Bitshares 2.0 Upgrade Announcement Beats My Expectations – Definitely a Buy

Last month I wrote about buying Bitshares ahead of an announcement expected for sometime this month. I subsequently sold some of my position for 100% profit and held the rest.

Today we finally got the announcement – a major upgrade to ‘Bitshares 2.0’ which far surpassed my expectations.

New features include recurring payments and subscriptions, a collateralized bond market, smart contracts, an improved version of Bitcoin’s ‘n of m’ multi-signature transactions, all of the necessary compliance measures to turn the decentralized exchange into an alternative trading system for company shares, a referral rewards system for marketing and a fund for hiring workers via the blockchain with $8 million USD seed capital and income from transaction fees.

This is huge, and after reading the announcement this is now a long term buy and hold for me.

Read more about the upgrade here: http://cryptonewsday.com/bitshares-2-0-bond-market-subscriptions-dynamic-permissions-loads-more/

Bitshares 2.0 Upgrade Announcement Beats My Expectations – Definitely a Buy

RibbitRewards: An Underdog with Great Medium and Long Term Potential

RibbitRewards is a cheap, low volume altcoin with loads of potential which I have been slowly accumulating for the last week or two, and which continues to look like a great buy.

The idea behind this coin is simple but powerful: loyalty / reward points on the blockchain.

Peer-to-peer blockchain technology offers some wonderful advantages over current technology used by retailers for loyalty rewards. As a cross-company rewards scheme RibbitRewards will have all the advantages of something like Nectar points, a unified rewards scheme covering a range of major retailers, allowing users to earn and spend the same points at multiple retailers. But there would also be a few key differences. Users will be able to easily withdraw their points to independent wallets or to exchanges where they can buy and sell points for other digital currency or fiat, or to send them to friends and family. A fixed total supply of points also means that their value will ultimately reflect the size of the network, appreciating in price as the network grows.

The latest data from the COLLOQUY Loyalty Census shows that this is a growing market, but one that is sorely in need of the kind of revitalization that new technology can offer.  Customers in the United states held 3.3 billion memberships in loyalty rewards programs in 2015 – an impressive 26% increase over the previous census in 2013. But at the same time, as the number of cards in consumers wallets has increased, each one has started to become devalued, with 2015 showing a 4.5% decrease in ‘active membership’ rates.

Add to this the fact that both loyalty rewards points and digital currencies are starting to catch the eye of the banking industry and you can start to see the potential. Just today Financial Review reports that the Commonwealth Bank of Australia is looking to create customer accounts capable of holding both rewards points and digital currencies alongside their regular balance:

“I have a view that a bank account will become a storer of value, rather than a storer of currency value, so why can’t a bank account be used to store loyalty points in the same way that you can use the slider on a Qantas website to decide whether you are paying with points or dollars?”

“We have multi-currency bank accounts today, with 15 currencies available on your phone instantly in real-time, so it is not that difficult for us to take that technology and make that a loyalty point store. It shouldn’t be that difficult for us to then add crypto-currencies to it, and whatever other means of payment transfers people might want.”  Commonwealth bank of Australia’s Chief Information Officer David Whiteing told Financial Review

As a reward points scheme on the blockchain, RibbitRewards ticks both of these boxes for emerging trends being seriously examined by the banking industry. Not only does this seem to present a powerful confirmation that this coin is riding two of the most powerful trends in Fintech, but with KYC and AML compliance measures already in place over at the official RibbitRewards wallet it hints at potential future partnerships / integrations which could send the price skyrocketing.

At today’s prices RibbitRewards points has a market capitalization of around $125,000 for the 400 million coins sold and given away during the initial distribution. A further 600 million are held by company behind RibbitRewards. This reserve is being used for the development of a multi-currency online marketplace to showcase their technology and drive adoption, as well as incentivising new retailers to join the scheme.

Given the size of the potential market and the fact that, despite its small size, RibbitRewards is still, surprisingly, the leading player in the use of the blockchain for rewards points, this is screaming buy to me right now.

A successful launch of the marketplace.life multi-currency marketplace or the announcement of a major parternship deal could easily see orders of magnitude price gains.

On that basis I’m continuing to buy small amounts using profits from other investments, with a time horizon of 3-6 months before any serious re-evaluation (unless of course there are any major developments before then) and a target of >$1 million market capitalization on current supply, which means I will aim to start selling at roughly 8X gains on today’s price.

Charts, links, social feeds and active markets list for this coin can be found here: http://coinmarketcap.com/currencies/ribbitrewards/

RibbitRewards: An Underdog with Great Medium and Long Term Potential

Bitshares: An Update on my 30 Day Trade

I’m not normally one to blow my own trumpet, but my May 19th blog post calling a 30 long trade on Bitshares turned out to have been one of the best timed calls I’ve ever made:

bitshares-long

Since opening my long at just over 1500 Satoshis 11 days ago, its been one hell of a roller-coaster ride. As you can see from the chart above, we hit peaks at around 3700 – representing almost 150% profit on my buy price – and are now at just over 2800 as I write this update.

To be fair, the final push which took the price to those highs seems to have been at least partially driven by the introduction of margin trading for the BTS/BTC market on Poloniex, with bulls eager to jump on the band wagon with all the extra liquidity they could get.

I couldn’t resist taking profit at over 3000, so I’m now down to half of my original position, but I’m going to keep the other half long until at least the middle of June or my target price of 4400, whichever comes first 😉

Bitshares: An Update on my 30 Day Trade

Bitshares 30 Day Trade

With a major update coming next month and an attractive overall value proposition compared to other major alt coins at the moment I think Bitshares looks attractive for a 30-50 day trade.

Bitshares has already has a unique DAC system in which ‘delegates’ are elected, who are then able to take advantage of the exclusive right to earn Proof of Stake rewards from the Bitshares consensus mechanism. These delegates are considered to be like employees of a decentralized business, using this income to help them move the Bitshares business forward, build out the ecosystem, perform marketing, contribute towards development and so on.

It is also known for its BitAssets such as BitGold, which are pegged to the price of external currencies and assets through a market system.

Based on activity on the Bitsharestalk forum it seems that next months ‘major update’ may include an upgrade to this system. Delegates would be divided into different branches depending on their role, and would be divided up into roles such as ‘worker’ and ‘observer’ to improve accountability and performance. There is also a lot of talk of

The price of Bitshares has fallen substantially over recent months, which seems to have been largely due to concerns over the poor performance of delegates, with many seen as collecting the pay without fully earning it, and parallel concerns over the market peg of BitAssets which has, at times been diverging from the external asset price by 10% or more.

From what I’ve seen its seems like good solutions to the obstacles Bitshares has faced are being developed and may well be part of next month’s update, but of course there is no real way I can predict whether the market will like the solutions being presented or not.

It does seem very likely to me that there will be some price movement, and since the bear case seems to have been well priced in already there is more potential upside than potential downside. So even with a 50/50 chance of the price breaking up or down, I feel like its a good speculative punt, as a break up would probably gain more than a break down would lose.

Double Play

I also like the fact that you can double your gains using Bitshares’ internal decentralized exchange. You do this by buying BTS and then shorting a BitAsset. Shorting a BitAsset against BTS means that you gain when you close your position if BTS goes up.

If you want to learn more about trading and shorting BitAssets take a look at this article from Cryptorials: http://cryptorials.io/trade-bitshares-decentralized-exchange/

Bitshares 30 Day Trade

Bullish Sentiment Emerging For Bitcoin – Beware This Short Zone Though

This fits with what I’ve seen elsewhere and my own thoughts. The price has been on the upper side of what the trend would suggest for a while now. Its hard to break from a well established trend like that, especially in a market with such uncertainty, but it seems like the demand is there and the price is going to break upwards soon and establish a new long term trend in that direction.

Spark Profit

Bitcoin has begun to make a serious of higher highs and higher lows and there could potentially be a bullish channel emerging – at least in the short term.

btcusd17may

For now, there is a bullish sentiment channel emerging since Bitcoin broke out of the bearish channel at the end of April. What else is this chart telling us:

  • Sellers have been defending the supply zone around $244 with price capped at this level over the last few weeks.
  • We have made higher highs and higher lows and we could project a bullish channel defining the supply and demand zones for this price action
  • The $255 price level looks interesting and there may be some supply there. Why?
    • Previous supply form the start of April may be defended.
    • Top of the short term channel.
    • Multiple abcd patterns and equidistant swing completing into that zone may get the attention of the shorts.
    • Close…

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Bullish Sentiment Emerging For Bitcoin – Beware This Short Zone Though

My Approach To Digital Currency Trading

Hello and thank you for reading the first post on my new blog!

Since I’m going to be writing about digital currency trading here I thought a good place to start would be to share a few thoughts  on my own personal approach to the topic, along with an introduction to what you will and will not find discussed on the pages of my website.

time horizons

The first thing I should say is that I am not really a day trader in the true sense of the phrase. Although I do engage in some short-term trading, which may even include buying and selling on the same day at times, I am more focused  on medium-term trades so that is probably what you can expect to find the most information about on this blog.

For longer-term perspectives please take a look at my Hubpages account about Investing in Digital Currency

technical analysis

Another thing worth mentioning is that I am not the biggest fan of technical analysis. One reason for this is because TA breaks down in low-liquidity markets, and many digital currency markets have very low liquidity. TA is also less relevant for early-stage enterprises, with developments to the product and changes to organisational structure, along with user adoption (all of which aren’t incorporated into TA), being much more important. Another reason is because many people seem to use TA to inform their decisions about whether to buy or sell something, whereas I personally think it is most useful for deciding when to buy or sell – for timing a decision which has already been made based on more fundamental considerations.

What this means is that I won’t ignore technical analysis, but it certainly won’t be one of the main topics of this blog.

Whale Games and Pump & Dump scams

Digital currency is full of low market cap and low liquidity markets, and early stage enterprises who have exciting plans but are yet to deliver a completed product. Because of this market manipulation by big players with money to spend (known as whales), and scams by projects announcing big exciting sounding plans with no intention to ever deliver on them, are depressingly common.

Many traders seek insider knowledge about this kind of thing, or even engage in it themselves. There is no doubt that this kind of behavior can be very profitable, but it is also morally repugnant and I will not engage in any such activity myself.

In fact, I will take extra care to do due diligence on any projects discussed on this blog and will make every effort to screen out anything suspicious.

My Approach To Digital Currency Trading