A 101 Guide To The Next Hot Fintech Trend
Bitcoin is a digital currency (or cryptocurrency) that was first proposed in 2008 and created in 2009 by Satoshi Nakamoto. Satoshi’s identity is still unknown, many theories exist trying to figure out who he really is. Bitcoin was not the first attempt at making digital money , but it was the first to use a Blockchain” to keep tally of who-owns-what with Proof of Work to verify transactions. Another important consideration for cryptocurrency trading is to understand how environmental conditions affect a market. For example, late 2013 and early 2014 was a hotbed for altcoin pumps, as Bitcoin was leading the charge in the bull market then. Thereafter, BTC went into a 1.5 year decline which led to the downtrend extending into altcoin markets as well. Similarly, we’re currently in an environment similar to that of 2013, and as this BTC bull market plays out, we should continue to see a sustained pump across altcoin markets at least for another 3 months leading up to the BTC halving. In this light, take note of how major media outlets portray a particular cryptocurrency, and consider how it will affect the market, so that you can analyze on a broad scale how healthy a market is.
This way of development follows into the footsteps of the Linux project. While working great for Linux itself, this methodology may not be an ideal match for Bitcoin. With Linux, users are free to install any update any time they like. With Bitcoin, serious technical solutions (like raising the TPS) require almost synchronous software update on every user’s computer. If you don’t update, you fall out of Bitcoin’s favor, and your transaction won’t be accepted. It’s easy to see how a situation like this may lead to a serious crisis, as thousands of people, companies and organizations depend on proper Bitcoin functioning.
Once the markdown phase begins in earnest, chartist should wait for flat consolidations or oversold bounces. Wyckoff referred to flat consolidations as re-distribution periods. A break below consolidation support signals a continuation of the markdown phase. In contrast to a consolidation, an oversold bounce is a corrective advance that retraces a portion of the prior decline. Chartists can look for resistance areas using trend lines, prior support levels or prior consolidations. Wyckoff also looked for resistance or reversal signs when the correction retraced 50% of the last down leg.
That being said, it is very important to remember that an investment in a cryptocurrency is not the same as an investment in a company that makes that cryptocurrency. XRP is not the same as Ripple Labs , factoids are not the same as Factom, etc. By investing in a company, you enter into a legally binding agreement. By buying the tokens, you’re just holding the tokens. The company may do well developing projects unrelated to the token it initially created , which will increase the share price, but not necessarily the token price. Same is true the other way around – someone else may step in and make the token valuable, or possibly manipulate the price (for example, the hairy MAIDSafe presale on Mastercoin ). The distinction is important to make.
To say that data is post-unforgeable or immutable means that it can’t be undetectably alteredafter being committed to the blockchain. Contrary to some hype this doesn’t guarantee anything about a datum’s provenance, or its truth or falsity, before it was committed to the blockchain. That requires additional protocols, often including expensive traditional controls. Blockchains don’t guarantee truth; they just preserve truth and lies from later alteration, allowing one to later securely analyze them, and thus be more confident in uncovering the lies. Typical computers are computational etch-a-sketch, while blockchains are computational amber. Important data should be committed to blockchain amber as early as possible, ideally directly from and cryptographically signed by the device in which it was generated, to maximize the blockchain’s benefit in securing its integrity.