Bitcoin is about as easy as sending an email and just as fast. Western Union $WU has a market cap equal to Bitcoin. Bitcoin can easily grow 10x from where it stands today.

Here’s the true value though. Bitcoin is an immutable ledger immune to government influence. A transaction on the blockchain costs pennies, can move millions and no third party is necessary. Think about the impact of that. No 3rd party is necessary. Banks and governments can’t stop Bitcoin. Banks are powerless to insert their tentacles and siphon from the public. Money for the people, by the people.

Bitcoin and blockchain are the biggest technical and financial developments in our lifetimes. It’s a revolution in how we transact value globally. Are you going to pass up profiting from it?

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