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dacxiglobal · 3 years

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7 Reasons Why Cryptocurrency Belongs In Your Retirement Portfolio

Across the world, governments are faced with the reality that most households aren’t saving enough for retirement.

Sadly, the era of company-sponsored pension plans is long gone and both Millennials and Boomers are bombarded with the high costs of basic priorities such as housing, education and healthcare that compete directly with investment plans and retirement savings.

According to a recent study carried out by Ramsey Solutions, about half of Americans are not saving for retirement, and the few who do save aren’t saving enough. Folks, that’s a crisis.

In another survey, only 3 in 5 households headed by someone between the ages of 45 and 54 had a retirement account with an average value of $83,000, and 13% of people in their 40s had absolutely no retirement savings.

Apparently, 56% of Gen X folks have no clue how much they will need for retirement. This is according to a new study conducted by Bankrate. In addition, nearly half of working households will experience lower living standards during retirement, as revealed by the Center for Retirement Research at Boston College.

Save for Your Retirement By Investing in Crypto

It’s never too late to start planning or saving for your retirement. Its a fact that most people dread putting their money in risky (read: liquid and volatile) areas such as cryptocurrencies.

We will tell you for free that any viable future financial plan should include Bitcoin and other cryptocurrencies which will provide a secure hedge against existing shaky financial systems.

Today, many people are searching for opportunities that deliver high ROI within a short time frame, possibly through options like private equity funds, venture capital, real-estate investment trusts and lately cryptocurrency.

And there are many people that continue with the struggle to max out their 401(k) contributions, stashing money in traditional IRA or mutual funds.

Of course that’s crucial, but since the majority of retirement plans adhere to the “contribute and coast” rhetoric, ensuring smooth operations and optimal earnings, they eventually demand rebalancing of your finances as the global financial landscape evolves.

Keep in mind that cryptocurrency is one of the biggest and most disruptive technologies in the financial arena in recent tim

Cryptocurrency is coming into the broader market as a new asset class. The puzzling price swings in Bitcoin are luring millennials into pouring their money into risky investments. Interestingly, even the IRS has approved cryptocurrency IRAs.

At this juncture, people are wondering which crypto asset class belongs to the retirement accounts, which crypto and retirement portfolios can feature in their investment strategy and if buying crypto is a great idea for long-term investing?

Why Cryptocurrency Has Become Such a Big Deal?

Well, it’s the next big thing. Ask Wall Street fund managers — they say it is the future!

Don’t be surprised when your friends and family start channeling their retirement dollars into cryptocurrency sooner rather than later. And don’t be startled when you see the cryptocurrency index or exchange-traded funds start to appear on the New York Stock Exchange.

While the crypto space is susceptible to volatility, there are numerous indications that point to Bitcoin and blockchain as being a strong bull ideal for building exchange-traded funds as well as other instruments that are great for retirement savings. You too should be bullish on blockchain, Bitcoin and other cryptos.

Rafael Carmona Toscano, a private investor and scholar of cryptocurrency who has been accumulating Bitcoin since 2013, notes that Bitcoin has a bright future. Rafael boasts hands-on experience with cryptos as he started out mining Bitcoin, and later purchased it.

“Bitcoin is a bank for the unbankable,” he says, while stating that many people in the world have no bank accounts and hence cryptocurrency would solve a huge problem for those folks.

Digital assets represent a new, fundamental asset class — one that is being considered carefully by investors. The main reason for this can be illustrated by Real Estate Investment Trusts, abbreviated as REITs.

The underlying concept of REIT was first introduced as an asset class designed for legal investment in 1960. The investment grew gradually in subsequent decades, but did not gain momentum until the 1990s. In short, the early investors profited incredibly.

Similarly, Bitcoin and other cryptocurrencies are probably the fastest growing asset class in the financial space. But do they qualify to be in your retirement account? Many experts believe so.

Here are 7 reasons why you should include a cryptocurrency IRA (individual retirement account) in your retirement portfolio.

#1: Diversification

The rule of thumb is never put all your eggs in one basket! Did you know that diversification is one of the strategies used to minimize exposure to a single asset class while still ensuring its growth? When it comes to retirement planning, one of the most effective ways to diversify is to put your savings in multiple mutual funds for different reasons such as income, growth, investing etc. Thereafter, you may need to re-balance your portfolio to ensure any rapidly growing segments of your portfolio do not skew your intended allocation.

In traditional financial markets, most of the available tax-deferred retirement accounts restrict diversification to only two classes — bonds and stocks. But, as much as diversification involves spreading the risk across different asset classes, this should extend beyond bonds and stocks to include real estate, cryptocurrency and precious metals, among others. Since cryptocurrency is a promising new asset class with exciting upside potential, it is worth considering as a retirement plan alternative for your diversified portfolios.

#2: Government Hedge

No government can directly control cryptocurrency. This is one of the reasons that has fueled its growth as an alternative currency. However, government regulations and policies do impact the bond market or Wall Street. In addition, central banks debase traditional currencies such as the U.S Dollar with evolving approaches to exchange and monetary policies. In contrast, digital assets like Bitcoin are immune to the effects of changing governmental directives. As such, we can consider cryptocurrency as an asset class capable of shifting in the opposite direction to dominant markets. This gives more credence to its diversification potential.

#3. Long-Term Growth Opportunities

Keep in mind that while cryptocurrency is proving to be an ideal long-term investment, it is also volatile. And just like any other volatile investment, what skyrockets today can plummet tomorrow and that can be bad for your health!

But do you know what other investments can be volatile? Stocks! That’s right. We all remember the Great Recession that happened from 2007–2009 where the U.S equities lost about 50% of their value in less than 18 months.

But we’re not talking about day-to-day transactions. Retirement planning is a long term horizon where individuals count on accruing tax deferred benefits for several decades in order to achieve a given milestone. It’s this long term view that got those who saved for retirement out of the muddy waters of the Great Recession.

Remember the lowest level for the Dow Jones Industrial Average during the crunch? It was at 6,547. Most notably, its highest level before the crash was at 14,164. A decade later, and the market has drastically risen over those points of the Great Recession.

Similarly, while the price of cryptocurrency and particularly Bitcoin is significantly low at the moment, it is obviously higher when compared to early 2017. I bet that anyone would be quite happy with the returns, with the coin price having increased beyond double from its value of about $2,000 in May 2017 to the current November 2018 prices of around $4,000.

#4. Cryptocurrency is Still Cheap

Is the current price tag of Bitcoin turning you away? Well, think again and remember even if Bitcoin’s not cheap, other cryptocurrencies are.

The most important question is not whether or not cryptocurrency is cheap, but will it have appreciated in value a decade later?

If you believe Bitcoin’s price will be in the range of $10,000, $100,000 or $1 million, then the coin is damn cheap today!

While you may not be that guy who spent $100 in 2010 and now has a net worth of $7.4 million, you can still take the advice provided by Wences Casare, PayPal board member that you “put 1 percent of your income into Bitcoin and forget about it for ten years.”

#5. Bitcoin Is Highly Resilient

Bitcoin is huge and the news of its death as highlighted in the 2013 smug LA Times article was premature, given that the coin is aging well.

While the Bitcoin market has faced some tumultuous times, like earlier in the decade when it lost about 70 per cent of its value overnight, the coin has recovered — along with other cryptocurrencies. Realistically, the thought of Bitcoin fading away is impossible as long as the concept of cryptocurrency still exists.

#6. Crypto Is Going Mainstream

You can use cryptocurrency on the online ecommerce marketplace, Overstock. Restaurants in Kenya and Silicon Valley will accept and give you a discount for using it. You can also buy your Sacramento Kings tickets with it.

Some of the biggest companies on the planet like Microsoft, Dell, Tesla and Virgin Galactic are accepting Bitcoin. And why not? Its price is likely to be more tomorrow than it is today.

BitPay, a global payment company is already working with over 125,000 merchants across the globe that accept Bitcoin as a medium of exchange. The company goes a notch higher to allow Bitcoin users to hold a Bitcoin Visa credit card which enables users to transact anywhere this Visa is accepted.

In essence, the fiction that “you can’t use Bitcoin to buy anything” is a fallacy, not a fact. Of course, We don’t expect you to hit your grocery store with it now, but you might be interested in knowing that a guy purchased a house with Bitcoin and made a $1.3 million return on the deal.

#7. Supporting Technology

The world of technology is evolving so rapidly and its successful integration into crypto and retirement portfolios will depend on how fast its functionality will allow holders to quickly and smoothly trade coins and exchange cryptocurrency for fiat currency or non-tokenized assets in their portfolios, while ensuring complete automation, transparency and record-keeping. This will reduce the need for having “middlemen” that drive up charges and cost layers.

The maturation of technologies that support trading in crypto is poised to increase its value, while pushing it into becoming mainstream.

Ideally, the emergence of more retirement platforms that support the technological characteristics of cryptocurrency exchange and portfolio integration have the power to increase crypto gains for the early adopters.

One example of a supporting retirement platform is Dacxi, an innovative platform that empowers new customers looking to hold on to their assets for the long-term. The company’s Dacxi Bundle is a first-of-its kind, combining the major coins by market capitalisation with an emerging coin with rapid growth potential. Ultimately, this helps new customers to spread their risk across four crypto assets automatically and at zero transaction fees!

Tokens or bundles purchased by users are kept safely in 2FA, secure wallets. Users are able to rebalance amounts and adjust their portfolio as they choose.

Take The Plunge

So, why be a statistic among people whose biggest regret is not saving enough for retirement?

How much do you plan to spend when you finally take the plunge? The answer to this question is — as much you can afford. Only you know your own risk tolerance and capability to save or spend.

Dacxi is proud to support people on a path to prosperity with crypto. If you would like to find out more then please join us at dacxi.com. We’re here to help.

#Dacxi #Cryptocurrency #cryptocurrencies

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heatherrdavis1 · 4 years

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BITCOIN PANIC!! Is THIS PUMP a BULL TRAP? TOP 5 Reasons To Be BULLISH on $BTC!!

VIDEO TRANSCRIPT

I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and based on thin air. What’s going on, guys? It’s K-Dub here with another episode of Crypto Zombie. Welcome back to the Channel. Hope you’re having a great day today. Having a look at Bitcoin and cryptocurrencies. It is another beautiful green day in the markets. You can see right here, actually, yesterday we had our video when Bitcoin was sort of struggling to break above the seven thousand two hundred dollar level. We did get all the way up to seven thousand four hundred and seventy five dollars. We peaked twice and now we’re having a little bit of difficulty staying above it. You can see right here, we’re kind of trying to push back down. So we do have a very critical level that we do need to discuss. We do want to see a nice, solid, potentially weekly candle. Clothes would be best. But I do want to just point out that you are noticing today some of the old coins in the deep green. If you’re new to cryptocurrency, you’ll notice this is a pattern. Usually Bitcoin has its rally. Bitcoin cools off and then the old coins come out to play. So we’re going to talk about that today. But there’s also been a lot of FUD fear, uncertainty and doubt regarding everything as far as the Bitcoin price, bitcoin store of value, what’s happening out with the world right now. I don’t need to tell you what’s happening. And I want to actually enlighten you with some sort of positive news today. And actually, I want to go over five specific reasons why Bitcoin is most likely to see a massive increase in adoption as well as price in the up and coming months, despite everything that’s even happening right now. And if that sounds good to you. Well, you know what to do. Of course, we’re going to talk about short term price action, but you’re definitely going to want to stick around for my top five list today. And if you’re not subscribed, definitely consider it. So without further ado, let’s get straight into the charts. You can see right here we did have a beautiful break out of this triangle. Now, currently, we are having difficulty testing this resistance right here, which was the top of this descending sort of channel. Right, that we were bouncing around in right here. And you could see we topped out once, twice. And currently it looks like Bitcoin is actually having some difficulty right now breaking above this resistance that we’ve had pretty much since the beginning of February. So we do have to keep our eyes on that. You could see it looks like we are just dancing slightly above the hartline of the ascending pattern that we’ve been looking at. And I do know that a lot of people are calling this a very bearish pattern, saying that we could have another dumped the same way that we did, you know, back here. So we’re going to analyze that today. Having a look. A lot of people actually in the comments were pointing out that this does sort of resemble a bit of an ascending wedge, which we do know, unfortunately, is a bearish pattern for bitcoin right now. I was still having my eyes set on the seven thousand eight hundred dollar level. I do anticipate if we can break above this, put in a nice, solid weekly candle. Now, keep in mind a weekly candle. It’s only the beginning of the week. OK, we have basically the entire rest of the week to go until we actually can see whether or not we put in that weekly candle. However, we do have the 21 exponential on the weekly that is going to put in some very big resistance. And guess what? That’s right around the seven thousand eight hundred dollar level, in fact, today at seven thousand seven hundred eighty five. And the reason is, as you can see right here, it basically is what held us down during the entire bear of 2018. Once we got above it here in April, we literally skyrocketed all the way up to the almost fourteen thousand dollar high of last year, had a little bit of, you know, struggle around here. But once we fall below it, guys, I mean, we basically literally just plummeted. So I do anticipate that to be a level for us to keep our eyes on. But having a look at this is sending wedge. Yes. If we do have this breakdown, we could potentially retest to about the four thousand five hundred dollar level. Am I anticipating that move? Let’s not jump the gun, guys. Let’s just take it one day at a time. But just to be fair, just to be honest, it is possible short term. We have talked about a potential huge double bottom retesting these lows. Right. But having a look right here on the bright side, we do still have the CMU futures gap up at around nine thousand sixty dollars. So that being said, guys, aside from the short term price action, I do want to talk about something interesting. Number one, if you watch my video yesterday on Bitcoin and gold equals toilet paper, if you haven’t checked it out, definitely check out yesterday’s video. It was one of my favorite videos I put out recently. I will drop that above for you guys. But having a look at the gold chart, you will notice that from the start of the year right here, gold is actually up at the time of making this video about eleven and a half percent. So this is actually been a pretty good year for gold so far, despite everything that’s happening. And of course, you do have Peter Schiff coming out and he had to have something obviously to say about this. And in relation to Bitcoin, he says investors are seeking a real safe haven, you know, and they will never buy a speculative asset on the chance that it may eventually become a safe haven, since anyone doing so is speculating. The only people who will ever buy Bitcoin are speculators, which is why Bitcoin will never become a safe haven. Now, obviously, Peter Schiff is heavily into gold. I don’t have to tell you who he is. Interestingly enough, though, having a look at. OK. We’re not up as much as gold, but if we actually look at, you know, literally the first of the year, Bitcoin was trading at around seven thousand one hundred and eighty dollars and Bitcoin is currently up about two and a half percent. Now, this isn’t as great as gold being up 12 percent on the year, but it does make me wonder people that are saying that Bitcoin is not a good store of value. Yes, Bitcoin has had a very, very crazy and wild year. But as of the time of making this video, not only are we sitting higher than we were in the beginning of the year, but I mean, it’s kind of proving that it is a bit of a store of value, right? I mean, look at what, for example, the Dow Jones has done just from the beginning of the year right here. The Dow Jones, as of the time of making this video, is down 20 and a half percent. And the S&P 500, from the time, you know, at the time of making this video was down fifteen, almost 16 percent. So you can actually see that. I mean, being in Bitcoin really would have been the place to be if you were holding Bitcoin from the beginning of the year. Now, I mean, some people are going to argue, well, we’re still down from the all time high. OK. I get it, guys. But here is the thing. A lot of people you could see, according to all these different articles that you see right here, they are scared to buy bitcoin. Let’s be honest. Gold has been around for 5000 years as a means of payment. Right. People are comfortable. You go talk to your friends. Well, I can see gold. I can touch gold. I can wear gold as jewelry. I can use gold in my computers and electronics. Right. But Bitcoin is a little bit more difficult for people to comprehend. And you could see that people are starting to get anxious and nervous since they believe that with a global recession underway, bitcoin may fall again. Right. Very volatile based on Bitcoin’s recent correlation with traditional assets during the big crash that we had on March 12. A lot of people are expecting another crash, especially if you know this. You know, Wedge does just prove to be a bearish ascending wedge. And we do have this dump that could be a possibility. However, Bitcoin was closely correlated with gold and the S&P at the time of the crash and also a few days afterwards. But like I said, if we do go back to how Bitcoin has performed today, it has recovered tremendously faster. In fact, it has fully recovered and more than fully recovered at the time of making this video than anything really in the stock right now. So that being said, I do want to focus on the positives today. There can be a lot of negatives out there. And I want to go into five reasons why Bitcoin will most likely see a major boost in adoption and priced in the coming months despite everything that’s going on right now. OK. So obviously we’re going to start with the most basic, the most obvious, and that is the Bitcoin having. Now, I know you’re probably saying, well, I already knew this. Well, we’re gonna get into the more interesting ones. I’m starting off with the most obvious as number one. So number one is the bit coin having. If you guys aren’t familiar with basically what is going to happen. It is the annual inflation of bitcoin that will drop below 2 percent for the first time in its history. The contrast is actually striking between a bitcoin who supply inflation tends toward zero over time as the U.S. dollar. Of course, its supply is infinite. So the shock to Bitcoin supply that this third having will constitute will be even stronger in a world where money scarcity no longer exists. The demand for Bitcoin will sharply increase in the coming months. Number two, we have adoption. The having will make a lot of noise and more and more users will be tempted to come in and discover bitcoin in order not to miss out on the revolution. A kind of virtuous circle which will be formed that will boost Bitcoin’s price. Bitcoiners have understood this race to own one full bitcoin for quite a while, and I think that narrative is going to become even stronger in 2020. Don’t believe me. Well, it’s not a coincidence that the number of addresses with at least one bitcoin has exceeded eight hundred thousand just by the end of last month. The monetary devaluation to be expected in the coming weeks will cause the purchasing power of hundreds of millions of people around the world to fall. Every person who is disappointed with the fiat system is a potential future bitcoin user. Number three FOMO. Be fearful when others are greedy and greedy when others are fearful. Well, let’s be honest, guys. Most people do not actually follow those rules. When the price of an asset rises sharply, that’s usually when they buy. Just look at what happened when bitcoin job to 3-point point on March 12. A lot of people panic. They all sold. You saw people saying, that’s it, I’m getting out. They converted into cash. And literally 48 hours later, bitcoin had gone from three thousand eight hundred all the way back to five thousand five hundred dollars. Number four, we obviously have the economic crisis. It is beginning and it looks like it’s about to promise even more severely than we had in 2008. Keep in mind, the current system hadn’t really recovered from the previous financial crisis. The markets had been artificially inflated by easy money policies of the central banks and the massive share buybacks by large companies in the United States. The government has decided to send a check for twelve hundred dollars to every citizen in order to calm down a possible popular vindictiveness that would grow in the country. But let’s be quite honest, guys. This twelve hundred dollar check is primarily intended to support U.S. consumption since the authorities expect you to spend this money by consuming. Now we have golden bitcoin that our proven store of values, they will most likely benefit significantly from this economic crisis. And finally, we have the virus which shall not be named. Geopolitical conflicts. Number five, we are experiencing this right now. You’re basically seeing that the virus started in China. And today you’re noticing China giving the image of a country that has defeated this disease, whether this is actually true or not. China today gives that impression that they are taking control of the situation. Over here, we have the U.S. finding a difficult time looking to manage the situation. These geopolitical conflicts will add uncertainty to a world that is already more than uncertain in the face of uncertainty. You know as well as I do that safe haven assets are being boosted such as gold and bitcoin as well, which will become a safe haven asset in a time of crisis, no matter what some opponents say about it. It will benefit from this on certain global situation. And also, while we’re on the topic of Bitcoin, as well as the block reward, having two guys have it checked out this website. It’s a Bitcoin block, half.com. Yes, guys, this is in 35 days or less, depending. And one thing I want to point out super quick before we move on is this tweet that I actually retweeted over on my Twitter. This is from Plan-B. And he says To maintain $7000, $7000 bitcoin since October of twenty seventeen, Bitcoin must have had about 400 million dollars worth of new cash inflow every month for the last 2.5 years, 30 days time, 24 hours time, six blocks times twelve point five Bitcoin times seven K assuming all traded is a zero sum game. Keep in mind this has to do with the amount of bitcoin coming into the ecosystem from the miners. The miners also have to sell some of the bitcoin right in order to maintain their setup, maintain their farms. Right. So he says after the having we only need 200 million per month to keep the 7k level. If 400 million stays, then rocket ship. So do you understand what this is basically saying? We needed 400 million daily to keep bitcoin around the seven thousand dollar price level now. We’re having this cut in half, so we’re only going to need 200 million. So theoretically if we have doubled the amount of money, but we only need half the amount of money. Well, do I need to tell you guys what’s probably most likely has happened since the inception of Bitcoin? Well, I think you guys know where I stand on that. But I do want to end on this last little bit of tweets over on Twitter. This is between Brendan Blumer, Michael Novogratz and Raul Pough, basically. So Brendan Blumer, he is the CEO over at block one. And he says the. Global macro environment has never been aligned to the stars. To highlight the value proposition of crypto quite like what we’ve seen or what we’re about to see, actually, he says in the next 24 months. Hold on to your seats now. Mayweather pops in and says, I sense a retest of the three thousand four thousand dollar level again. Markets get worse over the next four to six weeks. Then rocketship onwards, as you mentioned, to the next 12 to 14 months. Lots of bitcoin bears out there. Let’s be honest, this recent price action absolutely shook the markets. People are very scared. Lots of comments in the in my videos below, you know, people saying, no, no, no, no, we’re going way lower. Well, he says it’s not an impossibility, but I think you underestimate how many people have moved into cash and are now scared that they’re going to get stuck with it. Right now, it’s not about what investment is the most attractive. It’s about what is the least unattractive. So that’s one way to look at it. Right. Mike Novogratz says, I’ve been seeing new buyers every single day. And Raoul Pal says half the GM I readers bought this week. We also had tons of reports of basically in yesterday’s video all these different people, Coinbase having retail spikes. You had Adam back? I don’t remember. But a lot of people were basically saying that they’ve been buying millions and they’ve been looking to hold them in cold storage. And I just want to end on one more bit. Just one more little bit before we go. And this is from venture capitalist Tim Draper. And he thinks that the world governments printing money to cushion the pandemic could make people flock to Bitcoin once the dust settles. Draper expects the geopolitical boundaries will stop making sense after a while, which will spur the adoption of the frictionless cryptocurrency ecosystem. He says they’re going to be printing all this money to try and get the economy back after they’ve basically tanked it and now trying to get it back. They’re going to flood it with a bunch of money and that money is going to be worth less and less and less. And it will make people question whether they want dollars or bitcoin. He basically had the opinion that it’s going to be crypto and not the world governments that will save the day after the crisis. And that being said, guys, I want to say thank you so much again for coming back to the channel, you guys. Rocky, the reason that I do this every single day. I hope you’re staying safe out there. I hope you’re not panic selling. I hope you’re not panic trading. Hope you’re not overextending yourself, doing some crazy leverage trade. Be safe out there. These are very uncertain times. We’ve seen unemployment rates absolutely skyrocket. We do not know if Bitcoin could potentially go down and have a double bottom long term to the moon short term. Be safe out there. But you guys know long term, I am a bitcoin bull. I am a bitcoin hodler of last resort. And I will continue to make these videos as often as possible to remind you guys that this is where I stand. Let me know how you feel about it. Do you think that any of the five things that I went over today are going to have any positive effect on Bitcoin, or do you think it’s just a bunch of hope, yeomen, fluff and Bitcoin is dead or whatever, which I don’t know why you would think that. But that being said, guys, thank you so much for coming back to the channel. You guys rock. My name’s K-Dub. This is Crypto Zombie. Do consider getting subscribed. If you haven’t, I do have a free telegram group if you’re interested in joining it. That’s it for me today, guys. I’m out. Until next time, stay. Crypto and of course, peace out.

Via https://www.cryptosharks.net/bitcoin-panic-is-this-pump-a-bull-trap/

source https://cryptosharks.weebly.com/blog/bitcoin-panic-is-this-pump-a-bull-trap-top-5-reasons-to-be-bullish-on-btc

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scottmapess · 4 years

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BITCOIN PANIC!! Is THIS PUMP a BULL TRAP? TOP 5 Reasons To Be BULLISH on $BTC!! 🚀

VIDEO TRANSCRIPT

source https://www.cryptosharks.net/bitcoin-panic-is-this-pump-a-bull-trap/ source https://cryptosharks1.blogspot.com/2020/04/bitcoin-panic-is-this-pump-bull-trap.html

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jeffrmayhugh · 4 years

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BITCOIN PANIC!! Is THIS PUMP a BULL TRAP? TOP 5 Reasons To Be BULLISH on $BTC!! 🚀

VIDEO TRANSCRIPT

source https://www.cryptosharks.net/bitcoin-panic-is-this-pump-a-bull-trap/ source https://cryptosharks1.tumblr.com/post/615107500124045312

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cryptosharks1 · 4 years

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BITCOIN PANIC!! Is THIS PUMP a BULL TRAP? TOP 5 Reasons To Be BULLISH on $BTC!! 🚀

VIDEO TRANSCRIPT

source https://www.cryptosharks.net/bitcoin-panic-is-this-pump-a-bull-trap/

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adrianjenkins952wblr · 5 years

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Market Update: Bitcoin Stays Below $3,900 as Ethereum Closes Gap on XRP

/latest/2018/12/market-update-bitcoin-stays-below-3900-as-ethereum-closes-gap-on-xrp/

As we approach the end of 2018, the year bitcoin turned 10 years old, it appears the cryptocurrency ecosystem’s decline may not be over yet, although the trend may reverse next year as the equity markets appear to be entering a bearish period.

Currently, according to CryptoCompare data, bitcoin is trading at $3,870 after falling roughly 1% in the last 24-hour period. Its market cap is of about $67 billion, meaning it has roughly 51.8% of the ecosystem’s market share.

This year bitcoin went from over $13,000 to a low of little under $3,200 before it started to recover. Despite the drop, adoption has been increasing as the number of cryptocurrency ATMs, as covered, has doubled to over 4,000, with 6 being installed per day this year.

Moreover, BTC’s layer-two scaling solution, the Lightning Network (LN), has been growing at a steady pace. This month, it surpassed a 500 BTC capacity, and saw a crypto artist sell a tiny piece of artwork for one milisatoshi, about $0.000000037, in what was likely the cheapest artwork ever sold.

Bitcoin is often seen as a tool to hedge against economic crisis as it’s seen as sound money. It was created after the 2008 financial crisis and since then the equities market has been in one of the biggest bull runs in history. It is, however, apparently near its end, and some analysts claim BTC may thrive as stocks crash.

Crypto has never existed during a bear market in traditional assets.

BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain

There is a significant chance Crypto is the best performing asset class in 2019 pic.twitter.com/vIdKTrm5sV

— Travis Kling (@Travis_Kling) December 23, 2018

Looking at the S&P 500 Index it’s easy to see why the equities market is believed to be entering a bear market. After seeing a over 250% increase since the 2008 financial crisis, the index started plummeting from a high of about 2,929 to 2,350. Although it has recovered to 2,456, some have pointed out this may be a dead cat bounce.

The Dow Jones Industrial Average has seen a similar rally in the last few years, and has also started plummeting in the last few months. Peter Brandt, a technical trader who predicted bitcoin’s 84% decline this year, believes the Dow is set to face a similar correction.

Not be surprising if U.S. equity indexes have strong corrective bounce or period of chop. I’m covering some long inverse ETFs. DJIA has corrected 80% of Jan’17 to Jan’18 parabola. Perhaps bounce to 23500. But damage has been done. $DJIA pic.twitter.com/zTL1eHNL4h

— Peter Brandt (@PeterLBrandt) December 26, 2018

ETH Starts Closing In On XRP

This year Ethereum’s ether saw its price drop from an all-time high close to $1,400 to a low of little over $80, before it started recovering. At press time, ETH is trading at $139 after rising 1.9% in the last 24 hours, and its market cap is of $14.3 billion.

This decline saw it lose its position as the second-largest cryptocurrency by market cap to XRP, which fell from a high above $3 to $0.37 at press time. Its market cap is of $14.9 billion, as its price dropped nearly 1% in the last 24-hour period.

Ethereum’s market cap is close to surpassing that of XRP

The gap between both cryptocurrencies has been declining. While XRP is up 26.9% in the last two weeks, ETH has surged 59.8% in the same period. If its price keeps rising, it’ll soon claim the title of the second-largest cryptocurrency.

Most other top cryptocurrencies, including EOS, TRX, and LTC are up by less than 1%. NEO is notably up by about 4% in said period.

Original Source http://bit.ly/2Tehskc

#IFTTT #Cryptocurrency and Bitcoin

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vanessawestwcrtr5 · 5 years

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Market Update: Bitcoin Stays Below $3,900 as Ethereum Closes Gap on XRP

/latest/2018/12/market-update-bitcoin-stays-below-3900-as-ethereum-closes-gap-on-xrp/

Crypto has never existed during a bear market in traditional assets.

BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain

There is a significant chance Crypto is the best performing asset class in 2019 pic.twitter.com/vIdKTrm5sV

— Travis Kling (@Travis_Kling) December 23, 2018

— Peter Brandt (@PeterLBrandt) December 26, 2018

ETH Starts Closing In On XRP

Ethereum’s market cap is close to surpassing that of XRP

Most other top cryptocurrencies, including EOS, TRX, and LTC are up by less than 1%. NEO is notably up by about 4% in said period.

Original Source http://bit.ly/2Tehskc

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mccartneynathxzw83 · 5 years

Text

Market Update: Bitcoin Stays Below $3,900 as Ethereum Closes Gap on XRP

/latest/2018/12/market-update-bitcoin-stays-below-3900-as-ethereum-closes-gap-on-xrp/

Crypto has never existed during a bear market in traditional assets.

BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain

There is a significant chance Crypto is the best performing asset class in 2019 pic.twitter.com/vIdKTrm5sV

— Travis Kling (@Travis_Kling) December 23, 2018

— Peter Brandt (@PeterLBrandt) December 26, 2018

ETH Starts Closing In On XRP

Ethereum’s market cap is close to surpassing that of XRP

Most other top cryptocurrencies, including EOS, TRX, and LTC are up by less than 1%. NEO is notably up by about 4% in said period.

Original Source http://bit.ly/2Tehskc

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courtneyvbrooks87 · 5 years

Text

Market Update: Bitcoin Stays Below $3,900 as Ethereum Closes Gap on XRP

/latest/2018/12/market-update-bitcoin-stays-below-3900-as-ethereum-closes-gap-on-xrp/

Crypto has never existed during a bear market in traditional assets.

BTC was birthed at the very beginning of the largest monetary experiment ever- globally coordinated QE. Ending QE is causing pain

There is a significant chance Crypto is the best performing asset class in 2019 pic.twitter.com/vIdKTrm5sV

— Travis Kling (@Travis_Kling) December 23, 2018

— Peter Brandt (@PeterLBrandt) December 26, 2018

ETH Starts Closing In On XRP

Ethereum’s market cap is close to surpassing that of XRP

Most other top cryptocurrencies, including EOS, TRX, and LTC are up by less than 1%. NEO is notably up by about 4% in said period.

Original Source http://bit.ly/2Tehskc

#IFTTT #Cryptocurrency and Bitcoin

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cryptobully-blog · 6 years

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The stock market crash of 1929: what you need to know

https://cryptobully.com/the-stock-market-crash-of-1929-what-you-need-to-know/

The stock market crash of 1929: what you need to know

Hulton Archive /Getty Images

The stock market crashed in 1929, plummeting into a correction.

Margin buying, lack of legal protections, overpriced stocks and Fed policy contributed to the crash.

There are ways to protect investors can protect a portfolio from downturns.

On October 16, 1929, Yale economist Irving Fisher wrote in the New York Times that “Stock prices have reached what looks like a permanently high plateau.” Eight days later, on October 24, 1929, the stock market began a four-day crash on what became known as Black Thursday. This crash cost investors more than World War I and was one of the catalysts for the Great Depression. Irving Fisher’s declaration went down as the worst stock market prediction of all time.

Before the 1929 stock market crash: Risks and warning signs

Hindsight is always 20/20 but in the Roaring Twenties, optimism and affluence had risen like never before. The economy grew by 42% (real GDP went from $688 billion in 1920 to $977 billion in 1929), average income rose by about $1,500 and unemployment stayed below 4%. In the wake of World War I, the U.S. was producing nearly half of global output and mass production made consumer goods like refrigerators, washing machines, radios and vacuums accessible to the average household. Investing in stocks became like baseball – a national pastime. As newspaper headlines trumpeted stories about teachers, chauffeurs and maids making millions in the stock market, concerns about risk evaporated.

Everyone wanted to get in on the action and credit was readily available. In particular, businesses and individuals borrowed money to buy stocks “on margin.” Buying on margin meant that an investor could put down 10-20% of their own money and borrow the rest from their stock broker. This type of leverage was extremely risky because if the stock price fell below the loan amount, the stock broker could issue a “margin call,” requiring immediate repayment of the loan. Despite this risk, even banks were buying stocks on margin, and, since no law prevented it, some used their customers’ deposits to do so. The chart below shows the Dow Jones Industrial Average (a measure of stock market performance) from 1920 to September 1929 and how, for close to a decade, the stock market had consistently gone up.

Value Walk

On March 25, 1929, the stock market corrected, falling 10% from its 52-week high. Margin calls were made and investors panicked initially but reassurance from a group of bankers that their banks would continue to lend assuaged concerns and the market recovered. Bankers would try to reassure markets the same way after Black Thursday but to no avail.

Other warning signs began to appear but were largely ignored. Steel production, car sales and homebuilding all slowed. Several banks failed. Nevertheless, most economists shared Irving Fisher’s optimism about the market outlook, although a few outliers did warn of a downturn. Yet as stocks hit new highs in the summer months, investors ignored pessimistic predictions entirely and appeared justified in doing so when the Dow Jones Industrial Average hit a record high of 381.17 on September 3, 1929, up 27% from the previous year. After the crash, the Dow Jones would not return to its peak until 1954.

Black Thursday and Black Tuesday

Over the next few weeks, stock prices began to slide downward. By October 23, 1929, the Dow Jones was down nearly 20% from its high and in the last hour of trading that day, stock prices took a sudden plunge. The market closed amidst confusion and concern. The next day would go down in history as Black Thursday. At the opening bell on October 24, 150,000 shares of oil company Cities Service were traded for $8.4 million. It was the largest block trade ever made. By mid-morning, blue-chip stocks were falling as much as $10 with every trade and by noon, big-name stocks RCA Corporation and Montgomery Ward had plummeted 35% and 40%, respectively. To stem the rising panic, Richard Whitney, president of the New York Stock Exchange and lead broker for J.P. Morgan bid $10 higher than the previous per-share bid for 25,000 shares of U.S. Steel. The strategy worked and the market rebounded. Montgomery-Ward for example had opened at $83/share, hit a low of $50/share and closed at $74/share. At the closing bell, the Dow Jones had fallen 11% and nearly 13 million shares had exchanged hands, triple the normal trading volume. Transactions were printed on ticker tape, which could only produce 285 words per minute. The ticker tape didn’t stop running until four hours after the market closed.

On Friday, markets appeared calmer and trade volume receded to six million shares. Investors spent a tense weekend assessing their portfolios, and when markets reopened on Monday, prices plunged and trade volume spiked again. Unlike on Black Thursday, there was no eleventh-hour recovery.

On Black Tuesday, October 29, 1929, investors were in a full-blown panic. Three million shares were traded in the first thirty minutes alone. As investors tried desperately to communicate with their stock brokers, phone lines jammed and Western Union telegrams tripled. False rumors that investors were jumping out of skyscrapers fueled the panic. Fistfights broke out on the trading floor. Stock brokers called in margins and sold the stocks of investors who couldn’t immediately repay the 80-90% they had borrowed, wiping out life savings in a matter of seconds. When the market finally closed, the Dow Jones had fallen 12%. It took 15,000 miles of ticker tape to record the 16.4 million shares that had been traded. To put that in context, the distance from Manhattan to Sydney, Australia is a mere 9,931 miles. The market had officially crashed.

Value Walk

What caused the stock market to crash in 1929?

The stock market crash of 1929 did not have one single catalyst. Multiple factors contributed, including:

Margin buying

Before the crash, nearly 40 cents of every dollar loaned in America was used to buy stocks, typically through margin buying. When the market started to take nosedives, brokers began to make their margin calls and borrowers were often unable to pay up. When that happened, brokers simply sold those stocks, wiping out savings and increasing panic.

Lack of legal protections

The legal protections we have today on bank deposits and securities transactions didn’t exist in 1929. After the crash, banks were only able to honor 10 cents on the dollar because they had used customers’ deposits to purchase stocks without their knowledge. Additionally, investors had no recourse to recover funds if their brokerage firm went out of business. The Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC) were founded in 1933 and 1934, respectively, as part of President Franklin D. Roosevelt’s efforts to restore confidence in the markets under the New Deal.

Overpriced stocks

Overpriced stocks are often cited as a key reason for the crash of 1929. However, there is not a lot of evidence to support this. Stocks increased by 120% between 1925 and the third quarter of 1929, an average annual increase of about 22%. This is a big increase but in the context of a period of tremendous economic growth, it is not unreasonable. Price-to-earnings (P/E) ratios also do not indicate overvaluations. In 1929, the average P/E ratio of stocks was around 15. In January 2018, the S&P 500’s P/E ratio was just under 23. It may be more accurate to say that it was the perception of overpricing that contributed to the crash as public figures and news headlines expressed this view.

News headlines

In early October 1929, newspapers stoked concerns with sensational headlines. Most notably, on October 3, 1929 Britain’s finance minister, Phillip Snowden, called the U.S. stock market a “perfect orgy of speculation” and the next day, The Wall Street Journal and The New York Times ran stories agreeing with him. The New York Times’ page one headline blared “Year’s Worst Break Hits Stock Market.” On October 17, The Washington Post ran a headline “Crushing Blow Dealt to Stock Market” following a market dip the previous day. Associated Press stories – which were picked up by other outlets and therefore widely read – focused on the poor performance of public utilities, which generated significant worry among investors. Public utilities stocks were more than triple their book value in 1929 so these headlines did generate valid concerns. In the run up to Black Thursday, major newspaper headlines continued to focus on market dips, the lack of alarm among Washington officials about these dips, and the rising panic of investors. Newspapers cannot be faulted for reporting the news but the headlines certainly heightened people’s fears. The effect of these news headlines was roughly the equivalent of yelling “fire” in a crowded movie theatre.

Trouble in London

On September 20, 1929, the London Stock Exchange suspended shares of the Hatry group after its founder, Clarence Hatry, was found to have purchased United Steel Companies with fraudulent collateral. The Hatry group collapsed, costing investors billions and sending the London Stock Exchange into a tailspin. This news put US investors on edge.

Federal Reserve policy

Economists and historians have long argued that Federal Reserve policy contributed to the crash. In 1928 and 1929, the Fed raised interest rates in an effort to limit securities speculation. Higher rates caused economic activity to slowdown in the US. The Fed’s actions also had unintended global consequences. Because of the international gold standard, foreign central banks were forced to raise their interest rates as well, and this monetary tightening triggered recessions in several countries and caused global commerce to contract. In 2002, Ben Bernanke (then a member of the Federal Reserve Board of Governors) publicly acknowledged the Fed’s role in the crash, saying that the Fed’s mistakes contributed to the “worst economic disaster in American history.”

What happened to investors’ portfolios in 1929?

From 1927 to just before the crash, market returns grew exponentially. In 1928, stocks returned a whopping 43.8%. Here’s a look at the Dow Jones Industrial Average from 1927 to 1932:

As much as markets fell in the crash, they still had a long way to go before finally bottoming out in 1932.

Value Walk

During the period from August 1929 through March 1933, the total return of a portfolio that was 60% stocks and 40% bonds was -50.2%. During that same period, the S&P 500’s total return was -74.6% and the 10-year Treasury’s total return was +15.3%. The 60/40 balanced portfolio remain a popular option for investors today.

60/40 Historical Returns 1926-2016

Value Walk

Could investors have avoided catastrophe?

John Maynard Keynes didn’t see the crash coming and was nearly cleaned out in 1929. In fact, he was so shaken by the crash and ensuing depression that he changed his strategy, deciding that the “animal spirits” of the market could not always be trusted and that irrational behavior on the part of investors played a role in determining stock prices regardless of fundamental valuations.

If Keynes was unable to avoid the crash, it seems entirely unreasonable that the average investor could be expected to do so. The market was incredibly difficult to time in 1929, particularly because stock prices rallied before larger crashes on multiple occasions. This made it virtually impossible to tell when the crash was over. Some investors correctly read warning signs and sold their stocks ahead of Black Thursday only to buy back in at bargain prices the next day and suffer even bigger losses on Black Tuesday.

Is it possible to avoid losses in a stock market crash?

The bad news is that stock market crashes are a reality of investing. Black swan events can and will happen. The good news is that while it is virtually impossible to reliably time the market, investors can still protect their savings from a crash.

One way to minimize the risks from a potential market crash is to capture a moderate amount of upside market growth while ensuring that savings are fully protected over the long term.

Markets

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