Category Archives: Cryptocurrency

BTC Price Movements Resemble a Bubble

Source: ZeroHedge, Apr 2019



BTC/Crypto Ends 2018 Down

Source: ZeroHedge, Dec 2018

One year after Bitcoin, or BTC, exploded from below $1000 to nearly $20,000 last December 2017, the cryptocurrency has lost about 80% of its value. The dramatic fall tops the dot-com bust, when the NASDAQ Composite fell 78% over the course of two years (that said, it is still about 4x higher than where it was 2 years ago). 

Meanwhile, the rest of the crypto market has largely followed BTC’s lead: the market capitalization of all digital currencies is now hovering around $134bn versus $800bn earlier this year.

BTC: Biggest Wealth Transfer

Source: OffTheChain website, Oct 2018

Starting from min 39 onwards, the interviewee talks about the greatest wealth transfer:

  • Old –> Young
  • Fiat –> Bitcoin


Edison’s Energy Dollar/Fuller’s Kilowatt Dollar

Source:  Medium, Apr 2016

Buckminster Fuller recommended, in his book Operating Manual for Spaceship Earth, that a global currency be based on energy; he called it the “Kilowatt Dollar”. Thomas Edison envisioned an “energy dollar” after seeing the value of electricity, and Henry Ford also conceptualized backing a currency by a “unit of energy” instead of gold.

If money is tied to a physical quantity of energy, then the total volume of money is determined by the total amount of energy in production. If the energy supply is contracting then the money supply should contract accordingly. Vice versa; if the energy supply is expanding then the money supply should expand as well.

The amount of money will always match the production of goods and services so that there can not be inflation or deflation.

Related Resources:

Journal of the History of Economic Thought, Sep 2006

“Thomas Edison’s Monetary Option”

CryptoVoice, Feb 2014

Santis Prediction of CryptoCurrencies Valuations

Source: CoinGape, Aug 2018

According to the estimated value of top crypto assets, Winners are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Monero (XMR), and Dash. Whereas, XRP, Bitcoin Cash (BCH), EOS, Stellar (XLM), and Cardano (ADA) are going down in the long term.

However, according to the different methodologies used in the research, ADA, NEO, ETH, and ETC holds growing potential as well. The report also notes that the crypto market is led by speculation and is heavily skewed.

Inflation-Challenged Fiat Currencies

Source:, Aug 2018

using his twitter hand CZ of Binance said: “fiat does not imply stable”. Along with this, he posted charts of Turkish Lira and Argentine Peso being under the solid pressure of countries crumbling economic condition.

Related Resource: CryptStorm, Aug 2018

In an interview with Brian Armstrong, the Chief Executive Officer of crypto exchange firm, Coinbase, the CEO talked about the way forward of the cryptocurrency world and the potentials that digital currencies have. Armstrong stated that the future of the virtual currency is secure, he also noted that economic crisis affecting most countries would force most of them to delve into the digital currency sector. He stated that:

“Countries going through economic crisis and pockets of people in those areas are getting interested [in crypto]. There is interest among those people with the highest pain point in having stable currency […] In the next three-five years countries going through economic crisis could see people organically adopting crypto as an alternative.”

FBG: 10X within 1 Year

Source: Forbes, Aug 2018

To the crowd assembled, FBG’s fame stems from turning $20 million into $200 million in a year.

FBG’s approach has three pillars: Invest like a venture capitalist in initial coin offerings (ICOs), trade on news and events by moving in and out of tokens rapidly and, critically, exploit insider relationships and marketing hype to ensure profitability. The firm’s rise speaks volumes about the anything-goes world of cryptocurrencies, where the stated ideals of democratization are a joke and being an insider is the surest path to riches.

Like other big investors in crypto, FBG is offered “presale” discounts on ICOs to the tune of 30%.

According to Zhou, trading makes up more than half FBG’s revenue, but as the crypto trading environment has become more transparent and efficient, the firm has moved from arbitraging crypto exchange- price discrepancies to event-driven trading, in which FBG bets on how topics like regulatory news will affect crypto prices. For example, when the CME Group announced it would launch bitcoin futures contracts last December, Zhou went long on the bitcoin uptick. When news broke that the Japanese exchange Coincheck had been hacked earlier this year, he quickly went short. In 2017, FBG says it quadrupled its money in trading.

Not all of FBG tactics seem completely aboveboard. One little-publicized investing dynamic that FBG’s executives gloss over is its relationships with cryptocurrency exchanges, the crypto equivalent of the NYSE or Nasdaq. Typically, when a new token announces its listing on a top exchange, the price jumps because the new liquidity is perceived as an endorsement. Zhou has cozy relationships with the three most active crypto exchanges: OKEx, Binance and Huobi, each processing $500 million to $1 billion or more in crypto trades a day. Using these connections, FBG has helped ICOs it has invested in, like Zilliqa, obtain listings on the exchanges.