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

Jamie, u mad bro? Oh, u mad.

Jamie Dimon, Grand Wizard of JP Morgan, Forger of Chains, Master of Trading Desks, Ruler of the Golden Men, Father of Bailouts and the first of his name has come out swinging on Bitcoin. Again.

This is the same position Dimon has had on Bitcoin for years. In 2015 he said “you’re wasting your time with Bitcoin”. Bitcoin was trading at ~$320 the week this video was uploaded to YouTube in November 2015. If his comments about the government never letting go of control of currency doesn’t cause a concern for you then you *might* be a JP Morgan employee.

The price correction the past few days was overdue. I’ve been tweeting about it for weeks. I expect $3200 Bitcoin before the correction completes. Bitcoin was already sliding. Dimon’s comments shook weak hands who were going to capitulate soon anyway.

Here’s what there is to remember. If you have possession of your private keys there is no counterparty risk. Governments can shut down exchanges or attack fiat onramps but they can’t stop bitcoin. Exchanges DO NOT equal Bitcoin. Shut one exchange down and there are dozens of others to use.

So why would Dimon say this now? The word on the street is Dimon is privy to pending US government action on one or more exchanges. So he’s wrong on bitcoin but he’s not dumb. He’s making statements now because he knows the next move coming.

There is risk if you are holding your crypto on an exchange. Then you are vulnerable. If you hold your private keys then you have s swiss bank in your pocket, extra Obama.

Decentralized exchanges will be big in 2018. Today’s exchanges are a choke point and a tracking mechanism for big brother. With decentralized exchanges truly there will be no way to shut down crypto.

But what if governments outlaw crypto currency? Well, we’ll probably see them try. China has taken measures to put controls in place. Too late, the cat is out of the bag. I think a more likely scenario is we’ll see state level actions in the crypto space. Rumors are N Korea is mining Bitcoin. China may be on verge of nationalizing their largest Bitcoin mining operations.

It’s an interesting time for Crypto. Practice safe crypto and keep your keys safe offline and ride it out.

Bitcoin Cash and Monero are my top picks.

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CALM YOUR TITS, BITCOIN IS FINE

Hurricane Irma has nothing on the Fudnado surrounding Bitcoin.

Let’s recap what happened this week. But first, some context:

Let’s start with: China bans ICOs. Good! ICOs are complete crap. ICOs are designed to separate fools and their money. ICOs were raising millions of dollars in hours based on very short whitepapers. There is a website where you could create your own fake whitepaper to go with your make believe Crypto project and get rich overnight. Market digested and discarded China banning ICOs within 24 hours.

Next: Bitcoin hit $5,000 for first time. Then it retraced to ~$4,000. Then back to $4,700. Now trading at $4,300. Nothing like 15-20% swings in your portfolio every 12-24 hours to keep you alert and engaged in the market!

Yours truly warned about the correction when BTC was at $4,800. Unlike most of the crypto perma bulls I believe we have another correction coming. Sideways action is healthy for the charts now.

What else….oh yeah….Paris Hilton tweeted about Crypto. What that picture has to do with Crypto I have no idea other than to remind you she is Paris Hilton?

There were rumors China was “banning Bitcoin”. This has happened before. This recycled news even has it’s own South Park meme. (BTW, Crypto has the dankest memes)

China banning Bitcoin news was discredited, then confirmed, then discredited. I honestly don’t know what’s true at this point and don’t really care. This could be fake news?

China has banned Google and Justin Bieber. Doesn’t seem to affect them too much. I think Bitcoin will be fine.

Now we have renewed rumors about www.poloniex.com being close to collapsing or being seized by the government. If you have any funds on Poloniex I recommend you get your crypto/fiat out of Poloniex ASAP.

My current allocation is 80% Bitcoin Cash and 20% Monero. I believe Bitcoin Cash has more upside than Bitcoin and that privacy will be the theme of Crypto in 2018.

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MGTI TO THE MOON

On June 29th I wrote about The Crypto Stock that’s better than GBTC. MGTI is up 189% since that post.

Why? Well, it may be related to these tweets. On July 18th John tweeted that Bitcoin would be $500,000 in three years.

When someone replied they would bet him here was John’s response:

And here is MGTI’s chart since that tweet. This shows the market likes a committed CEO! You don’t hear about Elon putting his dick on the line do you? Forget getting an MBA, swing your dick around the boardroom and see your company reap the rewards.

Elon Musk has nothing on John McAfee.

End of year target for MGTI >$10. Short term pullback likely. John is aggressively positioning MGTI to be the largest Bitcoin miner in North America.

If you want to make money in a gold rush sell shovels.

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Bought some Alt Coins here

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.

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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Bitcoin Cash Lays Siege to the Crypto Throne

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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The Crypto stock that’s better than GBTC

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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Rally caps on: Bitcoin correction is OVER

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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Bitcoin downside target: $1400

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 saves the World (sponsored by PotCoin)

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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Bitcoin Q & A

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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