The Bitcoin Experience – Explanation why BitCoin & Bitcoin Blockchain can’t be diversified
Bitcoin is unlike the general talk not an investment only. Like a car running gas and electrify the Bitcoin is a hybrid system which could be a Coin or token for saving value.
It depends to the point of view of the actual owner.
A lot of people understands. But a lot of people don’t understand that the Bitcoin output from the mining process is a timestamp related proof, that Bitcoin Blockchain works, has not been hacked and transactions still save and correct verified.
What happens now is since Ethereum and the Ethereum hard forks people try to rebuild the system either without POW on POS like EOS or with Proof of Work but this proof of work is in an hackable surrounding (as Ethereum has shown often in the past)
So cutting Bitcoin of from the Blockchain you are insecure and that means your value is nothing. But many people believe in these AltCoins for several reasons even they know that Exchanges using ERC20, 23, 223 smart contracts and put their tokens on it.
Today loses from ERC hacks have grown over 5000 Percent (!). Not all hacks come to light so experts including me recognize a dark number in hacks up to 8000 Percent compared with the year before.
EOS is de facto a centralized system. Today the news reported if you hold EOS Tokens more than three years without usage they shut down your account and give the tokens away per auction or spread them to the actual EOS users.
White hacker haven’t found all traps in EOS and thats right good. Why ? EOS uses white hacker. These guys work for some quick bucks and haven’t got any ethical codex like they say. How can you talk about ethic in a correct way, when you work on a system, which will provide banks and governments with digital storage and digital money so you become a digital slave who can’t make decisions on his own anymore or if he tell something they don’t like they shut down his whole life. There is no ethic when white hackers support the old world.
Why has the last hack of an exchange made such a deep impact on the coin market
There is a good reason; It was this hack too much. On my youtube videos which are almost in German language I often warn people not to invest in EOS or ERC 20, 23, 223 protocols anymore because they are highly insecure.
ERC 20 and 23 are highly vulnerable. This problem they tried to fix with an second layer on ERC23, so called ERC 223, but the problems couldn’t be solved at all.
The problem of investors are often there are no good news services and content in the Bitcoin world, also an investor holds a huge portfolio of all coins which he is believing raises a good asset.
So what happens is a circle. Somebody hacks an exchange and the investors remember that they have a lot in coins especially in EOS before and now again. So they sell their portfolio because they don’t know if the exchange has fixed the problems and they haven’t got qualify answers because exchanges reacts in the first time remaining in silence.
So now a lot of investors sell their Bitcoin to the market places and still wait what happens. If the time is right they invest again to rebuild their portfolio stock. Best sell and Best Buy principles as we know.
The price down problem only a problem of the hacks (coinrail, paraty hack, Huobi and so on,…) ?
Definitly not !
There are large institutional investors which flooded the market with bitcoins for different reasons. One of the most: They don’t understand the pricing of BTC. They lost a lot of money through wrong price speculation.
Therefor future trading ends their actual round like CME and people are disappointed about, so less people sign new contracts, then the CME is overvalued and has to sell some btc to keep the balance in their own system.
But throwing BTC on the market means also that 3rd world people can participate by low costs buying some decibit or half bitcoins. Many people uses bitcoin in this countries for shopping because they raise money through the volatility of Bitcoin.
Also big investors like family offices buy BTC today
But many investors afraid about MT.Gox so only a bitcoin movement from one wallet to a different let people get in panic and sell everything.
That means the downward trend is also psychology driven.
Also there are news out there which says Bitcoin is centralized. Yes 1% of Bitcoin users have access to 35% of the Bitcoins. So the article suggests that the Bitcoin Network is controlled by them.
The nodes in Bitcoin controls the network, not the money. We have round about 700000 Nodes. Only a few are shown in the statistic, due to the fact that more than 80 Percent hidden by firewalls and VPN. This means more than 350000 Nodes can decide what happens to the network.
Bitcoin is in a very stable situation, even if „the big whales“ or MT.Gox sells Bitcoins in a large amount this only
helps people getting into Bitcoins because more are available.
Whats the good news ?
The crises are all in there: Nicaragua, Fail of G7, Italy as an italexit candidate and Spain which has huge problems with catalans want to become ownership of their own country. The EU itself has a lot of problems especially Germany with the „American first“ politic see the steal branch and the debt market is on a all-time high.
That means value of money slows down and infiltration all over the world comes to next round and more debits will be made.
So what next ?
We just have to wait and be calm. This happens all the years. From the very beginning there are times Bitcoin was on a low level and hold this for a while until the price was running up again.
And he has to. The ask for bitcoins is at a high level now and it seems that the availability from Bitcoins is decreasing steadily.
Its just a matter of a couple of days the price gets high again. Don’t worry.
HACKS ARE THE BEST WHAT COULD HAPPEN – WHY ?
Bitcoin was designed to fix problems and brought to us the first unhackable system ever. But the people don’t care because they are greedy. They want to become millionaires or even got more money into their companies by jumping on the crypto train. ICO’s. 1500 Coins and 26000 Blockchain projects where 95 Percent of them died in the past.
Instead of using a secure system which is unlimited scalable through segwit and lightning and has proven near ten years that it is unbreakable, people want to control everything and don’t accept the store of value and money system in the hands of the people. Bitcoin breaks with traditions but the world becomes fairer through Bitcoins.
Everyone has the same chance to grow value with bitcoins for himself. If all people use Bitcoin for buying goods the price is sky rocketing.
So next time Zug (Suisse) makes elections on a blockchain. But this blockchain is centralized so they can be fraud the results like they could do with paper systems. But you can’t control them because you are not a computer expert.
So we have to think twice. 3rd world people in business through bitcoins raises more value since waiting for the best time to sell.
Bitcoin is here for good !