Editor’s Note: ‘7 Explosive Cryptocurrencies to Buy for the Bitcoin Halvening’ was published in February 2020. It is regularly updated to include the most relevant information. The third big bitcoin (CCC:BTC) “halvening” happened in May, and according to our very own Matt McCall — whose Ultimate Crypto portfolio has averaged a jaw-dropping 121.54% gain in 2020,… Bitcoin had a helluva week. And many of its fans see its recent spike as just the beginning of a run that converts it from cult favorite to global reserve currency. hat’s an exciting prospect for a lot of reasons. But it’s not yet a done deal. One of the many concerns that non-HODLers have about bitcoin… Ethereum is finding support at the 100 SMA again today When trying to explain the challenges and potential of blockchain to people, the simplest examples are often voting, document storage, and degree certifications. In view of the current pandemic, we are moving, without a shadow of a doubt, towards a digitalised society and diplomas will not be lacking. Fortunately for us, France is no exception …
Editor’s Note: ‘7 Explosive Cryptocurrencies to Buy for the Bitcoin Halvening’ was published in February 2020. It is regularly updated to include the most relevant information.
The third big bitcoin (CCC:BTC) “halvening” happened in May, and according to our very own Matt McCall — whose Ultimate Crypto portfolio has averaged a jaw-dropping 121.54% gain in 2020, against the market’s 13.4% gain year-to-date — that’s a huge reason to be bullish on cryptocurrencies in 2021.
But, before we jump into understanding what that halvening is (also referred to as a “halving”) and which cryptocurrencies to buy for 2021, let’s first understand why cryptocurrencies as a broad asset class have a bright future.
The core purpose of cryptocurrencies is relatively simple: leverage technology to eliminate the middle-man in financial transactions and make buying and selling things less costly and more efficient.
Through the blockchain — a decentralized public ledger of transactions that anyone can view, is consistent across the whole network, and is unable to be edited and/or updated unless the whole network agrees with the update — cryptocurrencies are able to conduct and verify financial transactions without needing any central oversight.
That may sound like a mouthful. It’s not. Traditional currencies need big banks to oversee and verify all transactions. Cryptocurrencies do not. This means they’re less costly and more efficient than traditional currencies, because there’s no middle-man to pay and no paperwork to fill out.
Sure, there are risks to cryptocurrencies achieving mainstream adoption and overtaking government-backed currencies. But, lower transaction costs and quicker transactions are large enough value props to warrant there being a bright future for cryptocurrencies (even if they don’t take over the world).
Now, let’s take a deeper look at why cryptocurrencies will keep rising in 2021.
Two key characteristics of bitcoin are limited supply and constrained supply growth.
There are a fixed number of bitcoins in the world (21 million). The bitcoin world started with most of those bitcoins being “locked in the system.” Each time an individual updated bitcoin’s ledger (also called “mining”), the individual would unlock new bitcoins. But to constrain supply growth and retain incentives for mining, the bitcoin system is set up so that every so often, the amount of new bitcoins unlocked for mining a block is halved.
So far, bitcoin has undergone three halvings. After the first halvening in 2012, bitcoin prices rose about 8,000% over the following 12 months. After the second halvening in 2016, bitcoin prices rose about 2,000% over the following 18 months. In both instances, many alternative cryptocurrencies actually rose far more than bitcoin.
In other words, bitcoin halvings have traditionally been exceptionally bullish catalysts for cryptocurrencies. And that makes complete sense. Prices are determined by supply and demand. If supply growth slows, and demand growth doesn’t, then prices should go up.
The third bitcoin halvening happened in May 2020.
The number of bitcoins unlocked for mining one block fell from 12.5 bitcoins, to 6.25 bitcoins. Because of this halving, bitcoin’s supply is expected to rise by just 2.5% in 2020 — an all-time low for the cryptocurrency. It’s expected to rise by less than 2% in 2021.
Concurrently, demand growth should accelerate in 2021, driven by the introduction of more financial derivative products, broader support from central banks and increasing recognition of bitcoin as a digital store of value.
Bigger demand growth plus lower supply growth equals higher cryptocurrency prices. That’s largely why Matt McCall, who has already picked four triple-digit altcoin winners this year, thinks that the best of the big cryptocurrency rally is still ahead of us.
With all that in mind, I suggest readers keep a close eye on these seven explosive cryptocurrencies in the coming year:
Of course, the most obvious cryptocurrency to buy for 2021 is bitcoin. Over the past year, the price of bitcoin has surged by 202%, as bitcoin proved to be a direct beneficiary of slowing supply growth and accelerating demand growth across the cryptocurrency world.
On the supply side, the third halving directly effected the amount of new bitcoins coming into market, and led to relatively slow supply growth.
Meanwhile, on the demand side, cryptocurrency interest will soared this year after the halving drew media coverage and public attention. Bitcoin demand simply is the “gateway” into cryptocurrencies for new investors. That is, as new investors enter the cryptocurrency market over the next few quarters, most of them will likely start by getting their feet wet with bitcoin.
Accelerating demand growth plus constrained supply growth will lead to higher prices for bitcoin in 2021.
Privacy is a top priority in the cryptocurrency community, and privacy-focused coins will likely win big in 2021. That’s why McCall has picked top privacy coin Zcash as one of his top altcoin investments.
Zcash, which is one of McCall’s favorite altcoins in his Ultimate Crypto portfolio, is a pure play on the growing importance of privacy in cryptocurrency.
That is, the first wave of cryptocurrencies was all about decentralization …
“Existing currency valuation models do not quite take into consideration decentralization — a potentially distinguishing feature of cryptocurrencies,” says Professor William Cong of Cornell University.
Now that cryptocurrencies have gained more mainstream traction and are starting to exhibit staying power, it’s time for another distinguishing feature to emerge — privacy. Privacy is one of the more important and discussed characteristics in both the crypto world and the financial transaction world at large.
As the importance of privacy grows in the crypto world, privacy coins will outperform, and Zcash looks particularly primed to outperform given the company’s pivot into private mobile transactions.
A leading altcoin positioned for potentially big gains in 2021 is Ripple.
Ripple is a company that leverages blockchain technology to enable banks, payment providers, digital asset exchanges and corporations to send money globally, usually using the company’s cryptocurrency, XRP.
In many ways, then, Ripple is the infrastructure behind cross-border cryptocurrency payments.
As cryptos gain more mainstream traction, Ripple is adding more and more banks and various other customers to its network. Most recently, the National Bank of Egypt just partnered with Ripple.
More and more banks will partner with Ripple in 2021 as cryptocurrency awareness and demand rises. As it does, the price of XRP will rise, too.
One of the more interesting cryptocurrencies that could explode higher is Basic Attention Token.
The core idea behind BAT is pretty simple. The digital advertising model is broken, in that user and advertiser incentives are not aligned. Instead, they run opposite one another. That is, advertisers want users to watch their ads, while consumers want to skip the ads.
The idea of BAT is to realign the incentive structure in the digital ad network so that user and advertiser incentives match one another.
To do this, users get paid Basic Attention Tokens to watch ads in the Brave browser, so that they are now financially incentivized to watch the ad. The end goal, of course, is that more consumers watch ads, and advertisers sell more product/generate more brand awareness.
It’s a pretty smart business model.
And, as cryptocurrencies gain more mainstream consumer traction in 2021, this smart model for compensating users to watch ads should similarly gain traction. As it does, the price of BAT should rise.
One of the hottest cryptocurrencies, and one which Matt McCall thinks will remain red hot for the foreseeable future, is Chainlink.
In his Ultimate Crypto portfolio, Matt first recommended Chainlink in early January at a price of $2.09. Today, Chainlink trades hands at $12.60 in just eleven months. What’s more, that return over the past eleven months, follows a 450% return in 2019.
In other words, Chainlink has been scorching hot. Strengthening fundamentals imply that it will remain hot for the foreseeable future.
Specifically, Chainlink leverages blockchain technology to create smart contracts, which are essentially self-executing contracts that can be executed without central oversight.
But businesses have been slow to adopt smart contracts because data is integral to executing these smart contracts, and there hasn’t yet been a reliable way to connect external data with the smart contract.
That’s exactly what Chainlink does. So, they provide a very necessary gateway to usher in broader adoption of smart contracts. This adoption uptake in 2020 will provide a natural tailwind for LINK, and the coin’s red-hot rally will likely persist into 2021.
The Synthetix Network Token is a cool platform in the ethereum ecosystem that leverages blockchain technology to help bridge the gap between the often very obscure cryptocurrency world, and the far more tangible traditional asset world.
That is, in the Synthetix Network, there are Synths, which are synthetic assets that provide exposure to assets such as gold, bitcoin, U.S. Dollars and various equities like Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL). The whole idea of these synthetic assets is to create shared assets wherein users benefit from asset exposure, without actually owning the asset.
It’s a unique idea, and a promising project in the ethereum landscape. Because it helps bridge the gap between cryptocurrencies and traditional assets, it creates a level of familiarity and value that are often missing in other cryptocurrency assets. This familiarity and value ultimately position SNX price to rise in 2021.
On the smaller side, a cryptocurrency which looks like an interesting speculative buy is DxChain Token.
DxChain is a very ambitious project which aims to use blockchain technology to solve the world’s data computation, storage and privacy issues. It’s a tall order. But, if it works, it could yield huge results in terms of DXC usage and value growth.
Nearing the end of 2020, the SolarWind (NYSE:SWI) hack put data privacy concerns front and center. As such, privacy-focused coins should rise. DXC is one of the more interesting privacy-focused coins with potentially huge long-term upside.
While it’s still all very speculative, those attributes may make this altcoin worth the risk over the next few quarters.
In the bigger picture, it’s not an understatement to say that the opportunity in cryptocurrency in 2021 is a once-in-a-lifetime event.
New technologies are often undergirded by periods of rapid, exponential growth … before either dying out in supernova fashion or normalizing to meet realistic expectations. So when cryptos had their first “once-in-a-lifetime” event in 2013 — which turned every $1,000 into $93,000 — the spectating world thought they had missed out.
Then came the next life-changing event in 2017, turning every $5,000 into $123,000 … that was assuredly the big boom that you either rode to 25x gains or, well, you didn’t, right? Wrong.
Cryptocurrencies are unlike any trend we’ve ever seen before, and there will be another opportunity for investors to turn a fistful of dollars into millions of dollars.
The key to this explosion is the Halvening. Don’t miss out this time!
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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Is Bitcoin Strangling The Other Cryptocurrencies?
Bitcoin had a helluva week.
And many of its fans see its recent spike as just the beginning of a run that converts it from cult favorite to global reserve currency.
hat’s an exciting prospect for a lot of reasons. But it’s not yet a done deal.
One of the many concerns that non-HODLers have about bitcoin is that its algorithmically-constrained supply might be a kind of mirage, because other cryptocurrencies with similar characteristics and utility can be created in infinite numbers.
From a trader’s perspective, here’s what that means: If bitcoin keeps rising relative to, say, ethereum and litecoin, it creates an arbitrage in which investors sell bitcoin and reinvest their profits in much-cheaper but otherwise similar – and therefore equally attractive as a store of value – coins. So bitcoin’s price falls (or at least rises more slowly) while ethereum and litecoin gain ground. The crypto universe diversifies and expands, partially at bitcoin’s expense. And bitcoin, while still successful, misses its chance to conquer the global monetary system.
The other day I mentioned this concern to a very smart, highly committed bitcoin fan, and his response (I’m paraphrasing a bit) was:
“Those other coins are trash. Bitcoin is draining all the air out of the crypto space. The others will die and bitcoin will absorb their market cap, along with most of the capital now in gold and the dollar, on its way to a price of $1 million per coin.”
That’s … compelling, considering that you hardly ever hear about those other coins anymore.
One way to check this, of course, is to see what the other coins are doing. If they’re falling as bitcoin rises, then yes, this might indeed be a one-horse race and those comparisons of bitcoin’s tiny-by-design supply to the number of US dollars, ounces of gold, etc., that yield insanely high bitcoin prices look more valid. If, on the other hand, smaller-cap cryptos are taking wing along with bitcoin, then the jury is still out on whether bitcoin’s “supply” is limited to its own ledger or has to include the rest of the crypto space. Which makes its supply theoretically unlimited just like any crappy fiat currency. So let’s go to the charts:
Bitcoin’s dominance of the crypto space has fluctuated in the past year, falling from a massive 70% to the mid-50s and then rising back to pretty much where it started. The verdict: It’s definitely the big player in this space.
But is bitcoin’s recent gain in market share due to the inevitable death of all those no-name/no-future coins that came to market during the recent ICO frenzy? Or is it due to defections from the other viable cryptos that might someday challenge bitcoin’s dominance?
If the former, you’d expect some of the other cryptos to be rising in price along with bitcoin. And some of them are. In the past week:
During a week in which bitcoin had an epic run, the other well-known cryptos did okay. The oxygen may have been sucked out of the no-names with market caps approximating zero, but ethereum, litecoin and bitcoin cash all caught a bid.
These charts actually paint a picture that resembles precious metals mining. Bitcoin is a Barrick or Newmont that just had a really good year, while the lesser cryptos look like mid-tier or junior miners being swept along in the sector whale’s wake.
Which means the crypto ecosystem might be evolving into a normal market, with big and small players and a common-sense dynamic in which a big player’s success sends money flowing down the food chain in search of juicier percentage gains.
With one difference: The supply of viable gold miners is constrained by geology. There’s just so much gold out there, and most of it has already been found. But the number of cryptos with algorithmically-constrained supplies is potentially infinite. And as money flows into that space, the incentive to create more bitcoin clones – and to sell bitcoin itself to buy those potential hundred-baggers – rises.
Put yet another way, bitcoin’s first-mover advantage is real, but the constraints on its dominance imposed by the other viable cryptos seem real too. Very few sectors are swallowed up by a single entity, and it’s not yet clear that cryptos are an exception to that rule.
Authored by John Rubino via DollarCollapse.com
Moving Averages Are Keeping Cryptocurrencies Bullish – Forex News by FX Leaders
Cryptocurrencies have been bullish since Mach, as traders turned into this market, to find some safety from everything that has been happening this year. The trend paused in September and October, but it resumed again in November after the US elections and it has only been picking up speed.
The uptrend hasn’t been really straightforward for them, as we have seen periods of consolidation, as well as some decent pullbacks. But eventually they have ended and buyers have resumed control, pushing digital currencies into new highs, with BITCOIN reaching $ 24,099 on my chart.
ETHEREUM has also been surging higher, climbing to $ 672 last week. Right now digital currencies are retracing down, the retrace might be coming to an end soon, which would be a good opportunity to buy. Moving averages have been providing support and right now Ethereum is trading right above the 100 SMA (green) on the H4 chart. Stochastic is also oversold, so we might actually go long on ETH/USD soon. You can check out our forex signals page to see when this signal goes live.
With BCDiploma, fraud does not recover – Cryptocurrencies
When trying to explain the challenges and potential of blockchain to people, the simplest examples are often voting, document storage, and degree certifications. In view of the current pandemic, we are moving, without a shadow of a doubt, towards a digitalised society and diplomas will not be lacking. Fortunately for us, France is no exception and brilliant individuals have launched BCDiploma, a company specializing in the subject. They had us already presented their project during the first confinementt, but what do you want, when the project is good, the news is too. Today we therefore welcome Vincent Langard and Luc Jarry-Lacombe, the two founders of BCDiploma:
So to avoid getting lost, let’s clarify the following: EvidenZ is the name of BCDiploma’s technological solution. This solution embeds a token, the BCDT that it is necessary to purchase in order to be able to use it. Imagine that you are the boss of a company and that you want to issue a diploma following training, you must first buy BCDT to fuel smart contracts. In exchange you will receive certification credits to deliver the precious sesame to all. The diplomas will then be easily searchable through a simple link.
As you may have understood, the point of certifying a blockchain degree lies in take advantage of immutability of it. Such a component has many advantages here:
EvidenZ in addition to making life easier for its users, therefore subscribes to the Background checking market, which today represents nearly $ 3 billion ! “But what is Background Checking?” And dear sleuths of fraud, this is the expense bargain of verifying an employee’s qualifications. If you need to recruit someone you will have to verify that the skills and diplomas they claim to have are true. As you can imagine, such an audit requires a lot of resources, both in terms of time and money. With EvidenZ these problems are a thing of the past.
Already established on 4 continents and 12 countries, BCDiploma has a wide variety of users. Of the’EM Lyon which is the historical school of the solution, passing by the University ofHoa Sen in Vietnam, to the prestigious university of Berkeley, we have something for everyone. Strangely, or fortunately, the BCDiploma team doesn’t seem to agree and has signed another very large partnership.
TheAUF is a worldwide network of French-speaking universities of nearly 1,000 universities which, for the next four years, will exclusively use BCDiploma ! When we know that in The next 6 to 8 years, the number of French-speaking students is set to double, we can only welcome such a partnership. But BCDiploma not only transcends borders or language barriers, it also transcends those of blockchains.
Originally developed on the blockchain Ethereum, the BCDiploma solution is also available on the Ark blockchain.
If you’ve taken Binance’s Webimarathon, you know you can take your chances at earning a blockchain degree, certified on Binance Smart Chain (BSC). I will let you deduce which French solution was selected for this certification …
Not only does BCDiploma have a functional solution, it is also patented. This is already a rare enough thing in the blockchain industry to be highlighted, but its getting it the first time (first reading) takes BCDiploma to another level. It may be for all these reasons that Microsoft themselves have signed a partnership with the French company.
As you may have already understood from this article, while this principle applies to the basic certification of diplomas, it is easy to apply it to other sectors. Here again the team did not wait for us and is already working on the certification of the authenticity of the sale of a work by Rodin.
Well, I did my best, but I have to face the facts, such a complete solution cannot be fully represented in writing. I invite you to watch our video interview with the team. Luc, Vincent, over to you:
Engineering student in IOT, Translator, Community and Bounty Manager, I have been sailing the turbulent oceans of Blockchain since 2017.
Aware that the Blockchain will change our future, I too am participating in the revolution. Find me on Bitcointalk, LinkedIn and Twitter to discuss or suggest articles.