Bitcoin Price Reality – Separating Fact from Myth
The recent plunge in Bitcoin – and almost every other cryptocoin out there – is attributed to all of the recent bad news. Bitcoin price reality needs to set in. Let’s tear apart all of the recent factors the “experts” are attributing to the Bitcoin price plunge….
Bitcoin Price Reality #1 – The Google Cryptocoin Ban is a ZERO factor to Bitcoin prices. The same holds true for the other big coins out there like Ethereum, Litecoin and some of the smaller – but established coins – like Monero, Ripple, etc. Nobody ever saw a Google ad – or a Facebook ad for that matter – for Bitcoin itself. Ditto Ethereum, TRON and who knows how many other coins. The Google ban will make life difficult for ICOs and emerging cryptoexchanges and it basically puts cryptocoin consultants, experts and gurus out of business. HOWEVER, any advertising ban cannot even put a dent in Bitcoin itself. To think otherwise is the most powerful example of FUD driving idiots and the afraid to sell coins because they just don’t know any better.
Bitcoin Price Reality #2 – The SEC is going to crackdown on cryptocoin. Yes, perhaps. But so what? That’s not going to have the slightest ACTUAL impact on Bitcoin (and again, the other big coins, etc.) Because Bitcon is decentralized there is nobody for a government agency to go after. No single entity raises any actual money with Bitcoin. This is why Coinbase is so slow to list any ICOs. This quote from Michael Lempres, a senior corporate officer of Coinbase explains why. “We do not support any [ICO] at the current time because we are not sure what the regulatory [treatment] is… We are waiting for the dust to settle between the CFTC and SEC before we electively engage on supporting ICOs.” The CEO of Coinbase said much the same thing during a recent CNBC interview when it comes to listing new coins; they are operating Coinbase with a conservative abundance of caution. Bitcoin Price Reality: If Coinbase were to be subject to higher, much more stringent regulations tomorrow it wouldn’t matter at all. A typical day at a Coinbase office would go on as usual.
Bitcoin Price Reality #3 – All of the government regulation on earth won’t and can’t stop Bitcoin. NBC News published a very dark article on their website about the future of cryptocurrency. All together the reporting wasn;t bad but they got one thing very, very wrong — they grouped Bitcoin together in the same category as all other cryptocurrencies. I think what spooked the Bitcoin world markets was what the IMF (International Monetary Fund) said in calling for GLOBAL regulation of cryptocurrency. It’s been pointed out time and time again that Bitcoin, in and of itself, is immune from and impervious to any regulation of any kind. Bitcoin is the king of cryptocoin and is in a class by itself.
USI-Tech Closed to North America – Covering Their Bet on the Texas Bitconnect Smackdown
USI-Tech Closed to North America was a smart move by Dubai-based USI-Tech in light of the recent cease and desist letter they received from the Great State of Texas last month. What took them so long? Perhaps they noticed that Texas sent Bitconnect a cease and desist letter and thought it best to “get out of Dodge” as the saying goes.
According to an email shared on a Reddit group assumed to be from USI-Tech:
“We were utterly dismayed to learn that a large number of our sales partners extensively advertise our services on their own websites as well as on social media in a manner which is a breach of contract as well as illegal, and which gives the appearance that our service portfolio violates both US and Canadian law. Despite the measures which we have already initiated, this behavior has even intensified in recent weeks and months. This has already resulted in actions by the respective authorities against various distributors, as well as the first preliminary injunctions in response to this advertising behavior. “
The last sentence is eye-opening…. “injunctions”? Are there other states or even local jurisdictions in the USA that have taken legal action against USI-Tech? We may never know and now it’s moot since USI-Tech Closed to North America is a done deal. This article out of Guam mentions legal action taken by Canada and going so far as to propose the notion there may be a Ponzi scheme at work.
Here are actual screen shots from a USI-Tech account holder’s screen…
So USI-Tech Closed to North America is reality. We suspect that Bitconnect will follow suit. They’ve already eliminated operations in Texas which I suspect is the first step towards their exit from the US and Canadian markets. A lot of American and Canadian citizens are frequently outraged by overregulation but this is one example of how government regulations really can work and benefit the people.
Building a Bitcoin Miner
Alright, so I was ready to start Bitcoin mining. Great! Now what? Well, cryptocurrencies won’t will their way to you, and you can’t just say “Hey Cortana, start mining Bitcoin.” What to do…what to do? (If you haven’t read my first installment in this series, you should first check it out here)
Before we proceed any further, I should share some of my backstory. I am an IT guy by trade, and naturally, I have a lot of PC equipment laying around. Subsequently, this equipment made its way onto my workbench with the idea of resembling hardware that was even remotely capable of mining cryptocurrency. Sure, it wasn’t going to be a massive rig, but it was going to allow me to enter the crypto market as a hobbyist first and foremost. Testing the waters, so to speak.
So how did I begin mining cryptocurrencies? Well, I had a Dell XPS system with an Intel Core i7 and a discrete Nvidia GeForce 750 Ti GPU. A pretty decent setup for gaming in 2015 titles, but not very apt at mining Bitcoin. What now? After doing some research, and believe me, this is a MUST, I found that there are literally dozens of other cryptocurrencies, a.k.a. alt-coins, which you can mine with lesser hardware. I delved into the alt-coin marketplace, ran some benchmarks, and settled on a couple of low difficulty alt-coins: Bytecoin and Monero. One of the biggest draw to mining alt-currencies is that most marketplaces will allow you to trade them for Bitcoin.
In order to relate this to those less fluent in the world of cryptocurrency, compare the cryptocurrency market to Gold and Silver. Bitcoin is the Gold standard, but many other cryptocurrencies are comparable to Silver, Copper, Platinum, etc. They all hold value that more or less revolves around the value of Bitcoin. So while mining Bitcoin is the most attractive prospect, it is also the most difficult and most expensive to get in to. Yet mining other cryptocurrency is more accessible to crypto-newbies, and is an amazing way to learn the ins and outs of mining cryptocurrency. Investing in Bitcoin mining is no small expense, so if you start at a lower cost with alt-currencies, you’ll learn most of what you need to know before you make the big switch to BTC.
Are We There Yet?
There, I made it, right? I have a proof-of-concept rig and two alt-coins I want to mine. Just plug in the rig, turn it on and start mining cryptocurrencies, right? Wrong! Building a rig and researching my currency were only baby steps to begin mining cryptocurrencies like Bitcoin. I needed to create a wallet for my cryptocurrencies, and I was required to join a mining pool. Then, I’d need to create an account on which to trade my cryptocurrency for Bitcoin. I’d come so far, getting a test rig operational and pouring over research. Yet I realized I had just scratched the surface of cryptocurrency mining.
In my next installment, I’ll expand on my mining adventures. We’ll discuss setting up a wallet and joining a mining pool. Look to this space for more of my adventures in Bitcoin!