Category Archives: Bitcoin

Just like one year ago, Bitcoin appears set to accelerate out of 2021 with brand new all-time highs amid greater levels of adoption among retail investors and their institutional counterparts alike. But how big can BTC get? And is anything left to block the cryptocurrencys path?

Of course, weve been in this position before. In spring, we saw Bitcoin rally to an all-time high of $64,804.72 on the 14th of April around one month prior to suffering a harsh correction that saw more than 50% of the value of the asset wiped off the market.

(Image: CoinGecko)

As we can see from the chart above, much of Bitcoins trademark volatility was in full swing over the past 12 months. However, the chart clearly shows that late October 2020 was the backdrop to a post-halving bull run that eventually culminated in BTCs all-time high.

Could October 2021 spark a similarly memorable run? Lets take a look at how Bitcoin is performing amidst a new wave of investor optimism:

Bitcoin recently rallied to a five-month high after breaking above $50,000, and the coins fundamentals indicate that plenty more upside is ready to take place as BTC pushes towards its next stage of resistance.

However, overbought signals indicate that a small pullback may take place on the way to BTCs next level of resistance, although this would only result in a dip back to its previous support levels between $50,000 and $52,000.

With BTCs next resistance level set just short of the coins all-time high at just under $64,000, we may soon see the cryptocurrency enter price exploration mode in the coming days and weeks.

With this in mind, buyers will need to hold support above $48,000-$50,000 to ensure that the recent rally continues - which may be trickier in the wake of the market jitters that the Evergrande crisis left across a range of assets.

2021 has been one of the most notable years in the short history of cryptocurrencies. Aside from the many all-time high values experienced by Bitcoin, Ethereum and many altcoins over the year, weve also seen significant levels of adoption from retail investors and institutions alike.

Elon Musk has emerged as a big fan of cryptocurrencies, having not only invested $1.5 billion in BTC through his company, Tesla, but also in briefly setting up the acceptance of BTC payments for Tesla cars - before environmental concerns later prompted Musk to withdraw the option for customers.

In October, it was revealed that Soros Fund Management now owns Bitcoin, with the funds CEO and chief investment officer, Dawn Fitzpatrick, stating that Im not sure bitcoin is only viewed as an inflation hedge here. I think its crossed the chasm to mainstream.

Its also worth recognizing that El Salvador recently became the first nation to accept BTC as legal tender - marking a watershed moment in the global adoption of crypto.

(Image: CoinDesk)

As the data above shows, weve also seen a significant rise in the number of smaller-scale investors in Bitcoin.

Wallet addresses with between 0.01 and 1 BTC grew from 7 million to almost 8.5 million in less than 18 months. One significant reason behind this growth in adoption is the expansion of finance technology thats made it far easier for investors to access cryptocurrencies.

Maxim Manturov, head of investment insight at Freedom Finance Europe, adds that negative interest rates in countries like the US have also played a role in driving cryptocurrency adoption via fintech apps like Robinhood.

It is important to note that real interest rates in the US have been negative for an extended period, Manturov said. Real interest rates will likely remain negative even after the (likely) Fed rate hike in 2022. This is important because negative real rates contribute to higher trading and speculative activity in asset markets. To maintain their purchasing power despite the negative rates, the Americans will be looking to generate income from stocks, cryptocurrencies, precious metals and other investments, and trading instruments.

So, what can Bitcoin achieve on its current rally? Due to the cryptocurrencys extreme volatility, the task of predicting Bitcoins future value can be extremely difficult, but market experts appear to be largely bullish about the coins short term prospects.

According to a recent report by a British bank, Standard Chartered, Bitcoin could break the six-figure price mark before the end of the year - reaching a price above $100,000. Interestingly, the bank believes that the BTC rally will trigger an even more eye-watering bull run for Ethereum - the worlds second-largest cryptocurrency - which Standard Chartered believes may reach $35,000 in value in the medium term, representing growth of ten times the assets current value.

Tim Draper, billionaire venture capitalist and cryptocurrency investor, has an altogether more bullish outlook for the future of Bitcoin - claiming that he expects the cryptocurrency to achieve a price of $250k by the end of 2022 or early 2023.

Im either going to be really right or really wrong - Im pretty sure that its going in that direction, Draper said. Give it about a year and a half and retailers will all be on Opennode, so everybody will accept bitcoin.

Draper references Bitcoin payment processor, Opennode as an example of a growing technology that will accelerate the adoption of cryptocurrencies even further. In a market thats driven by emerging technology and widespread investor enthusiasm for the asset, a future Bitcoin price of $250k may well be closer than we think.

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Back to the bull run: Bitcoin steams towards new all-time highs - FXStreet

Bitcoin extended its rally above the $55,000 resistance against the US Dollar. BTC could correct lower, but the bulls might aim more gains towards $60K.

Bitcoin price started a strong increase above the $50,000 resistance. BTC even broke the $52,000 resistance level and settled above the 100 hourly simple moving average.

The upward move was such that the price broke the $53,200 resistance. It even spiked above the $55,000 level. A high is formed near $55,770 and the price is now consolidating gains. An immediate support on the downside is near the $55,000 level.

It is close to the 23.6% Fib retracement level of the upward move from the $50,366 swing low to $55,777 high. There is also a connecting bullish trend line forming with support near $53,000 on the hourly chart of the BTC/USD pair.

On the upside, an initial resistance is near the $55,500 level. The first major resistance is near the $56,200 level, above which the price could accelerate higher. The next major resistance for the bulls may possibly be near the $58,000 level. Any more gains could set the pace for a move towards the $60,000 level.

If bitcoin fails to clear the $56,000 resistance zone, it could start a fresh downside correction. An immediate support on the downside is near the $55,000 level.

The first major support is now forming near the $54,200 level. The next major support is near the $53,000 level and the trend line. It is near the 50% Fib retracement level of the upward move from the $50,366 swing low to $55,777 high. If there is a break below the trend line support, the price might decline towards the $50,000 level and the 100 hourly SMA.

Technical indicators:

Hourly MACD The MACD is still moving in the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is well above the 50 level.

Major Support Levels $55,000, followed by $53,000.

Major Resistance Levels $55,500, $56,200 and $58,000.

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TA: Bitcoin Surge To $60K On The Horizon, As Bears Show Weak Hands - NewsBTC

The below is from a recent edition of the Deep Dive, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Last week, we discussed the beginnings of a global energy crisis and the downstream effects on bitcoin mining in The Daily Dive #069. Today, were covering the latest developments in the skyrocketing energy costs, the risks of stagflation and how these pose increased risk for a future credit crisis.

Last month, there were over 4,000 stories on the Bloomberg Terminal mentioning stagflation. Its a growing economic concern in the market and one were watching closely. Stagflation refers to economic times when theres rising inflation, a stagnation of economic output and a high rate of unemployment.

Historically, stagflation has often been accompanied by oil shocks. Now, were seeing the West Texas Intermediate Crude Oil price per barrel reach seven-year highs with a current global oil supply/demand imbalance. Along with the Europe and Asia natural gas and coal shortages, these factors are increasing the market chances of a stagflation scenario playing out.

Amidst the latest surge in energy prices, the Organization of the Petroleum Exporting Countries, Russia and their allies (known as OPEC+) met yesterday deciding to maintain its previously-agreed-upon production supply rather than raising supply further. The United States has called on OPEC+ to increase supply highlighting that rising gas prices are a threat to the global economic recovery.

For rising inflation, rising energy prices will affect gas prices, consumer heating bills and manufacturing production costs that can be passed onto consumers via higher prices and slow economic output.

We can already see this trend playing out through a rising surge in Chinas Producer Price Index (PPI), up 9.5% in August while China Consumer Price Index (CPI) was 0.8%, showing weak purchasing demand for Chinese consumers. Chinese manufactures can look to pass on increased costs to western, foreign consumers with both demand and CPI stronger post pandemic. For the United States, this comes at the same time when monetary policy is ready to tighten.

What is often misunderstood is that the Federal Reserve cannot respond to the stagflation of today like they could in the 1970s, when Paul Volcker hiked rates all the way up to 20% to curb inflation. Volker could do this because of the relatively low debt levels across the economic system, but the situation today is much different.

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Bitcoin And The Increasing Risk Of Stagflation - Bitcoin Magazine

A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021. REUTERS/Dado Ruvic/File Photo

NEW YORK/LONDON, Oct 1 (Reuters) - Bitcoin rose on Friday to its highest level since around mid-September, bolstered in part by seasonal factors as well as supportive comments overall from U.S. Federal Reserve Chairman Jerome Powell on Thursday.

In testimony to Congress, Powell said the Fed had no intention of banning cryptocurrencies, in response to a question from House Representative Ted Budd.

Some analysts also said October is typically a bullish month for digital assets, with September historically a bearish period for the sector.

"The digital asset market is benefiting both from the seasonality effect as well as generally positive market fundamentals," said Ulrik K.Lykke, founder of crypto assets hedge fund ARK36.

"Q4 has often seen strong performances and the expectation the trend will continue this year can become a self-fulfilling prophecy. It is possible that we will see new all-time highs in Q4, especially that on-chain data, particularly in the case of bitcoin, seem to indicate a potential for a strong bull market continuation."

He also cited Powell's comments on Thursday as one factor for bitcoin's positive price action.

The largest cryptocurrency was last up 9.3% at $47,910, after hitting a high of $48,236.08. If gains are maintained, bitcoin would be on pace to post its largest daily percentage gain since mid-June.

Smaller coins ether and XRP , which tend to move in tandem with bitcoin, were up 10.1% at $3,301 and 8.5% at $1.0326, respectively.

Joseph Edwards, head of research at Enigma Securities in London, also said spiking volumes on crypto derivatives exchanges was a possible driver for the moves. Derivatives trading often influences spot prices in bitcoin markets.

In the futures markets, bitcoin showed a net short position of -883 , the smallest since mid-August, data from the Commodity Futures Trading Commission released on Friday showed.

Reporting by Gertrude Chavez-Dreyfuss in New York and Tom Wilson in London; Editing by Saikat Chatterjee, Chizu Nomiyama and Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

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Bitcoin climbs to highest in nearly two weeks - Reuters

Ask most financial podcasters how they got into investing and they will probably cite an interest in business or an enthusiastic parent who encouraged them to look at the stock market.

For Peter McCormack, early inspiration came in the form of a bag of weed.

The reason I got into bitcoin was back in 2013, one of my friends came round and said hed found this new website called Silk Road, he reveals in an interview with the FTs Money Clinic podcast.

To buy your weed, you had to have this thing called bitcoin. So I bought some.

Fast forward to today, and the podcast McCormack founded in 2017 What Bitcoin Did is one of the best-known financial shows on both sides of the Atlantic.

Over the past five years, the 42-year-old former advertising executive from Bedfordshire has travelled around the world interviewing bitcoin commentators ranging from investors and tech specialists to macroeconomists and executives working in the fast-growing crypto industry.

Last month, he was in El Salvador to document the countrys journey towards making bitcoin legal tender, interviewing president Nayib Bukele.

McCormack says: Six or seven years ago, my life collapsed. I got divorced, my company went bust, my mum died and I was two weeks away from losing my house.

I started this podcast in 2017, not thinking it would be anything, just more of a hobby. Now Im interviewing a president. Theres no way of even trying to understand how this all happened.

A bitcoin bull, McCormack is not afraid of allowing his views to be challenged on his podcast, but shuns conventional investments in pensions and stocks and shares Isas as he believes that the cryptocurrency will produce far superior returns. He has also invested in bitcoin miners which create new bitcoin by solving complex computations and even mined some bitcoin himself.

However, in his Money Clinic interview he reveals he has a buy and hold strategy and no longer attempts to make money by trading bitcoin after disastrous early losses.

In 2017, I think I invested around $30,000. By the end of that year, [I was] close to $1.5m and I then proceeded to lose most of it again just by not really understanding the market at all and just thinking I was a genius, he admits.

I decided then to stop trading and took a very different strategy. I believe in bitcoin being the best form of money that exists, so I decided Id put as much of my personal and business profits into bitcoin [as possible] and just hold it over the years.

Peter McCormack tells Claer Barrett why hes such a firm believer in bitcoin. Listen here

That has proved more lucrative for McCormack, on paper at least.

Its changed my financial position, he says, declining to go into further detail. I wouldnt say Im gloriously wealthy, but its one of these weird things. You never feel rich because you never really want to spend your bitcoin.

On the FT podcast, he explains why he has faith that, in the long term, the potential returns from bitcoin will surpass any other form of investment.

For me, its a store of value. But when I was recently in El Salvador, I was using bitcoin I have on my phone...to buy coffee, to buy breakfast, to buy dinner. So I was using it as a medium of exchange.

Fellow podcast guest Katie Martin, the FTs markets editor, questions this duality.

The real puzzle at the centre [of bitcoin] is either it really is going to the moon or its a currency that you can use to buy eggs, Tesla cars and all the rest of it. It cant be both. The crypto industry has not yet come up with a good way to square that circle.

Nevertheless, she accepts that it has been a breakthrough year for bitcoin. A growing number of mainstream financial institutions are showing serious interest in crypto; the US listing of crypto platform Coinbase was another big moment; and El Salvador is unlikely to be the last country to make bitcoin legal tender.

However, the surging popularity and prices of crypto investments have put them on a collision course with financial regulators, notably in China where the ongoing crypto crackdown has caused big swings in the price of bitcoin and other coins this year.

China is one of many nations with plans for central bank digital currencies (CBDCs) which, in McCormacks view, are the ultimate form of control...depending on where you live, your transactions can be used against you.

The mainstream investment world is divided. Cathie Wood, founder of Ark Invest, predicted last month that the price of bitcoin could surge to $500,000 within five years (in an FT poll, three-quarters of readers disagreed). Ray Dalio, founder of hedge fund Bridgewater Associates, recently warned regulators would kill bitcoin if it became too successful.

Yet despite the risks and pricing volatility, the possibility of making a lot of money very quickly has undeniable appeal to younger investors.

Consider that everyones a scammer and protect yourself... The threat model is wide

The Financial Conduct Authority estimates that more than 2m people in the UK hold bitcoin or other forms of cryptocurrency as an investment, yet many are unaware of the risk of investing in an unregulated asset class.

On the FT podcast, McCormack warned younger investors to be especially wary of crypto-related fraud.

Consider that everyones a scammer and protect yourself, is his rule of thumb. He uses hardware wallets and private keys, but scams are sophisticated and he urges hyper-vigilance.

You might get a fake email [supposedly] from Ledger saying that you need to update your hardware wallet, plug it in and then you have your bitcoin stolen from you, he says. The threat model is wide.

Asked what advice he would pass to younger investors, McCormack urged them to develop more of an interest in bitcoin than simply the price before they parted with any cash.

First and foremost, before you invest in this kind of thing, make sure youve got a job and a good secure income and then make a decision about what percentage of that you want to invest.

Understand what bitcoin is, and the role that the people who support bitcoin think it can play in society.

And dont trade. Ninety-five per cent of people who try to do that will lose. If you must trade, please dont use leverage. Bitcoin is volatile. [Leveraged trades] will play with your emotions. Ive spoken to many people whove completely screwed up financially with crypto and lost everything.

To listen to the interview with Peter McCormack, click on the link above or search for Money Clinic wherever you get your podcasts

Link:
'I believe bitcoin is the best form of money' - Financial Times

'What Bitcoin Did' presenter Peter McCormack talks about his crypto investments

Peter McCormack, bitcoin bull and voice of the hugely popular 'What Bitcoin Did' podcast, joins Claer for a Money Clinic Investment Masterclass about cryptocurrencies. Recently back from a trip to El Salvador, the first country to make bitcoin legal tender, Peter tells Claer why he believes the cryptocurrency is the 'best form of money' and why regulatory crackdowns, volatile pricing swings and the divergent opinions of professional investors have failed to dampen his enthusiasm.An investor with a long-term view, Peter shares the highs and lows of his personal investment journey, and sets out the risks younger investors should know about before risking a single satoshi. With insight from Katie Martin, the FTs markets editor.

Further reading:

Check out Peters podcast 'What Bitcoin Did'

Have you heard this Money Clinic episode? Bitcoin: Ill either be rich, or wrong

Theres a free-to-read column from Claer: Why young investors bet the farm on cryptocurrencies

Heres Vijay Boyapatis The Bullish Case for Bitcoin

Presented by Claer Barrett. Produced by Clare Williamson. Edited by Persis Love. Sound design by Breen Turner.

See acast.com/privacy for privacy and opt-out information.

Transcripts are not currently available for all podcasts, view our accessibility guide.

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'Bitcoin is the best form of money': Investment notes from a crypto expert - Financial Times

Bitcoin

Bitcoin, BTC to USD, rallied by 11.70% in the week ending 3rd October. Reversing an 8.58% fall from the week prior, Bitcoin ended the week at $48,242.0.

A mixed start to the week saw Bitcoin fall to a Wednesday intraweek low $40,804.0 before making a move.

While steering clear of the first major support level at $39,470, Bitcoin fell through the 38.2% FIB of $41,592.

Finding mid-week support, however, Bitcoin rallied to a Sunday intraweek high $49,196.0 before easing back.

Bitcoin broke back through 38.2% FIB and the first major resistance level at $47,119 to end the week at $48,200 levels.

4 days in the green that included an 9.86% jump on Friday delivered the upside for the week.

Bitcoin would need to avoid a fall through the $46,081 pivot to support a run the first major resistance level at $51,357.

Support from the broader market would be needed for Bitcoin to break out from the 23.6% FIB of $50,473.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of an extended breakout, Bitcoin could test resistance at $55,000 levels before any pullback. The second major resistance level sits at $54,473.

A fall through the $46,081 pivot would bring the first major support level at $42,965 into play.

Barring an extended sell-off, Bitcoin should steer clear of the sub-$40,000 levels and the second major support level at $37,689. The 38.2% FIB of $41,592 should limit the downside.

At the time of writing, Bitcoin was down by 0.59% to $47,956.0. A mixed start to the week saw Bitcoin rise to an early Monday high $48,289.0 before falling to an early Monday low $47,770.0.

Bitcoin left the major support and resistance levels untested early on.

Ethereum rallied by 11.77% in the week ending 3rd October. Reversing an 8.05% decline from the previous week, Ethereum ended the week at $3,420.07.

A bearish start to the week saw Ethereum fall to a Wednesday intraweek low $2,781.99 before making a move.

Story continues

Steering clear of the 38.2% FIB of $2,740 and the first major support level at $2,692, Ethereum rallied to a Sunday intraweek high $3,489.18.

Ethereum broke through the 23.6% FIB of $3,369 and the first major resistance level at $3,388 to end the week at $3,400 levels.

5-days in the green that included a 10.36% breakout on Friday delivered the upside in the week.

Ethereum would need avoid the 23.6% FIB of $3,369 and the $3,230 pivot level to support a run at the first major resistance level at $3,679.

Support from the broader market would be needed, however, for Ethereum to break out from $3,500 levels.

Barring an extended crypto rally, the first major resistance level would likely cap any upside.

In the event of another extended breakout, Ethereum could test resistance at $4,000 before any pullback. The second major resistance level sits at $3,938.

A fall through the 23.6% FIB of $3,369 and the $3,230 pivot would bring the first major support level at $2,972 into play.

Barring an extended sell-off in the week, Ethereum should steer clear of the 38.2% FIB of $2,740. The second major support level sits at $2,523.

At the time of writing, Ethereum was down by 1.12% to $3,381.88. A mixed start to the week saw Ethereum rise to an early Monday high $3,428.24 before falling to an early Monday low $3,352.36.

While Ethereum left the major support and resistance levels untested, Ethereum briefly fell through the 23.6% FIB of $3,369.

This article was originally posted on FX Empire

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Bitcoin and Ethereum Weekly Technical Analysis October 4th, 2021 - Yahoo Finance

Bitcoin could experience sharp volatility in the coming months, according to one model. (Photo by ... [+] INA FASSBENDER / AFP) (Photo by INA FASSBENDER/AFP via Getty Images)

The worlds most prominent digital currency may experience sharp volatility over the next few months, according to a proprietary model created by technical analyst Jack F. Cahn.

Technical Event Model (TEM), which he developed in-house and measures extremes in sentiment, is a price-based macro filter that helps algorithmic trading programs predict when market dynamics are about to change and what to expect.

The model, which was designed to be direction-neutral, indicates whether the market is about to break into a new trend or has entered a period of panic buying or selling.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Recently, Cahn wrote that the TEM suggests a range expansion in October/November.

More specifically, the technical analyst indicated that his model is suggesting a monthly range expansion of 20k for Oct and or Nov.

It might take place from the open of the month to the close of the month, maybe faster, but the risk is 20k, Cahn added.

Based on the volatility model (TEM), it's set up for a range expansion on the monthly and weekly bar. So from the Oct. open to the close should be a range month, opening near its high and closing out near its low, he stated.

Analysts Weigh In

Several analysts provided their assessments of this model.

After reading the Recaps of Volatility Reports beginning 9/27/2018 to 9/27/21, I believe CT's TEM is an interesting approach to take in efforts of explaining bear/bull behavior, said Andrew Rossow, an internet and technology attorney.

Keeping in mind that the TEM is just an expression of CT's opinion based on their own sources, I find that analysis to be interesting and not outlandish, he stated.

In my opinion, it seems to be one of the more realistic explanations / analyses Ive come across since the notion of FOMO and emotional investment/panic came into existence with digital currency, said Rossow.

Collin Plume, CEO and founder of My Digital Money, provided a different point of view.

TEM, as with many other charts being used to predict crypto market direction, is highly reactive rather than predictive, he stated.

It looks for patterns and assumes its applicability to future crypto developments. It misses the intangibles, events that are really dictating the price of crypto, said Plume.

Bitcoins dips and spikes have been dictated by retail reaction to certain events. The biggest influencers are mainstream development, he stated.

Jack Dorsey declared Bitcoin the future and PayPal bought into Bitcoin, which coincided with upward movements in the price.

Bitcoin crossed the $50k mark early this year after Tesla announced it was buying into Bitcoin and then powered through $60k after Coinbase announced it was going public.

Range-Bound Trading

Plume added further detail, predicting that without any important developments, bitcoin will trade between its 200-day moving average (MA) and 20-day MA, which are $43,000 and $47,000, respectively.

I think Bitcoin will stay within this range until China makes a decision on Evergrande, he stated.

If China bails out Evergrande, it will most likely reclaim $50K and it will be a slow and bumpy ride back to $60k, said Plume.

However, this trend will be broken if another major event happens that could trigger retail investors to either panic sell or panic buy.

Bullish Market Predictions

Rossow offered a different take on the markets, forecasting that bitcoin will continue to experience the kind of expansion detailed by Cahn over the next few months.

With the SEC calling for more resources to better grasp the nature of the cryptocurrency industry in combination with institutional investors finally accepting that having a trusted and secure custodian for their digital assets to be the next step in providing global financial accessibility, its not outlandish to think that Bitcoin and crypto have the very real potential to continue this type of growth into the next two months, he added.

While Cahns model merely pointed to bitcoin experiencing substantial volatility in the coming months, without specifying whether that would be to the upside or downside, Rossow was speaking to his view that bitcoin prices will likely move higher during that time.

This is an institutional class and if regulators are willing to entertain serious conversations around Bitcoin and its utility in every industry, we can only expect to see increased growth, he said.

Joe DiPasquale, CEO of cryptocurrency hedge fund managerBitBull Capital, also spoke to the TEM, stating that:

The projection here isn't surprising given Bitcoin's historic performance in October and November.

If Bitcoin ends September above the $40K - $42K range, we are likely to see some bullish relief in October, he said.

However, the extent of this projected price action is also likely to be impacted by wider macro factors, such economic policy changes and such.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

Read the original here:
Is Bitcoin Headed For Significant Volatility In The Coming Months? - Forbes

To the Editor:

Re Bitcoin Cosplay Is Getting Real, by Binyamin Appelbaum (Sunday Review, Sept. 19):

What a sad and sour portrait Mr. Appelbaum paints of Bitcoin.

In their brief existence, cybercurrencies like Bitcoin have grown into a $2 trillion market (about the same size as Apple), spawned entire new industries (non-fungible tokens, cybermining), led to a flurry of innovation, and created a cadre of millionaires and billionaires.

Financial firms, central banks, regulators, systems designers, investors and national governments are all rethinking as they must the ways in which blockchain-based currency technologies are changing the world around them.

Mr. Appelbaum sees none of the excitement and potential of such a massively disruptive innovation. Instead, he hauls out the tired comparison of Bitcoin to the Dutch tulip craze in the 1600s. Four hundred years later tulips are thriving as a robust part of Hollands economy. We wont need to wait that long to learn if Bitcoin will stand the test of time, but its growth and institutionalization in the space of just a few years strongly suggest that its here to stay.

David SarokinWashingtonThe writer is the author of The Corporation: Its History and Future.

To the Editor:

Binyamin Appelbaum writes that modern blockchain tokens are mostly useless. These tokens, in fact, have some very common and well-reported uses: facilitating fraud, money laundering and illicit financial transactions.

Blockchain is best understood as a worldwide criminal enterprise masquerading as an economic bubble. Digital blockchain tokens have no legitimate use, but they have plenty of illegitimate ones.

While the people profiting off these sketchy transactions are now trying to buy political influence and mainstream media coverage, we can only hope governments will eventually see through their charade and criminalize cryptocurrencys manufacture and use. Until this happens we should expect blockchain-enabled fraud and criminality to get worse and worse until, like a boil, it ruptures.

William GerhardtPrinceton, N.J.The writer is a technology consultant.

To the Editor:

Cryptocurrency has the potential to revolutionize international commerce. According to the World Bank, it can take several days for corporations and individuals to transmit payments cross-border and the average fee is over 6 percent. With Bitcoin, payments can be done in minutes and virtually for free.

Linda PhillipsVero Beach, Fla.

To the Editor:

Binyamin Appelbaum derides Bitcoin as a volatile commodity that fritters away scarce natural resources while being susceptible to security problems. While this appraisal is largely warranted, there are also significant issues with the leading reserve currency: the American dollar.

Bitcoin and the dollar share a flawed premise. Theyre both fiat instruments that presume to create something out of nothing in exchange for tangible wealth.

Bill BlundenSan FranciscoThe writer is an information security analyst at San Francisco State University.

To the Editor:

Re Federal Regulators Are Racing to Create the First Major Rules on Cryptocurrency (news article, Sept. 24):

With the Treasury Department now developing rules to govern cryptocurrency, what was once scorned and ridiculed has gained its legitimacy. Congratulations!

But at my age, close to retirement, I have enough problems keeping up with constantly changing technology in my criminal defense practice. I am also math-challenged. Please dont make me learn a whole new currency system.

Whats next? A regular diet of aa berries?!

Harry ZimmermanAlbuquerque

To the Editor:

Re Kelly Convicted of Running Sex Ring for Decades (front page, Sept. 28):

Back in August when I saw images of a tribute to R. Kelly written in chalk outside the federal courthouse in Brooklyn, my heart shattered. Growing up, my friends and I would cover our block in colorful chalk drawings, and I love seeing children doing that today. I couldnt look past the irony of using a fun childhood pastime to pen a message of support to a man who recruited underage girls for sex.

Like many Black women and girls, I didnt have faith that R. Kelly would be convicted. His being found guilty on all counts of racketeering and sex trafficking is a bittersweet victory. The victory is for the survivors who sought justice.

But this verdict comes after decades of harm, and mounting evidence that should have stopped him from causing further harm to Black women and girls. I will never be at peace with that, and I will never stop fighting to hold the systems that have long ignored Black women and girls accountable.

Joanne N. SmithBrooklynThe writer is the founder and president of Girls for Gender Equity.

To the Editor:

Re Redesigning Americas Flag: Six New Takes on Old Glory (Opinion, nytimes.com, Sept. 28):

I love the idea and some of the examples that artists provided for a redesign of the U.S. flag. Maybe I am too pessimistic, but I can already hear the cries from people opposing such a change we cant change the flag, thats un-American; its always been that way, etc.

My guess is that repealing the Second Amendment would be easier to accomplish.

Marc ChafetzWashington

Read more:
Opinion | Should We Fear Bitcoin, or Celebrate It? - The New York Times

Watch This Episode On YouTube

Listen To This Episode:

When first explaining Bitcoin to people, it can be difficult to find a place to begin. After consuming endless amounts of content that discuss economics, philosophy and history, there is not a single clear place to start. Of course, it helps to tailor each introduction that you present to the person you are presenting to, as with anything. But one key factor in understanding Bitcoin, as Captain Sidd and I discussed on this week's episode of Meet The Taco Plebs, is helping others understand the problems that Bitcoin solves. In addition to this, we discussed what introduced Sidd to bitcoin, how it has changed his life and his predictions for the future. Make sure to give the audio podcast a listen, and read our interview below.

Whats your Bitcoin rabbit hole story?

When unanswered questions about modern economic theory clashed with my readings on emerging technologies especially through a book titled Throwing Rocks At The Google Bus the need for Bitcoin and decentralized systems clicked. I fell out of love with crypto through an experience fundraising for a bitcoin mining farm, where I learned the importance of a rock-solid consensus mechanism. Bitcoin has it, others don't.

How has Bitcoin changed your life?

Two ways: it serves as a simple vehicle for saving that allowed me to focus on producing value, instead of gambling to find arbitrage opportunities and "quick wins. By seeing how experts in finance use jargon to obfuscate the truth, I gained a distrust of experts and anyone who cannot break down their domain's jargon into simple, easily understood concepts.

Your pieces are incredibly straightforward and insightful, and they explain things in ways that both bitcoiners and nocoiners can understand. What's your process for creating these articles, and what do you think is the most important thing to understand for someone wanting to learn about bitcoin?

Thank you! I look for patterns and metaphors that help me boil down complex jargon into simple models. What I write about is usually something I've been mulling over for years, with a lot of stops, starts and meanderings. Writing an article just happens when something clicks in a way that I think others will understand.

What are you most looking forward to in the Bitcoin space?

Two things: more nation state adoption, and implementation of mining by energy producers. Nation state adoption by itself is not that interesting, but I believe it will drive conversation and questions at the governmental level forcing leaders to publicly answer questions about bitcoin and the monetary system. That will lay bare the insanity of what they're peddling to us.

Price prediction for the end of 2021, and the end of 2030?

2021: Under $100,000 because everyone seems to think we'll break it!

2030: No number in mind. Whereas the 2017 bull run was driven by the desire to get rich, the next nine years will be driven by the desire to avoid poverty as inflation takes hold. Bitcoin could be worth $1 billion by 2030 but what will a loaf of bread cost? Not to mention a decent steak

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Bitcoin Is A Clear Solution To An Unclear Problem - Bitcoin Magazine