by SGT, SGT Report:
Well, this Bitcoin thing is not for the faint of heart, particularly if you got in today for the first time at the new intraday all-time high of $2,806. Shortly thereafter the crypto cliff dived nearly $500 to $2,346 before bouncing back half way to $2,568. The grandaddy of cryptos finished up 4% on the day. One wonders if today’s action counts as fulfillment of Clif High’s web bot prediction of a huge correction in Bitcoin, before resuming its march to $10,000 and beyond. We kinda doubt it. More volatility is likely dead ahead.
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Clif High’s web bot data has long predicted the current run up in Bitcoin, actually the current run to $2,806 over shot Clif’s prediction of around $2,300. At that point the web bot data was indicating a huge correction, possibly taking Bitcoin back down to $1,500 or even lower, before bouncing back to $2,300 and then on to $10,000 in coming years.
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The web bot data also indicates a continuing run higher for Ethereum (ETH). Ethereum now enjoys the second largest market cap in the crypto currency space with $17 billion in total market value VS Bitcoin’s $40 billion. The interest in Ethereum has propelled the crypto 1,453% higher over the past year. During the same period, Bitcoin increased 453% in value. A who’s who of some of the world’s largest corporations are interested in the Ethereum blockchain.
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Recall that in February JPMorgan, Intel, Microsoft and others formed a Blockchain Alliance. In total, some 30 companies announced the formation of the Enterprise Ethereum Alliance, which according to Zero Hedge “will create a standard version of the Ethereum software that businesses around the world can use to track data and financial contracts.”
Zero Hedge continues, for those who are new to Ethereum and are curious about the distinctions between that technology and bitcoin, below is a quick primer courtesy of CryptoCompare:
In Ethereum the block time is set to 14 to 15 seconds compared to Bitcoins 10 minutes. This allows for faster transaction times. Ethereum does this by using the Ghost protocol.
Ethereum has a slightly different economic model than Bitcoin – Bitcoin block rewards halve every 4 years whilst Ethereum releases the same amount of Ether each year ad infinitum.
Ethereum has a different method for costing transactions depending on their computational complexity, bandwidth use and storage needs. Bitcoin transactions compete equally with each other. This is called Gas in Ethereum and is limited per block whilst in Bitcoin, it is limited by the block size.
Ethereum has its own Turing complete internal code… a Turing-complete code means that given enough computing power and enough time… anything can be calculated. With Bitcoin, there is not this form of flexibility.
Ethereum was crowd funded whilst Bitcoin was released and early miners own most of the coins that will ever be mined. With Ethereum 50% of the coins will be owned by miners in year five.
Ethereum discourages centralised pool mining through its Ghost protocol rewarding stale blocks. There is no advantage to being in a pool in terms of block propagation.
Ethereum uses a memory hard hashing algorithm called Ethash that mitigates against the use of ASICS and encourages decentralised mining by individuals using their GPU’s.
Ethereum appears to be poised for big things long term, so perhaps the action in ETH is more than just fly by night tulip bubble.
SILVER
Unfortunately for silver bugs, the web bot predictions have not been nearly as accurate for the white metal. The most manipulated commodity on earth is silver, and with billions of ounces of paper silver thrown at the market via the Comex every year, silver has been brutally tied down, unable to soar like the cryptos. It’s a bitter pill for precious metals investors, particularly since Bitcoin and Ethereum have soared only higher day after day for months. And even worse, the web bot data has indicated time and time again that silver was set to soar many times its current price of $17.08. Time will tell, but we remain hopeful that one day silver will see a real world price north of $600, it’s a price that has come up in web bot data often, and one that could be perfectly plausible if and when the Comex and international bank manipulation of the precious metal is finally brought to an end.
Please share your thoughts below. What do you think is the near term and long term outlook for Bitcoin, Ethereum and silver? And while we’re at it, for anyone who is interested in LiteCoin and DASH, or any other cryptos, please give us your thoughts as well. This is an important economic sea change and story that will continue to evolve and unfold for years to come.
image credit: coindesk.com
Ride those waves! This is where we take the power back from the cabal.
This is exciting for sure.
I've had the "Christmas Eve" feeling for the past week!
You can start telling people about to be carefull in august with your coins.
Better dont use Bitcoin then. Fullnodes are preparing a UASF.
We will see what will happen. Its just info for people who understand more.
I will not send any coin after 1. August and first check what bitcoinecosystem does.
Etherum has no usecase vor me now. Its more speculative. And now after 17x in 3 month i think this is real crazy. You can also watch tone vays analysis.
If you like.
I think near term, within the next few years, cryptocurrency will suffer a major correction, reminiscent of the US dot com bubble. However, I think that long term, if you just hold through the correction, crypto stands to become a huge market. Ethereum in particular, I think, will become widely adopted as a platform for computing in all sectors.
I think you may be right barcode, a huge correction may be coming, perhaps not nearly as bad as the dotcom crash, but a big correction may be near before the euphoria resumes. The ETH blockchain and technology is a very interesting story...
I know it's tough to buy at $ 2,806 fot the first time and then experience a major drop like the one today but this is the only way every participant understands instantly what forces in a free market like the crypto for heaven's sake still is reigns; it's no "Kindergarten"! But once looking back you will see that $ 2,806 was still cheap. Regarding ETH: do not underestimate that they already had two hardforks (DAO and the DDOS attacks); meaning that their chain isn't immutable anymore like Bitcoin's is and with all the applications built into the ETH Blockchain in the near future there will some more HFs be implemented; and every change in code is a risk and difficult to make!
I could definitely see a big short-term, news-based correction.
However, it's hard to imagine another 2-3 year extended bear market in the whole crypto market like there was in bitcoin. The interest level has increased so much that even the bottom would be pretty high, IMO.
Thanks for your videos and writeups!
Just got an account at Coinbase set up, and plan to dip my toe in the crypto market soon, so studying all I can on the tech. The action is just too enticing not to hold a position. Crypto seems poised to become a major player in the coming years, perhaps even the monetary salvation of the planet, but in my view it's still rather speculative, based on very interesting (and probably sound) theory and high hopes but not much else. Maybe I'm just too skeptical, or still lack understanding of what it all means. We'll see.
All this compared to silver, which I've been stacking for years, and which we know is a hard commodity for which there is no substitute, with a multi-millenia history as real money, amazing physical properties unique among the elements, essential to technologies of every kind, and slated to be the first element on the periodic table to effectively go extinct in just a few years (according to the USGS). Now that's an investment you can sink your teeth into. It might be my grandkids who look back in amazement at old Pappy's cunning silver play in gratitude, but I'm in for the long haul, whether it's wifey and I or the grandies who catch the wave.
How long the illegal and immoral manipulation of PMs can go on is anybody's guess. But I figure once fiat implodes (a mathematical certainty in my estimation), then the game is over. I'm sure JPM is looking at it the same way, and is trucking in the Ag like there's no tomorrow... which God knows there may not be. The singularity could happen any moment. Hell, the central banks may have already set the date for the great turnover, when they can use their massive PM stash to remonetize their sorry, despicable asses.
God bless you, Sean, for the incredible work you do. Been a follower for many years. The goodness of your soul shines through in every vid, brother.
Thank you stringdancer, I will be happiest when Hillary is in prison and precious metals manipulation to the downside ENDS. BTW, I very much appreciate your kind words brother.
When I saw bitcoin bouncing all over the place, I had to laugh. "Welcome to crypto, newbies", I thought to myself. I don't the the plays are done yet, and wouldn't be surprised if there was a large drop overnight, to shake out the weak hands and let the whales restock cheaper.
Thanks for the post. IMHO, I'm optimistic on all the currencies you call out in the above post . But, ideally, I'd really just like to see the PM suppression to end.
Crazy! Everytime i think it is overvalued it keeps going higher
That is what I said on my post yesterday when btc was at $2700. I guess only a few people have read my post hence lots lost some money that didn't anticipate the retrace. :)
Hyperbubble
interesting little 3:41 min video
Yeah the crooked players are getting in on Ethereum has me very worried. Learn the rules so they can break them. Again.
and all the news is about how ETHEREUM is "THE GO TO" block chain ... I smell a rat in the plan. So I am very weary.
I have them ALL in alphabetical order: Ag, Au, Bitcoin, Dash, Ethereum, ....love em ALL.
Oh, how I wish I had bought bitcoin when it was less than $10.00 Sigh.........
Nothing ever goes straight up there has to be some form of correction before it can head to the moon! DR
$5,000 incoming...(by August)
I don't much care about BTC, other than to note that people like to buy on the dips and sell on the peaks...Someone holding BTC could indulge in profit taking at $2806 and buying it all back at $2500. I play with Canadian jr. miners, and treat them in exactly the same manner.
Bitcoin is a means of exchange whereas silver can do that and it has all of its industrial uses as well, its a no brainer for me .Its silver all the way, i may speculate on cryptos but i will use any profits gained to buy more silver. This would be my plan i will buy two bitcoins and 10 ethereum, i will hold 1 bitcoin and all the ethereum, i will gamble with the other bitcoin , if the ethereum goes on a run i will wait till it exeeds my outlay then use half to gamble with. Any profit from my gambles will be used to buy more silver.
Just out of interest what happens if the PTB decide to outlaw all cryptos but their own version, until the other parts of their system is bypassed that has to be a possibility. Afterall we are all still measuring their value in their old fiat system and to benefit from the gains you have to convert back to fiat to spend it? Obviously im at the bottom of the learning curve here so would appreciate any guidance you more experienced cryptonauts(new word ??) can offer.
Thanks for posting this!
BEWARE OF BITCOIN ANY CRYPTO i think they have big plans for them who really created them and y?!
I think everyone should take their profits and buy physical silver!!!!