Progress, Plans And Pussies

'I find that the harder I work, the more luck I seem to have' - Thomas Jefferson

Right now, many quit. Rightfully so. Crypto might die completely, although I don't believe in that. However, I'm one persistent mofo.

The good thing for my followers is in early Jan, I told everyone who was in crypto with borrowed money to quit - loudly and clearly.

The odds are you are in with the money you can afford to lose... and more importantly, use.

'use' to make something amazing with it if you succeed.

But if you do succeed, succeed greatly!

I was never interested in stocks. 10-20% gains and in 10 years you are rich... is not my style.

I rather fail and sweat and risk... but if I succeed... that I do so great, beyond wildest expectations of stock-investor mentality.

In my previous business I was a slow starter.. I worked through unimaginable challenges... that sometimes it was even funny of how 'bad luck' can strike...

but then when success came, I bought a Lambo, a house, a nightclub with two months earnings!

And the Lambo taught me... that

Most Men Never Live

I was not the only guy with Lambo in town - but I was the only one driving a dog in it!

I had a crazy, biting, big breed 3-month puppy... that was the best dog in the world for me, I shit you not.

It was so hyperactive mofo that he would bite my shoes, bark, piss on the floor, ... everything... but when I brought back a smoking hot chick that worked as a hostess in my club... a nice round bubbly ass, tight, petite submissive nympho.. my dog went quiet and peaceful the moment I started...  .. playing chess with her! 

That moment I knew it - this dog is for me!

And since then we were nonseparable friends. We both are loyal. Me loyal as a dog and he - the dog.

Then I saw one idiot with Lambo who would go into some city with a truck, carrying Lambo, got it down, polish it - ride it around the city, then pack it up again, transport it back... 

the Lambo owned him!

I said to myself, the moment it starts being a burden for me - I'm selling that thing.

So I believe I had more fun with it than most guys worrying about it ever do.

I never drove one single gold digger in it - though I had epic opportunities!

Later I crashed it (also an epic story, not so epic crash) -- light crash, 50 miles from the destination where I was about to sell it anyway.

The guys couldn't get it why I sold it - 
First of all, if you haven't driven a supercar, here's a hint... it's shakey.
Second, whenever, wherever you leave it, anywhere.. you know there is people around it.

The reason I sold it though - was to punish myself.

After years spent trying to make my business successul, and years of miserable failures, I finally did it - I made it so big that we were making more than Google per employee!  Not many employees though. Me doing most of the work.

I got lazy, I was partying too much with easy chicks spending hard money... and that was the first time I felt depressed.

For the first time, in my life... I felt depressed when I had the most and bought it all.

Two years have passed and I couldn't get myself to get back to work. I didn't want it anymore. I couldn't go back doing the same thing that I brought to the top in the industry. I ended up doing a pretty epic thing that I'll feel good for (or stupid) in the many years to come - I GAVE it to our young and eager manager and to my partner. No money. Just gave it.

I went trading.

Crypto... and I got quite fast quite good at it. Got the good guys around it... and got good luck with it.

Then Blockchain Whispers came to life.

And again the same story... the moment I started with Blockchain Whispers, the bear times began.. dipping and dipping, neverending dip.

But I enjoy every second of it... because I see loud guys who I wanted to outperform, asking around about 'Blockchain Whispers guy'... many disappearing... and even those not disappearing, they are not doing anything now... while me... 

Blockchain Whispers Is In FULL THROTTLE DEVELOPMENT!

I am building more for you than you can imagine.

You will soon see some of the results.

So many surprises... and completely ready to fail!

If crypto disappears, I'll know I built something epic I am proud of.
If crypto succeeds - well Blockchain Whispers will be the first and the most useful resource for trader's edge on the planet. You will soon see what I am bringing to you from fundamental's side of things. You'll not be able to ignore it during your trading days.

I am so excited, because good luck or bad luck, you never know.. I am grateful I got this 'time' to build everything properly... while everyone else is lazy.

I am not quitting. I am evolving. And you are with me.

Together, we will succeed.. and weak hands will disappear.

I do agree that for most of my followers, now is not a good time for trading. I am applying for our premium group a crisis-trading protocol... the one that gives us a chance to be successful even in most bearish times... and that particularly isn't for everyone as it requires discipline. 

The Ten Trade Challenge will prove whether we are successful or even we should stop trading for a while... we are on the fourth trade currently... as soon as the ten are done, I'll inform you here.

In the meantime, this is the plan:

Make Blockchain Whispers the most valuable, most important website for crypto trading edge. Check - in progress!

Keep Blockchain Whispers the most accurate crypto signals website on the planet - in progress (Ten Trade Challenge active!)

Prepare to lead my Blockchain Whispers followers to success and glory beyond ordinary in case bitcoin doesn't fall below $1300 levels (last line of defense!)... check check!

Even if the shit does happen, and crypto gets rekt and all gets rekt... I'll still be biting, pushing, building... until our Blockchain Whispers edge is so great that we can transfer it across markets, across platforms... and I'll take you with me, should you want it.

There is no fun in mediocrity. We either do it, or we don't. And there is no stopping in between.

For now, if you're not premium, my advice is save money, spectate, enjoy life, go bang some Natashas (that could be contradictory to saving money though!)

If you're in premium, please follow ONLY the Ten Trade Challenge - because this is adjusted for crisis and it's our best game ever.

This is a quite lengthy update of the Blockchain Whispers' work in progress.

This is a call for you to believe. It will be a quite interesting journey if you're in it with your "make-dream-happen" money. If you're in with a borrowed money - then my friend, the odds are really good that you're rekt and that you should sell regardless of how we all think it should go back to 20k.

Be advised, here, you'll know in time, as soon as I know, any developments, and important facts about crypto. Free. Public. Always.

And since you read so far - something from Mr. Y labs - the odds are greater by the day that the ETF will be denied. Bitcoin as such volatile asset doesn't offer trading safety, accountability or storage value beyond strong speculation.

This might be (and probably is) - the bank's deep pocket war on crypto. Banks do keep in pocket governments, and why would SEC or anything else be different. The moment their slow, lazy but rich asses got their grasp around Bitcoin posing a danger to them... their systems of power came to work to bring it below it's support - 1st bringing the ability to short it, second bringing big money in to make the market, and third shorting it...

I don't know how this will end - bitcoin was NOT supposed to fall below 5800 levels, as it is not useful for the store-of-value concept. However, there still is hope. And hope is you, me, and the people.

Right now, the big hope also is the black market. Grey market. They will use bitcoin regardless... Chinese riches take money out of China with crypto.

This will not stop.

And whatever happens, I will not sell my bitcoin. Except to buy a lambo. Or a dog food. Depends on the price and what comes first.

Your friend,
D

Crypto Losses And Quits

Pantera Capital Hedge Fund, by many the best fund lost until OCT around 73% of the portfolio according to cryptoglobe.com.
Now is December, and a bunch more shakeouts... I wouldn't be surprised the number is in the 90% neighborhood. 

Bitmain - the gigant whale miner... lost $750 million in q3... q4 seems even worse.

Galaxy Digital lost hundreds of millions...

And you think us retail traders have a chance?

I am now focusing with my premiums on the Ten Trade Challenge... trading fully professionally, portfolio management, with the best analysis my team has and seeing if we have any edge in this market.

If we don't, we will pull out. Mr. Y already said he is out, alts are dead, until the 2020.

For me, it doesn't work like that - I don't quit. So I will use this time to develop amazing things at Blockchain Whispers, so that once again it becomes tradeable, that we enter it.

This is not a quitting message. I am here. I am trading. I am developing.

This is a friendly message that if you see things not going well for you this year, you are not alone, and it might be wise to spectate for a while.

Yours in bears and bulls,
D

P.S. You will see badass developments soon... I expect it to be under a month from now.
P.P.S. I am giving our best in The Ten Trade Challenge. The Outcome Of That Will Determine How, And When We Continue Trading. For now we did three trades, seven more to go. Hand holding members with portfolio management and all. Cheers!

 

Bitcoin in Danger: Mining Fell 15%!

two hours ago the mining was adjusted to new difficulty: -15%!

It means miners are quitting, less mining out there.

So if this started, it is only natural so it finishes... 

... the logical destination is capitulation. When the mass, the crowd, most, start believing there is no more hope for bitcoin, forgets it, etc.

Then I wish you remember to remember it and buy some cheap and forget about it while remembering bitcoin highs and how they will be one day reached and exceeded.

Until then... just remember to forget it.

Cheers!

Mr. Y Track Record Is Stellar! Coinbase Lists Z Cash!
Absolutely no one had an idea when Mr. Y told ZRX will be added to Coinbase earlier this year.
It happened.

Then recently I made an announcement, that they will add Z cash (ZEC)... again, prior to anyone knowing... this information in bullish times is gold. In these times, still makes 30%+... but more importantly emphasizes the fundamental edge Mr. Y has in crypto.

Those of you who held... I congratulate you.

I don't have to tell you that I sold it yesterday to buy ZIL 
(that's my life!)

haha
D
For The First Time In History - US Sanctions 2 Bitcoin Wallet Addresses!

This is major step in regulation and controlling of cryptocurrency:

https://home.treasury.gov/news/press-releases/sm556

I don't say it's bad - becase this is a tool how the government can control crime yet allow us to remain private. But this is regardless the MAJOR FUD because this, as any other power, can be strongly misused.

Where is the end?

criminals?
non-registered addresses?
non-tax payers?
not-government approved addresses?

Where's the end?

U.S. DEPARTMENT OF THE TREASURY for the first time put two bitcoin wallets on the blacklist, of some Iranian scammers who were doing ransomware and earned about $25 million with it.

The only fear is - what is next?

We Should Talk... Crypto Misconceptions You Should Know

Right now the bitcoin is falling down. Falling rapidly for ages. The entire 2018 was bearish.
When it was 16k I told you - get out - it's going down - if you have any money you cannot afford to play with, get out.

After April and health issues I personally stopped trading and then it was my hunt to bring you the best, most accurate team in the world. 

It went bumpy.

I had to fight and work harder than ever to make sure idiots I was testing, all big name celebrities failing one by one - that they are not affecting your portfolio much and that I notice on time when good trader turns bad... and also that I find someone who is good in these periods.

I am proud with my current team now. I still want to improve it, but in times when everyone packed their bags and disappeared, we are here, putting our face on the line and going through the storm with you.

Speaking of packing the bags...

You know there is no one more bullish in bitcoin when it's the hardest than me.

I never gave fud, however my duty first and foremost is to you.

And I want to inform you of the risks associated with your crypto dream.


Busting Masses Myth #1 - "Bitcoin was 19k, it has to go..." - it doesn't.

Bitcoin doesn't have to go ANYWHERE technically... it can stay and trade at 3k range forever...until... one of the big news in our Bitcoin in 2019 article happens.

The only thing that HAS TO bring the value of bitcoin up is mass adoption, and bigger demand. And it happens in two ways: institutional money or mass adoption (able to pay a toilet paper with btc).

I do hope you read our fundamental analysis article I posted yesterday... let me get you the link if you haven't -
Bitcoin in 2019
here you go.

It explains the steps that basically lead to the increased demand:
Bakkt and ETF to institutional money coming in... 

Layer2 and all other listed technologies to - making bitcoin attractive for general use and mass adoption.

Obviously, technologies need to be built and institutional things just put into use, and we have the approximate roadmaps for both of them in 2019.

Bitcoin is hurt now. Very much so as is the entire crypto. I do not think it's going anywhere, and I still believe in it - however, you must be informed. Technically it does NOT have to go up until one of the news from the fundamental analysis (the link given above)... comes into FULL execution.

This means if ETF is rejected... and all the technologies take a delay... the entire 2019 can be miserable-low level sideways. 

However, I always have another principle in mind - and that is - following the big wallets.
They know things we don't. And I don't need to know what is it to know that second half of January institutions are eyeing on btc and crypto - from nasdaq and bakkt... etf just after that,... it's the perfect line up.

Bakkt was't delayed because of technological reasons. Don't think that for a second. They delayed it because they knew the crypto is going down and they need it bullish so they can kick ass and make the effect. Hundreds of millions of dollars they spent in preparation - don't think they don't know.

So, many people now await 2900 levels... we were early... but now, the more people see it the less odds are it happening. It leads us to...

Myth #2 - It goes to 3k then up
Bitcoin will go where it's least expected to go thus making biggest profits for pros - and skimming retail money dry.

It can go to 2900 and then break it below. It's one scenario.
It can go to 2900 and break it and then break it further (intentionally not giving you price points here).
Or it can go up to 43xx levels and start ranging from 43xx to 33xx making the lows already made and making the bottom.

The path everybody expects is least likely to happen in crypto. And it can happen as we go - for example, we can see now a good price point.... and then twitter starts talking about it, then everyone starts talking about it... what happens then?

You got it. It changes because it becomes unattractive to the whales.

Thank you for reading, wanted to give you perspectives so you can prepare yourself, your strategy and approach to crypto better.

Cheers!

D

(%w x aw) - (%l x al) = WIN RATIO

Get this right and your whole involvement in crypto starts to make sense.

Before we get into the formula, get this - if your WIN RATIO is 12%, it means that you can go to the bank... borrow 1 million dollars for 6% and profit 6% of off a million of someone else's money!

Knowing this formula enables you to quickly and easily determine if crypto is the right for you

(%w x aw) - (%l x al) = WIN RATIO
%w = percentage of wins
aw = average win size

%l = percentage of losses
al = average loss size

do it over the 100 trades and you have a pretty decent idea of how you're doing.

Many beginning traders fail to do proper risk to reward.
It is when you risk one dollar to get 2 or more, versus when you risk one to get +0.5

Many intermediate losers miss great EDGE trades just because they read somewhere risk to reward should be greater than 1:1

This is a lesson I just recently learned. I have asked a top trader why is his R:R infavorable and he answered to me quite simply: "the odds of it going up and down is not the same".

If you know the reasons it should go up and have edge good enough, you can get 4 times in a row "heads" before you get tails... especially if the coin is 'magnetized' like many things still in crypto are.

So my friend, calculate your winning edge and feel free to share it in the comments below.
Answering this helps you determine what type of crypto investor you should be: a day trader or a hodl-er.

Cheers!

D

Bitcoin (BTC) In 2019 - A Detailed Overview
Bitcoin (BTC) In 2019 - A Detailed Overview

Bitcoin in 2019

Technological developments

Scaling Of Bitcoin

There are two different approaches to tackle Bitcoins scalability problems, on-chain, and off-chain scaling. On-chain scaling means increasing the block size or making the transaction data leaner. An increased block size is not a good idea, because it will heavily favor centralization of full nodes. Fewer and fewer nodes can participate in the network because the hardware requirements of running a full-node would skyrocket with increased block size. Good on-chain scaling solutions are SegWit (Segregated Witness), which was implemented successfully on 24. August 2017.

Another good on-chain scaling solution is the implementation of Schnorr Signatures.

Schnorr Signatures help Bitcoin to scale on-chain and are additionally improving privacy. The reduce on-chain transaction size, enable faster validation of transactions and improve the privacy of multi-signature wallets. It works by aggregating multiple signatures into one signature, which leads to reduced transaction size.

For example, our previous 3 of 4 scriptSig held 3 different DER formatted signatures (one for each participant), if we use Schnorr Signatures the unlocking script would simply have 1 signature representing an aggregate of each participants signature.

This technique also increases privacy because signatures in multi-party wallets would look like any other, these multi-party transactions will be indistinguishable from normal transactions. Schnorr Signatures are expected to reduce the use of storage and bandwidth by at least 25%, which is a huge efficiency gain.

The Lightning Network is an off-chain scaling solution. It is a Layer2 application that operates on top of the Bitcoin blockchain.

Layer2 solutions are the most promising scalability solutions because they operate on a layer above the traditional blockchain.

Lightning uses smart contracts to form a decentralized network which is anchored into the Bitcoin blockchain. This enables instant payments across the network at high volume and high speed. The underlying concept is called „Bidirectional Payment Channels“. First, two participants create a ledger entry on the Bitcoin blockchain, this requires all participants to sign off on any spending of funds. 

The next step is that both users create transactions which are credited to the ledger entry, but not get broadcasted to the Bitcoin blockchain. The final balanced gets settled on the Bitcoin blockchain when the payment channel is closed. So two users can send each other payments back and forth using the Lightning Network, these transactions are recorded on a separate balance and the final balance will be attached to the blockchain as soon as the channel is closed.

With this technology, it is possible to facilitate transactions off-chain without limitations. Security is given because any participant can close the channel at any time and get the final balance recorded tot he blockchain.

The Lightning Network was launched on 15th March 2018 and is growing at a spectacular rate.
This technology allows for payments that are settled in seconds and cost a fractal of a cent.

Bitcoin Privacy

MimbleWimble is a proposal for blockchain that could be implemented as a sidechain attached to Bitcoin.

It works with concepts like Confidential Transactions and "one-way aggregate signatures" (OWAS) to allow private transactions and better scalability. With Mimblewimble, the receiver generates the blinding factor which is used to prove ownership of BTC. They use "excess value" for this, which is the difference between the inputs and outputs. It is basically a set of random numbers that ensures that only the user who generated the blinding factor (e.g. the receiver) can spend the Bitcoins.

Mimblewimble also alters the look of transactions with the technique that blocks will only have lists of new inputs, new outputs, and signatures which are created from the excess value. These values are encrypted, but nodes can verify that no Bitcoins are being created or destroyed. The excess value signatures will then prove that all the transactions are valid since they only add up if the whole transaction does.

This ensures that neither values or the destination of the transactions are known because all inputs and outputs are all contained in one block and are not separated. This protocol could be incorporated into Bitcoin in the near future or exist as an Altcoin.

Bitcoin Sidechains

Bitcoin sidechains are called Drivechains and the development makes rapid progress. Sidechains are separate blockchains that are connected to the mother-chain (Bitcoin). The concept was first introduced in 2014 with the release of this paper:
https://blockstream.com/sidechains.pdf

The paper discussed “pegged sidechains, which enables bitcoins and other ledger assets to be transferred between multiple blockchains.” It also introduced the concept of pegged sidechains, defining the two-way peg which is the technical underpinning pegged sidechains. The two-way peg is a method to transfer BTC from the main chain into the sidechain and back. It works like this: when assets are transferred from mainchain to sidechain, no BTC is actually “transferred” between blockchains.

If we transact between the main chain and the sidechain, the desired amount of BTC is blocked on the main chain and the same amount of BTC is released on the sidechain. This works in both directions. An added security protocol ensures that the same Bitcoins are not blocked on both chains simultaneously.

Paul Sztorc, the creator of Bitcoin Hivemind created a way to implement sidechains. He is the creator of Drivechain. Drivechain incentives miners to be „consensus proxies“. Drivechains also use the two-way pegs (2WP) model.

There are small differences, however. If someone transfers BTC from the main-chain to the sidechain, the BTC gets locked to a unique P2SH address. The sidechain client then watches the main chain and observes when the coin transfer takes place into the sidechains. The client waits till the funds are locked on the main chain and then (after a security waiting period) releases the BTC on the sidechain.

Drivechain uses the concept of „merged mining“ for this procedure. This is a new method which leverages game theory for mining Drivechain. The involved miners work on main chain and sidechain in parallel. The first block that is hashed and attached tot he motherchain ist he Drivechain. The hash of this block is put into the coinbase transaction of the Bitcoin block and then overlooked by the Bitcoin network.

If the Bitcoin difficulty is reached, the block is accumulated and sent out to the network's nodes. Then the Drivechain block is put together with all the information from the associated Bitcoin Block. This gives Drivechain a high amount of Security because it is anchored into the Bitcoin blockchain.

Merged mining is used to send Bitcoin to sidechains, but the move back is different. If assets are moved from Drivechain to the Bitcoin blockchain the simplified payment verification method is used.

Drivechain improves scalability by reducing the risk of congestions as the main chain is not flooded with transactions. Anyone can create a new blockchain project with new digital assets on a sidechain. Sidechains can be used as Testnets for new Bitcoin technologies, and in case of failure, it will not impair the main chain. Any kind of cryptocurrency and consensus mechanism can be created on a sidechain with Drivechain. This feature could make Altcoins obsolete and propel Bitcoin into an existence as a truly global digital currency.

Bitcoin Rootstock

Rootstock (RSK) is such a project that will be built into a BTC-sidechain. It is a smart contract platform with a 2-way peg to Bitcoin that also utilizes merge-mining. RSK enables Turing-complete smart contract functionality, near instant payments and higher-scalability. RSK does not mint or has pre-mined coins, this means it has no speculative value and does not compete with Bitcoin. And with merge-mining, the same security as Bitcoin in terms of double-spend prevention and settlement finality can be achieved. Rootstock scales to 100 transactions per second without sacrificing decentralization or Security.


Bitcoin Financialisation and Ecosystem

Bakkt

„A Global Regulated Ecosystem for Digital Assets“

Blockchain Whispers presented an in-depth analysis and updates for Bakkt earlier.

Bakkt is a company with the goal of enabling consumers and institutions to buy, sell, store and spend digital assets on a global network. The aim is to provide a federally regulated market for Bitcoin and a warehousing solution, along with consumer and merchant applications. The initial focus is on the trading and conversion of Bitcoin versus fiat currencies. Bakkt was formed by the Intercontinental Exchange (ICE) which is an operator of global exchanges, clearing houses, data and listings services. The ICE is a financial giant, it owns the New York Stock Exchange (NYSE), among other exchanges. For the creation of Bakkt, the ICE made partnerships with the Boston Consulting Group (BCG), Starbucks (for their experience with cashless payment systems) and Microsoft (for their blockchain experience with AZURE and their cloud solutions). 
The name „Bakkt“ is a play on “backed,” as in “asset-backed securities.“

First components of Bakkt:

  • 1-day physically delivered Bitcoin futures contract.  
  • Physical warehousing solution which is reviewed and approved by the CFTC (Commodity Futures Trading Commission). 

But Bakkt goes even further, when it is finished it will be a fully regulated exchange where digital assets can be bought, sold, stored and spent. Bakkt is aiming to develop open technology to connect the existing market and merchant infrastructure to the blockchain. Bakkt is a gamechanger because:

  • The storage solutions eliminate threats of hacking.
  • Futures contracts are backed by physical BTC
  • Bakkt doesn’t support trading on margin, this improves market integrity and price discovery.

Bakkt plans for 2019 involve leveraging Microsoft cloud solutions for connected markets, issuing Crypto Debit Cards and allow 401k pension accounts and funds to invest in Bitcoin. Starbucks is on board as a partner and they aim to build a technology which allows users to convert their crypto to fiat-currencies seamlessly and while in the payment process to pay for goods and services. The ultimate goal is to transform Bitcoin into a trusted global currency with broad usage. Bakkt brings transparency and trust to previously unregulated markets. The potential is absolutely gigantic.

In my opinion, two things are missing for institutional money and the mainstream to invest in Bitcoin:

  • Trading on official and fully regulated exchanges
  • Safe storage for digital assets


Bakkt solves both of these problems at once and paves the way for Bitcoin to arrive in the Mainstream and this will be the final step to transform BTC from „funny internet money“ to an asset class of its own. I expect the demand for BTC to rise sharply by the time Bakkt launches because the futures contracts are settled in BTC. Bakkt will actually trade Bitcoin, not just speculate on its price movements. This will lead to transparent, efficient price discovery and this paves the way for the first Bitcoin-ETF to get approved. And this is just the beginning, Bakkt opens the floodgates for institutional investors, funds, pension programmes and retail investors. And with the custody solution, it allows the safe and regulated storage of digital assets on an institutional scale, for the first time ever.  All stored assets are fully insured. 
The targeted launch is 24. January 2019.

Bitcoin ETF

We wrote a detailed overview of Bitcoin ETF in Earlier Blockchain Whispers analysis earlier.

ETF stands for exchange-traded fund, which is basically a security that tracks some underlying assets (for example equities, bonds or commodities). The issuer of the ETF takes custody of the underlying assets it tracks and then issues a number of shares that represent ownership. These shares can be easily traded (like stocks) and therefore remove a lot of barriers for investors who are willing to invest in this particular asset. 

The real benefit is that the shares of an ETF can easily be obtained and traded and lowers the barrier of entry for investors. With Bitcoin, these barriers are buying the asset and, most of all, safe storage of the asset. A BTC ETF enables technologically inexperienced investors to profit from BTC price movement without going through the hassle of securing their private keys. Hedge funds, pension funds, and 401ks can easily invest in this ETF, so we expect a lot of new capital to flow in Bitcoin. Increased capital inflow decreases volatility and therefore making BTC more stable.

There are two types of Bitcoin ETF proposals:

1.    ETFs that Physically Hold Bitcoin (VanEck & SolidX ETF)
2.    ETFs that Purchase Bitcoin Derivatives (ProShares, GraniteShares, Direxion)

The second type is likely to not get approved in the future. They try to mimic the performance of Bitcoin by trading Bitcoin futures, options, swaps, money market instruments. This is very risky because of counterparty risk, margin call risk, and rollover risk. Additionally this type requires active management. The first type is more interesting and also more secure. This type of ETF owns the underlying asset it tracks. Every share is backed by the real deal.

The Pros are: low transaction costs, tracks the performance of the underlying asset directly, high liquidity.

The U.S.- Securities and Exchange Commission (SEC) has certain requirements for an ETF to be approved:

  • Custody solutions
  • immune to manipulation
  • sufficient liquidity
  • correct valuation of the NAV (Net Asset Value)

All derivatives-backed ETFs were rejected by the SEC on August 23. These ETFs were filed by ProShares and Direxion.

The decision came down to the risk of market manipulation & fraud. The SEC can only approve an ETF that is designed to prevent fraudulent and manipulative acts and practices. The Winklevoss ETF (backed by the underlying asset) was rejected earlier this month. The main argument for rejection was the fact that the price determination of the NAV would only happen on the Gemini exchange (which is owned by the Winklevoss twins). The only remaining big proposal is the ETF from VanEck & SolidX which backed by the CBOE (Chicago Board of Options). 

The VanEck & SolidEck ETF proposal backed by the CBOE

This proposal is vastly superior to prior ETF proposals and addresses most of the concerns the SEC has expressed when rejecting prior ETF applications. Reasons are:

  • holds physical BTC
  • backed by the CBOE, which is a very serious institution
  • shares are big (25 BTC = 1 share), this excludes retail investors 


Involved parties:
Fund: SolidX Bitcoin Shares.
Filer/Exchange: CBOE BZX Exchange.
Trust/Fund Issuer/BTC Custodian: VanEck SolidX Bitcoin Trust.
Trust’s Sponsor/Manager: SolidX Management.
Trust’s Administrator & Cash Custodian: BNY Mellon.
Marketing Agent: Foreside Fund Services.
Marketing: Van Eck Securities Corp.

The SEC can postpone the final ETF decision until 21. February 2019 and we expect them to do so. The development of Bitcoin markets made big leaps forward since the filing for the Winklevoss ETF, for example, we have now very advanced custody solutions (from Coinbase for example) and increasing liquidity leads to decreasing volatility.

The only downturn is the SECs main reason for denial: Market Manipulation. This is difficult to refute right now, but we think that a successful launch of Bakkt can pave the way for an approved Bitcoin ETF because they will provide more Liquidity and a regulated trading environment.

Bitcoin - Fidelity

Fidelity Investments is launching a daughter-company with the aim of bringing access to cryptocurrencies to institutional investors. The Company is called „Fidelity Digital Assets“  and will provide enterprise-grade custody solutions, a cryptocurrency trading execution platform and institutional advising services. All services will be open 24/7.

Fidelity Investments is the fifth-largest asset manager worldwide and manages 7.2 trillion $ worth of customer assets.

The launch of Fidelity Digital Assets is scheduled for early 2019.  

Bitcoin in 2019 Summary

Fundamentals and technological progress of Bitcoin are better than ever. We are on the verge of big institutional money entering crypto through the doors of Bitcoin. Schnorr, Layer 2, ETF, Bakkt, MimbleWimble, Drivechains, ETF... are all designed to get us the superior digital currency that can be trusted, scaled and mass-adopted.

On purpose, we don't go into price speculation in this article. We have the most accurate Bitcoin signals in the world (details here).  And to achieve such accuracy, the large-scale analysis like this one is important before beginning with any technical analysis and trading. On top of that, this article is here shared for the community benefit, and the biggest value of Bitcoin is not in trading, but in general public, mass adoption as a free, world currency - independent from the Big Banks, money printing, and privacy intrusions that got Satoshi Nakamoto create Bitcoin 10 years ago - nameless and brandless.

Our conclusion for Bitcoin in 2019: Super-strong progress, the verge of the new era.

For Bitcoin Stronger Than Ever,

Mr. Y

Lead fundamentals analyst at Blockchainwhispers.com

Thank you for reading and sharing. Your comments below are welcome.

Bitcoin in 2019 Report By Our Top Fundamental Analyst - Soon Ready!

In case you've been living under the rock - Mr. Y is probably the best fundamental crypto analyst on the planet.

For the last 30 days he is working with only one task in mind - to asses Bitcoin for the upcoming year.

He shorted yesterday when we went long. I didn't listen as he is not a short term trader, but this new finding I am excited to read about.

Stay tuned. Will be shared here on Blockchain Whispers. Free.

Love,

D

The Ten Trade Challenge - Second Trade Done (Stopped!)

We incurred 4.45% loss to the portfolio.

Portfolio before this trade: 1.013986

10% = 0.1014

- 44.57% = 0.0562

Current portfolio now 0.9688

This is good because in order for a challenge to be successful we can tolerate up to three losses over the 10 trade period. We are doing things right here and this is all part of the journey. You have to know what to do in losses and what to do in wins to trade properly.

8 more trades to go.

 

 

Where Is Bitcoin Going, When To Sell Alts And Two Bitcoin Signals
Where Is Bitcoin Going, When To Sell Alts And Two Bitcoin Signals

Blockchain Whispers traders did an analysis, the most likely play is this:
we go up from around this area to around 5000 (4500-5500)
Then we go down again... this time stronger - to around 29xx (Binance)... and then we go up.

So here you got two bitcoin signals... at levels of 5x to look for short and at levels of 29xx to look for long. This, however, has to be confirmed on lower timeframes, but it serves as an excellent guidance for you.

The whole play can take up to 4 months to develop. So middle or end of March 2019 would start the bull cycle. The only way we get bull momentum sooner is if we close a daily candle 6500+ - this changes everything and can bring the bull cycle to us earlier.

I usually don't like to share these long-term views, but I think this situation is calling for it and you have too much uncertainty in the field and this is absolutely neccessary.

**What to do with your alts?**
Well, definitely don't sell now, and definitely don't sell at 3k level.
The safest path is - if you want to get rid of them is to do when we are around 5k+ levels... prior to our drop to 3k.

The riskier approach is to expect 6500 broken.. in that case don't even sell it - as it goes up to the moon.

So really, if you need to sell, don't sell here, we should go up a bit, sell then.

 

Love,

D

Compounding In Trading - One Of The Greatest Forces To Multiply Your Portfolio

Compounding: one of the greatest forces in the Universe - according to Albert Einstein.

It is basically we invest 1000 get 10%... we get 1100 ($100 profit)... next time we invest $1100 and get the same 10%... but now profit is $110.

This you will notice is smartly incorporated in our portfolio management in the Ten Trades Challenge program, and many other methods. Consider this ten trade challenge your fast-track course into pro trading.

This of course works only for winning traders who have an edge and more wins than loses.

Imagine you have 7 accurate 10% trades, and for ease of math, when stopped it's 10% loss...

Watch this...

1 becomes 1.1

1.1 becomes 1.21

1.21 becomes 1.331

Then we lose 10% it becomes 
1.1979

+ 10% = 1.31769
+ 10% = 1.4494
+ 10% = 1.5944

we lose two

1.29 + 10% = 1.42

42% gain to your overall portfolio...

 

Now compare it without compounding...

same trades...

0.1 + 0.1 - 0.1 + 0.1 + 0.1 + 0.1 -0.1 - 0.1 + 0.1 + 0.1

40% gain.

Now this may not seem as much difference, but it is like a magnifying glass... the bigger the winning streak the bigger the exponential growth - thus increasing, magnifying your trading edge.

All you need to benefit from this free money is know your edge. If you are above 50-50 trader, you can benefit from it on the long run.

When losing (under your starting portfolio), don't be compounding :) Ensure you do have an edge.

Cheers!

The Ten Trade Challenge - First Trade Done (A Success!)
The Ten Trade Challenge - First Trade Done (A Success!)
Trade 1/10 - Done
Target 1 = 11.28% profit - hit
Target 2 = 15.79% profit - hit

10% of portfolio used.
Imaginary starting portfolio: 1 btc

Sum risked = 0.04 + 0.06 = 0.1 (10%)

exit output = 0.044512 + 0.069474 = 0.113986

Profit = 0.013986 (13.4%)

Portfolio now: 1.013986

Gains to overall portfolio 1.4% profit


Congratulations!

Our plan is to do proper trades with proper portfolio management. We are not aiming to HIT ALL, we are aiming at the end of the ten trades to be in plus while trading with calculated risk and making consistent progress. If this happens as planned, I'll succeed to bring bull period to Premiums even in bear times, but also gain respect in your eyes because every now and then I share with you trades for free, and you will know the value even better.

Thank you for following.

Also - I might get an idea, what or where I can help you the most... and that is in bear times - patience and discipline... if you have that, you trade stress free and you do it well on the long run.

D
www.blockchainwhispers.com
Premium Membership CLOSED

Thank you all who put faith in us, me, even crypto at this stage... 

We began trading, and already have reached then 11% profit overnight.

It is not the goal, as this is hand-holding with portfolio management and everything, it's important what we do after the 10 trades.

For the rest of you who didn't join Premium yet, you know I'll continue even in these times to update you on the important moves and findings that concern you and crypto.

Because at the end of the day, the pure fact you are in crypto at this stage and still holding, is making you a winner!

Respect,

D

The premium membership is closed now for the duration of these ten trades as joining in the middle just wouldn't work. It might take weeks to months for the whole ten trade cycle to fulfill as it a bear market and we are taking only great odds trades expecting to get good odds at least. Cheers!

Challenge: Can I Make You Experience The Bull Run In Bear Times?

10 trades.

Hand holding.

Portfolio management.

Step by step.

The only way to earn in bear times is having an ability to short.

Blockchain Whispers Premium will stop accepting new members within like 12 hrs or so, when the first trade is posted, for the duration of the ten trades as I won't be able to manage your portfolio mid way, you have to follow the group tightly for this group effort to work and to help you recover the blows made by bear dips and if all goes smooth even nice bull-like gains.

These will NOT be impressive trades. Fast trades. Buy lowest wick sell highest peak... it will be confirmed, high odds, low risk trades.

It will be traded on BitMEX (https://www.bitmex.com/register/UxAh3y if you need an account that gives you 10% discount off their fees for 6 months!).

If you believe this journey will be successful, I invite you to join premium now by going to "Signals" page and taking care of the payment. Once done, the system will automatically enable you access to follow this ten trades journey.

Reasons to join now:

the Premium price is stable, and bitcoin is now low.

we are now not charging for any renewals until the ten trades period is over (and successful!).

We are doing the biggest hand holding I ever did... telling you how much to put in which trade, which buttons to click - even a monkey can do this one.

Plus you'll learn a proper-aggressive portfolio management.

To get started join now. If you choose to miss out, the doors close when the first trade is posted and you're out until this is over. This is designed to help you recover from bear times and have you experience neutral to even light-bull times through Blockchain Whispers trading edge.

Whatever you decide, I thank you for following and I give you a big hat down for being in crypto at this early stage.

Yours,

D

Providing Shelter To All Crypto Believers Who Are Patient To Profit!

If you are aware that the Bitcoin is a great long term investment...

If you are aware that having Blockchain Whispers traders gives you an edge that makes an average trader into trader with an edge in the whole race of crypto profits.

I am ready to provide you shelter in these bad times of crypto.

You can buy premium membership now at cheap btc price... and not worry about renewals, for as long as it takes... until the bull run begins.

I am with you. And this offer is active for all my premium members.

To begin, just click on this website on SIGNALS tab, and begin.

see you inside.

P.S. In this crazy times... we did signal XLM and Ripple. The only green coins. Imagine what we will do, together, when finally the patience starts paying dividends!

https://blockchainwhispers.com/signals/

D

Bitcoin dipping with taken Hashrate, XLM and Ripple broke off of Bitcoin

This is a historic moment, as Bitcoin was always the king, followed by every alt in the game.

Now for the first time, Ripple and XLM are behaving completely separately from BTC.

There is no confirmed reversal yet, or anything... and this dip can go further down or reverse from now - a no trade zone.

This is very tough moment for Bitcoin holders, bull-dreamers, us ordinary guys planning to be making nice bucks from crypto.

This thing extends and the only thing on the horizon is Bakkt.

That is the negative news.

The positive is: in order for a PROPER bullrun to begin, a strong, badass, bullrun... this had to happen.

These red dildos are discouraging even the strongest believers, however, what we speculate about is only a small timeframe in 10 year btc cycle.

Bitcoin had these cycles, bitcoin got up after every single one of them stronger and bigger.

Positive things: 1) Bakkt on 12th Dec 2) End of year and grand tax evasion scheme by purchasing bitcoins

Negative things... none except the hash reduced from bitcoin (already ongoing and paying the price for it) and institutions willing to enter bakkt at best price possible (although they are happy with 6k also).

In an event of a bull momentum starting, it will go up, and break 5800, close above, break 6400 and close above... that will be a confirmation.

Cheers!

Your fellow believer

D

Levels Of Bitcoin (And Crypto) Trading Signals Accuracy

I wanted to write this article yesterday, but then I reminded myself it's 2AM, and time to go to sleep.

So as I was trying to fall asleep, I was thinking about how to present it to you.

There are 4 key levels of accuracy defined by trading style / decision source that limit your trading success.

Level 1: The Least Accurate Crypto Trading Signals - Listening To The Public

The odds of your Bitcoin Signals turning success: 1 in 15

The odds of your Altcoin Signals turning a success: 1 in 8

The public is 90% wrong, and when they are wrong, public cuts losses late and wins early. Remember this. 

The public is so inaccurate that CNBC was 'famous' for a while for being a 95% inaccurate, and very good medium for counter-trading. that 95% gives you approximate odds public has versus the pros.

Listening to public forums is worse than...

Level 2: Almost As Bad Crypto Trading Signals - Listening To Your Gut

The odds of your Bitcoin signals turning a success: 1 in 10

The odds of your altcoin signals turning a success: 1 in 4

Yes, there is the sixth sense, and all that, but for the matter of practical discussion, let's admit it - you are not a Yogi, and you are not so fine-tuned with your gut... so basically what you do is gamble. The problem with that is, your odds are not even 50-50, because if you leverage bitcoin, or use any kind of stop loss - very frequently you are caught by a stop hunt, that just triggers your stop and then goes into the right direction - even the one you suspected as right. Thus your odds are not a coin flip 50% up and 50% down. It's way worse.

For non-leveraged alts, the odds are significantly better, still far from beneficial for you.

Level 3:  Okay altcoin signals, and still not tradeable Bitcoin signals - Listening to public TA

The odds of your Bitcoin signals turning a success: 1 in 7

The odds of your altcoin signals turning a success: 2 in 5

The major problem with free, public TAs is what we witnessed at Blockchain Whispers when we reached major following, the perfect signal turned the opposite direction. Also, public TA is just a bit more select group of people that have the same public knowledge but just dig a bit deeper... CNBC was 95% inaccurate... public TAs are around 70% inaccurate.

They use the same tools, see the same things, 20 years ago TA was a revolution, an edge... now it's a method to fool masses who still base trades on RSI, FIB and MACD.

Level 4: Professionals

Odds of your bitcoin signals turning a success: 6 in 10, 7 in 10, 8 in 10 (world class) and 9 in 10 (very rare cases).

The odds of your altcoin signals turning a success: 7 in 10, 8 in 10 and 9 in 10 (very frequent in bitcoin favorable times)

Most of the professionals earning a good living trading are at around 7 out of 10 accuracy, and with proper portfolio management, they can work, get hired or even trade for themselves all day long. Of course professional crypto traders are a new breed, and most struggling are coming from stocks, and most accurate that I saw are coming from forex background.

Still, the adjusting even from forex is needed. Crypto is a body within itself.

Now remember this, NO professional trader, can have 10/10 accuracy for a long time. It is impossible. The limitations of historic predictions are around 8 out of 10 and those 9/10 that I mentioned are a stretch... either a good momentum, or a big chunk of luck. 8 out of ten or 8.5/10 is where top pros reside.

At Blockchain Whispers I am looking for 8+ out of 10 traders. I have one that is 9 out of 10 but I still believe it is just a period of statistical anomaly.

Unfortunately, the most accurate bitcoin traders are:

Level 5: The Insiders
The odds of your Bitcoin signals turning a success: 19 in 20
The odds of your altcoin signals turning a success: 48 in 50 (volatile btc times) and 49 in 50 (stable btc times)

Owning an exchange, seeing the stops, liquidation points, orders... and in some cases (BitMEX) allowing you to block the trading of others when you see fit (system overload example Bitmex uses often)... beats TA, FA, and pretty much anything else.

Obviously Bitmex has the highest insider edge, and is pushing upwards that 19 out of 20... while other exchanges, whale groups, etc are specialized either for longer timeframes, or concentrated micro moves.

Imagine for example a factor many traders take into account - Bitfinex shorts vs longs... Bitfinex prints tether, they made the whole operation for controling the outcome... why don't you think they can't put their own 'longs' or 'shorts' and fool that figure?

And what happens in rare cases when those insiders fail?

Sometimes, like the recent example, they refuse to lose - so we saw a big discrepancy between Binance price and Bitmex price, with coinbase being one group Bitfinex another...

And now you think you can't win?

Wrong. You can. Because they all need retail investors.
And retail investors won't trade if they never win, and if you have an edge over 90% of retail investors, you are in nice profit. But use this article as a big realization, and that is... 

The Portfolio Management - Because You Will Never Be Right Forever


Great, great example is Sicario
Bitmex Signals if you managed at the end of the cycle with Sicario to end up in loss, your portfolio management is fomo-terrible.

But cry not, it can be easily fixed.

For starters, use 5% of your total portfolio per call. Always the same amount. Always respecting the leverage, and finally... be willing to miss a trade if you are late and your entry doesn't fulfill.

The time will come when all those institutions will be rekt... Bitmex, Bitfinex, Coinbase... actually Coinbase and Binance latest (if at all) as they play cleaner game, but that time won't come soon. And for the matter of fact, they are NOT your problem. For Bitmex and Bitfinex, as manipulative as they are you have to be grateful because they let you trade... and if you ever have a better choice, you will go there and never look back. 

(Maybe Deribit makes some progress!)

Until then... keep on hustling, with higher discipline, because as the greatest investor of all times said: the market is moving money from inpatient to patient.

Be patient, stay believing, Bitcoin to the moon,
D