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Strong Ethereum - Litecoin & Ripple Weak

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I do not expect anyone to agree with my views but I wanted to start a discussion on which cryptocurrencies are really worth anything in society, within businesses and in economies around the world.

For me Bitcoin will eventually become the 'digital gold'. It may take another 10-20 years but Bitcoin is the 'grandfather' of the cryptocurrency universe. It will not die. It will adapt, scale, improve and do whatever it needs to survive based on what the regulations and legislations end up being. If I believe this then I simply do not see the point of Bitcoin Gold. I think if Bitcoin could do the things necessary then it could enhance itself to remove the need for even Bitcoin Cash. Bitcoin for me has 'first mover advantage'. It is the most well known cryptocurrency and has the largest market cap by far. I simply cannot imagine that Bitcoin will not be around in say 5 years time. For me it is not going to zero as otherwise all this effort worldwide will be for nothing. The current people backing Bitcoin and the large players involved will make Bitcoin succeed in some form or another and for me that form is a digital store of value. 

I like Ethereum as it offers a different proposition. If you go back to 2015 then when the blockchain was launched it has no tooling and no infrastructure. Look at it now. I think after Bitcoin, Ethereum is the next one which I think will survive all the government interference or is more likely to. I think its offering of smart contracts and higher adoption rate puts it in a stronger position that its competitors. The potential is huge. For me Bitcoin and Ethereum are the big boys and market leaders. Full stop. 

I don't get Litecoin. It was a fork of Bitcoin but I cannot think of a reason to invest in it. There is a reason to invest in Bitcoin and Ethereum but Litecoin? Yes it may have faster transactions speeds but this is something that Bitcoin can overcome in time.

I appreciate Ripple gave some of us absolutely ridiculous returns but it is not a decentralised cryptocurrency. I favour Stellar Lumens ahead of Ripple. This is only my personal view but I think Ripple will become something that Governments feel more comfortable using. Therefore, I would consider backing the company (Ripple) rather than the coin itself. If Ripple is deemed a security rather than a commodity then I think Ripple is on shaky ground. I think over time the company that owns the coin Ripple will offer a more compelling reason to invest.

What do people within the IG Community think? I have stuck my neck out and presented my views whether you all agree with them or not. I have presented my opinions to the IG audience. Do any of you have any other views which may be different to mine but can be supported by compelling reasons and strong arguments that can make me seriously think differently? I have an open mind when it comes to cryptocurrencies and blockchain and my thinking will adapt and change as things move from one side to another. 

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Just to add to the discussion, there are a group who think Ripple will be the global cryptocurrency. I am not so sure but I can see governments and the public sector around the world adopting it but I am not sure for private individuals. We could end up having several global cryptocurrencies where Central Governments around the world have one, businesses around the world adopt one and then there is a global payments for individuals as well. It may not be a race for just one. There could be possibly 3-5 depending on their speciality that become global cryptocurrencies. 

What does the IG Community think?

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Honestly, I think Bitcoin and ethereum are done. The people who invested early are sitting on huge profits. New money has no reason to come in. Yeah it won't go to 0 but that's because there are people who invested early who would hold and there's always people who actually use the service. How many people do I know who want to transfer Bitcoin or money without personal details known- none. Once banks use blockchain tech and transaction fees drop then anonymity is the only reason to use crypto. I may be wrong but that's how much I understand. I ask myself why use cryptocurrencies when the technology itself is available. Why buy all samsung tv's when the technology is available to make your own tv? It's true I hope it starts rallying as I'd love to trade it again but at the moment no way!

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@Situation, first of all thank you very much for taking the time and participating in this discussion.

I am not suggesting you are right or wrong as we all will have different views and opinions. However, sometimes a lack of knowledge can lead to one thinking that Bitcoin and Ethereum are done. You may be right, who knows?

You suggest new money has no reason to come in. At the moment institutional money has not even entered the 'Crypto Universe'. If it does and this all depends on the regulatory environment but if it does then new money will have the biggest reason to come in. I accept it is a big IF. 

I agree that the traction for Bitcoin and Ethereum adoption is slower than one would like. However. momentum is building and there are lots of exciting projects in the pipeline. 

The reason why one would buy say a Samsung, Panasonic or Sony TV is because even though the technology is available to make your own TV, most would not be able to do so. This is because they would not have the skills required, knowledge needed and time. 

@Situation, have a look at some of my previous posts within the Cryptocurrency and Blockchain section of the 'Forums'. You may find posts, links and material that may be useful in acquiring more information on the subject area. Apologies if you have already seen most of them. Thanks again for your post. 

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Jeremy had someone in a couple of days back which related to the institutional space, and their abilities to move into the crypto space. Very interesting video and really worth a watch. 

 

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@TrendFollower - the guy in the video? I think a lot of what he says is valid and is supported by a number of different articles which have said there's a number of institutional traders and investors who are having issues getting into the space. 

What do you think?

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Anything new and at times complex can provide challenges which is what we are seeing.

Different countries around the world are adopting different views on the regulations they wish to use against cryptocurrencies. There are complex questions around whether they are currencies or commodities?

Maybe some country will be bold enough to say with they are neither and create a new framework for which cryptocurrencies come under. I don't know the answers but I think patience is required. Once a country has clear guidelines, framework and regulations in place then it will be far more easier for institutional traders / investors to get into the space.

 

 

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there has been a lot of good news out this week and that is good for ether. I can see it is above the 20 EMA on the daily candle at the moment and aiming for the 50. Could see a trend reverse here and in an ideal world bring it back to the 800 level. We want to see institutional investment coming into the space and they can't do this until there are some assurances and changes to how things are does "in the plumbing" if that makes sense.

looking for discussion (preferably to agree with me and boost the ego :) but will also live with a critical reply ;) )

cheers
phil

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@cryptotrader, I agree with your sentiment.

There are a lot of positives for Ether. I think institutional investment will be a key driver for real price appreciation for Ether. Before this happens there needs to be clarity in regulation which is occurring now.

Bitcoin is still the 'grandfather' but Ether is the 'son' that has to one day take on a bigger role.

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Since my original reply in July Bitcoin is basically static at this key 6k level and ether has dropped by 50%. As long as it's below 50ma not even looking at it let alone put money in them.

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True enough @Situation, though ripple did put in a brief period of extra activity recently they all seem to be waiting for a bitcoin triangle break.

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@Situation, there is a downward bias in crypto's in general. The charts tell this very story pretty convincingly. 

There are murmurs that a bottom may be forming in Bitcoin with some healthy consolidation. The coming days and weeks will confirm this assumption. 

What we have seen recently and more historically is that crypto's tend to move together whether that be upwards or downwards. 2018 has seen downward pressure.

Right now Ether's chart looks horrendous. Litecoin and Ripple's is not much better. One of the questions being asked is whether we are now seeing a bottom in cryptos? Only the price behaviour going forwards will give the answer to this question.

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I hope no one bought or has been holding on to Bitcoin and ethereum. I originally mentioned in July this year that they're done. It's easier when you're happy to be biased either way. I gave up on cryptos after January and therefore have stayed away. Until it's above the 50 ma wouldn't touch it with a barge pole no matter how cheap it is. 

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@Situation,

The most 'efficient' and 'effective' trade based on price action for all of the Cryptos that IG offers on its platform was to short them. Now the amount of leverage to use would have been based on traders personal risk management strategy. I would like to think those who do follow price action and trends would have shorted at least one of the Cryptos.

So there has been a big trading opportunity in Cryptos and a big opportunity to short and make profits. Markets go up, down and sideways. Traders seem more comfortable going long than they do short. I find that when you get the 'short trade' correct it can make you profits far quicker than a 'long trade'. Markets trend upwards longer than they do downwards in terms of time period. 

I still believe in Cryptocurrencies and once it has bottomed, there will be a more slower but stronger rally for those that survive. We should see the junk be annihilated. Those that survive should then enhance their offering, increase transaction speeds and become more efficient in dealing with the payments and transactions for goods and services for the world going forwards. I think there will be a bigger movement in 'Tokenisation' and some of you will have seen me use 'Tokenomics' and 'Token Economy' in my posts. 

This will be a long journey with lots of adaptation and change. We are merely only at the beginning of the journey and this journey will be formed over many years. Patience, an open mind, lots of reading and research on the area and to ignore some of the bias media and 'market noise' is required to truly appreciate Cryptocurrencies, Blockchain, Tokenisation and a move towards Digital Currencies for Central Governments around the world. 

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12 hours ago, Situation said:

I hope no one bought or has been holding on to Bitcoin and ethereum. I originally mentioned in July this year that they're done. It's easier when you're happy to be biased either way. I gave up on cryptos after January and therefore have stayed away. Until it's above the 50 ma wouldn't touch it with a barge pole no matter how cheap it is. 

*puts up hand - cries*

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@cryptotrader,

I hope traders have been shorting Cryptos and holding on to these short positions rather than selling early. If you have given up on Cryptos after January then you may wish to change your name from Cryptotrader to something else? Just a thought as you do not seem to be trading Cryptos on the short side but please do correct me if I am wrong and you do hold short positions. People can be biased on the negative side of Cryptocurrencies so it works both ways. 

Why would you not touch it as it goes below all the moving average (different timeframe) indicators and shorting such Cryptos? The one thing I continuously see on the IG Community is traders looking at 'long' trades. I just do not see enough discussion on 'short' trades especially when the price action and behaviour is telling us a very strong narrative and story. 

I am positive on Cryptocurrencies as many of you will know but one simply cannot argue against the downward trend and downward price action / behaviour. So therefore as a trader one must 'short' such opportunities.

I do not quite understand your puts up hand - cries comment. What are you specifically referring to?

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