CRYPTOCURRENCY FORECASTS AND TRENDS FOR 2019-2020
The rush around the cryptocurrency market has passed, the bubble has burst and prices have reached a logical level for the development of this industry. But interest in digital money is growing.
Against the background of last year’s boom, many believe that cryptocurrencies are dying out. In fact, they develop at a pace that was originally expected.
Indestructible, Bitcoin takes first place. Based on its indicators, the situation in the entire market is built. Therefore, first of all I want to talk about the predictions of this particular cryptocurrency.
Nevertheless, altcoins are developing every year. Some even “breathe in the back of Bitcoin”, if you follow the statements of experts. BTC and ETH are not really the only favorites. The market is constantly changing, regulation is unclear but there are some interesting projects.
As an investor, you must realize that placing money into cryptocurrency (and seeing some of the wild returns achieved in 2018) is speculative at best.
With that being said, with over a decade and a half as a professional trader- I do own cryptocurrency as part of a well balanced portfolio that includes but is not limited to: real estate, stocks, bonds, cash, gold & silver, art & collectibles (mainly football and basketball cards & memorabilia s well as a fine collection of beat up Pokemon cards thanks to my son’s obsession with them)
Before deciding to invest into cryptocurrency, put pen to paper and formulate a gameplan. Do not rush in out of FOMO (fear of missing out) like so many people did in 2018 and got absolutely crushed. The first decision to make is the amount of risk that you are comfortable with. An amount that if digital currencies disappear tomorrow- wouldn’t keep you up at night.
For most people, that would be between 5-15% of their total investment portfolio. “Portfolio” is simply a fancy word for investments that people with money like to use… OFTEN.
25% of my investments are in blockchain related projects and cryptocurrency. That is considered extremely aggressive and not recommended.
So for someone new to investing, or brand new to cryptocurrencies or Bitcoin, you do not need a fancy leather bound man satchel tucked at your side, or be a professional investor to start investing in any market, cryptocurrency included. You can start investing and begin your portfolio in less than 15 minutes.
A BALANCED PORTFOLIO
Deciding on the % of your investments are in Bitcoin/Cryptocurrency can be a daunting task. As I mentioned above, for most people that % would be between 5-15% of their total investment portfolio
Out of this 5-15%+ that you decide on, the next step is to decide how much to put into bitcoin, how much to put into altcoins that are in the Top 100 at coinmarketcap and how much to put into smaller, riskier and more speculative names outside the top 100. Personally, I use a 70/20/10 ratio.
BEGINNER CRYPTOCURRENCY INVESTING
For stocks: you can use TDAmeritrade, Schwaab, or any other wirehouse that charges low fees and maintains a solid reputation. Please do your own research and due diligence to find the best platform for you.
To purchase cryptocurrency like Bitcoin or any of the Altcoins you have several options. You can purchase through an exchange, even an app on your smartphone.
For those who will be actively trading, you’ll want to start at an exchange like Binance, or another established exchange. For everyone else, and those who just want to purchase Bitcoin, Ethereum, Bitcoin Cash and altcoins- an exchange will probably make you go crosseyed.
The easiest way to purchase cryptocurrency is through apps like Coinbase or BRD wallet. Yes there are fees involved that cost more than purchasing through an exchange, but I am simply going over the easiest ways to purchase for someone who just wants to invest or own cryptocurrency and do so in the simplest way possible.
Coinbase has an app in itunes & Google play as well as BRD wallet. I use both as well as Binance.
NEXT YOU’LL NEED A WALLET
There are a ton of different options, but for the sake of saving time and boring readers to death I use Bread (BRD) Wallet. You can download it in the iTunes App store & Google Play Store for Android users.
BRD is a non custodial mobile wallet, available both for iOS and Android. The beauty of BRD lies in its simplicity.
While many Bitcoin wallets overload users with extensive onboarding processes and a confusing interface, BRD is as simple as it gets.
HOW TO SEND A RECEIVE BITCOIN USING BREAD (BRD) WALLET
Adding bitcoin to Bread is easy, and includes some built-in options that are not available in many other wallet apps. To get started with Bread, you will first need to download the app, either for iOS or Android.
- When you launch Bread for the first time, you’ll want to choose “Create a New Wallet”.
- You’ll be prompted to choose a 6-digit pin code to use for logging into your new wallet.
- Once you’ve entered your code, Bread will generate a master “seed phrase” for you, also called a “paper key”. This phrase, which is a series of 12 random words, will allow you to recover your wallet if your phone is ever lost or stolen. It’s recommended that you write down these words (on paper, hence “paper key”) and keep them in a safe place.
- Bread may ask you to enter in a few of the words to verify that you have written down the seed phrase.
- Once you’ve chosen a personal identification number (PIN) code and written down your paper key, your new wallet is ready to use. To add bitcoin to your wallet, you have some options. If you already have bitcoin, you can transfer it into Bread by tapping “Receive”.
- In the “Receive” panel, you can see your wallet address, QR code, and a link to easily share this information via email or text message. Simply send your bitcoin to your new address by using one of these methods.
- If you don’t already have some bitcoin, the option to buy bitcoin directly through Bread can be found by navigating to “Menu”.
- To buy bitcoin in cash, Bread offers a convenient mapping feature that allows you to find bitcoin ATMs and retailers in your area.
- To buy bitcoin using your bank account, the Bread app partners with a third-party service, which has its own set of “Terms and Conditions” that users may want to consider before using this feature.
HOW DO I MAKE PAYMENTS WITH BREAD?
Once you’ve added some bitcoin to Bread, making payments is straightforward. Because Bread connects directly to the bitcoin network, rather than processing transactions through the company’s servers, transaction speeds may vary depending on network activity.
- To send a payment in bitcoin, simply navigate to the “Send” option from Bread’s home screen.
- To enter the receiving address, you have the option to paste it in if you’ve copied it from somewhere else, or to scan a QR code using your phone’s camera.
- Once you’ve entered the wallet address of the payee, type in the amount to be sent.
- You can navigate between viewing the amount in bitcoin and fiat currency, for easy conversion.
NOW THAT YOU HAVE BITCOIN IN YOUR WALLET
Now that your Bitcoin is safely stored in your wallet, you can hold onto your investment in hopes that the price of Bitcoin rises, use it to purchase other cryptocurrencies, send to an exchange, use as payment and even bet on sports or play casino games (although we don’t recommend it.)
THE CRYPTOCURRENCY MARKET
Before we get in to forecasts and predictions (which are simply estimates at best) let’s take a look at the current market and some of the fundamentals driving the price of Bitcoin & altcoins.
The cryptocurrency market is mixed red and green. Bitcoin is struggling to correct the negative retracement on the day after sliding 0.54%. Ethereum and Ripple are slightly bullish posting minor gains on the day. The selected cryptoasset leading the recovery on Tuesday is Litecoin which is up 2%.
The long-awaited ICE-backed exchange Bakkt has opened its custody service, Bakkt Warehouse in readiness for Bitcoin futures. The announcement made on Monday via Twitter said that “Bitcoin deposited at our Warehouse is protected by a $125 million insurance policy.” The exchange is set go live with physically settled Bitcoin futures on September 23.
FORECASTS & PREDICTIONS
Bitcoin is hovering above $10,000 at the time of writing but the CEO of ShapeShift, a crypto startup exchange sees the largest crypto by market capitalization hitting $20,000 by the end of 2019.
BITCOIN PRICE PREDICTIONS BY CRYPTO EXPERTS
Michael Novogratz: $20,000 or more
Michael Novogratz, CEO of investment firm Galaxy Digital, expects Bitcoin to finish 2018 somewhere between $8,800 and $9,000 and sees BTC break $10K ‘by the end of the first quarter of 2019’. “And after that, we will go back to new highs — to $20,000 or more”, Novogratz told Financial Times in an interview in November 2018.
The main reason for the price spike in 2019 will be the entrance of more institutional investors in the space, Novogratz thinks. “There’s going to be a case of institutional FOMO, just like there was in retail”, the investor said.
Sonny Singh: $20,000 by the end of 2019
Sonny Singh, Chief Commercial Officer of Bitpay, a Bitcoin payment processing company, agrees with Novogratz that $20,000 is a reasonable price target for Bitcoin by the end of 2019. Singh predicts that Bitcoin climbs to $20K and will never drop below $15,000 anymore after that.
He thinks the new bull run will be driven by the launch of products by institutional companies such as Fidelity, Bakkt, Square and BlackRock. Singh said in an interview with Bloomberg in November 2018: “Next year will see new players and miners emerge in the industry. We will not see any rapid shift but by the end of Q1 or Q2, Bitcoin will emerge as a viable commodity.”
Anthony Pompliano: Bear market until Q3 2019
Anthony Pompliano, founder of Morgan Creek Digital Assets, first predicted Bitcoin to hit $50,000 by the end of 2018, but had to admit that his prediction was wrong. Pomp thinks we might see Bitcoin drop to $3000 first, and says it might take until Q3 of 2019 before we see a positive trend again in the market.
In a blog post, Pompliano states: ‘Bear markets continue to last longer — each bear market is measured from peak to trough during a prolonged drawdown period. The first bear market lasted ~160 days (2011) and the second bear market lasted ~400 days (2013-2014). The current bear market, if it follows the historical trend, is likely to continue for 650 days. If this comes to fruition, the crypto markets won’t begin recovering from the recent negative price movements until Q3 of 2019.’
Fundstrat’s Sam Doctor and Tom Lee: $36,000
In 2018, the analysts of Fundstrat predicted Bitcoin to reach $36,000 by the end of 2019 based on the growth of the mining infrastructure. Sam Doctor, Quant Stategist at Fundstrat, said that based on expected computing hashpower and breakeven cost growth of miners, Bitcoin could hit 36K by the end of 2019, with an upper end of $64K and a lower end of $20K.
The prediction was retweeted by CEO Tom Lee, who himself is bullish on Bitcoin on the short term as well. Lee said in November that Bitcoin will be worth $15K by the end of the year 2018, cutting it down from $25,000.
John McAfee: $170,000
Most of you know of the (in)famous Bitcoin price prediction of John McAfee, who said he will eat his dick on national television if BTC not hits $1 million by the end of 2020. Now, McAfee didn’t give a price target for 2019 (yet), but based on his 2020 prediction Bitcoin needs to be worth just over $170,000 on December 31, 2019, to be on track to hit the $1 million mark a year later.
Ronnie Moas: $28,000
Cryptocurrency analyst Ronnie Moas has predicted that Bitcoin will reach $28,000 in 2019. According to Moas, ‘institutions & the top 1% are buying as they did in the 2008 stock market crash’. In September 2018, he warned smaller investors that ‘you caught the move from $600 to $6,000… You will miss the move from $6000 to $60,000’.
Moas added that it is ‘sad to watch the top 1% scare the crap out of you, separating you from your BTC and keeping the gap between the rich and the poor’. He expects the price of BTC to rise in 2019 because of the increasing demand for and the decreasing supply of Bitcoin.
Vinny Lingham: $20K bet on BTC NOT hitting $28,000
CEO of CivicKey Vinny Lingham doesn’t agree with that price prediction of Moas. During a conference in Las Vegas in November 2018, the two experts placed a $20,000 bet on the price of Bitcoin in 2019. Where Moas predicts BTC will be worth $28K by the end of 2019, Lingham thinks the price won’t hit that mark.
Lingham stated that businesses dealing with cryptocurrencies are not making any profits and ‘need to trade their assets for sustainability purposes’. For the long term, however, Lingham is far more optimistic.
Fran Strajnar: $200,000
Fran Strajnar, CEO of crypto research firm Brave New Coin, expects the price of Bitcoin to hit $200,000 no later than January 1, 2020. In an interview with Inverse in 2018, Strajnar stated that “the adoption rates are continuing to be quite steady, and adoption rates heavily correlate to the price, so therefore, unless for some reason people just simply stop continuing to adopt Bitcoin, we should see $200,000 per Bitcoin by 1st January 2020 at the latest.”
ETHEREUM FORECASTS FROM CRYPTO EXPERTS
Joseph Raczynski: Ethereum will hit $1,200 by Q4 2019
Joseph Raczynski, the founder of JoeTechnologist.com and a key blockchain influencer with a Twitter following of 153K, expects the value of Ethereum to hit $1,200 by Q4 2019. He attributed his projection to the popularity of Ethereum’s proof of concept among institutional investors. He also added that the network has the largest developer community.
‘They are one of the most real projects to date. Nearly all large organizations are testing on this platform’, Raczynski said.
Tom Lee: $1900 by the end of 2019
According to Tom Lee, head of research at Fundstrat Global Advisors, Ethereum is about to rally strong, pointing at its recent sharp losses, and stating that the digital currency is well-positioned for a recovery.
While Lee may be highly bullish on Ethereum’s price prediction, Tim Enneking, managing director of Digital Capital Management, disagrees.
He said that such a price move is highly unlikely. ‘There are no drivers to push ETH to 40% above its prior all-time high’, he added.
Nigel Green: $2500 with a further increase in 2019 and 2020
The CEO of the deVere Group, believes the price of Ethereum will increase significantly and could hit $2,500 with a further increase by 2019 and 2020.
‘This general upswing will be fueled by three mains drivers. First, more and more platforms are using Ethereum as a means of trading. Second, the increased use of smart contracts by Ethereum. And third, the decentralization of cloud computing’, DeVere said.
According to DeVere there will be several key motivators that will fuel a rally in crypto prices, which will include the growing integration with and adoption by major banks and other financial institutions.
‘Another key reason for the rally is that there’s a growing awareness of the need and demand for digital, global currencies in a digitalised, globalised world’, Green said. ‘Ethereum can be expected to solidify its position as the second most valuable and used cryptocurrency token in the world.’
Brian Schuster: $10,000 or even $100,000, if it replaces gold as a store of value.
The head of Founder Solutions at Ark Capital LLC presents an extreme bullish picture of Ethereum reaching $100,000 per coin. The ultimate replacement of gold with crypto has been discussed endlessly by a number of other market observers, even though Bitcoin is mostly seen as the favourite replacement coin.
‘What if you believe that Ethereum is less like one individual business and more like a store of value, like gold? This gives us a potential market capitalization of roughly $10 trillion, leading us to believe that the price of Ethereum might rise as high as $100,000 per coin. We might even go one step further and say that Ethereum is not like one asset, but an asset to replace all currency that exists.’, Schuster said.
Schuster further claims that Ethereum’s platform aspect may eventually lead to it becoming a sort of mother currency for all future digital currencies, and this in a world where digital currencies are the norm.
Jeff Reed: Ethereum is more valuable than Bitcoin
Cryptocurrency author and market observer Jeff Reed points out Ethereum as a more certain long-term bet than Bitcoin.
‘Like Bitcoin, there is little stopping Ethereum from being an alternative currency to fiat and commodity currencies. You can conceivably trade anything using Ethereum, but this is not Ethereum’s strength in comparison to other cryptocurrencies – they can all do this. It’s rather the computing language that allows the smart contracts to exist that makes Ethereum more valuable than BTC’, he said.
Reed doesn’t give a price prediction or timeline, however, according to him, the market boils down to Ethereum eventually trumping Bitcoin, and seizing its top price position.
Chris McClure: Ethereum is overdue for a rally going into 2019
Chris McClure, chief marketing officer of cryptocurrency at data provider Svandis, said that they believe heavily in Ethereum.
‘Whether it’s Sharding, Plasma, or OpenST Mosaic, there are tremendous technological reasons to be bullish on Ethereum and to believe in a speculatively high price moving in 2019.’
‘Ethereum is aggressively oversold and overdue for a rally going into 2019’, McClure said.
Fred Wilson: Ethereum feels like the easiest one to make a bull case for right now.
Fred Wilson, the co-founder of Union Square Ventures, one of the most well-known venture capitalist firms in New York City that manages over a billion dollars in assets, said that Ethereum feels like the easiest one to make a bull case for right now.
‘Everyone has lost their shirt on it by now. Nobody other than developers want to know about it. It feels like time to start nibbling on it but not loading up on it.
THE BOTTOM LINE
At best, these are just guesses… no one knows what the price of Bitcoin Ethereum will actually be at the end of 2019-2020. I believe Bitcoin could easily break 27,000 before the end of 2020 and have not placed a forecast on Ethereum as there are too many variables at play.
Again, do not take any of this as investment advice or a recommendation to buy or to sell. Use this and additional research that you conduct on your own to formulate your own opinion. One thing I can promise is that your guess is as good as ours.
The post EXPERT PREDICTIONS & PRICE FORECAST FOR BITCOIN AND ETHEREUM 2019-2020 appeared first on CryptoClarified.
KuCoin Has Just Announced a New Project Listed, and It’s One of Our Favorites!
Scheduled as the next phase of the SaTT progress, the token would be listed on several top tier exchanges namely Kucoin and Uniswap the 24th September, opening it up to a big audience of users, traders and investors, giving the project the exposure it deserves. The success of SaTT token sales and future listing isn’t a short term attempt at fundraising and instant success, in fact, it’s been 2 years of continuous work to achieve set targets.
What started in 2018 is experiencing incredible success, in a market that has seen a lot of projects both genuine and low quality, get shut down due to the low number of willing participants of various token sales models. A situation well managed by SaTT advertising blockchain platform, when in today 2020, it has raised $1,000,000 in less than 48hrs after it opened its token sales for the current round, hitting its soft cap of $3,360,000 and $4,000,000 till now.
In 2020, SaTT advertising blockchain joins the league of blockchain projects that survived the tough and excruciating market of 2018-2019 and is now getting ready to be listed at various markets in an unprecedented manner not witnessed a lot of times in the cryptocurrency industry. Not too many projects will integrate 2 exchanges as qualitative as the giant Kucoin and the new little one Uniswap, which recently got a lot of attention for its Airdrop and its volume surpassing Coinbase.
Kucoin is a world class blockchain exchange known as “The people’s exchange” because of its relative ease of use, speed and security, the exchange boasts of over 5 million users from over 200 countries of the world, founded in september 2017 and operates in Seychelles. According to Alexa ranking kucoin makes the top 5 global unique visits providing the opportunity for SaTT to be known by its wide user base.
Kucoin offers digital asset exchange of various cryptocurrencies, users can use various order types to execute their trades on the spot market. With its over $500 million trade volume, traders are assured of small bid-ask spreads when SaTT token trade commences.
Uniswap: is the popular Ethereum protocol that acts as a DeFi aggregator and has grown so much in liquidity that it recently beat coinbase 24hr volume of $1 billion. Due to its ability for traders to trade without middlemen on a peer to peer type of arrangement, the platform has become traders choice for trade in a relatively short period of time.
Projects listed on the protocol gain huge exposure very quickly enabling once more the increase in SaTT popularity in an effective manner.
The listings is scheduled to take place on 24th September 2020, further details and exact time of the listing will be communicated in the SaTT telegram group hours before listing, users can do well to join the group to stay updated.
A brief overview of SaTT advertising solution shows its utilitarian values and capabilities that exist for scaling in traditional solutions. For example, social media platforms integrated into the SaTT platform are of the traditional mainstream types eg Facebook, Twitter, Instagram and YouTube, connecting and incentivizing users in a transparent and fair manner.
The SaTT platform is built on top of the Ethereum blockchain which allows for Openness and transparency of both activities and transaction done within the system, an attribute lacking in traditional outfit, which is also a significant propelling force behind the movement into the SaTT platform a continuous mass exodus of new users and influencers alike.
Industry investment firm Blockchain Capital joins the Libra Association
Blockchain Capital has joined the Libra Association as its twenty-seventh member.
The post Industry investment firm Blockchain Capital joins the Libra Association appeared first on The Block.
Why We Get Obsessed With Bitcoin
Bitcoin can be addictive—but what sparks that initial obsession? Here’s why people become Bitcoiners, from the minds of those most hooked.
You’ve probably seen the comic posted in one of the many online crypto communities; an adaptation of a popular Reddit meme. A jolly little character offers up two games, one adventurous, the other challenging.
His friend asks about a third option.
“When you play that game,” the first little guy replies, “days will blur together. Regular meals are a thing of the past. Friends will become concerned. And the whole time you’ll be unsure if you’re even having fun.”
That third game is, of course, Bitcoin.
That comic is familiar to those of us in the crypto industry. From traders staying up until the early hours, to crypto journalists working day and night to cover the fast-growing space, we all relate to it and that’s why it makes us laugh.
But what is it about Bitcoin that initially grabs us and sends us down the rabbit hole? Why do these lines of code reach out of the computer screen, grab our imaginations and pull us in?
During four interviews, with diehard Bitcoiners, Decrypt identified some common traits: a dislike for authority, with a political stance that leans towards libertarianism. But while they revel in Bitcoin’s attributes as a hedge against inflation, or its security, it wasn’t those factors that initially drew them in. Rather, it was the moment they first used Bitcoin or were able to visualise it, that flicked a subliminal switch. So, while the current narratives are important, what gets us obsessed with Bitcoin is something a little more intimate.
“A weapon for peace”
On a day in September 2015, David Bennett, senior administrator at the Texas Tech University, felt confined.
He was at work in his cubicle, lit by a lamp instead of the overhead fluorescent lights that were never turned on. The office was so buried in the middle of the gray, chunky concrete building that was the university’s library, he couldn’t even hear it when it rained—an event that, in the southern end of the High Plains desert landscape, would typically bring everyone running to the windows.
Bennett looked at his monitor. He was just about to send 0.2 Bitcoin, worth $80, from his Coinbase account to Jack Spirko of the Survival Podcast, so he could become a member. He had heard about Bitcoin online a few years ago, but it was only from listening to these podcasts that he was starting to learn more. He popped in Spirko’s address and hit send.
It quickly dawned on him that there were so many things he hadn’t done. He hadn’t put in his bank account details, his home address, his telephone number. He hadn’t authorised someone to take payments from his account. There would be no phoning the bank up to complain that further scam payments had been taken from his account. That was it, done.
He felt liberated.
“That started the whole trip down the rabbit hole,” he told Decrypt. “I sat back. I didn’t say anything then, but later told my co-workers about Bitcoin.”
Bennett soon became a regular listener of Bitcoin educator Andreas Antonopoulos as well as Trace Mayer’s weekly Bitcoin Knowledge podcast. Finding himself ill-content with just one podcast episode every week, he set up his own called “Bitcoin and …” where he discusses news on a daily basis.
To this day, he continues to maintain that Bitcoin is a weapon, but, in the words of Parallax Digital CEO Robert Breedlove, one for peace.
“Bitcoin is FU money”
It was a cold day in late October, 2019, when Phil Gibson, a software salesman, drove home for his lunch hour. His friend had convinced him to buy a range of altcoins, such as the Brave browser’s Basic Attention Token and business-focused Syscoin, on crypto exchange Binance. Only the friend had warned him to get a VPN first.
Standing at the kitchen table with his laptop out, Gibson tried paying for NordVPN. But his debit card refused to work, flagging an error message. He tried his credit card. Still no dice. He got on the phone to his bank, to find out what was going on. While he was waiting on hold, it dawned on him that it was probably to do with what he was buying. The customer service assistant came back on and confirmed his suspicions.
Gibson was angry that the bank was banning him from spending his money how he wanted. He ignored the idea of calling his local branch and looked for another way. He noticed the VPN provider accepted Bitcoin, so he took out CashApp, bought Bitcoin and paid for the VPN directly.
“Once I saw that it worked, it was just amazing,” he said. “Bitcoin is FU money—it’s a hell of a drug.”
While he had heard about Bitcoin in 2017 during its epic run to $20,000, this was the moment he truly understood its value. It slotted straight into his libertarian-leaning beliefs and he started binging Bitcoin information, such as the Bitcoin audible podcast by Guy Swann.
But there was one thing about Bitcoin that—unlike the fiat money he had in his bank account—really resonated with him.
“It’s mine,” he said. “Even if I sound like Gollum.”
“It sort of clicked”
Economics student Marty Bent was sitting alone in the library of DePaul University in Chicago, one evening in the summer of 2012. Outside of his evening classes, he had spent the day working at a managed futures fund where he wrote almost exclusively about central banks and monetary policy. With his anti-authority bent, it was clear to him that governments were getting it all wrong.
“I was pretty glued to what the central banks were doing for three to four years. In the depths of QE2, QE3, Operation Twist, I quickly learned the central banks didn’t really have any idea of what they were doing,” he said, referring to examples of quantitative easing and bond buying by the Federal Reserve.
In that moment, he wasn’t studying for his economics lessons the next evening, nor was he preparing for the next day’s commentary at his day job. Instead, he was on BitcoinTalk, poring over everything there was to know about Bitcoin.
Bent said, “I was reading up on Bitcoin and getting a better understanding of the technology and the monetary policies behind it—and it sort of clicked.”
Bent soon started making Twitter lists of prominent Bitcoiners to keep track of what was going on. In the winter of 2013, he used his bonus check to buy his first Bitcoin for $800. Soon after that, it shot up to $1,200 and, driven by the feeling of euphoria, he was suddenly telling his coworkers all about it.
A “lightbulb moment”
In early 2017, Robert Breedlove was in his home office in Las Vegas, reading a paper on his iMac. Breedlove was a libertarian who had long wondered about money—what it was, and why governments had a monopoly on it. He had read a book called The Creature from Jekyll Island: A Second Look at the Federal Reserve, and one Christmas, he had even handed out copies of an abridged version—called Dishonest Money—to his family.
So, it’s unsurprising that, at that very moment, he was reading Nick Szabo’s explanation of smart contracts, a technology for coding agreements between two parties. Breedlove had known about Bitcoin for several years but it was at this moment, when he finally got what it was for.
“When i read Nick Szabo’s work on smart contracts—which was actually written in the late 90s—that was when I had my lightbulb moment,” he said. “Oh my gosh, this whole finance industry is basically this intermediate function that could be disrupted by smart contracts.”
It was Szabo’s example of a vending machine that struck him. “A canonical real-life example, which we might consider to be the primitive ancestor of smart contracts, is the humble vending machine,” Szabo wrote.
At that moment, Breedlove could visualize how Bitcoin or Ethereum could play the part of the vending machine, removing the need for the legacy finance industry—while rivalling state-backed fiat currencies. “That’s when I realised that the tech was really going to be a big deal,” he said.
He soon came to believe that it was Bitcoin that had the strongest foundation to disrupt the concept of money. After reading The Bitcoin Standard, by Saifedean Ammous, he devoured books by economists Ludwig von Mises, Murray Rothbard and Friedrich Hayek. He went on to become the CEO of Parallax Digital, which invests in Bitcoin-focused products, and has written a 62-tweet-long thread that sheds light on Bitcoin “in an exoteric nutshell.”
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