Ripple Performance Beats Bitcoin and Ethereum!

Despite so much turbulence in the markets Ripple has returned 4.8% vs Bitcoin’s 2.64% in the last 24 hours or Ethereum’s -.75%.  Ripple is proving itself to be able to withstand strong headwinds after nearly hitting the $5 mark last year.  Of course $.70 is a far cry from its all time high but considering the market as of lately this is impressive.  I think despite the concerns over XRP’s future in terms of it being associated with large and central banking clients, there is value in it being a hedge.  This is one of the reasons I invested in Ripple as I feel with increasing government scrutiny, regulation, threats, bad news etc.. that this would all cause Ripple to return much better in the long-term.  However as I’ve said in past posts, there appears to be the very real fear and possibility that Ripple may just dump XRP if the banks tell or pay them to.  In fact I even e-mailed them with detailed concerns from another blog and they had no comment other than asking me to check their news, blog and website so at this point I feel it is very plausible.  Ripple’s affiliation with banks and government will either help it right to the top or it could weight down Ripple.  Besides that I feel Ripple is a fairly good currency but does suffer from a few other flaws that I won’t get into here.

 

CoinmarketCap-2018-03-20

SEC Helps and Hinders ICO’s with Reg-A+

Basically the SEC is making it easier for cryptocurrencies to legally IPO with an ICO if that makes sense.  They have lifted the caq from 50 million to 75 million and a few ICOs have already launched under this rule.  The SEC’s aggressive pursuit of cryptocurrency projects, traders and exchanges will either have one of two effects in my opinion.

  1. The SEC could create a strong cryptocurrency ecosystem if it is fair with its rules and regulations.  This would be positive for the US cryptocurrency market.
  2. The SEC could completely alienate cryptocurrency users, traders and exchanges and force the majority of money to move offshore and this would be disasterous for the US economy but not necessarily cryptocurrency in the longterm.

It is concerning that the SEC seems to be going after even large firms and ICOs like tZero.  If they are trying to show no one will be exempt they’re doing a good job but they’re also giving incentive to ICOs and related business to move away from SEC jurisdiction.  Another concern is that the SEC as a branch of the US government can now legally and literally censor ICOs.  If an ICO is coming out that restores free speech and the US government doesn’t like this do you think they will be allowed to ICO by the SEC?  It could lead to far more than just financial consequences very quickly.

Only time will tell where things head but so far I suspect things are heading out of the SEC jurisdiction and people, especially investors, may view US cryptocurrency companies as a ticking time bomb or at least a liability.

 

Youtube’s Communist Censorship Plan

Youtube has announced it will be the new thought police.  They’ll be doing this by discouraging and contradicting any thoughts, beliefs or theories that are not within mainstream beliefs or teachings.  At this rate they’ll have met the gold standard for censorship and subversion and China will be viewed as an easier place to share your thoughts.  On its face it may not sound that bad to link to Wikipedia articles but in fact anyone can write and manipulate Wikipedia.  Google will be choosing what counterpoints to make by of course selecting which article(s) get linked to.  This is quite alarming and also frustrating since hate, racism and other harmful activity has been rampant on the web ever since it began but no company or government have made any concrete steps to counter it.  So why worry about people posting their alternative beliefs and thoughts online and exposing the lies of the news?  By the gauge of most the mainstream news is the fake news yet media giants like Facebook want to declare thoughts outside of that realm as “Fake News”.  By this method then the PRISM system of spying on and intercepting people’s private information is a “bad conspiracy theory” that people have to be warned away from (of course most now understand this was never a conspiracy since Edward Snowden revealed more details about what most already knew).  There are some valid reasons for this to be done (from the perspective of nice government men and corporate greed).  There is a lot of information being shared on Youtube about pharmaceutical companies and really whole swaths of very solid information about a lot of things going on in our world.  The majority of it is well sourced and quoted and most people won’t view that content as conspiracy.  Could it be that anything that doesn’t fit the viewpoint or ends of certain elite companies and people are what is really being targeted?  Until racism and hate has been cleaned up from these platforms I am just not buying there is any good or genuine reason for Google to do this.    I think we’re heading down a slippery slope to the point where freedom of thought and expression will be completely eliminated gradually through these policies.  Eventually Google will probably start deranking websites which fit into this category of “non-conformity” to the mainstream and elitists.

What do you guys think?  I think it’s time to support Tron (TRX) and any other decentralized social media platforms.  It’s time to take the internet back!

Washington Org Warns Of Petro Coin Threat

Based on an article from Brookings Institute they have a dire warning for all cryptocurrency users!  They first take a shot at the very idea of it helping Venezuela in the first paragraph “the idea that the petro can ameliorate an economic crisis rooted in the bolívar’s volatility seems unbelievable”.  It goes on to say it is a threat to all cryptocurrency “petro will not only fail to cure Venezuela’s economic woes but will also weaken the integrity of cryptocurrencies writ-large”.  And my last but most favorite quote is what I think it’s really about “As Turkey, Iran, Russia, and other sanctioned countries deal with their severe economic impacts, they might pursue the same fraudulent strategy as Venezuela: create a cryptocurrency tied to a government-controlled asset, raise money in violation of sanctions, and proceed to manipulate that cryptocurrency’s value to maximize profit.”

While they do make some valid points governments around the world create their own currency usually without any backing of gold or resources out of thin error and continue to manipulate their currencies all the time.   To call Petro Coin over any other coin or ICO doesn’t seem to be based on anything other than political views. I think the article is highly biased and that Brookings is essentially the mouth piece for Washington and cannot be taken seriously.

The fact that Petro raised over 700M USD is significant and is less likely to be a scam than the other 90% of ICOs out there.  If I want to offer criticism of Petro I am frustrated that they don’t have their own top level domain for it and that they didn’t allow individual investors to get in on the coin.  As an investor when things are difficult and information is not easy to find I get frustrated and lose interest.  I think that is really the biggest risk to the Petro Coin.  I also disagree with larger countries sanctioning smaller countries who do not do their bidding since it just ends up creating poverty and suffering for the average person.

I am long Petro Coin if they can get more organized and get out better information.  Petro Coin stands to succeed if not for the reason that there are powerful backers of it.  Historically this been enough for the weakest of states, currencies and assets to continue floating on.  It’s also the same principle of what makes Bitcoin work, people have invested into it in different ways and it continues to be used although I do agree all cryptocurrencies essentially need an overhaul and they are certainly lacking in ease, functionality and security but his will be resolved in time.

 

IMF Wants To Regulate Bitcoin with Blockchain!

Christine Lagarde of the IMF has suggested “fighting fire with fire” by regulating Bitcoin with the IMF’s own blockchain technology.  I am not sure what they are proposing on a technical level or what this common is really based on, but let’s read between the lines of the intention.

This is very exciting news as it signals the IMF is acknowledging that cryptocurrency and Bitcoin especially are here to stay.  They wouldn’t regulate something that they don’t expect to survive.

Now the bad news is that the IMF may have something up their sleeves that slows or impedes Bitcoin and other cryptocurrencies from functioning as they should.  After all the IMF has also played roles that many of us do not think is constructive or fair to the countries that have used it.  If we apply the same scenario to Bitcoin it is time to get excited and scared at once.  It also seems disingenuous to imply cryptocurrency has a darkside while implying fiat doesn’t.  I get it and agree, fiat is better controlled so they like it but fiat is still used for crimes all the time.  If fiat wasn’t regulated under their control they would probably make similar statements about fiat instead of cryptocurrency.

The real question is what is the real intention?  Obviously as they’ve stated it is regulation but will the regulation make it so only the elite can trade Bitcoin or do they simply just want their own cut and control of cryptocurrency?  I think if we look at the history of their role and fiat, the truth will lay right in the middle but only as far as what they’ve decided should be the fate and role of fiat.  Both can coexist but do they intend for them to coexist or for one to roll over the other?

Either way announcements like this show us that cryptocurrency is certainly here to stay and it has caught the attention of the entire finance world.

Binance Proposes a new Decentralized Exchange

Binance’s new blockchain which will be its own decentralized exchange could be just what the decentralized world needs.  I am actually not a fan of a decentralized exchange as it really means no one is responsible for your losses and in fact more scams have happened on the more famous ones like Etherdelta.  One look at most other decentralized exchanges just screams insecure and scam to me.

So this is where Binance comes in as a trusted central exchange.  Centralization is not always bad so long as the person or team behind is trustworthy and conversely as we’ve seen with Etherdelta the opposite applies.

Binance has a real shot here of being the top player in cryptoexchanges.

I’ve found Binance to be easy, safe, and honest for an exchange.  If they apply this to their new blockchain for decentralized exchange trading it could be a huge winner.

We must always remember it’s not so much about the technology but about the integrity, intention and ability of the team behind it.

I am still hesitant on decentralized exchanges because of rampant losses and scams, but if anyone can do it right I bet it will be Binance.  Time will tell but this is exciting to me.

Ripple’s First Central Bank Contract with Saudi Arabia!

This is huge news for Ripple but apparently at the time of writing Ripple has tumbled more than 5% to .957 USD (under a dollar now).  To be honest I do hold Ripple but I believe my analysis to be unbiased.

The news is huge that Ripple will help Saudi Arabia settle foreign currency transactions and shows Ripple has proven itself in the large scale banking and even central banking industry.  It looks like other gulf countries including the UAE (United Arab Emirates) are going to be involved as well which could be really huge for Ripple.  One thing that many have said though is that none of these banking organizations involved are really interested in XRP.  They are using Ripple’s network but these transactions are not being funded or traded in XRP itself.

Some industry analysts have speculated that Ripple’s relationship with big banks is so strong that it may have strong incentive in the future to literally kill/dissolve XRP.

Despite this my outlook on Ripple is strong with the reservations about it mainly being a tool for large banks.  Don’t get me wrong, the technology works well for transactions in terms of being low-fee, fast not having to sync the blockchain, very secure (aside from no first party wallets….) but can we trust this company to protect our interests and those of its large banking clients?

I think this is why Ripple has been volatile itself, from an investment standpoint it sounds great but also bad because Ripple is kind of a crypto-rebel by essentially being the tool that cryptocurrency was meant to fight or free us from (the tool of big banks and now Saudi Arabia’s central bank.).

To look at it from the other perspective though this could mean a huge rise for Ripple in valuation but it could also mean the opposite.  Ripple has carved out an incredible niche but at the same time risks alienating its main users and investors.  The question is what will Ripple as a private and centralized blockchain do?

I do agree the author of the quoted article above could very well have it right for the end game.   It’s a shame because Ripple solves a number of key issues while also introducing security and trust issues at the same time.  Ripple works well but will it literally sell us users and investors out to central banks in the future?

I’ve attempted to play the lotto and will seek Ripple’s comment on these concerns but regardless of assurances only time will tell where things head.

How Governments Should Handle Crypto and ICOs

First of all after seeing so much confusion, panic and misinformation in the news, it is about time each country made a dedicated website for cryptocurrency.  The winners will be the countries who clearly communicate their policy, laws and intentions on handling cryptocurrencies.

Now in all fairness things are moving so fast, governments have genuine reason to fear cryptocurrency (aside from illegitimate reasons…) with most ICOs being absolute scams.  The real reason is of course is that governments can no longer vote or control who can fund themselves, the internet and public will judge.  However, there are still good reasons to have regulation or at least accountability so ICO fraudsters cannot hide overseas and disappear with the coins they collect.  This is my position where I feel the majority of token ICOs have no intention of completing their projects.

Getting back to what government should do, it’s not only ICOs but also the laws surrounding the purchase, use and trade around cryptocurrency.

The first country(s) to make fair, easy and favorable laws surrounding ICOs and cryptocurrency may find itself literally walking into digital gold and could be the next Hong Kong or Singapore of the crypto-finance world.  It’s up for grabs until countries clarify and cement their policies with crypto.

The first step if I were a regulator would be to hold public consultation and establish a staterun/government website domain to encourage discussion.  I also imagine it will be a hard case for government going after their citizens or businesses because they could simply leave the country with their crypto.  I think this is one element that business and government doesn’t like, that they can no longer control what people do with their money.  Typically governments and banks work hand in hand to achieve specific goals but with cryptocurrency, much like the world-wide web (initially) they are trying to find a balance and also ways to reign in control.

This time is very different, there is a lot at stake for governments, banks, people and business.  If a government moves too aggressively against the crypto world it could find itself sidelined and in financial ruin while their citizens and businesses will flock to countries that treat them better.

One of the first known examples of staterun conspiracy to harm cryptocurrency is Poland’s recent Youtube campaign: https://cryptoslate.com/polish-central-bank-caught-funding-anti-cryptocurrency-youtube-campaign/. They can’t be the only one and we know because of the well-timed press-conferences from various countries that threaten to ban ICOs or the currency outright.  On that note, as an investor this gives me more confidence than ever.  If crypto isn’t a big thing, then governments wouldn’t be talking about it.  The fact they warn so much about crypto suggests that governments and banks are well aware it is here to stay.

It could be that some governments are just playing games and waiting to see how things play out.  Perhaps internally if they see their attacks on crypto don’t kill it then they’ve already accepted that they will stop the fight against crypto.  Personally I think they are well aware that they cannot stop it and are maybe buying time so they can launch their own like Japan, Russia and China have announced.

I don’t think there’s a direct comparison but this standoff reminds me of the anti-piracy fight.  It used to be a fringe and underground element, but with crackdowns it actually has become more prevalent and easy for people to engage in piracy. Don’t get me wrong, crypto is not at all illegal or wrong (as compared to piracy) but the governments are essentially treating the crypto world the same way.  Much like the rule of investment after your strategy fails, trying again “won’t be different this time” I believe.

What do you think, how can governments handle crypto better and how would you react to bans and other aggressive action against crypto and related businesses?

Petro Coin Is Venezuela’s Nicolas Maduro’s Sanction Hot Cryptocurrency Backed by Gold, Oil and Diamonds

The Petro Coin is a very exciting project announced by Venezuelan President, Nicolas Maduro.  What makes this project interesting is a bunch of firsts, this coin would be the first staterun cryptocurrency and is also backed by physical assets, namely 5 Billion Barrels of Crude Oil, Gold and Diamonds.  This is a solid coin and currency in its own respect.

Back in the days when fiat currency was significant, valuable and important, there was the “gold standard” where essentially the amount of currency in circulation and value was a direct reflection of how much gold it was backed by.  If executed as promised, the Petro Coin would achieve exactly this as a first in the crypto world.

Why do I think this coin will succeed if executed and implemented as marketed and planned?

Russia, China and Iran.  2/3 (Russia and Iran) are currently sanctioned and China has been threatened with sanctions.  Since the Petro Coin was founded as a way to restore wealth, prosperity and escape the sanctions guess who, as an ally of Venezuela and also parties with a vested interest would both profit directly and indirectly from the Petro Coin’s success?  I anticipate massive amounts of money would pour in from Russia, China and Iran even if it is discreet and indirect.  If I am right I would expect that this coin could be hugely successful and a top coin.
On top of this President Maduro has recently asked allies in the region to get on board with the Petro project.

What are some downside risks?

Judging from social media some are very averse for various political reasons to this coin.  Another risk would be that this coin would almost certainly have trouble, be outright prevented, or removed from any Western based exchange.  Being listed on major exchanges is a key success because if no one can buy or trade your coin then it’s not going anywhere fast.  However, there are enough overseas exchanges to take care of this issue, and I suspect Venezuela would have enough resources to create their own exchanges to solve this issue. *Update Petro Coin’s ecosystem will apparently allow you to exchange and trade in physical assets, cash and other coins so the problem appears to be solved from the outset.  However, the boycott and difficulty in trading this coin are potential risks, especially if as I anticipate, some governments would simply just make it a crime for their citizens to hold or trade in this coin.  It would be interesting to see where this all heads.

It’s also been reported that Venezuela’s Congress (the opposition) has declared this currency and coin completely illegal.  However, it also appears that this has no legal bearing and will not prevent the project from moving ahead.

Should I invest in this coin?

I can’t answer that because only hindsight can clearly show us.  I am planning to invest in it as long as the project is executed as marketed and planned.  Politics aside I think this could be a win-win for people inside and outside of Venezuela.  If this coin helps Venezuela escape sanctions this would almost certainly lead to an improvement for the people of Venezuela since sanctions mainly end up hurting the people (especially the poor).

Early Success

Apparently Petro has raised nearly 3/4 of a billion USD in their initial private sale.  I’m again calling this as a positive sign and I highly suspect numerous state Sponsors from around the world contributed the funds even if indirectly.

In that sense Petro could be an incredibly strong and long-lasting cryptocurrency.  The funding behind it is already proof of concept.

On top of that Venezuela seems very serious about making their country a haven for all things crypto.  This coin could stabilize their economy and also make them the new “Singapore” of the cryptoworld if they continue to play this right.  Despite some negative comments and feedback, this point cannot be denied or overlooked in terms of investment.

My feedback

It’s been very difficult to find details about this coin, I’ve read various news articles and only recently found the official website.  They really need to do more marketing and make a proper URL/domain for this coin and not just a government subdomain.  I am certain fraud with this coin has already gone on with so many fake Petro sites that I’ve found which seem to be collecting coins.  They should pay particular attention to this as I imagine a lot of people will be calling Petro a scam because of these fake sites.

It also hasn’t been made clear of their plan but from my reading of the official site it appears initially Petro will be sold as an Ethereum token that will then be converted to their own blockchain and wallet once they have completed it.

Another risk is that people like me may begin to lose interest or even forget about it because I was hoping to get in on the private sale.

With that said, I’m not investing in any ICOs for the most part but Petro is one I am interested in for many reasons stated earlier in this post.

Where to find the official website

It took a lot of digging but here is the official Petro Coin website: http://elpetro.gob.ve/index-en.html

Cryptocurrency vs the Current Financial System Which is more evil?

Hello internet friends!

So I’ve had a lot of questions and concerns from friends and family about cryptocurrency with so many scary and dire predictions and proclamations in the MSM.

If you’ve heard the news lately you may think it would be crazy to ever get into cryptcurrency because the news says it’s a dangerous bubble, pyramid scheme, illegal, used to finance criminal activity, used to finance terrorism, is completely anonymous and 200% evil.

While there are definitely some truths to the MSM articles like most issues in life I feel it is with an agenda and not an accurate reflection of the true picture, reality and future of cryptocurrency.

To give you an idea of my perspective to be honest when my wife first told me about Bitcoin I said “there is PayPal”, “it will never be anything”, and there will be “lots of fraud and scams”.  I was right about the third one at least (1/3) :)

The Main Points The Media Makes About Cryptocurrency and How They Fair Against Fiat Currency

  1. Cryptocurrency facilitates illegal transactions, terrorism, money laundering by being anonymous and without regulation.
  2. Cryptocurrency is a bubble and pyramid scheme that won’t last.
  3. Investing in it is too speculative and risky.
  4. There are lots of scams.
  5. Coins are worth nothing because they were created from nothing.
  6. Cryptocurrency can and will be banned.

The reality as I see it in comparison to fiat

  1. While I am sure it is true crypto has been used for illegal purposes the same can be said of fiat cash ever since the beginning of time.  Cash can be used anonymously and is used that way each day.  I think this is a moot point since almost anything in the world with legitimate and good purpose can and will be used for illegal activities.
  2. I do believe crypto will have a serious crash in line with the 1929 Wall Street stock crash or the 2008 financial crisis but that didn’t stop stocks and I believe the same of crypto.
  3. This is a broad term, there are literally thousands of coins which serve completely different purposes.  There is no doubt some have stronger fundamentals and will last while others are truly worthless for various reasons.  There is also massive speculation in our traditional financial system, whether the US housing crisis that put people under water, penny stocks and failed stocks, bonds and mutual funds.
  4. This is absolutely true, there have been a lot of scams in the crypto world, however there are scams with fiat such as fake money, debit/credit card skimming etc.
  5. This is true, just as it was of fiat money but this depends on the time period.  It’s arguable that back when the gold standard existed that fiat had a certain value and was backed by gold, but today the world is freely printing money out of thin air or “nothing”.
  6. I do believe it will be banned in some countries, primarily what we’ve seen is exchanges getting shut down in China and Korea but it hasn’t stopped cryptocurrency from sky rocketing.

The Universal Truth

While the media does make some valid points, they are really blown out of perspective.  Cryptocurrency does have issues, as does fiat but what I suspect this really is about is the fact that our modern banking and financial system is at risk.  Since most cryptocurrencies are decentralized, no one person, organization typically has any control over them.  You cannot freeze an individual, organization or country’s assets anymore.  In times of war, duress or even genocide such as Myanmar it would be possible for the underbanked to use a cryptocurrency such as XLM (Stellar Lumens from the creator of XRP/Ripple) to safe guard your money across borders and against unjust seizure.  With cash or wire there would likely be no time to do such a thing if your city is being razed by the Burmese army.

There is significant risk in the future for cryptocurrency’s which really haven’t seen a seriously long, sustained correction.   Yes there have been flash crashes and drops of 25% in a day but they usually all come back higher than ever.  This is a bull market without question.  On that note I’d like to point out that the financial side of the crypto world functions almost entirely like the current financial system.

Take for example the dominant US dollar, it is still one of the most commonly used settlement currencies in the world which is a way it has artificially held value regardless of how the US economy has performed.

In the crypto world I feel Bitcoin/BTC is on top because it is the main currency used on trading exchanges.  In fact on most exchanges you have to convert your other coins into BTC usually to buy into other coins.  You can place traditional Limit and Stop Market orders as well.  In this sense the crypto world has volatility because it’s a fast changing world with new coins, players and buyers/sellers are coming in and out of the market.  You can see people taking profits when some coins surge, just as you would with traditional stocks.  If the currency or project behind the currency hasn’t changed in a negative way there’s usually no reason to worry or panic.  Instead seasoned investors will wait for the pullback to buy more of their favorite coins.

The Final Word

I think the death of cryptocurrency is highly anticipated and overstated.  I do agree the weak coins and ICOs will die, but the coins with strong fundamentals will not be going away.  Cryptocurrency is here to stay and there’s no way it can be stopped, it can be regulated and this will somewhat shape the future but we’re now in a period where more regular people will not only invest and trade in cryptocurrency but it will be used as commonly as everyday debit and credit, something that obviously banks and government will take issue with.  The answer is truly that you can’t fight the market or will of the people, there are solutions and ways for there to be a win-win but the bankers won’t let their market without a fight.