Bitcoin is on the up and up hitting $325 over the weekend before settling around $322 Monday morning. This is encouraging but not without caution or opportunity depending on how you look at things.
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| March 28th 2016 |
Beginning of An Uptrend?
Anything is possible and ultimately this year certainly, but there's no doubt we'll see some sort of slap-down this week. This seems to happen weekly and now there's more critics than ever along with mainstream media out to do what they can to see the demise digital currency take place.
It's the bitcoin roller-coaster and although unavoidable its also opportunistic. Strategically placed trades near below $320 (if this opportunity again presents itself again) or near it are likely to yield profitable results short term. Bitcoin is still bitcoin and volatility remains factor. This is where the opportunities present themselves.
Most likely this week will remain stable +/-10, barring any catastrophic fairy tales, as bitcoin's foundation continues to strengthen and it's price steadily rising.
Boosts From Unexpected Places?
Some of this strengthening (more long term, not really this week) may ironically come from organizations trying to weaken it. As we pointed out last week, one of the unexpected contributors to bitcoins continued growth and economy may well come from the very people trying to denounce it, replace it or otherwise trying to profit from its technology without using it. We've explained the problems with these organizations in the past³ and as recent as last week².
Coindesk published an article¹ a few days ago in regards to a startup company (Domus) looking for 25MM to build yet another private permission system instead of using the blockchain or even building something similar to the blockchain and there were some interesting points:
Coindesk published an article¹ a few days ago in regards to a startup company (Domus) looking for 25MM to build yet another private permission system instead of using the blockchain or even building something similar to the blockchain and there were some interesting points:
...concern over Domus' claim that it would replace bitcoin’s proof-of-work and Ripple’s federated voting with a trusted system where "participants know each other and independently decide who to trust," as the white paper puts it.
This is exactly how we explained this last week. The developers of these firms essentially take blockchain technology out of blockchain technology and end up with nothing more than a data based workflow system. There's thousands of these in existence today and they all share the same problem of: "participants know each other and independently decide who to trust", which is a limitation the blockchain was designed to overcome and one of the main reasons it exists in the first place.
We've also stated⁴ that banks and other organizations are not going to be fooled for long. They do not solely employ a group comprised of complete idiots (granted, they certainly keep some on-staff).
They will realize that they end up with the same limitations they have now. They will see where the blockchain's technology comes into play and why it remains the only system on earth that can do what it does to the level it does it.
Brain cells sparked last week and you couldn't have paid someone to say something better than was stated at the Domus presentation in response to the "participants know each other and independently decide who to trust" pitch.
They will realize that they end up with the same limitations they have now. They will see where the blockchain's technology comes into play and why it remains the only system on earth that can do what it does to the level it does it.
Brain cells sparked last week and you couldn't have paid someone to say something better than was stated at the Domus presentation in response to the "participants know each other and independently decide who to trust" pitch.
Two members of the audience representing one of the largest banks in the world countered: "We know our partners, but we don’t necessarily trust them."
...case in point.
Story by dinbits
image by dinbits staff
REFERENCES:
1. Coindesk article titled "Behind the Scenes at the Launch of a New Blockchain Consortium"
2. dinbits artice titled "Why investors should be buying and holding"
3. dinbits article titled "The "Blockchain Technology" Bandwagon Has A Lesson Left To Learn"
4. dinbits artice titled "Industry questions blockchain bandwagon efforts"
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