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All 3 Major Cryptos Are Bustin’ Out – What’s Up With That?

By December 13, 2017 No Comments
From grandmas buying bitcoin on their phones, to trading on the largest derivatives exchange in the world, there's no question that cryptocurrencies have gone mainstream - and let's face facts - some of that money flowing into the crypto space will never see a dollar sign again.

Grandma's buying bitcoin on her iPhone, the kids are investing their bar-mitzvah money, & it's trading on the largest derivatives exchange in the world - there's no question that cryptocurrencies have gone mainstream.  This much is certain - some of that money flowing into the crypto-verse will stay there & never see a dollar-sign again.

Disclaimer:  The information in this blog represents the opinions of its author and is for educational purposes only.  It is not intended as investment advice.  Cryptocurrency markets are extremely risky so you should only invest money you are willing to lose.

Triumvirate Of The Crypto-Verse

Bitcoin is the crypto-juggernaut - an astonishingly profitable speculative investment and store of value that's also being treated more and more like digital gold.  Litecoin is the fast, cheap, high-volume, micro-transaction crypto that answers the eternal question "but can I buy a cup of coffee with it?".  Ethereum is the build-your-own-blockchain cryptocurrency that packs the potential for an abundance of as-yet-unimagined applications extending into every vertical you can name.

Together they form the triumvirate of the crypto-verse, and they're all on a tear - What's up with that?

"Red-Pill Me"

Bitcoin is the red-pill, the gateway drug to the cryptocurrency ecosystem, and in an astonishingly short time it has emerged from the shadows of the dark web and gone mainstream as a store of value, a digital currency, and a revolutionary new asset class which some see as the speculative investment opportunity of a lifetime.

Bitcoin resumes the breathtaking uptrend that began on Sept. 15th at $2975.   It would be impossible to overstate the power of bitcoin's resilience amidst the cacophonous din of bubble-talk every time it reaches a new high.  Even if its price declines, much of the money is likely to remain in the cryto-verse.  Cryptocurrencies are the future and they're here to stay.

Crypto-juggernaut:  Bitcoin resumes the breathtaking uptrend that began on Sept. 15th at $2975. It would be impossible to overstate the power of bitcoin's resilience amidst the cacophonous din of bubble-talk every time it reaches a new high.  Even if its price declines, much of the money is likely to remain in the crypto-verse. Cryptocurrencies are the future and they're here to stay.  chart: coinigy.com, technical analysis: digitalassetuniversity.com

No Turning Back

When grandma is buying it on her iPhone and the kids are investing their bar-mitzvah money - there's no question that it's gone mainstream and there's no turning back.  As any 9-year-old can tell you, cryptocurrency is the future, and the future is here.

When the Chicago Merc begins trading bitcoin, it will become part of the $20-trillion-a-day futures markets, and every trader on the planet will have an on-ramp to the cryptocurrency space.

Who knows if the money flow from institutions will be bigger than all that money from my barber, my mailman, grandma, and the bar-mitzvah boys, who are all tripping over themselves to open coinbase accounts.  Coinbase reports an average of 100,000 new wallets a day.

One thing is for certain though - some of that money will diffuse into other cryptocurrencies, and a significant percentage of it will stay in the crypto-verse and never see a dollar sign again.

Those who didn't want the hassles of the tech, enigmatic wallets, bank clearance delays, and no-name exchanges, got over the hump of fear when their good old trusty exchanges started trading bitcoin futures.  Once they took the red pill and went down the rabbit hole, they entered a labyrinth of investment opportunities they had never dreamed of.

"Red-Pill Me" : Those who feared the hassles of the tech, enigmatic wallets, bank clearance delays, and no-name exchanges, got over that hump when their trusted old exchanges started trading bitcoin futures. They invested in a cryptocurrency and - lo and behold - they didn't spontaneously combust.  Once they took the red pill and went down that rabbit hole, they realized they had entered a labyrinth of unimaginably creative investment opportunities.

Down The Rabbit Hole

That's what's happening in the cryptocurrency ecosystem right now, as bitcoin, ethereum, and litecoin are all on a tear.   Chart analysis of all 3 show major uptrends carrying powerful momentum as the money flows into and filters and diffuses throughout the crypto space.

Investors were begging their brokers to get them into bitcoin, and after several failed attempts at ETFs, the Chicago Merc took the initiative to develop a futures contract, and the CBOE and Nasdaq both followed suit.

The exchanges helped investors overcome their crypto-phobia, and they're now tripping over themselves to dive in.

Lo and Behold - They Didn't Spontaneously Combust

Those who didn't want to deal with the hassles of the tech, enigmatic wallets, bank clearance delays, and no-name exchanges, now have easy access through an exchange they know they can trust.  They've tried cryptocurrencies and, lo and behold, they didn't spontaneously combust.  In fact, many of them made money.

So now they're ready to expand their horizons and start researching altcoins.   This is why the other major players, the speedy micro-transaction and build-your-own-blockchain cryptocurrencies are both showing signs of resuming strong uptrends with money flow indicators revealing powerful underlying momentum.

Ethereum, the build-your-own-blockchain cryptocurrency, steged an astonishing rally from $8 to $400 in the first half of this year.  Since then it was stuck in a trading range below $350 throughout Sept., Oct., & Nov.  Not any more - on Nov. 19th it broke above $350 for the first time since Sept. 3rd and chart analysis and momentum indicators show that ethereum's powerful uptrend has resumed.

Ethereum, the build-your-own-blockchain cryptocurrency, staged an breathtaking run from $8 to $400 in the first half of this year. Since then it was stuck in a trading range below $350 throughout Sept., Oct., & Nov.  Then, On Nov. 19th, it broke above $350 for the first time in 3 months - blasting to a new high of $638 on Dec. 12th - chart analysis and momentum indicators show that ethereum's powerful uptrend has resumed.  chart: coinigy.com, technical analysis: digitalassetuniversity.com

The Build-Your-Own-Blockchain Cryptocurrency

Ethereum (it's actually called "ether") is the native cryptocurrency that powers the ethereum network - one that allows anyone to build their own blockchain. Self-verifying data is only part of the magic of blockchain.  The ethereum network is also designed to facilitate the creation of smart contracts which, like robot lawyers, can automatically execute the terms of complex agreements when specific conditions are met.

The highest value blockchain and smart contract applications have yet to be imagined and developed, so there is plenty of room on the upside for the #2 cryptocurrency, whose market capitalization now stands at $66 Billion.

The day after bitcoin's wild manic ride up to $19,000, litecoin took investors on a wild ride of its own.  After breaking out of a trading range around $100, its price doubled, then retraced to the predictable 61.8% zone, and proceeded to double again within 48 hours.  This powerful price momentum is a result of money flow into the cryptocurrency ecosystem along with investors' recognition that litecoin excels at what it was designed to do best - quick, cheap, high-frequency, everyday transactions.

Since litecoin excels at the one thing it was designed to do best - small, fast, inexpensive, high-frequency transactions - it may be the most undervalued cryptocurrency out there, with much more potential on the upside. This powerful price momentum is a result of money flow into the cryptocurrency ecosystem with bitcoin as the red pill leading investors down the rabbit hole with money that may never see a dollar sign again.  chart: coinigy.com, technical analysis: digitalassetuniversity.com

The Speedy Micro-Transaction Cryptocurrency

Litecoin was built from the ground up for small, high-frequency transactions with fast confirmation times.

Litecoin, founded by Charlie Lee, an MIT graduate and former Google engineer, is built on a blockchain that processes a block about every 2.5 minutes, compared to bitcoin's 10 minute delay (a significant backlog on the bitcoin network may increase the delay to several hours).

Its blockchain uses the Scrypt protocol, which precludes the possibility of mining supercomputers switching over from bitcoin to litecoin.  This essentially reserves mining for the little guy and maintains decentralization.

Litecoin also has bigger blocks than bitcoin, and 4 times more coins in circulation (84 million vs. bitcoin's 21 million).

Off The Chain

What really sets litecoin apart is its early embrace and smooth integration of the available technology for off-chain transactions.

You might have heard about the big kerfuffle in the bitcoin community over SegWit, a kind of data compression that separates digital signatures from transactions, freeing up block space.  Bitcoin split over this disagreement, into bitcoin and bitcoin cash. Litecoin, on the other hand, was an early adopter of SegWit, easing strain on the blockchain and speeding up transaction and confirmation times.

Dominant Global Borderless Currency

Since litecoin excels at the one thing it was designed to do best - small, fast, inexpensive, high-frequency transactions - it may be the most undervalued cryptocurrency out there, with much more potential on the upside.  Technical chart analysis and momentum indicators show that litecoin is just beginning a powerful uptrend and retracement zones are great opportunities to invest in what may become the dominant global borderless currency for everyday transactions.

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