Facebook Join My List Logo

February 6th, 2018- In This Issue:


We can not stress to you enough at how looking back at these prices will someday be looked upon as an amazing last chance to buy them at bargain basement prices.

Not having a crystal ball has made things incredibly difficult to predict the day to day prices, so we stopped trying.

Seems everyone keeps calling and asking where's the bottom? 
"Should I add here?"
"Should we sell out and wait for lower prices?"

What to do when all the world is awash in panic? Relax, that's exactly what you should be doing. If you've approached bitcoin as a long term investment, then relax. Check the price in another week, maybe another month, maybe even another year. Add as much to your holdings and relax.. Time is our best ally, anyone investing in bitcoin should be looking towards a 3-5 year window at minimum. Its likely (in my/our opinion/s) bitcoin will surpass $100k maybe even 500k by 2021-2022 Forget about the short term highs and lows, forget about the FUD, just relax and be confident that at some point in the future your bitcoins will be worth much more than they are today.

If you can't sleep at night or you are using the $ that you need to feed your family with, get out now. Sell your coins asap because its just not worth giving yourself a heart attack over any investment. 

For those of you with strong hearts and who have no trouble sleeping at night.. BUY MORE BITCOINS!!!

As always, buy the dips, hold on to your bitcoins for as long as you can and spread the word. Tell your friends, your relatives and anyone else who will stand around long enough to listen about Bitcoins, believe me you will be doing them a huge favor.

Visit BitvestIRA for information on using your IRA to invest in bitcoin at 20% below spot price. Or call us directly with any questions at 1-844-BIT-VEST (1-844-248-8378)

Coinbase to Implement SegWit 
'In the Next Few Weeks'

Cryptocurrency brokerage firm Coinbase announced that it plans to release support for SegWit "in the next few weeks," a move that promises to reduce transaction fees for customers and reduce congestion across the entire network.

The company made the announcement on Twitter, stating that "our engineering team has begun the final testing phase of SegWit for Bitcoin" and that "SegWit-compatible Bitcoin sends/receives will be available for customers in the next few weeks."

As CCN reported, SegWit (or Segregated Witness) was activated on the Bitcoin network via a soft fork last August. By decreasing the size of transactions, SegWit lowers fees and optimizes the limited space in Bitcoin blocks. However, users only take advantage of this feature if they use SegWit-compatible wallet addresses.

According to data from hardware wallet manufacturer Trezor, only about 15 percent of Bitcoin transactions currently employ SegWit, down from a high of about 18 percent in late January. This recent reduction could be linked to users taking advantage of lower transaction fees to move funds from legacy addresses to SegWit-compatible ones, but in any case it is clear that the network is not experiencing the full benefits that the scaling upgrade offers, in part because Coinbase and a few other large firms have been slow to implement it.

These companies - Coinbase in particular due to its ubiquity as an on-ramp into the ecosystem - had been roundly criticized by many in the community because although they supported the controversial SegWit2x proposal, citing rising transaction fees, they appeared to drag their feet on implementing SegWit.

This lack of urgency incurred the ire of more than just Coinbase customers. Sergej Kotliar, CEO of mobile top-up service Bitrefill, noted that the number of unconfirmed Bitcoin transactions plummeted at the same time that Coinbase was experiencing an outage, which suggests that Coinbase transactions were heavily responsible for network congestion that contributed to rising Bitcoin transaction fees near the height of the market's rally.

In a December  blog post, the company responded to these criticisms by stating that adding new features was third on its list of engineering priorities, behind securing customer funds and keeping its platform stable during periods of peak volume - a goal it has often failed to achieve during market volatility.
"We store billions of dollars worth of bitcoin on behalf of customers and any change to our infrastructure is done with significant planning and consideration for the security and stability of our platform," the company said.

Bitcoin Is Dead? 
The Blockchain Didn't Get The Memo

In 2018 alone, Bitcoin, according to at least twenty analysts, journalists and other "experts", is either doomed, dying or dead. It has failed, they say, and has no future. In fact, since around 2011,  it has died 249 times.
Yet the Bitcoin Blockchain doesn't know this. It is quietly and consistently collecting, compiling, and verifying transactions in its ledger, creating new blocks every ten minutes or so, practically non-stop.  It has an uptime of 99.992044937 % since its inception in January 3rd, 2009, to be exact.

By the time I finish this article, it would have issued new bitcoins as a reward to the miners who added the latest block, just as it has done since 2009 without fail.

Ten minutes after the price of Bitcoin "crashed" to $8,500 (as of this writing), it also added a new block to the chain and it will keep doing so until, well, until it doesn't. Transactions were made, bitcoins were sent, bitcoins were received.

The Blockchain doesn't care. There is no plug to pull. It has no feelings. But every ten minutes, it takes a step forward. Every ten minutes, it increases its value and the strength of its network. No person or institution can stop this. Every ten minutes, it trudges forward. Every ten minutes, the ledger is verified and updated. It does what it set out to do, no more, no less.

As Bitcoin and the Blockchain moves forward, so does the industry behind it. Thousands of developers, entrepreneurs, investors, and users are building it as I write this. Transactions, hash rate, price, users,wallets, Bitcoin software continues to accelerate.  LightningSegwit, Schnorr, TumbleBit, MimbleWimble, and more are being developed by the best engineers in the world to make the network scaleable for global commerce.

The Blockchain doesn't care about the price of a Bitcoin, or to what the media says about about it there is work to do now, and every ten minutes thereafter, for as long as it is running. Until it actually stops, then it hasn't. It just keeps moving forward, one block at a time.

Bitcoin To Hit $50,000

It has been predicted that Bitcoin could reach prices as high as $50,000 this year, although it will be as volatile as ever.

These predictions have been made by Jeet Singh, who is a cryptocurrency portfolio manager, who has also said that it is common for virtual currencies to fluctuate by as much as 70 or 80 percent. He compared Bitcoin to technology giants, saying;

"If you look at Microsoft or Apple, when they went public, their stocks were very volatile because the market wasn't mature."

This volatility might have worried new traders, but experienced traders are likely to be much less concerned, as they are used to larger fluctuations. This does mean though that as Bitcoin becomes more mainstream, and even inexperienced traders get a better understanding of cryptocurrencies as a whole, this volatility is likely to calm down, which has led him to make huge predictions; "Bitcoin could definitely see $50,000 in 2018"

A History Of Bitcoin Price Collapses 
Over the Years

The price of Bitcoin has fallen  a stomach-wrenching 64.5%  since December 17, 2017. The combined market capitalization of the industry now stands at  just $338 billion.  A picture tells a thousand words:

That's a big drop for any market. However, a price crash in Bitcoin or any other cryptocurrency is nothing new. Bitcoin dies and comes back to life on a regular basis.  One website estimates Bitcoin's death toll stands at 249 and counting, dating back to 2010.
2017 has been the most deadly with 109 stories proclaiming the end of bitcoin.

What's Causing The Bitcoin Crash?

A whole slew of bad news has led to a huge downturn in the crypto economy.   Bitfinex is drawing the ire  of the US Commodity Futures Trading Commission because the exchange site offers users an option to tether their currency to the American dollar. The suspicious thing about that is neither Bitfinex nor Tether can necessarily prove they have enough money in bank accounts to back up the USDT token.

Overseas, India is cracking down on traders. The country's government is surveying transactions on multiple exchanges in order to try and collect tax revenue. Estimates hint that $3.5 billion in transactions has found its way through India in the last 17 months leading into 2018.

And then there is South Korea. The country has no intention to ban cryptocurrency trading outright. But the government has taken steps to remove anonymity from the equation. South Korean traders must now use their real names.

All of this has contributed to the crypto bloodbath

By the way. The Dow Jones Industrial Average just hit a three-week low thanks to rising US government bond yields. It's not just the crypto market that's feeling the burn. So is the fiat world.

Finding Rock Bottom

Even most beginner investors are aware of the old adage 'buy low, sell high'. The question is, when will low be low enough? The truth is no one really knows. Looking at the above chart, Bitcoin's worst crash lasted 411 days, ending in January of 2015. The nose dive sent bitcoin's price plummeting 87%

As of today, the price is down 64.5% in just the last 51 days. If that happened in the stock market, news media outlets would call it 2008 all over again. Of course much of the global economic crisis a decade ago was due to the American government handing out subprime mortgages to consumers who  couldn't afford to pay  for the homes they were living in.

In the case of cryptocurrency, increased regulation is the reason for the crash. That's definitely bad news for short-term investors. Those bullish on the long-run however see regulation as a necessary step in the continuing fight to legitimize cryptocurrency and bring it further into the land of mass adoption.

Good luck riding the rollercoaster no matter what your investment vehicle of choice.


Without Bitcoin, There Would Be No Blockchain: CFTC Chairman Tells US Senate

The chairmen of two top US market regulatory agencies largely stuck to the script during Tuesday's Senate hearing on potential cryptocurrency regulations.

The hearing, which was held by the Senate Committee on Banking, Housing, and Urban Affairs, touched on a broad range of regulatory concerns related to cryptocurrencies and blockchain technology, including initial coin offerings (ICOs), trading platforms, derivatives and exchange-traded funds (ETFs), and the assets' perceived use to perpetrate financial crimes and subvert international sanctions.

In their opening statements, both Clayton and Giancarlo expressed concern about the fact that cryptocurrency exchanges are currently regulated at the state level rather than the federal, and each reiterated that, at some undefined point in the future, Congress may want to increase federal regulators' ability to oversee the spot markets.

conversation back to ICOs, noting that he has not seen an ICO that should not be classified as a security under federal regulations - a statement he has repeated on several past occasions.

He also provided insight into why the SEC has resisted fund sponsors' attempts to list Bitcoin ETFs, explaining that because ETFs primarily target retail investors and are largely one-sided markets, rules governing their creation must be more strict than those for futures contracts, which are overseen by the CFTC. He said that, if these rules are satisfied at a later date, the SEC will then be open to reviewing its stance on Bitcoin ETFs.

Chairman Giancarlo, meanwhile, won the hearts of Bitcoin enthusiasts with several comments that appeared to be hat tips to the community. First, he made what is almost certainly the first use of the word "hodl" during a Congressional hearing. Then, toward the end of the hearing, he contradicted the common misconception that Bitcoin is riding the coattails of blockchain technology.

News Round Up Archives.

Missed any of the issues of our news round ups? 

Here is a link so you can catch up.    

Click Here