Bitfinex and Tether (USDT) are back in the news over the past few days after the New York Attorney General (AG) filed a petition in the New York State Supreme Court in Manhattan in regards to dealings between the two companies and Crypto Capital. Below is an analysis of the unfolding situation and a review of what we know so far.
All technical analysis (TA) uses the left side of the chart to attempt to predict the right side of the chart with a reasonable degree of certainty. With chart patterns, the business of TA can become more of an art than a science. People, or robots and algorithms written by people, have traded markets for decades, but the same chart patterns appear again and again on any tradable product.
TA and chart patterns work well with cryptocurrency because it is often difficult or impossible to properly evaluate fundamentals beyond basic network use and activity. …
As Bitcoin (BTC) turns 10 years old, the network and the details surrounding the zero-sum game of BTC Proof of Work (PoW) mining continue to become more and more complex. Layer one of the network has become more efficient through transaction batching and Segregated Witness (SegWit) usage, while layer two infrastructure is also being built out through the Lightning Network and Blockstream’s Liquid sidechain.
SegWit adoption currently accounts for ~50% of all transactions on the network. SegWit enables individual BTC transactions to occupy less block space than a pre-SegWit transaction, allowing SegWit users to pay less in accumulated fees to achieve the same number of transactions. SegWit also allows for an effective block size limit above 2MB. …
Here’s how trading begins and evolves for most successful traders:
Losing all your money every trade
Depending on how quickly you adjust your risk management style, this phase can last for months, or even never end. FOMO helps encourage this phase by selling bottoms and buying tops. You risk your entire account on one trade trying to win the lottery. This is closer to gambling than it is trading.
Breaking Even (BE)
Phase when risk management begins to work but starting to become too risk averse. …
Disclaimer: This is for educational purposes only and is not financial advice.
I suspect many traders are simply taking a ‘wait and see’ approach in regard to how the HF pans out and is perceived.
$ETH miners are certainly not ecstatic with the exponential difficulty adjustments and eventual decreased block rewards from 5ETH to 3ETH. $ETH hodlers are happy because this decreases inflation.
Scaling is also a major issue that Metropolis will attempt to address.
Additionally, should the $ETH PoW to PoS transition go poorly over the next few years, I’d expect $ETC to pick up some of that market share. …
This post should not be perceived as a recommendation to buy this or any ICO/TGE and/or crowdfund. ICOs/TGEs are risky invests, often with very little vetting, consisting of only vaporware. As a rule, everything in Crypto is a scam until proven otherwise. People will try to bamboozle you out of all your money as fast as possible. Please be smart and DYOR.