Well, it looks like China is making headlines in the crypto world once again. This time, they want to supposedly ban exchanges in China. It's not the first time they've taken such drastic steps. This year alone, they've frozen accounts, prevented withdrawals for months, and declared that ICOs are illegal. What's almost ironic about all this news is that they have changed their mind every time, reversing their decisions. They are also in support of NEO and other cryptos that comply with their laws to create a more interconnected China.
So it almost seems normal to see news like this that affects the market; Bitcoin specifically. I made the chart above on Bittrex to represent Bitcoin since the beginning of the year using a Fibonacci trend line. Based on the data of the market (which doesn't lie), where the money is coming from (Asia!), and the long-term price trend, Bitcoin is actually doing very well! About a week ago, it touched the $5000 mark, which is considered to be a major milestone for the entire market in general (since Bitcoin makes up nearly HALF of the market cap of all cryptocurrency in existence).
Yes, China has one of the biggest markets in the world and can dictate price swings here-and-there, but that's only because the rest of the world has still yet to wake up and smell the money. There could be retracement of Bitcoin by 38% or so, but I think there's a strong support line at around $4000 right now. I'm confident that things will lighten up in the next month or two, and we'll finish the year strong ($5000 or higher maybe?).
Also, why does Reuters, CNBC, Fortune, and other major news sources cover this minor setback, but don't say a word when Bitcoin breaks a new weekly price record? Given that all the major banks, institutions, and investors are getting involved, shouldn't we be seeing cryptocurrency in the news every single day as a major headline? Very interesting. Funny how things work.
Reference: Rothwell, James R. "Venezuela protests: 200,000 march against President Maduro as riots and looting spread across country." The Telegraph. Telegraph Media Group, 21 May 2017. Web. 26 July 2017.
As most of you may know, Venezuela's economy is facing hyperinflation, riots, starvation, and numerous other problems. Most all of this was caused by it's governmental structure and leadership. I think the above picture effectively sums up the situation that people are facing. However, despite the horrific state of the once great latin country, there is opportunity.
This is where blockchain comes into play. Not many governments in the world are fond of cryptocurrency, but Venezuela presents the first use-case opportunity to allow for the first blockchain structured government. In theory, this would be a decentralized system organized perhaps through smart contracts and would have a national digital currency that could stabilize the country and replace fiat entirely.
If this were to occur and it succeeded, then why wouldn't the rest of the world jump on board the blockchain express? It's only a matter of time before a tangible use-case is initiated that changes the entire gut feeling of blockchain for government. The western hemisphere better catch up, because Asia and many Arab nations have purchased a one-way ticket. In the case of Venezuela, they very well could be the first nation in the western hemisphere to full adopt blockchain technology.
If you want my opinion on Venezuela, I would have to say yes. The tech industry is exponentially growing and changing our world every day. About 30 years ago we created the internet. 10 years ago we invented the iPhone. 2 years ago we measured the first gravitational waves and were stunned by the beauty of Pluto. At this rate, it may only take one successful and viral implementation of blockchain and cryptocurrency to establish the crypto renaissance, which is inevitable.
Well, we've all been on a crypto high the last couple months, watching Ethereum hit $400 and Bitcoin touch $3000. Most people were predicting that cryptocurrencies were on a trajectory to the moon. But was this all overly optimistic? Maybe in the short term.
Right now, the entire market looks like the red sea. So much for the moon predictions. Ethereum is dealing with scaling issues, Bitcoin is on the verge of splitting on August 1st due to a virtual civil war in the community, Coinbase can't handle the enormous growth in internet activity that they've been experiencing, and everybody seems to be selling all their cryptos at the same time out of fear.
All of this negativity is pulling down the market, but it isn't the end of the story. Far from it. In fact, we are experiencing a healthy fluctuation (market correction) that reflects the reality of the crypto market and the exchange of hands from bad investors to smart investors. These setbacks are normal and definitely expected. Many companies such as Microsoft and Tesla, among others, have experienced similar growing pains in the past.
One thing to keep in mind is that this is the reason why not everyone will become a multi millionaire trading cryptocurrencies. You have to be a smart investor and look at the long term. Bitcoin may split, but it is the most unique digital currency in existence and always will be. Ethereum has the support of dozens of companies, governments, and banks that see it as a tool to revolutionize our technological infrastructure in the world. Ripple is being rapidly adopted and recognized by big banks all over the globe and will eventually replace the SWIFT system. Siacoin will blow away Cloud storage providers. Antshares (NEO) will create a smart economy for China. Dash will compete directly with companies like Paypal for peer-to-peer payments.
I could go on and on, but you get the picture. The short term might be ugly today, but the long term looks very promising!
As of today, the retail giant Amazon has decided to buy Whole Foods Market for a whopping $13.7 billion. We all know that Amazon has been trying to enter the food industry and take on grocery stores in the same way that it takes on fashion retailers. But for an online retailer that is already putting enormous pressure on its competition, is this a step towards Amazon becoming a monopoly?
Amazon's prices are incredibly competitive, already forcing mega super stores like Macy's and Nordstrom to close up shop all over the country. Now, they are competing in the food industry by delivering your groceries and daily needs directly to you (and it's very convenient to be honest). However, with all this marketplace dominance, does this cross a line and/or hurt capitalism?
Competition is normal and healthy for our economy, but Amazon is making this increasingly difficult for some of the largest businesses in America. CEO Jeff Bezos is about to surpass Bill Gates as the richest man in the world and Amazon broke $1000/stock on the NYSE. So here's the conundrum. Do we celebrate this manifestation of American entrepreneurship and embrace the change? Or, do we draw a line to protect capitalism and the dwindling brick-and-mortor establishments in our nation?
If Amazon keeps it's current place, allowing you to order groceries on your iPhone and delivering your packages with drones (say goodbye to the Post Office), then we might be witnessing a retail industry revolution. Jeff Bezos is becoming a modern day Rockefeller, but in the best of ways.
In the past, I have discussed the implications of Ethereum and Bitcoin on the global market and how their presence will push industry forward in a new direction. With the meteoric rise of the Ethereum blockchain and the growing influx of money into Bitcoin, a tide has been created. The question is whether or not it will actually lift all boats. The case can be made for at least a few new cryptos, specifically one called Ripple.
Just a few days ago, I was caught off guard when I saw that Ripple had surpassed Ethereum in total market cap at $8.5 billion. Even more interesting, this happened in 24 hours! Apparently, billions have been invested into Ripple, which is bolstering its platform. The question is why?
Ripple is unique because big banks can use it to facilitate transactions and transfers all over the world at a very low cost, including currency conversion. This makes banking truly instantaneous and has the potential to transform how banking is done while making old methods obsolete. Currently, 15 of the top 50 banks in the world are working with Ripple and that number is growing quietly.
For just 0.17 cents you can buy a Ripple coin. That might not sound exciting, but if Bitcoin and Ethereum are any indication of massive fluctuation in this industry, then buying Ripple could potentially be the easiest investment you've ever made. I'm not giving it my endorsement just yet, but there's really nothing to lose with it being this cheap. If you missed Bitcoin and Ethereum, then this could be your next opportunity.
An ambitious Neuroscience Major, Entrepreneur, and Athlete.