Why? Is it my inflation terror driving me on? No. Ethereum is onto a new crypto winning phenomena. DeFi (decentralized finance). Well, that’s what it’s called, but most DeFi is dull and almost pointless, the exciting bit is the crypto lending part where you can stash your cryptocash in a blockchain system and get paid interest on it in a “risk free” way.
Bitcoin might be a reserve asset for the crypto community but its recent price trajectory, with gains and losses tracking equities, suggest the non-crypto “normies” don’t (yet) see it that way. Given the COVID-19 crisis’ extreme test of the global financial system and central banks’ massive “quantitative easing” response to it, that price performance poses a challenge to those of us who see bitcoin’s core use case as an internet era hedge against centralized monetary instability. Far from complying with that “digital gold” narrative, bitcoin has performed like any other “risk-off” asset. Meanwhile, actual gold has shaken off its own early-crisis stock market correlation to chart an upward course. While bitcoin has repeatedly failed to sustainably break through $10,000, bullion has rallied sharply to close in on $1,800, levels it hasn’t seen since September 2012. Some analysts are predicting it will breach its all-time intraday high of $1,917, hit in the aftermath of the last global financial crisis in 2011. To add insult to injury, one Forbes contributor even stole from the crypto lexicon to describe the state of play, telling his readers that gold prices are “soaring to the moon.”
There are legitimate concerns about security on Ethereum. With such a complex system, and so many different programs running on it, the attack surface is large. And given the challenges the community faces in migrating to Ethereum 2.0, including a new proof-of-stake consensus mechanism and a sharding solution for scaling transactions, it’s still not assured it will ever be ready for prime time.
COINBASE:ETHBTC has been looking pretty strong lately. On the weekly chart it appears to be one of the leading altcoins (as expected) in trading vs. BTC. The weekly chart has several indicators now trending towards bullish bias. The daily chart that I'm highlighting however is not as clear at this moment. I've circled two areas of interest on the price chart....
ZIMBABWE ACCIDENTALLY LEAVES DOOR OPEN FOR CRYPTO. Here’s a recipe for creating a fertile environment for alternative payment systems: outlaw the system everyone is currently using. When the Zimbabwean government made the nutty step of banning digital payments – used for 85% of transactions by individuals, due to severe shortage of cash – it clearly wasn’t trying to promote bitcoin. In forcing people to go to a local bank to redeem funds locked in popular payments apps such as Ecocash, its goal was to protect the embattled Zimbabwean dollar. In a statement, the Reserve Bank of Zimbabwe, said the move was “necessitated by the need to protect consumers on mobile money platforms which have been abused by unscrupulous and unpatriotic individuals and entities to create instability and inefficiencies in the economy.” The thinking is that Ecocash, which enables currency trading, is making it easier for people to dump the local currency. But here’s the thing: Ecocash, which said it suspended cash-in-cash-out functions (presumably because its banking lines will be cut) is still keeping in-app payment facilities open. And it said nothing about stopping its fairly popular service allowing people to buy cryptocurrency. Not surprisingly, since the ban “demand for bitcoin has skyrocketed,” according to African crypto news site, bitcoinke, with “sources claiming bitcoin is now selling at at 18% premium above the market rate.”
The yield cap policy would be new for the Fed, but it’s really an extension of an ongoing effort to do one thing: get the market to believe its intentions. The way monetary policy works these days, it’s meaningless unless the market behaves according to what the Fed wants. It’s not about what the central bank does per se; it’s about what it says and whether those words are incorporated into investor behavior. But the more it doubles down on this, the more the Fed creates situations in which it risks having its words held against it. And that puts it at risk of losing its most important currency: the public’s trust. Commitments to price targets are always especially risky – ask Norman Lamont, the U.K. Chancellor of the Exchequer, who had to abandon the pound’s currency peg in 1993 because the market didn’t believe the U.K. would back its promises. The Fed has unlimited power to buy bonds, but whether it always has the will to do so will depend on politics and other factors. Once it’s locked into a commitment, the stakes go up. For now, the markets – most importantly, foreign exchange markets – still trust the Fed. But, as the saying goes, trust is hard to earn, easy to lose.
The potential applications of Ethereum are wide-ranging and are powered by its native cryptographic token, ether (commonly abbreviated as ETH). In 2014, Ethereum launched a presale for ether, which received an overwhelming response. Ether is like the fuel for running commands on the Ethereum platform and is used by developers to build and run applications on the platform.
Description: BTC will slow down coming days. Alts will catch up. $ETH looks to be bottomed. Perfect time for a cocaine fueled high leverage play. Timeframe: One week. Indicators used: Force my neighbour to smoke crack, then dress him up in a suit and make him pitch me pump targets. We basicly pick the funniest one and just run with it. Shout out to: None
While both the Bitcoin and Ethereum networks are powered by the principle of distributed ledgers and cryptography, the two differ technically in many ways. For example, transactions on the Ethereum network may contain executable code, while data affixed to Bitcoin network transactions are generally only for keeping notes. Other differences include block time (an ether transaction is confirmed in seconds compared to minutes for bitcoin) and the algorithms that they run on (Ethereum uses ethash while Bitcoin uses SHA-256).
While many alt-coins like BINANCE:BATBTC are roaring at this particular moment, BINANCE:ETHBTC seems to have slowed down some. I've circled several areas on the candle chart in the idea snapshot that shows where ETH bounced from support, with a low Stochastic RSI which swiftly bounced. However, we are coming up against a long downtrend in the market...
Inside The Cryptocurrency Revolution | VICE on HBO