Let's talk about cryptocurrency. What it is, where it's going.
Hello all, dsap here, I go to this site everyday and read many articles and ideas published by crypto enthusiasts and traders. There are so many points of view and people tend to bicker back and forth about non points, especially in the comments section. I think technical analysis is a fun guessing game but nothing more. I do not wish to become a day trader and I do not think the rewards are worth the effort. I have made quite a bit of money in a short time doing very few trades and I plan to keep doing so. This has motivated me to start writing about what I have learned about cryptocurrency over the last few years and why following the larger ideas and movements in crypto can reduce your risk to the everyday volatility that plagues the day trading "gambler". Are there people who will win big and claim they knew what they were doing all along? Of course there are but that's not my focus and if you think you have found someone like that, by all means, keep following their advice. My analysis of the situation will not claim to be technical or tell you what indicators to look out for but rather give you insight into the inner workings of what you are buying and selling when you trade crypto. I think this understanding is way more relevant to making the decision to pull the trigger on a buy or sell than which way the price will swing tomorrow or next month. Once you understand what crypto currency is, where it is headed, and what it is not, the immediate price starts to matter less and less. The direction the technology is headed in and the forces behind the different projects affect my decisions way more than price fluctuations do.
With that introduction out of the way I would like to start my main topic: blockchain technology. You hear the buzzword blockchain thrown around a lot, but what does it really mean and why is it relevant to bitcoin or to your trading decisions? You will hear financial experts and bankers talk on the news about how they are unsure about bitcoin but they see blockchain as a very promising technology. From what I can tell they are trying to separate what makes bitcoin from bitcoin and squeeze out whatever value might be there. I'll let you in on a little secret, the exciting thing about bitcoin isn't blockchain technology. The experts are either lying through their teeth or ignorant of the truth in front of them, either way, the exciting thing about bitcoin is it's DECENTRALIZED IMPLEMENTATION OF A BLOCKCHAIN. I write that in all caps because it is very important and because most private companies experimenting with blockchains are in essence building intranets and claiming them to be as valuable as the internet itself. If you are unsure what I'm talking about, back when the internet was younger companies built their own internal networks thinking this TCP/IP infrastructure of networked computers would make them rich. It was only the companies who turned their model outwards to the internet who were successful. You don't hear people shouting today "what a wonderful world we have built on TPC/IP implementation and closed networks". You only hear about the internet. This is also true of cryptocurrency. The true innovation isn't the blockchain. The true innovation is the blockchain being used in a decentralized manner. So cryptocurrencies and projects that rely on and open and decentralized platform are the real deal while things like ripple have yet to become anything more than an internal company network. Can the internal company network be useful? Sure it can. Does it fit my idea of what a true cryptocurrency is just because it uses blockchain technology? Not really. Just like blu-ray disks intermittent technologies will have their short day in the sun and then be replaced by the better alternative once they become obsolete, and they already are by design. No one touts the advancements of fiber weaving technology and asks you to invest heavily in this idea. They buy shares of clothing companies.
With that introduction out of the way I would like to start my main topic: blockchain technology. You hear the buzzword blockchain thrown around a lot, but what does it really mean and why is it relevant to bitcoin or to your trading decisions? You will hear financial experts and bankers talk on the news about how they are unsure about bitcoin but they see blockchain as a very promising technology. From what I can tell they are trying to separate what makes bitcoin from bitcoin and squeeze out whatever value might be there. I'll let you in on a little secret, the exciting thing about bitcoin isn't blockchain technology. The experts are either lying through their teeth or ignorant of the truth in front of them, either way, the exciting thing about bitcoin is it's DECENTRALIZED IMPLEMENTATION OF A BLOCKCHAIN. I write that in all caps because it is very important and because most private companies experimenting with blockchains are in essence building intranets and claiming them to be as valuable as the internet itself. If you are unsure what I'm talking about, back when the internet was younger companies built their own internal networks thinking this TCP/IP infrastructure of networked computers would make them rich. It was only the companies who turned their model outwards to the internet who were successful. You don't hear people shouting today "what a wonderful world we have built on TPC/IP implementation and closed networks". You only hear about the internet. This is also true of cryptocurrency. The true innovation isn't the blockchain. The true innovation is the blockchain being used in a decentralized manner. So cryptocurrencies and projects that rely on and open and decentralized platform are the real deal while things like ripple have yet to become anything more than an internal company network. Can the internal company network be useful? Sure it can. Does it fit my idea of what a true cryptocurrency is just because it uses blockchain technology? Not really. Just like blu-ray disks intermittent technologies will have their short day in the sun and then be replaced by the better alternative once they become obsolete, and they already are by design. No one touts the advancements of fiber weaving technology and asks you to invest heavily in this idea. They buy shares of clothing companies.
Comment:
If you have a question about a particular topic in cryptocurrency or would like me to expound on a particular idea please leave your request in the comments section. I have a list of my own ideas I would like to share but would also like to discuss what people would like to understand in more detail. I will try to post my thoughts on a regular basis since I read a lot hear and feel like there is much to be talked about.