Google Cryptocoin Ban – It’s a Good News/Bad News Thing
When the news broke on January 30th that Facebook was banning cryptocurrency ads the response was mixed but mostly neutral. The Google Cryptocoin ban announced today has started a firestorm of debate and backlash. Some comments come from people who have sworn to never use Google again as others declare censorship, centralized control of crypto and the list goes on. Cryptocoin critics, on the other hand, see this a very good thing and applaud the Google cryptocoin ban on advertising that takes effect on June 30th.
The good news about a Google cryptocoin ban on advertising is that less and less people will be cheated, swindled and otherwise scammed. With New Jersey clamping down on Steven Seagal’s biitcoin (yes, spelled with a double i) and South Carolina stepping in to stop Genesis mining in their state, it’s become increasingly clear that the money to be made in crypto – either legitimately or not – is worrying regulators. This is understandable given the recent Bitconnect fiasco, the USI Tech debacle and the recent cryptoexchange hacks. Government, at the end of the day, is there to help and protect their citizens. With hundreds of millions of dollars being stolen by hackers, many millions more acquired through cheating investors via false and fraudulent means and a seemingly never-ending flow of new investors and new investment opportunities, something’s got to be done about this. Similar things happened with various stock markets leading to the SEC, the CFTC and other government agencies stepping in to regulate markets and make sure that if an investor loses their money it happens “fair and square” – not through theft or ponzi schemes or what have you.
Now for some bad news about the Google cryptocoin ban. With Google joining Facebook prohibiting advertising of ICOs, cryptocoin, etc. 70% of the online advertising market will be closed off to anyone launching an ICO or any other cryptocurrency endeavor. This will severely limit how much money an ICO will raise since far fewer people will be able to hear about it. Ditto for any new cryptocoin exchange attempting to attract clients or even a perfectly legitimate cryptocoin trying to build their business. Anyone seeking to promote an ICO or advertise a cryptocoin will be limited to the cryptocoin websites (like this one) that are out there. That’s not entirely bad news because it shifts the cryptocoin market more into its own ecosytem which could end up being a very good thing.
If you’re interested in advertising an ICO or cryptocoin promotion of any kind check out our advertising rates.
Bitcoin Prices & Bitcoin Miners – Miners Care Very Little About Bitcoin Pricing
In June 2017, when Bitcoin prices were hovering around the $2200 mark, Bitmain very quietly formed a corporation in Washington State. The objective? Expand Bitcoin mining operations beyond China. They knew then as we all now know that Bitcoin mining is one of the most profitable business ventures on the planet. That’s why Bitcoin prices & Bitcoin miners have a very casual relationship.
A Bitcoin miner cares about Bitcoin prices only to the degree that the higher the price, the higher the profit. As a Bitcoin miner since last summer myself I know this to be true. When Bitcoin plunged to $6,000 recently my modest Bitcoin operation still generated daily profits. Of course profit was higher in December when the Bitcoin price tickled the $20,000 mark but money was made before, during and after. That’s why Bitcoin Prices and Bitcoin Miners make for an easy affinity.
When Bitmain expanded their operations beyond China to the United States, Iceland, Switzerland with Canada their next likely location, they did so when Bitcoin was a fraction of the price it is right now. While cryptocoin investors panic over the current Bitcoin price of $8832, Bitmain was very quietly expanding their Bitcoin mining operations into a multinational venture. Bitmain doesn’t care about the current Bitcoin price; they clearly see the bigger picture of the relationship between Bitcoin prices & Bitcoin miners.
“Bitcoin investors will be the richest people on earth. Anyone who understands Bitcoin cannot deny this. But what does that say about Bitcoin miners? We occupy the top rung of profitability. Soon, mining will be immorally profitable.” – John McAfee
John McAfee is considered by some to be a scoundrel, by others a business genius and by others still a mathematical prodigy. Having created the world’s first antivirus product which blossomed into a business worth many millions, John McAfee is definitely NOT a fool. John McAfee worked for NASA (so yes, he IS as smart as a rocket scientist), he holds a degree in mathematics and was later awarded a Doctor of Science degree in recognition of his academic contributions.
So when John McAfee, suspected scoundrel, recognized scientist and mathematical genius says that Bitcoin mining will be immorally profitable you can take that to the bank. Before I made my first ASIC Bitcoin mining purchase I relied on my accounting degree to help me run the numbers and, yes, they work. They not only work, they are beautiful. That’s why Bitcoin Prices & Bitcoin Miners will be involved in a very long love affair of technology and wealth. Bitmain was clearly on to something years ago and they are obviously doubling down year after year with Bitcoin mining operations spanning three continents. Oh here’s a closing thought; Bitmain co-founder Jihan Wu and John McAfee are friends…
Bitcoin Price Positioned to Explode – Bitcoin Dropped Yesterday on Bad News That’s Really Good News.
SEC cryptocurrency exchange scrutiny. The Japanese Bitcoin Whale selling off $400 million in Bitcoin. A feared Binance hack. Bad news for Bitcoin, right? WRONG. All this news is good news; Bitcoin price positioned to explode. I’ve noticed that a lot of cryptocoin investors look at a Bitcoin news headline and assume they know the whole story…. they usually don’t. Or they read the whole article but miss important details and end up with a flawed conclusion. Let’s go over all of the good news that proves the Bitcoin Price positioned to explode.
SEC scrutiny of cryptocurrency exchanges. This Wall Street Journal article summarizes it best; if you’re doing nothing wrong then you have nothing to worry about. Case in point, this quote directly from the article: “...Coinbase Inc.’s GDAX platform, limit their order books to bitcoin and virtual currencies that aren’t issued by any single company and have been deemed commodities by the government. Those platforms are effectively free from SEC oversight because they don’t offer investments it regulates.” It’s the ICOs and the exchanges trading shitcoins that have something to worry about, Proof positive: this “bad new” is actually good news for Bitcoin. Like I said, Bitcoin Price Positioned to Explode. Or maybe EXPLODE.
Japanese Bitcoin Whale. Too many people assumed Nobuaki Kobayashi sold $400 million in Bitcoin yesterday. But he didn’t. If you read any given news article carefully you will learn the sell off started in September of 2017…. as Bitcoin marched higher and higher to finally hit just around $20,000. Mr. Kobayashi is the trustee overseeing the Mt. Gox bankruptcy. He’s got $1.9 billion more of Bitcoin to sell and he’s made it clear he will sell it strategically at the highest price possible. Conclusion: Bitcoin Price Positioned to Explode.
The Binance Hack. People were understandably concerned but Binance handled the attempted hack masterfully. Nobody lost any money through the unpredictable yet effective response by Binance. Bloomberg reported the event beautifully. The most important fact of this failed attempt is what the hackers tried to get away with; Bitcoin. The king of cryptocurrency. Score one more point for Bitcoin Price Positioned to EXPLODE.
So now that we stomped on and stamped out the latest FUD let’s look forward to Bitcoin’s brighter-than-ever future.
Coinbase Index Fund – Cryptocoin Investing Will Be as Simple as Investing in a Mutual Fund
On CNBC’s Fast Money this afternoon, Coinbase President & COO Asiff Hirji announced a new cryptocoin investing vehicle for the masses; the CoinBase Index Fund. With all of the simplicity of any other index fund such as the S&P 500 or the Dow Jones Industrial Average, the Coinbase Index Fund will take all of the guesswork out of cryptocoin investing and puts cryptocurrency investing on autopilot.
For those unaware of what an index fund is and how they work, this article will educate you in under ten minutes.
Now let’s pop the Champagne cork and celebrate the Coinbase Index Fund for the digital currency milestone that it is. Investing in cryptocoins is about to become as mainstream as investing in a mutual fund. (We’re not providing any more educational links so Google the term “mutual fund” for insights you may need.)
“It’s an easy way to get exposure to the crypto assets that we offer on our exchange,” says Coinbase President and COO Asiff Hirji.
That’s for sure. Easily half of the cryptocoin conversations on the Internet revolve around which coin to buy, how much of it, when will it go to the Moon, when can I buy my Lambo, etc. etc. The Coinbase Index Fund eliminates the guesswork by leveraging the weighted value of all of the coins listed on Coinbase.
The Coinbase Index Fund will be initially available only to accredited U.S. investors with every intention to expand the offering to ANY and EVERY investor. Citing caution and concerns over US regulations for this slow, cautious pace I salute the COO of Coinbase for exercising care and caution in a financial maret where chaos not only reigns, it is embraced.
Details of the Coinbase Index Fund are limited to explaining that investors will have exposure to all assets listed on the company’s current exchange, GDAX. The currencies will be weighted based on market capitalization.
In very much the same way the S&P 500 and the Dow Jones Industrial Average is a collection of stocks meant to give a sense of the American economy, this fund will try to reflect major trends in the cryptocurrency market.
At the moment, only American residents are legally allowed to invest at this stage, Hirji said, citing SEC oversight as a key reason. He said the company is working on launching more funds in the near future.
Hirjii highlighted Coinbases’s broader approach, which he said is more tailored to individual investors.
“I think the investors are not going to want to pick specific winners or losers,” Hirji said.
For the most part I agree with their philosophy. What’s most exciting about the Coinbase Index Fund announcement is the sheer trading volume it will bring which is very good news for cryptocoin miners who earn part of their profits from processing crypto transactions.
It needs to be said that Coinbase has earned and maintains its position as an industry leader. Coinbase is, as I see it, is the biggest cryptocoin advocate on earth. Crypto Capers founder Howard Sherman wrote about Coinbase Commerce, their commerce-based approach to making digital currency a part of buying or selling anything. If widely adopted, cryptocurrency will become much more than a simple store of value. Keep a close eye on Coinbase and bear witness to them changing the way the world makes and spends money.
Electroneum Mobile Mining – Mining Crypto Anytime and Anywhere
Richard Ellis and his team at ETN have been busy since day one but not nearly as busy until recently with their hard work in making Electroneum mobile mining a reality. Their ETN miner has been in beta on the Android platform for quite some time. Yesterday the Electroneum mobile mining app became officially available in the Google Play store and user feedback was virtually instantaneous.
I’ve been a big fan of Electroneum for months and have been mining ETN on a spare PC almost since day one.
According to the official press release, Electroneum’s mobile miner allows anyone with a smartphone to earn a few US$ worth of cryptocurrency every month by mining Electroneum. It uses very little electricity, a tiny amount of data, and importantly it requires no technical knowledge. A few dollars per month may not seem like much – but a billion people across the world live on US$2 or less per day. 71% of the world’s population live on US$10 or less.
Electroneum has always been a very active outfit in developing their technology and doing deals to make the ETN coin more than just another cryptocoin investment but a functional coin with real-world applications. Electroneum mobile mining is another milestone for this innovative company.
Avalon 841 Bitcoin Miners – On Sale Ahead of Schedule Leaving Distributors Unprepared.
With the Avalon 841 Bitcoin Miners on sale right now the holiday season shopping comes early to Bitcoin miners – sort of. The Avalon 841 has the best specs ever for a Canaan ASIC miner but nobody anywhere can buy Avalon 841 Bitcoin miners unless they buy 200 of them directly from Canaan.
It’s hard to tell if this is an oversight or an overt action on the part of Canaan to sell Avalon 841 Bitcoin miners only in bulk. A visit to the Canaan website shows an option to buy 20 Avalon 841 Bitcoin miners for $41,000 which is reasonable for the larger Bitcoin miner until you try and add it to your cart. That’s when you find out you need to order a quantity of TEN 20 Avalon 841 Bitcoin miners for your order to be accepted. Let’s do some easy math; you need to plunk down $410,000 plus shipping to get 200 Avalon 841 Bitcoin miners. Let’s not forget the power supplies (it looks like the EVGA SuperNOVA 1600 is best for the job) along with the 10 Avalon Miner controllers necessary to get these bad boys running.
With not a single distributor offering the 841 for sale at all – let alone one or two or five – the small-time Bitcoin miner has to wonder if the days of Bitcoin mining are over for him or her. The specs of the Avalon 841 are exactly as advertised earlier this year — nominal 13 TH/s at 1300 watts. If you can swing the nearly $500,000 necessary for the minimum order plus shipping you’re getting a deal in terms of per-unit costs.
The fallback plan for the home miner will be buying an Avalon 821 for about $3,000 or a used 741 for about half that price. More and more it’s looking like the math doesn’t work for small-time Bitcoin miners anymore. The ROI of buying a 741 or an 821 is not that appealing. On the other hand, if you can swing the money for buying 200 Avalon 841 miners with the requisite accessories you can make a ton of money.
Ripple Rumor Riots – XRP on CNBC Drives Cryptocoin Investors Crazy About Coinbase
One investor sold half of his Bitcoin and plowed the money into Ripple. Another investor asked if XRP is being added to Coinbase today since 90 new employees just got hired. Then someone else asked about the Coinbase/Ripple thing. And then someone predicted XRP at $5 before summer only to have the haters and trolls jump all over him. Yes indeed the Ripple rumor riots are well under way.
Ripple rumor riots are understandable. XRP is the most polarizing cryptocoin out there; investors either hate it with a passion or love it and see it as the future of finance. Very few people are neutral about it. The haters have a good reason; Ripple is not decentralized which is antithetical to what cryptocoin should be. Other problems include the virtually limitless capacity to generate more XRP coins on demand and the fact that outside the Western Union tests and a couple of small banks adopting it, there’s no big news yet.
Thanks to Ripple rumor riots XRP is right now $1; the highest it’s been in quite a while. There might be a bull run on Ripple but other than the CNBC appearance, which really didn’t announce anything, there’s no rational reason other than the persistent rumor of XRP coming to Coinbase. In my opinion I don’t see it happening precisely because XRP is a centralized coin and I don’t see Coinbase going for it. I think the Ripple rumors of joining Coinbase stem from people seeing the CEOs of Coinbase and Ripple on the same CNBC segment and automatically made some assumptions. Everybody on the Crypto Capers staff is pretty ambivalent about XRP so count us among the very few who don’t hate XRP or love it. Ripple is what it is.