Fed Rate Cuts – Will They Help Stocks?

Last month, the Fed took the drastic step of cutting rates in half, for a total of 125 basis points. And with a 225 basis point drop since last fall, what does that say about the stock’s return? Let’s look at the historical data.

Since 1950, the Fed has cut more than 200 basis points 11 times in an attempt to simulate a faltering economy. According to economists, it takes six months for the rate cuts to take effect, and they should last three years. Therefore, I analyzed the annual and three-year returns of the S&P 500 Index and the Fama/French Small Cap Value benchmark portfolio for each rate cut period.

After declines of more than 200 basis points, the S&P 500’s one-year average return was 13.5%, with two periods of negative returns. The three-year average returns for the S&P 500 were 31.8% with one period of negative returns.

However, the benchmark Fama/French Small Cap Value portfolio has fared better. The average one-year return is 34.5%, with no negative returns. The three-year average return was 100.5%, with only one period of negative returns.

Periods of rate cuts S&P500 S/V* S&P500 S/V*
of 200bp or more 1y ret 1y ret 3y ret 3y ret

Oct 1957 - Mar 1958 32% 64% 55% 106%
Apr 1960 - Jan 1961 11% 23% 25% 47%
Apr 1970 - Nov 1970 8% 12% 10% -1%
Jul 1974 - Oct 1974 21% 34% 25% 149%
Apr 1980 - May 1980 -19% 46% 46% 175%
Jan 1981 - Feb 1981 -14% 10% 20% 131%
Jun 1981 - Sep 1981 4% 25% 143% 141%
Apr 1982 - Jul 1982 52% 96% 78% 174%
Aug 1984 - Nov 1984 24% 31% 41% 39%
Sep 1990 - Mar 1991 8% 29% 19% 89%
Sep 2000 - May 2001 -15% 19% -11% 57%
Average 13.5% 35.4% 31.8% 100.5%
*S/V = Fama/French Small Cap Value benchmark Portfolio
Data sources: Federal Reserve, Kenneth French data library

Historical data suggests that a Fed rate cut does not guarantee making money in stocks. However, they increase their chances of doing so, especially with small-cap stocks. (Note: The probability of losing money on the S&P 500 in any given year is about 30%)

Martin Zweig once said:

Don’t fight the Fed!

How wise was his advice!

Cryptocurrency: Fintech Disruptor

Blockchains, sidechains, mining – clandestine cryptocurrency terminologies keep piling up by the minute. While introducing new financial terms in a complicated financial world may seem counterintuitive, cryptocurrencies offer a vital solution to one of the biggest obstacles in today’s money market: the security of transactions in the digital world. Cryptocurrency is a defining and disruptive innovation in the fast-moving world of hi-tech, a fitting answer to the need for a secure means of exchange in an era of virtual transactions. In an age where demand is nothing but figures and numbers, cryptocurrency proposes to do just that!

In the most basic form of the term, cryptocurrency is a proof-of-concept alternative virtual currency that promises secure and anonymous transactions through a peer-to-peer network network. Misnomer is more of a property than an actual currency. Unlike everyday money, cryptocurrency models operate without a central authority, as a decentralized digital mechanism. In a distributed cryptocurrency mechanism, money is issued, managed and accepted by the community’s collective peer-to-peer network – known as its ongoing activity. mining on a peer’s machine. Successful miners also receive coins as a token of appreciation for their time and resources. After use, transaction information is transmitted to an online blockchain under a public key, preventing each coin from being spent twice by the same user. Blockchain can be thought of as a cash register. Coins are secured behind a password-protected digital wallet that impersonates the user.

The supply of coins in the world of digital currency is decided in advance, without manipulation, by any person, organization, government organization and financial institution. The cryptocurrency system is known for its speed, transaction activity on digital wallets can realize funds in minutes, compared to the traditional banking system. By design, it is largely irreversible, further reinforcing the idea of ​​anonymity and further eliminating the possibility of money being traced back to its original owner. Unfortunately, the outstanding features – speed, security and anonymity – have made cryptocurrencies a form of transaction for many illegal trades.

As in the real world money market, currency rates fluctuate in the digital coin ecosystem. Due to the limited number of coins, as the demand for the currency increases, the coins inflate in value. Bitcoin is the largest and most successful cryptocurrency to date, with a market cap of $15.3 billion, capturing 37.6% of the market and currently priced at $8,997.31. Bitcoin hit the currency market in December 2017 at $19,783.21 per coin before facing a sudden drop in 2018. The decline is partly due to the rise of alternative digital coins such as Ethereum, NPCcoin, Ripple, EOS, Litecoin and MintChip.

Because of the limits encoded in their supply, cryptocurrencies are believed to follow the same economic principles as gold – the price is determined by limited supply and fluctuations in demand. With constant fluctuations in exchange rates, their sustainability remains to be seen. As a result, investing in virtual currencies is currently more speculative than a daily money market.

In light of the industrial revolution, this digital currency is an essential part of technological disruption. From the perspective of a casual observer, this rise can be exciting, threatening, and mysterious all at once. While some economists remain skeptical, others see the cash industry revolution as a lightning bolt. Conservatively, digital currencies will displace roughly a quarter of developed countries’ national currencies by 2030. This has already created a new asset class alongside the traditional global economy and a whole new set of investment vehicles will emerge from crypto-finance in the coming years. Recently, Bitcoin may have gone down to focus on other cryptocurrencies. But this does not indicate a crash of the cryptocurrency itself. While some financial advisors emphasize the role of governments in suppressing the underground world by regulating the central government mechanism, others call for the continuation of the current free flow. The more popular cryptocurrencies become, the more control and regulation they attract – a common paradox that distorts the digital note and erodes the main purpose of its existence. Either way, the lack of intermediaries and oversight is making it incredibly attractive to investors and changing day-to-day trading dramatically. Even the International Monetary Fund (IMF) fears that cryptocurrencies will displace central banks and international banks in the near future. From 2030, conventional trade will be dominated by the crypto supply chain, which will offer less friction and more economic value between tech-savvy buyers and sellers.

If cryptocurrency is to become an essential part of the existing financial system, it will have to meet very different financial, regulatory and social criteria. It will need to be hacker-proof, consumer-friendly and highly secure to provide its core benefit to the mainstream monetary system. It should preserve the anonymity of users without being a means of money laundering, tax evasion and Internet fraud. As they are essential to the digital system, it will take a few more years to understand if cryptocurrency can compete with real-world currencies in full swing. As likely as not, the success (or lack thereof) of cryptocurrencies in meeting these challenges will determine the fortunes of the monetary system in the coming days.

The "The experts" All cryptos are doing badly

Bitcoin hit a high of nearly $20,000 about a month ago, on December 17th. As I write, the cryptocurrency is below $11,000…a loss of about 45%. It’s more than that 150,000 billion dollars lost market cap.

Cue lots of hand-wringing and gnashing of teeth in the crypto commentary. It’s neck and neck, but I think the “I told you so” crowd has an advantage over the “excuse makers”.

Here’s the thing: Unless you’ve lost your Bitcoin shirt, none of this matters at all. And chances are the “experts” you see in the press aren’t telling you why.

In fact, the bitcoin crash is wonderful… because it means we can all stop thinking about cryptocurrencies.

The death of Bitcoin…

In a year, people won’t be talking about bitcoin in the grocery store or on the bus like they are now. Here’s why.

Bitcoin is a product of justified frustration. Its designer explicitly said that the cryptocurrency was a reaction to the government’s abuse of fiat currencies like the dollar or the euro. It had to offer an independent and peer-to-peer payment system based on an immutable virtual currency, of which there was a limited amount.

That dream was long ago abandoned in favor of raw speculation. Ironically, most people care about bitcoin because it seems like an easy way to get more fiat currency! They don’t own it because they want to buy pizzas or gas with it.

In addition to being a terrible way to trade electronically – it’s incredibly slow – bitcoin’s success as a speculative game has rendered it useless as a currency. Why would someone spend it if they appreciate it so quickly? Who would accept one when it is rapidly depreciating?

Bitcoin is also a major source of pollution. It takes 351 kilowatt-hours of electricity to process a single transaction, which releases 172 kilograms of carbon dioxide into the atmosphere. That’s enough to power a US household for a year. The energy consumed by all bitcoin mining so far could power nearly 4 million US homes for a year.

Paradoxically, bitcoin’s success as obsolete speculative game – not the intended libertarian use – has attracted government repression.

China, South Korea, Germany, Switzerland and France have implemented or are considering bans or limits on bitcoin trading. Several intergovernmental organizations have called for joint action to stop the apparent bubble. The US Securities and Exchange Commission, which once seemed to approve bitcoin-based financial derivatives, is now doubtful.

And according to Investing.com: “The European Union is introducing stricter rules to prevent money laundering and terrorist financing on virtual currency platforms. It is also looking into the limits of cryptocurrency trading.”

We may someday see a functional and widely accepted cryptocurrency, but it won’t be bitcoin.

… But the Boost for Crypto Assets

good Overriding Bitcoin allows us to see where the true value of crypto-assets lies. Here’s how.

To use the New York subway system, you need tokens. You can’t use them to buy anything else…even if you do could sell them to someone who wanted to use the meter more than you.

Indeed, if metro tokens were in limited supply, a lively market for them could emerge. They may even trade for much more than they originally cost. It all depends on how many people want to use the metro.

That, in a nutshell, is the scenario for most promising “cryptocurrencies” other than bitcoin. They are not money, yes tokens – “crypto-tokens”, if you will. They are not used as a general currency. They are only good within the platform they were designed for.

If those platforms provide valuable services, people will want those crypto tokens and that will determine the price. In other words, crypto tokens will have value to the extent that people value the things you can get from their platform.

That will do them real goodswith intrinsic value – because they can be used to achieve something that people value. This means that you can reliably expect a stream of income or services from such crypto-token holders. Seriously, you can measure that stream of future returns against the price of the crypto token, just like we do when we calculate a stock’s price/earnings (P/E) ratio.

Bitcoin, on the other hand, has no intrinsic value. It has only one price – the price set by supply and demand. It can’t generate future earnings, and you can’t measure anything like a P/E ratio.

One day it will be worthless because it doesn’t get you anything real.

Ether and other crypto-assets are the future

Crypto-token ether for sure it seems like a currency Cryptocurrency is traded on exchanges under the code ETH. Its symbol is the Greek character Xi. It is mined in a process similar to Bitcoin (but with less energy consumption).

But ether is not a coin. Its designers describe “Ethereum as a fuel for running the distributed application platform. It is a form of payment that clients of the platform make to the machines that execute the requested operations.”

Ether tokens provide access to one of the most sophisticated distributed computing networks in the world. It’s so promising that big companies are falling over each other to develop practical, real-world uses for it.

Because most people trading it don’t understand or care about its true purpose, the price of ether has bubbled and frothed like bitcoin in recent weeks.

But eventually ether will return to a stable price based on the demand for computational services that people can “buy”. That price will replace it real value that may be the price in the future. There will be a futures market, and exchange-traded funds (ETFs), all of which will have a way of evaluating their underlying value over time. As we do with stocks.

What will that value be? I do not know. But I know it will be much more than bitcoin.

My advice: get rid of your bitcoin, and buy ether at the next jump.

Things you need to know about Bitcoin Black

What is Bitcoin Black?

Bitcoin Black is essentially a cryptocurrency of the people, by the people for the people. It will be approved for use as a peer 2 peer payment system that returns power to the people.

If we talk about Bitcoin, Bitcoin has failed in that, the real value comes from the real use of the ecosystem and empowering people. Bitcoin transactions are slow and expensive, and it can be argued that Bitcoin is somewhat centralized. Bitcoin takes people power because it is heavily manipulated and generally through cycles that discourage participants from cryptocurrency.

People buy bitcoin to get rich, not to participate in the ecosystem. The elite one percent take advantage of bitcoin and create desperation by strategically increasing the price and attracting entry to the dream of wealth and dumping the coin for their own benefit. Fear of adoption. Bitcoin is completely controlled, pumped and manipulated at will for various reasons.

Bitcoin Black is focusing on solving these problems as the coin is a cryptocurrency with fair distribution Airdroted 1 Million wallets before the IEO, and all funds will go to the community groups voted by the community to carry the project forward in fair distribution with a focus on the masses. adoption, availability, education, ease of access, simplicity and community.

The goal is to have a real decentralized autonomous network, returning power to the citizens. He does not belong to a group, but to many branches of the community.

Distribution of coins

Bitcoin Black initially aims to drop to at least 1 million wallets, with more than 0.5% of the supply owned by one founding member, making the cryptocurrency truly decentralized.

The project has a presale of 2.5% of the total supply, which is almost 900 million coins.

If we take a look at the IEO, 7.2 billion IEO coins will be allocated to various community foundations that will help the community to move the project forward in the future.

Counter funds for manipulation (about 5%). The portion used for the stability control fund to eliminate the possibility of premature manipulation in low volume and maintain currency stability.

Finally, the rewards for submitting the application will be 14,400 billion coins.

Entering 30 million members increasing the rate of new users. A method of bringing the coin to the school yard / university / workplace and all communities.

Full supply

The maximum supply is 36,000 billion coins.

the prizes

3.6 billion coins will be claimed by members who help share the Airdrop.

Simple social sharing platform in one click. Share a social post with an introduction to the encrypted video and a link to download the app that will allow your friends to download it. Today the platform is active and working well.


The best innovation is Fee Free Transactions. You can send black bitcoin to anyone for free. Transactions are instant and you can send money as easily as sending a text.

Wallets are easily available and very easy to use.


Bitcoin black has a fairly distributed currency with a very widespread supply, which is expected to create less volatility due to synchronized pumps and dumps and lead to a more stable price. Black bitcoin will be the next bitcoin. You can sign up for the airdrop by clicking here. I wish someone had airdropped Bitcoin in 2008. Bitcoin Black is going to change lives and we want to tell as many people as possible about this.

Bitcoin thrives against all odds

As it’s all the rage today, I’d like to announce that I’ll be launching my own cryptocurrency next week.

Let’s call it “kingcoin”.

No, that’s too self-serving.

How about “muttcoin”? I’ve always had a soft spot for mixed races.

Yes, it’s perfect, everyone loves dogs.

It will be the biggest thing since fidget spinners.

Congratulations! Everyone reading this will receive a mutcoin when my new coin launches next week.

I will distribute 1 million muttcoins evenly. Feel free to spend them wherever you want (or wherever anyone will accept them!).

What is that? The cashier at Target said they wouldn’t accept our muttcoin?

Tell the doubters that muttcoin has a scarcity value – there will only be one million mutcoins. In addition, the full faith and credit of my desktop computer’s 8GB of RAM is protected.

Also, remember that a decade ago, one bitcoin couldn’t even buy a pack of gum. Now one bitcoin can buy a lifetime supply.

And, like bitcoin, you can safely store muttcoin offline away from hackers and thieves.

It is essentially an exact replica of bitcoin’s properties. Muttcoin has a decentralized ledger with an impossible cryptographic crack, and all transactions are immutable.

Still not convinced that our mutcoins will be worth billions in the future?

Well, it’s understandable. In fact, launching a new cryptocurrency is much more difficult than it sounds, if not downright impossible.

This is why I believe that bitcoin has reached these heights against all odds. And because of its unique user network, it will continue to do so.

Of course, there have been setbacks. But each of these setbacks has ultimately led to higher prices. The recent 60% drop will be no different.

The Miracle of Bitcoin

Bitcoin’s success is based on its ability to create a global network of users willing to transact with it now or store it later. Future prices will be determined by the rate at which the network grows.

Even in the face of wild price swings, bitcoin adoption continues to grow at an exponential rate. There are currently 23 million wallets open worldwide, trailing 21 million bitcoins. Within a few years, the number of wallets may increase to include the 5 billion people on the planet connected to the Internet.

Sometimes the motivation of new crypto converters was speculative; at other times, they sought a store of value away from their home currency. In the past year, new apps like Coinbase have made it even easier to onboard new users.

If you haven’t noticed, this is what people talk about when they buy bitcoin. We all have that friend who won’t shut up after buying bitcoin. Yes, I’m guilty of that, and I’m sure quite a few readers are too.

Perhaps unconsciously, incumbents become crypto-evangelists, as convincing others to buy serves their own self-interest to increase the value of their assets.

Bitcoin evangelism – spreading the good word – is what led to the price increase from $0.001 to a recent price of $10,000.

Who could have imagined that its eponymous founder, fed up with the global banking oligopoly, would launch an intangible digital resource that in less than a decade equaled the value of the world’s largest currencies?

No religion, political movement or technology has ever witnessed such growth rates. Also, humanity has never been so connected.

The idea of ​​money

Bitcoin started as an idea. To be clear, all money – whether it’s shell money used by primitive islanders, a gold bar or a US dollar – started as an idea. It’s that a user network values ​​it equally and would be willing to part with something of equal value for your monetary means.

Money has no intrinsic value; its value is external – it is only what others think it is.

Look at the dollar in your pocket: it’s just a fancy piece of paper with a one-eyed pyramid, a splattered portrait, and the signatures of important people.

To be useful, society must see it as a unit of account, and merchants must be willing to accept it as payment for goods and services.

Bitcoin has shown an incredible ability to reach and connect to a network of millions of users.

A Bitcoin is only worth what the next person is willing to pay. But if the web continues to expand at an exponential rate, limited supply means prices can only move in one direction…up.

Bottom line

Bitcoin’s nine-year rise has been marked by extreme bouts of volatility. There was an 85% correction in January 2015, and others over 60%, including a massive 93% drop in 2011.

Through each of these corrections, however, the network (as measured by the number of wallets) continued to expand at a rapid pace. As some speculators saw their value decimated, new margin investors saw value and became buyers.

Abnormal levels of volatility have actually helped the bitcoin network grow to 23 million users.

Hey, maybe we just need mutcoin price volatility to attract new users…

5 reasons why cryptocurrency is so popular

In recent years, cryptocurrency has been a hot topic all over the world. Most people are familiar with cryptocurrency, especially Bitcoin. In fact, Bitcoin is on the list of cryptocurrencies. If you have no idea why cryptocurrency is growing in popularity worldwide, you are on the right page. In this article, we will look at 5 reasons why this new type of currency is so popular. Read on to find out more.

1. Low transaction fees

The low transaction fee is one of the main reasons why cryptocurrency has increased in value in recent years. No matter which type of conventional payment method you use, you will have to pay a high transaction fee.

On the other hand, if you are looking for cryptocurrency to make payments, you will have to pay minimal transaction fees. That’s why it makes sense to use this new form of money to make online payments for the products and services you want.

2. No government regulations

Another strong reason why many people trust cryptocurrencies is that they are not regulated by any government. Therefore, the value of the currency remains stable regardless of the government of a particular country.

Also, some investors want to protect their wealth, which is why they invest in cryptocurrencies. In other words, cryptocurrencies are much safer than conventional currencies, which makes them quite attractive here and now.

3. High earning power

Another big reason why cryptocurrencies are an ideal choice is that they offer great potential for profit. If you buy Bitcoin when prices are low, you can make a lot of profit when the value of Bitcoin rises again.

Investors have made a lot of money in recent years. So the potential is there if you are interested in investing in any cryptocurrency of your choice.

4. Easier to use

Over time, it becomes easier and easier to use cryptocurrency. The reason is that many online companies have started accepting payments through this type of currency. In the near future, almost all companies will accept payment through popular cryptocurrencies.

As more people around the world start using cryptocurrency, it will become even easier to buy currency and make your payments online.

5. General Security

Your money and identity are of utmost importance. Today, cyber security is one of the biggest problems you can face. Therefore, using cryptocurrency to make payments online is much safer than traditional payment methods.

So, if you are worried about making payments online, we suggest you try cryptocurrency. In other words, security is another big reason why people are using cryptocurrency.

In short, these are the 5 reasons why cryptocurrency is so popular all over the world. All you need to do is make sure you choose one of the top cryptocurrencies. It’s not a good idea to put your profits in a currency that has no chance of growing.

What is Ripple and why has its value increased so quickly?

With a 35,000% increase in value in 2017 and a market capitalization of over $118 billion, Ripple has become a hotly debated topic among analysts and investors. But what is Ripple? Is it like other cryptocurrencies? Why has it been under fire lately? Read on for answers to these questions.

1. What is Ripple?

Ripple is a payment solutions company founded by Chris Larsen and Jed McCaleb. Their Ripple Transaction Protocol (RTXP) contains the XRP cryptocurrency. Ripple claims to provide faster, reliable and affordable transaction solutions for financial institutions. The company has created one hundred billion XRP and currently holds 61% of the coins. The current plan is to release a billion coins every month.

2. Differences between Ripple and Bitcoin

Both Bitcoin and Ripple are cryptocurrencies that use blockchain technology. But, there is a key difference between the two: unlike Bitcoin, Ripple cannot be mined. The currency is not configured as a fiat currency, and its use is fixed on the Ripple network.

Both Bitcoin and Ripple use validator nodes to validate ledgers. Bitcoin has about 10,000 trusted nodes, while Ripple has only five. However, the company plans to add 11 more in the next 18 months. All five validation nodes are controlled by Ripple. XRP has been criticized for not having an independently trusted validator. XRP Ledger is available to everyone, so anyone can download it and become a validator. Many companies run their own nodes on the Ripple network.

3. Reasons for Ripple’s recent price increase

XRP’s recent price surge has a lot to do with the currency’s expected use by financial institutions and investment by gullible investors. Ripple has been successful in winning over banks as customers for its other products. Financial institutions have preferred Ripple’s xCurrent because it offers real-time communication and fast corrections, thereby reducing delays in banking transactions. The company plans to introduce a new product, xRapid, which includes XRP. The new product is seen by banks as an opportunity to use XRP. Investors see the currency’s potential as a means of finance used by banks around the world.

Ripple, or more precisely, XRP, is an up-and-coming cryptocurrency. Bitcoin differs from mainstream digital currency in that its supply is controlled by the founding company. Ripple is talking about what banks will take over in the future. It can be speculated that Ripple’s recent rise in value will fuel further debate about its viability as a cryptocurrency asset.

Top Cryptocurrencies for 2018: What Are the Best Bitcoin Alternatives?

Important: This post should not be considered investment advice. The author focuses on the best coins in terms of actual use and adoption, not from a financial or investment perspective.

In 2017, crypto markets set a new standard for simple profits. Almost every piece or chip made a huge profit. “A rising tide floats all boats,” they say, and the end of 2017 was a flood. The price increase has created a positive feedback cycle, which attracts more and more capital to Crypto. Unfortunately, but inevitably, this galloping market involves massive investment. Money has been thrown indiscriminately into all sorts of dubious projects, many of which will never bear fruit.

In the current bearish climate, hype and greed are replaced by critical assessment and caution. Especially for those who have lost money, marketing promises, endless shillings and charismatic oratory are no longer enough. Well, the fundamental reasons for buying or owning a coin are once again Paramount.

Basic factors in evaluating a cryptocurrency-

There are some factors that tend to conquer hype and price pumps, at least in the long run:

Adoption Angle

Although the technology of cryptocurrency or ICO business plan may seem amazing without users, they are just dead projects. It is often overlooked that widespread acceptance is a key feature of money. In fact, it is estimated that over 90% of Bitcoin’s value is a function of the number of users.

While acceptance of fiat is mandated by the State, acceptance of cryptography is voluntary. Many factors play into the decision to accept a coin, but perhaps the most important consideration is the likelihood that others will accept the coin.


Decentralization is essential to the I push model of a true cryptocurrency. Without decentralization, we have a little closer to a Ponzi scheme than a real cryptocurrency. Trust in people or institutions is the problem; It tries to solve a cryptocurrency.

If dismantling a coin or a central controller can alter the transaction record, its fundamental security is being called into question. The same goes for parts with unproven code that hasn’t been thoroughly tested over the years. The more you trust the code to work as described, regardless of human influence, the more secure the coin will be.


Valid coins strive to improve technology, but not at the expense of security. True technological progress is rare because it requires a great deal of expertise, as well as wisdom. While there are always fresh ideas that can be screwed up, if doing so exposes weaknesses or criticisms of the coin’s original purpose, it’s not the point.

Innovation can be a difficult factor to assess, especially for non-technical users. However, if a currency code is stagnant or doesn’t receive updates that address important issues, it can be a sign that the developers are weak on ideas or motivation.


The economic incentives inherent in a currency are easier to understand for the average person. If a coin had a large pre-min or ICO (initial share offering) where the team had a significant chip share, then it’s pretty clear that the main motivation is profit. By buying what the team has to offer, you play your game and get rich. Make sure you provide tangible and reliable value in return.

5 cryptocurrencies to buy in 2018

There has never been a better time to re-evaluate and rebalance a crypto portfolio. Based on solid fundamentals, here are five pieces worth sticking with or perhaps buying at today’s depressed prices (just a warning, they could go lower).

#1 Bitcoin (due to its decentralization)

The number one is Bitcoin (BTC), which remains the market leader in all categories. Bitcoin has the highest price, the widest hypothesis, the most security (due to the enormous energy consumption of Bitcoin mining), the most famous brand identity (the forks have tried to be appropriate), and the majority of development Active and rational. It is also the only piece traded on traditional markets to date in the form of Bitcoin futures trading on the American CME and CBOE.

Bitcoin remains the main engine; The performance of all other shards is highly correlated with the performance of Bitcoin. My personal expectation is that the gap between Bitcoin and most other shards will widen.

Bitcoin has several promising innovations that will soon be installed as additional layers or soft forks. Examples are Flash system (LN), tree, Schnorr signatures Mimblewimbleund many more.

In particular, we plan to open up a whole new range of applications for Bitcoin, enabling large-scale, microtransactions and secure instant payments. LN is becoming more and more stable as users test their different options with real Bitcoin. As it becomes easier to use, it can be assumed that it will benefit greatly from the adoption of Bitcoin.

#2 Litecoin (for its durability)

Litecoin (LTC) is a clone of Bitcoin with a different hash algorithm. Although Litecoin lacks the anonymity technology of Bitcoin, surprising reports have shown that Litecoin adoption on dark markets is second only to bitcoin. Although it is a currency that I think is much more suited to the role of acquiring illegal goods and services, perhaps this is due to the longevity of Litecoin: it was launched in late 2011.

Another factor in favor of Litecoin is that it integrates Bitcoin SegWit technology, which means that Litecoin is ready for LN. Litecoin can benefit from atomic chain exchange. In other words, secure currency pair trading without third party (ie exchange) involvement. Because Litecoin keeps its code largely in sync with Bitcoin, it is well positioned to benefit from Bitcoin’s technical progress.

#3 Ethereum (for smart contracts)

Ethereum (ETH) is facing some big problems at the moment. First, governments are cracking down on ICOs, and rightly so: many have been fraudulent or failed. Since most ICOs run as ERC tokens 20 on the Ethereum network, the ICO mania has brought a lot of value to Ethereum in recent years. If proper rules are adopted to protect investors Ethereum project scams can claim a certain legitimacy as a crowdfunding platform.

The second major problem facing Ethereum is the delayed transition to a new hybrid work and battery detection system. Ethereum mining is currently a profitable GPU, but Bitmain has just announced a small Ethereum ASIC, which is likely to affect the bottom lines of GPU miners. It remains to be seen whether this will change the POW and how successful that change will be.

If Ethereum is able to survive these two big problems – regulation and mining – it will show great resilience. Alternatively, there are several competing currencies following its shadow, such as Ethereum Classic (etc), Cardano (ADA) and EOS.

#4 Monero (for its anonymity)

While it’s not all the take on the dark markets, I (XMR) remains prime privacy. Its popularity and market capitalization still outpace its rivals, and for good reason.

Monero’s code requires less trust than the “loyal” Zcash key event, and it got off to a good start, unlike Dash. Monero recently modified its Pow to defeat the development of a small ASIC that reaffirms its commitment to the decentralization part of mining for its algorithm. The significant drop in hash rate is due to the new version being constantly reported against ASICs. This may also be an opportunity for GPUs and even small CPUs to come back to me. The new version of Monero, 0.12, also includes other improvements that show that Monero continues to grow along sensitive lines.

#5 iPRONTO (Decentralized Incubation Platform)

The iPRONTO incubation platform is an Ethereum chain, dedicated to investors looking for a safe and reliable platform to invest in new ideas and future innovators, who can present their ideas and receive feedback from users, experts in the field of practice and implementation of derived ideas.

Innovators’ ideas are accepted in the form of NES Smart Contract which will be signed between the expert platform and the client for the examination and registration of the client’s business idea on the platform to the Commission. The idea will not be published on the chain’s public platform to all users, but only to selected members of the target community who are willing to sign a Smart contract to maintain the confidentiality of the idea.

Types of cryptocurrency wallets and their general security aspect

There are several types of cryptocurrency wallets for users to store and access their digital currencies in different ways. An important question in this context is how secure these wallets are. Before taking on the security aspect, it is helpful to understand the various types or varieties of cryptocurrency wallets that exist today.

Cryptocurrency Wallet: Types and Varieties

These wallets can generally be classified into 3 categories:

  • Software portfolios
  • Hardware cases and
  • Paper wallets

Cryptocurrency software wallets can again be divided into desktop, online and mobile wallets.

  • Desktop software portfolios: These wallets need to be downloaded and installed on desktop computers and laptops. This particular variety offers the highest level of security, although accessibility is limited only to the computer on which they are installed. Also, in case, if the computer is hacked or infected with viruses, there is a chance that someone will lose all their money.
  • Online Software Wallets: This range of cryptocurrency wallets runs on the Cloud. Thus, they can be easily accessed from any computer device and from any geographical location. In addition to the convenience of accessibility, this type of digital wallet stores private keys online. Keys are also controlled by third parties; this makes them easily vulnerable to hacking and theft.
  • Mobile Software Wallets: Unlike the other two varieties, mobile software wallets run through an app on smartphones. These can be used anywhere, including retail stores and shopping malls. This range of wallets is usually much simpler and smaller compared to the usual desktop ones to fit the very limited space on mobile phones.

The difference between hardware and software wallets

Hardware digital wallets differ from software in the aspect of storing the user’s private keys. Hardware wallets store user keys on a hardware device (such as a USB). Thus, since the keys are stored offline, these wallets offer additional security. Also, hardware wallets are easily compatible with many online interfaces and can even handle different currencies. This type of cryptocurrency wallet is also easy to transact. As a user, you simply need to connect the device to any computer connected to the network before entering a PIN, transfer the currency and confirm the transaction. Hardware wallets keep your digital currency offline and hence the risk factor or security concern is also much less.

Digital paper wallets: This range of digital wallets is also easy to use and ensures a high level of security. The term “paper wallet” refers only to the paper printout of the user’s public and private keys. However, depending on the case, it can also refer to a software application that serves to securely generate keys before printing.

Sweeping with paper bags

Using paper wallets is relatively easier. To transfer any cryptocurrency to your paper wallet, transfer funds from your software wallet to the public address displayed by your paper wallet. Also, when you want to spend or withdraw your money, transfer the funds from your paper wallet to your software wallet. This procedure is called “scanning”.

Scanning can be done manually by entering private keys or by scanning the QR code on a paper wallet.

How secure are cryptocurrency wallets?

Different varieties of digital wallets offer different levels of security. The security aspect mainly depends on two factors:

  • The type of wallet you use: hardware, paper, online, desktop or mobile
  • A service provider of your choice

Needless to say, it is much safer to keep your currencies in an offline environment compared to an online one. There is no way to ignore security measures, regardless of the wallet you choose. If you lose your private keys, all the money stored in the wallet will be removed from your hands. On the other hand, if your wallet is hacked or you transfer funds to a fraudster, it will not be possible to reverse the transaction or recover that money.

Investing in cryptocurrencies is a smart business idea and for that, using a proper wallet is inevitable. You must exercise due care to ensure the safety and security of your fund transfers and transactions.

Stages of a Market Mania

What is mania? It is defined as a mental illness characterized by excitement, euphoria, delusion and overactivity. When investing, investment decisions are driven by fear and greed, without analysis, reason or balance sheeting the results of risks and rewards. The craze usually runs parallel to the development of the product business, but the timing can sometimes be wrong.

The technology.com boom of the late 90s and the cryptocurrency boom of today are two examples of a craze operating in real time. These two events will be highlighted at each stage in this article.

Ideas stage

The first stage of a mania starts with a big idea. The idea is not yet known to many people, but it is a great opportunity to make a profit. It is usually translated as unlimited profits, because “nothing like it has ever been done.” The Internet was one such case. People who used the paper systems of the time were skeptical “how can the Internet replace such a well-known and entrenched system?” It begins to build the backbone of the idea. The idea came back to the modems, servers, software and web sites needed to access something tangible. Investments made at the idea stage start out looking poor and are made by “knowers”. In that case, they can be viewers and people working on the project.

In the cryptocurrency world, the same question is asked: how can a crypto code replace our monetary system, contract system and payment system?

The options

The first websites were crude, limited, slow and annoying. Skeptics would look at the words “information superhighway” being thrown around by the auditors and think “how can that really be useful?” The overlooked element here is that ideas start out as the worst, and eventually evolve into something better. Sometimes this is due to better technology, greater scale and cheaper costs, better applications of the product in question, or product familiarity combined with great marketing. On the investment side, early adopters are coming in, but there is still no euphoria and astronomical returns. In some cases, the investments have yielded a decent return, but not enough to get the masses to jump on the bandwagon. It’s similar to slow internet connections in the 1990s, internet website crashes, or incorrect information in search engines. In the world of cryptocurrencies, high mining costs of coins, slow transaction times, and account hacking or theft are common.


The internet starts saying this and “.com” is the hot new thing. Products and tangibility are being built, but due to the massive scale involved, it would be a huge expense and time before everyone could use it. The investment side of the equation begins to precede business development, as markets discount the potential of the business at the price of the investment. The euphoria is starting to materialize, but only among the first-timers. This is happening in the cryptocurrency world with the explosion of new “altcoins” and the huge media press that is getting the space.


This stage is dominated by the parabolic and potential returns that the internet offers. Not much thought is given to implementation or issues because “the returns are huge and I don’t want to miss out.” The words “irrational exuberance” and “mania” are starting to become commonplace as people are buying out of sheer greed. Bad and negative risks and largely ignored. The symptoms of the mania are: any company having.com in its name is red hot, analytics are thrown out the window in favor of optics, investment knowledge appears less and less among new entrants, there are expectations of 10 or 100 bagger returns. common and few people actually know how the product works or works. This has happened in the world of cryptocurrencies with the return of late 2017 and fluctuations in the shares of companies that have appeared hundreds of percentage points using “blockchain” in their name. There are also “reverse takeover offers,” where shell companies listed on an exchange but dormant change their names to something involving blockchain, and the shares are suddenly actively traded.

The Crash and Burn

The new product business scene is changing, but not as fast as the investment scene is changing. Eventually, a change in mentality appears and a huge sales spree begins. Volatility is huge, and many “weak hands” and removed from the market. Suddenly, analytics are being used again to justify that these companies are worthless or ‘overvalued’. Fear spreads and prices accelerate downward. Companies that don’t make a profit and survive on hype and future prospects implode. Incidents of scams and fraud to capitalize on greed come to light, causing more fear and selling of securities. Businesses with money are quietly investing in the new product, but the pace of progress is slowed because the new product is an “ugly word” unless the profits are convincingly demonstrated. This is happening in the cryptocurrency world with the collapse of loan schemes using cryptocurrency and larger incidents of coin theft. Some marginal coins are failing in value due to their speculative nature.


At this stage, the investment landscape is littered with stories of losses and bad experiences. Meanwhile, the great idea is becoming tangible and for the companies that use it, it’s a boom. It begins to establish itself in daily activities. The product starts to become the standard and viewers say it’s a real “information superhighway”. The average user notices the improvement in the product and starts taking it en masse. Companies with a real profit strategy take a hit in the crash and burn phase, but if they have the cash to survive, they make it through the next wave. This has not happened in the cryptocurrency world yet. The expected survivors are those with a tangible business case and corporate backing, but it remains to be seen who the companies and coins are.

The Next Wave – Business catches up with the ups and downs

At this stage, the new product is standard and the profits are obvious. The business case is based on profit and scale rather than the idea. A second wave of investment appears, starting with the survivors and expanding into another initial mania. The next phase was social media companies, search engines and online shopping, all of which are derivatives of the original product – the internet.


Manias work in a pattern that behaves in a similar way over time. Once you know the stages and thought process of each one, it’s easier to understand what’s going on and investment decisions become clearer.