cryptocurrency crash

Crash? What Crash?

cryptocurrency crash

The Bitcoin Crash Which Never Was is OVER

So guess what? The Bitcoin crash that never was appears to be over short term. There are still issues with Segwit come 1st August and a LOT could still go wrong, but it’s beginning to look as if BTC will climb much higher once this is safely out of the way. It’s worth remembering what Segwit is all about. Basically, the activation of SegWit will lead to a 75 percent optimization of Bitcoin blocks and a substantial decrease in Bitcoin transaction fees.

It’ll take several weeks to be sure, and whilst that’s all happening, as someone cleverer than me has said “ In the meantime don’t trust just one or two confirmations. Go for 6 at least!” The only problem with that is it could take quite a long time.

Interestingly, I did a couple of transactions this morning on “normal” as opposed to cheap or priority, and both were cleared and done within 15 minutes.

The 25% plus rise in Bitcoin this week has dragged up the total Crypto market cap, but not by as much. As a result, Bitcoin dominance has risen a couple of percentage points. There is a definite correlation between the value of individual crypto currencies and the value of Bitcoin, and what it is doing. The other interesting thing is the volume of trading in crypto currencies. Until a few weeks ago, this hovered between $500 million and $1billion per 24 hours. This last few weeks it has grown enormously. Today it was just under $6billion, and it’s been north of $5 billion for quite some days.

I don’t pretend to be able to “read” the markets. As Nathaniel Rothschild said in the 1800s: “I buy 10% too late and sell 10% too early.”

“I buy 10% too late and sell 10% too early” – Nathaniel Rothschild

And Bernard Barouch said it again after the 1929 crash, when he was largely unscathed “I always buy ‘too late,’ and sell ‘too early.’” In other words, don’t be greedy and leave something on the table for someone else.

That said I’d expect a bit of a settling down over the next couple of weeks. I fully expect more ICOs (Initial Coin Offerings) not least in part of the Kik messaging service, issuing some 10 TRILLION tokens. That alone will knock some dominance points off Bitcoin. I don’t actually see that that matters. What matters in Cryptoland is acceptance and usage, and a community. Kik already has this, as does Bitcoin. But many others are just “Me toos” which longer term will have no relevance.

There are some exciting developments coming down the track and many businesses need to get on board before they are left behind.

Crypto collapse?

“What does the collapse in crypto currencies mean? In the last couple of weeks the whole market, including Bitcoin, is down around 30% with Bitcoin itself falling as much as 35% at one point. Some coins are down 50%+.

Some recovery has taken place, but the market as a whole has shrunk from over $100billion to just over $70billion.

Is that it? Are we on a permanent downtrend? Have the public seen ( or think they have seen) the Emperor with no clothes?

In my view this is a healthy situation. NOTHING goes up forever. Participants in markets buy and sell as they see fit, and – being brutally honest – so much money has been made recently that NOT taking a substantial profit makes no sense.

Bitcoin in particular has suffered from falls of a third several times but has always moved back higher within a few months. Quite apart from anything else, the miners need the prices higher to pay for all that electricity. I’d be astonished if in fact they were not large sellers at the high prices.

So what else is good news? Adoption of and interest in crypto currencies continues to grow. That is not going to stop just because the market has fallen. Indeed, there are several groups who are wanting to use crypto currencies in closed groups. For example, in a casino you buy chips and use them to gamble with. You could do the same with a tailored altcoin, and it could all be done online at a fraction of the cost.

But the other thing that really interests and pleases me is that the crypto currency markets are behaving exactly as conventional markets do. Even down to the buy and sell signals on the charts. Before the last rise, the charts for Bitcoin were indicating a potential “top” of around $3000. That arrived. Then there was the reducing triangle formation – means a drop. For reasons completely beyond me coin journalists thought this meant it was about to go UP! The price duly dropped. Then, a bottom target of $1850 suddenly appeared, and hety guess what that pretty much appeared too.

I think this episode shows how un-knowing people in the crypto currency space actually are. The usual investment tools applied to these markets have yielded exceptional profits – but I’m willing to bet most of the participants have never even heard of a double top or head and shoulders, but have set themselves up as experts on the back of rising prices.

Of course, the coins apart from Bitcoin have suffered just because of Bitcoin – it is, after all the reserve currency in this space. If it falls, everything else has to fall too, or arbitrage situations will emerge.

I’m pretty confident there will be a period of sideways movement. “ Sell in May etc etc” isn’t quite true, but would have paid dividends here in the last few years. Conversely, once the holidays are over and people return to their desks, hopefully the crypto “experts” will be somewhat chastened. When everyone shouts “buy” that is the time to sell.

The autumn will be the time to see gains again.

The recent fall in crypto currencies and Bitcoin should be seen in this context – post from early May ie 9 weeks ago:

“The week is still young, but new milestones have already been made: the total market cap for all digital currencies has increased by a staggering $10 Billion in one week, now standing at the all time high of $38.1 Billion. “

WHAAAA? You mean even after the crash they have DOUBLED in 9 weeks? And actually at the peak they had TRIPLED. So don’t blame anyone for selling – they would be mad not to.

Scotcoin continues on it’s planned path – fully KYC and AML compliant private blockchain coming, and a really interesting bit of news shortly.”

-T Melville

Your Scotcoin is now worth more!

SCOTCOIN INCREASES IN VALUE: Following a hike in the value of Bitcoin, Scotcoin too is enjoying an uplift in value… But how do it actually work?  With respected financial journalists such as Ed Conway of The Times writing headlines such as “Bitcoin could turn capitalism on its head“, economists now predict that cryptocurrency has the potential to bypass governments and the digital media giants to become the new power behind big decisions not just in financial markets but in many different areas of life.

How is cryptocurrency valued?

Simply put, cryptocurrencies are worth what someone is willing to pay for them – just as any other asset is valued, such as house prices or stocks or traditional currencies.

In the case of cryptocurrencies the value is usually derived from exchanges (very similar to traditional stock exchanges) where bids are placed for buying and selling an asset and an average value is therefore established for that stock.

As a Bitcoin backed asset that uses the Bitcoin blockchain via Counterparty, the rising prices of BTC and XCP thus increases the value of Scotcoin.  So with 1 BTC now costing over £2,000, the price of Scotcoin being based on BTC has gone up.  Effectively your Scotcoin is now worth more!

What sort of an investment is Scotcoin?

So if you bought just £100 of Scotcoin just 2 years ago, it’s now worth over £20,000.  The Scotcoin Project CIC as a non-profit company, will continue to spread the word about Scotcoin, increase the users, find new merchants willing to accept Scotcoin as a trade, and promote the use of cryptocurrencies in Scotland generally.

Where can I buy Scotcoin?

When The Scotcoin Project first launched, one of the main questions we got asked was: “How can I buy Scotcoin?”  People didn’t necessarily want to set up trading accounts and buy Bitcoin then transfer it into Scotcoin, so we set up a very simple £ to SCOT exchange.  You can access it here and buy directly from £ to SCOT:

https://exchange.scotcoinproject.com/

Fintech II – a news update

fintech ScotlandText of a speech made by Scotcoin Investor, Temple Melville at Fintech II

Ladies and gentlemen

Daniel Broby very kindly asked me to come and say a few words to do with Scottish Fintech.

My name is Temple Melville and I am one of the major investors in the Scotcoin Ecosystem.

 Our task is to make Scotcoin Scotland’s very own digital currency, which will support Scottish business and make Scotland a leader in the world of Fintech. To that end we intend to implement our business plan in Q3 this year when we will be migrating Scotcoin to a private blockchain that will be fully KYC and AML compliant. Read more

Scotcoin Exchange price update May

SCOTCOIN EXCHANGE PRICE

The on-going strength of the Bitcoin price is leading to a basic adjustment in values right across the crypto-currency world. As we speak, the Bitcoin price has reached $1733 up from around $300 last year. This is approximately £1340 per Bitcoin, well above the price of an ounce of Gold.

With this in mind, we recently increased the price on https://exchange.scotcoinproject.com/ from £10 per 5000 SCOT to £15 per 5000 Scot. The increase in the Bitcoin price is forcing us to increase the price on the exchange again. As of now, the price on CounterpartyDEX equates to over £23 per 5000.

Accordingly the sale price of Scotcoin on the exchange will, with immediate effect, increase to £20 per 5000.

We reserve the right to change the price on the Exchange without notice

Important notice for Scotcoin holders with Bittrex accounts

IMPORTANT NOTICE FOR SCOTCOIN HOLDERS WITH BITTREX ACCOUNTS.

As from 18 March 2017 it has no longer been possible to trade Scotcoin on the Bittrex exchange.

We understand that holders of Scotcoin with balances on Bittrex have a maximum of 14 days to transfer their balances to their Counterparty wallet. We have spoken to Bittrex and it is unclear what happens after 14 days but The Scotcoin Project will be pleased to assist any Scotcoin holder with their transfer should they require it. This notice affects less than 2% of our user base.

Bittrex determines which currencies to list on its exchange and is influenced by the volume of transaction fees associated with the currency. Currencies which attract excessive speculation also attract excessive trading volumes and commissions.  The Scotcoin Project does not wish to be associated with such exchanges, currencies and speculators. We are currently working on our own crypto currency exchange and we hope to be in a position to make an announcement in the coming months.

Holders who are unsure of what action to take should seek professional advice.

Glasgow Rocks promo vid

Our newest promo video being shown during the next Glasgow Rocks game is up for preview! Check it out at the videos page.

If anybody in our community has time to spare and would care to volunteer some of their expertise for Scotcoin, we’d love to hear from you! Reply to this topic or get in touch to learn more about how you can help,

Scotcoin announce Glasgow Rocks Sponsorship

Scotcoin and Glasgow Rocks, Scotland’s only pro basketball team are proud to announce that they have concluded a sponsorship deal making Scotcoin uniform sponsors for the upcoming season. The Scotcoin logo will appear both front and back of the team uniform.
IMG_7300 (2) - Whole Team resizeAbove we see the team displaying the back of the shirts. Stand by for a further announcement regarding the shirt fronts coming soon!!!

Scotcoin Project director, Willie Fleming said “ We are delighted to be associated with  a sport and a club that has deep roots in the community and amongst the young. The Rocks  are Scotland’s only professional basketball team and competes in a British league. We look forward to working together getting the Scottish brand out there”.

Tickets for all Rocks matches, both home and away will shortly be available for purchase with Scotcoin.