Insight: Bitcoin Halving

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BITCOIN HALVING

With the next bitcoin halving expected to happen in May 2020, the time has come for investors to start paying attention to the historical patterns:

Firstly, what does Halving mean? The Halving is when the network reduces the reward by 50 percent. Halvings happen at intervals of 210,000 blocks, which is roughly once every four years.

Bitcoin miners currently receive 12.5 BTC each time they successfully mine a block. By the end of May 2020 (the next Halving) they will instead earn just 6.25 BTC.

Unlike fiat currencies, which are generally inflationary, the upper limit for Bitcoin‘s supply is 21 million. Once the network reaches that limit, no more Bitcoin can be generated.

The idea behind the constant Halving is to ensure Bitcoin doesn’t suffer from intense inflation as it’s distributed. 

FIRST HALVING:

  • Price one year before first halving : $2.55

  • Price one year after first halving : $1,037

SECOND HALVING:

  • Price one year before second halving : $268

  • Price one year after second halving : $2,525

THIRD HALVING:

  • Price one year before third halving: Currently $3,907

  • Price one year after third halving : Be prepared!


*All prices represented in USD

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Insight: Cryptocurrency Slang explained

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Trader Tips - Cryptocurrency slang terms explained

HODL - In early bitcoin forums, someone posted a message that spelled the word "hold" wrong, and readers interpreted it as an acronym "hold on for dear life," Now, when the prices are highly volatile, bitcoin buyers say 'HODL!

FUD - FUD means "fear, uncertainty and doubt." Bitcoin followers advise to HODL your coins despite the FUD of those outside the community.

Sats - Sats" is short for "satoshis," a term derived from the first name of bitcoins mysterious creator, Satoshi Nakamoto. It refers to the smallest fraction of a bitcoin that can be sent, which is 0.00000001 of a bitcoin. Instead of looking at bitcoin in terms of a dollar value, traders look at sats, or satoshis.

Whale - A whale is someone who owns a lot of cryptocurrency, According to statistics and the addresses that you can find online — because bitcoin isn't truly anonymous; you can actually find the whales — these are the people who own a ton of bitcoin. An estimated 1000 people own 40% of the worlds Bitcoin.

Pump and Dump - Pump and dumpers are people who often say, 'Hey, let's all of us together pump this coin,' which means buy the coin, create the demand in the market, the coin will go up in value, Then, everyone "dumps" the coin and sells. These schemes are often orchestrated through social media apps like Slack, Telegram, Twitter or Reddit.

Bagholders  - A bagholder, essentially, is a trader/investor who at the end of the day — maybe from a pump and dump — got 'held with the bag,' which means they wanted to sell at a higher price, but the market moved lower too fast. Then, that person is left with "a coin they don't want at a price they can't sell at.

Mooning - If something is "mooning," that means a coin's price is experiencing a spike. The term is often what you'll see on Twitter, or social media sites.

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Insight: Deciding which digital investments to invest in?

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Fundamental Analysis

Fundamental analysis is a method of evaluating an asset in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors. Measuring the intrinsic value allows investors to determine whether a digital asset is overvalued or undervalued and hence fundamental analysis is an imperative process for investors to undertake when deciding on potential investments. Long-term investment without fundamental analysis is no better than gambling.


Here are four fundamental values to help you define the market price of a cryptocurrency and whether or not to invest your capital.


1. Functional Benefits

There needs to have a useful purpose (utility) for the coin in order for it to have a functional intrinsic value. If there’s no real reason for users to buy it, the market price will fall as soon as investors lose interest.

Questions to ask when judging a coins utility potential.

  • Is there a real-world problem that the company is trying to solve?

  • Will their proposed solution drastically improve the way things are currently done?

  • Will the currency attached to this project provide functionality which only a cryptocurrency can deliver?

  • Is there a tangible benefit to using a cryptocurrency for this solution as opposed to a cheaper, faster, easier to create non-blockchain technology?

  • Does the company have any pre-existing businesses, apps or products that you can review and, if so, are they any good?

2. Market Potential

If a coin is useful, but only one person needs it, the demand will be too low, and its price will fall to zero. There needs to be a significant market for the currency to flow through, to create enough volume to drive demand.

Questions to ask when judging a coins market potential.

  • Are there enough potential users of this service to drive stable demand for its currency?

  • Is this company well positioned in its selected industry?

  • Is it a growing industry?

  • Is this company the one most likely, amongst its competitors, to succeed at creating a blockchain solution for the problem they’ve identified?

  • Are you satisfied that there are no foreseeable changes to society or technology that will alter the need for the company’s proposed solution?

3. Adoption Strategy

Having an idea that can change the lives of billions of people doesn’t matter if it’s never finished, or if it’s finished and never used. Adoption strategy is the connector between ideas and results. It’s the bridge between dreams and reality.

Questions to ask when judging a coins adoption potential.

  • Does the company’s roadmap outline a sound strategy towards gaining users?

  • Does the company have a sound marketing strategy?

  • Is the company currently on track with their roadmap?

  • Do they have a good track record of achieving their milestones on time?

  • Based on their experience, do the team demonstrate the ability to achieve their roadmap and market their project?

4. Room to Grow

Financial investment helps projects develop a functionally beneficial service, it gives them the resources to capture their target market, and it fuels their adoption, however if the first three above factors aren’t in place, no amount of financial investment can make a project successful in the long-run.

Questions to ask when judging a coins room to grow.

  • Is the currency undervalued? Is its market cap low? Is its trading volume low? Is there room to grow?

  • Are the milestones listed on their roadmap newsworthy? Will their successful completion create hype and demand?

  • If the company was to solve its selected problem, would the solution be newsworthy, profitable and useful to society?

  • Will the solving of this problem create demand for the cryptocurrency?

  • Assuming that 90% of projects will fail, do you believe this cryptocurrency will still exist in 5 years time?

Research Resources

You will find that the answers to the above questions are readily available, provided that you are willing to search. Here are 6 places you can find the information you need:

  1. The company website

  2. Competitor websites

  3. LinkedIn

  4. Facebook

  5. Google

  6. The community, Telegram, Discord, GitHub

 

And remember …..Long-term investment without fundamental analysis is no better than gambling.


The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Insight: Ethereum’s Constantinople delayed....

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Ethereum Devs Delay Constantinople Hard Fork

Core Ethereum $ETH developers have delayed the scheduled Constantinople upgrade this week  after a code audit revealed the proposed software updates introduced dangerous security vulnerabilities to Ethereum smart contracts.

The Ethereum Foundation announced the change of plans late Tuesday, less than a day before a maintenance-centric “hard fork” was originally set to take place.

A new block signifying the launch of the Constantinople is yet to be decided.


The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Insight: Is Bitcoin a better investment than Gold?

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Did you know?

  • $10,000 invested in BTC in 2014 is now worth $116,877

  • $10,000 invested in Gold in 2014 is now worth $10,827

The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Insight: What is Ethereum’s Constantinople Hard Fork?

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Named after the capital of the Byzantine Empire, Constantinople forms part of a three-part system wide upgrade (known as a hard fork) of the Ethereum network called Metropolis and is estimated to take place between the 14th -16th of January. It combines a total of five ethereum improvement proposals (EIPs), and while the majority are non-controversial tweaks, one aspect of the upgrade has been the cause of some controversy.

In particular, Constantinople delays the “difficulty bomb” an algorithm in ethereum’s  network that increases mining difficulty over time. Because the upgrade will decrease the mining difficulty, it also takes steps to reduce the reward miners are given for securing the network – down from 3 ETH to 2 ETH per block. This has led miners to express discontent with the upgrade. But at the same time, major mining pools have stepped up in support of the change.

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Splits aside, there are also other risks to a system-wide network upgrade as well including Code bugs that can cause networks to splinter, and algorithms can go awry, leading to unanticipated difficulties. However developers are confident that such risks are minimal in the Constantinople hard fork with months of testing seeking to sought out any software vulnerabilities in the lead up  to this week's major event.

An important thing to take note of is that Ethereum’s Constantinople hard fork is expected to be non-contentious, meaning that everyone will be in agreement to take the Ethereum blockchain on its new path.

Unlike Bitcoin Cash’s hard fork back in November 2018, where a war between the 2 chains harmed the entire crypto ecosystem, Ethereum’s fork is expected to be a peaceful transition, as if nothing happened. ETH holders do not need to prepare for this update and can just ride it out.

However, if you do wish to participate in Ethereum’s hard fork, all exchanges are urging holders of ETH to allow sufficient time for deposits to be processed before the fork, and some exchanges will even halt ETH deposits prior to the fork.