9 Reasons Bitcoin Could Hit $100,000 Or More

I bought $1k of the Top 10 Cryptos on January 1st, 2020 (Sept Update)

I bought $1k of the Top 10 Cryptos on January 1st, 2020 (Sept Update)

EXPERIMENT - Tracking Top 10 Cryptos of 2020 - Month Nine - UP +56%
See the full blog post with all the tables here.
tl;dr
  • I thought I'd mix it up and start with the 2020 Top Ten first this month.
  • Rough month, but still way up in 2020, and still way ahead of the stock market.
  • I purchased $100 of each of Top Ten Cryptos in Jan. 2020, haven't sold or traded. Did the same in 2018 and 2019. Learn more about the history and rules of the Experiments here.
  • Sept - down month for 2020 Top Ten, except for BNB, which crushed it (+25%)
  • Overall since Jan. 2020 - ETH in the lead (+187%), BNB in distant second place. 100% of 2020 Top Ten are in positive territory and have a combined ROI of +56% vs. +5% of the S&P
  • Combining all three three years, Top Ten cryptos underperforming S&P if I'd taken a similar approach.

Month Nine – UP 56%

2020 Top Ten Overview
After a rough start to the month, most of crypto had a Wake Me Up When September Ends moment. For the 2020 Top Ten Portfolio, it was bad, but could have been (as has been) much worse: it was the best performing of the Top Ten “Index Fund” Experiments in September and at least one of the cryptos (BNB up +25%) had a great month.

Question of the month:

In September, this decentralized exchange (DEX) overtook Coinbase in trading volume:

A) UniswapB) AaveC) CompoundD) Both A and B
Scroll down for the answer.

Ranking and September Winners and Losers

2020 Top 10 Rank
Lots of movement this month: six out of the Top Ten changed positions in September. BCH climbed one from #6 to #5 and BNB made a big move from #10 to #6. Going the opposite direction were BSV, EOS, and Tezos, dropping one, two, and four places respectively.
The big story though, at least for anyone who’s been watching crypto for a while, was the ejection of Litecoin from the Top Ten. In just 30 days, LTC fell five places from #7 to #12. For some context, Litecoin’s absence from the Top Ten is a Top Ten Experiment first. It is also the first time since CoinMarketCap has tracked crypto rankings that Litecoin has not has not held a spot in the Top Ten.
Drop outs: after nine months of the experiment, 30% of the cryptos that started 2020 in the Top Ten have dropped out. LTC, EOS, and Tezos have been replaced by ADA, LINK, and most recently, DOT.
September Winners – Winner, singular: BNB was the only crypto to finish in the green, finished up +25% for the month, and gained four places in the rankings. A very good month for Binance Coin.
September LosersTezos was the worst performing crypto of the 2020 Top Ten portfolio, losing nearly a third of its value, down -31% for the month. LTC also had a bad month, losing -24% and dropping out of the Top Ten.
Since COVID-19 has hammered the sporting world, let’s be overly competitive and pit these cryptos against each other, shall we? Here’s a table showing which cryptos have the most monthly wins and losses nine months into the 2020 Top Ten Crypto Index Fund Experiment:

Wins/Losses
ETH is in the lead three monthly Ws, followed by Tether and Tezos with two wins each. Even though it is up +79% since January 1st, 2020, BSV has the most monthly losses: it has been the worst performing crypto of the group four out of the first nine months in 2020.

Overall update – ETH maintains strong lead, followed by BNB. 100% of Top Ten are in positive territory.

Ethereum remains firmly in the lead, up +187% on the year. Thanks to a strong month for BNB and a weak month for Tezos, Binance Coin has overtaken XTZ for second place, and is now up +109% in 2020.
Discounting Tether (no offense Big-T), EOS (+4%) is the worst performing cryptocurrency of the 2020 Top Ten Portfolio. 100% of the cryptos in this group are in positive territory.

Total Market Cap for the cryptocurrency sector:

The overall crypto market lost about $35B in September, ending the month up +85% since the beginning of this year’s experiment in January 2020. Despite a rough month, this is the second highest month-end level since the 2020 Top Ten Experiment started nine months ago.

Bitcoin dominance:


Monthly BitDom - 2020
BitDom ticked up slightly this month, but is still lower than it has been for most of the year. As always, a low BitDom reflects a greater appetite for altcoins. For context, the BitDom range since the beginning of the experiment in January 2020 has been roughly between 57% and 68%.

Overall return on investment since January 1st, 2020:

After an initial $1000 investment on January 1st, the 2020 Top Ten Portfolio is now worth $1,536, up +56%. This is the best performing of the three Top Ten Crypto Index Fund Portfolios, but not by much: the 2019 Top Ten came in at +54% in September.
Here’s the month by month ROI of the 2020 Top Ten Experiment, hopefully helpful to maintain perspective and provide an overview as we go along:
Monthly ROI - 2020 Top Ten
Even during the zombie apocalypse blip in March, the 2020 Top Ten has managed to end every month so far in the green (for a mirror image, check out the all red table you’ll find in the 2018 experiment). The range of monthly ROI for the 2020 Top Ten has been between a low of +7% in March and high of +83% in August.
So, how does the 2020 Top Ten Experiment compare to the parallel projects?
Taken together, here’s the bottom bottom bottom line for the three portfolios:
After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, the combined portfolios are worth $‭3,340‬ ($238+ $1,538 +$1,564).
That’s up about +11% for the three combined portfolios, compared to +31% last month.
Here’s a table to help visualize the progress of the combined portfolios:
Combined ROI - UP +11%
That’s a +11% gain by buying $1k of the cryptos that happened to be in the Top Ten on January 1st, 2018, 2019, and 2020.
But what if I’d gone all in on only one Top Ten crypto for the past three years? While many have come and gone over the life of the experiment, five cryptos have started in Top Ten for all three years: BTC, ETH, XRP, BCH, and LTC (Big L, no pressure, but if you don’t claw yourself back in the Top Ten by January 2021, you’re out of the club). Let’s take a look:

Three Year Club
At this point in the Experiments, Ethereum (+104%) would have easily returned the most, followed by BTC (+77%). On the other hand, following this approach with XRP, I would have been down nearly a third at -31%.
So that’s the Top Ten Crypto Index Fund Experiments snapshot. Let’s take a look at how traditional markets are doing.

Comparison to S&P 500

I’m also tracking the S&P 500 as part of my experiment to have a comparison point to traditional markets. The S&P slipped a bit from an all time high in August and is now up just +5% in 2020.
Over the same time period, the 2020 Top Ten Crypto Portfolio is returning about +56%. The initial $1k investment in crypto is now worth about $1,563. That same $1k I put into crypto in January 2020 would be worth $1050 had it been redirected to the S&P 500 instead. That’s a $513 difference on a $1k investment, one of the largest gaps in favor of crypto all year.
But that’s just 2020. What about in the longer term? What if I invested in the S&P 500 the same way I did during the first three years of the Top Ten Crypto Index Fund Experiments? What I like to call the world’s slowest dollar cost averaging method? Here are the figures:
  • $1000 investment in S&P 500 on January 1st, 2018 = $1260 today
  • $1000 investment in S&P 500 on January 1st, 2019 = $1350 today
  • $1000 investment in S&P 500 on January 1st, 2020 = $1050 today
So, taken together, here’s the bottom bottom bottom line for a similar approach with the S&P:
After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,660.
That $3,660 is up +22% since January 2018, compared to a +11% gain of the combined Top Ten Crypto Experiment Portfolios over the same period of time.
That’s an 11% swing in favor of the S&P 500 and breaks a two month mini-streak of wins from the Top Ten crypto portfolios.
For those keeping track or unable to see the table above: that’s seven monthly victories for the S&P vs. two monthly victories for crypto. The largest gap so far was a 22% difference in favor of the S&P back in June.

Conclusion:

September saw losses for both traditional and crypto markets, but crypto got hit harder. What can we expect for the rest of 2020? The Neverending Year is entering the final quarter and is not finished with us yet: a lot can and will happen in the remaining months. More volatility is no doubt to come as we enter the final stretch of a truly unpredictable and exhausting year. Buckle up.
Stay healthy and take care of yourselves out there.
Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the 2019 Top Ten Experiment follow up experiment.

And the Answer is…

A) Uniswap
As part of the DeFi/DEX wave, in late August/early September, Uniswap surpassed Coinbase in trading volume.
submitted by Joe-M-4 to CryptoCurrency [link] [comments]

I bought $1k of the Top 10 Cryptos on January 1st, 2019 (Sept Update)

I bought $1k of the Top 10 Cryptos on January 1st, 2019 (Sept Update)

EXPERIMENT - Tracking Top 10 Cryptos of 2019 - Month Nine - UP +54%
See the full blog post with all the tables here.
tl;dr
  • I like moons, I like music. I also like burying musical references in crypto reports. First one to name the two musical references gets some moons.
  • Remember the panic in early Sept? Despite a tough month, the 2019 Top Ten are +54% and still well ahead of the stock market.
  • What's this all about? I purchased $100 of each of Top Ten Cryptos in Jan. 2019, haven't sold or traded. Did the same in 2018 and 2020. Learn more about the history and rules of the Experiments here.
  • September - all cryptos in the red, so I guess Tether wins the month.
  • Overall since Jan. 2019 - ETH loses lead to BTC which is +189%. Only 2 out of the Top Ten in negative territory.
  • Combining all three three years, Top Ten cryptos underperforming S&P if I'd taken a similar approach.

Month Twenty One – UP 54%

2019 Top Ten Summary for September
Although crypto recovered a bit from an early September dive, the 2019 Top Ten Portfolio ended the month completely in the red, similar to what we saw in June. Litecoin dropped out of the Top Ten this month, the first time since these Experiments began.

Question of the month:

In September, Tether moved 1 billion USDT coins from TRON to this blockchain:

A) Ethereum B) Neo C) Polkadot D) EOS
Scroll down for the answer.

Ranking and September Winners and Losers

2019 Top Ten Ranking
Here come the new coins: with the exception of BCH (up one place from #6 to #5) every crypto either remained in place or dropped. BSV, down one place, EOS and Tron down two, and Stellar fell three. Litecoin dropped a massive five places to land itself outside of the Top Ten, the first time since I began the Experiments back in January 2018.
Due to Litecoin’s expulsion from the Top Ten, 40% of the crypotos have dropped out of the Top Ten since January 1st, 2019: Tron, Stellar, Litecoin and EOS have been replaced by BNB, DOT, ADA, and LINK.
September Winners – With all cryptos in the red, stablecoin Tether outperformed the rest. BTC finished second, down -8% in September, followed by BSV, down -10%.
September LosersLTC had a truly horrible month, losing nearly a quarter of its value (-24%), falling five places in the ranking, and falling out of the Top Ten. Close behind was Stellar and ETH, down -23% and -22%.
For overly competitive nerds, here is a tally of which coins have the most monthly wins and losses during the first 21 months of the 2019 Top Ten Experiment:
2019 Ws and Ls
Depressingly, Tether is still far ahead with seven monthly victories, more than twice as much as second place BSV and ETH. And although BSV is up 87% since January 2019, it dominates the monthly loss count: it has now finished last in eight out of twenty-one months.
Swing trade anyone?
And XRP is still the only crypto that has yet to notch a win.

Overall update – BTC takes lead from ETH. Stellar now worst performing since Jan. 1st, 2019

After briefly pulling ahead of BTC last month, ETH gave up its overall lead in September. The top two are up +189% and +169% respectively followed distantly by BSV, up +87% since January 2019. The initial $100 investment in BTC is currently worth $295.
Twenty-one months into the 2019 Top Ten Index Fund Experiment, 80% of the 2019 Top Ten cryptos are either flat or in the green. The other two cryptos are well in negative territory: last place Stellar (-33%) and second to last place XRP (-32%) have each lost about one third of their value since January 2019).
At +54%, the 2019 Top Ten Portfolio is just behind the 2020 Top Ten Portfolio’s +56% gain and both are far, far ahead of the 2018 group (much more on that below).

Total Market Cap for the entire cryptocurrency sector:

Monthly total market cap, since Jan 2019
Since January 2019, the total market cap for crypto is up +176%. The overall market fell around $35B in September, ending the month around $351B. Despite the tough month, this is the second highest month-end level since the 2019 Top Ten Experiment started 21 months ago.

Bitcoin dominance:

BitDom ticked up slightly this month, but is trending lower than the last year or so, where it had remained in the mid-60s%. As always, a low BitDom signals a greater appetite for altcoins. Zooming out, the BitDom range since the beginning of the experiment in January 2019 has been between 50%-70%.

Overall return on investment since January 1st, 2019:

The 2019 Top Ten Portfolio lost nearly $300 in September. After the initial $1000 investment, the 2019 Top Ten Crypto Portfolio is worth $1,538. That’s up about +54%.
Here’s a look at the ROI over the life of the first 21 months of the 2019 Top Ten Index Fund experiment, month by month:
Monthly ROI on Top Ten since Jan 2019
Unlike the completely red table you’ll see in the 2018 Top Ten Experiment, the 2019 crypto table is almost all green. The first month was the lowest point (-9%), and the highest point (+114%) was May 2019.
At +54%, the 2019 Top Ten Portfolio is now the second best performing out of the three but just barely (the 2020 Top Ten is up +56%).
Speaking of the other Experiments, let’s take a look at how the 2019 Top Ten Index Fund Portfolio compare to the parallel projects:
Taking the three portfolios together, here’s the bottom bottom bottom line:
After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my combined portfolios are worth $‭3,340‬ ($238+ $1,538 +$1,564).
That’s up about +11% for the three combined portfolios, compared to +31% last month.
Lost in the numbers? Here’s a table to help visualize the progress of the combined portfolios:
Combined ROI on $3k over 3 years - UP +11%
To sum up: 11% gain by dropping $1k once a year on whichever cryptos happened to be in the Top Ten on January 1st, 2018, 2019, and 2020.
But what if I’d gone all in on only one Top Ten crypto for the past three years? While many have come and gone over the life of the experiment, only five cryptos have started in Top Ten for all three years: BTC, ETH, XRP, BCH, and LTC (Litecoin, no pressure, but if you’re not back in the Top Ten in the next few months, you’re out of the club). Let’s take a look at those five:

ETH leading the three year club
Ethereum (+104%) would have returned the most at this point, followed by BTC (+77%). On the other hand, following this approach with XRP, I would have been down -31%.
Alright, that’s crypto. How does crypto compare to the stock market?

Comparison to S&P 500:

I’m also tracking the S&P 500 as part of the experiments to have a comparison point with traditional markets. Although the S&P fell from an all time high the month before, it is up +35% since January 2019.
The initial $1k investment I put into crypto 21 months ago would be worth $1,350 had it been redirected to the S&P 500 in January 2019. +35%, not bad at all. But the 2019 Top Ten Portfolio is up +54% over the same time period.
That’s 2019. But what if I took the same world’s-slowest-dollar-cost-averaging $1,000-per-year-on-January-1st crypto approach with the S&P 500? It would yield the following:
  • $1000 investment in S&P 500 on January 1st, 2018 = $1260 today
  • $1000 investment in S&P 500 on January 1st, 2019 = $1350 today
  • $1000 investment in S&P 500 on January 1st, 2020 = $1050 today
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P:
After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,660.
That is up +22% since January 2018, compared to a +11% gain of the combined Top Ten Crypto Experiment Portfolios.
As you can see in the table below, that’s a 11% swing in favor of the S&P 500. September breaks a two month mini-streak of wins from the Top Ten crypto portfolios.
S&P takes the lead in Sept.

Conclusion:

After a strong August, both the stock and crypto markets fell in September. In a year that feels neverending, a lot can and will happen in the remaining months of 2020.
Be safe and take care of each other out there.
Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the 2020 Top Ten Experiment.

And the Answer is…

A) Ethereum
In September, Tether moved 1 billion additional USDT coins (7% of its total supply) from TRON to the Ethereum blockchain.
submitted by Joe-M-4 to CryptoCurrency [link] [comments]

Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
submitted by flacciduck to CryptoCurrency [link] [comments]

I put all my savings into ETH at $16 in 2017

From rags to riches and back to rags.
I became aware of Bitcoin in 2012, but didn't invest until 2014 @ $440. A few years prior, it had hit $1k, dropped, and much of the public lost interest except for users of Silk Road. I sold all my BTC once it hit $1k for the second time.
The more I read about ETH, the more I was convinced that this shit was wild. I didn't get it at first, but given my background (product engineering) I started to recognize use cases that Ethereum could take on: Debt vehicles owned by communities (rather than..JP Morgan). Music platforms owned by users. Ethereum is/was a software engineer's economic API. Prior to Ethereum, we could write apps that fit into real-world government/economies, but now, we could write entire governments and economies -- and we all know the economy is mankind's most influential behavioral system.
Once that clicked, I put all my money into Ethereum. I told my friends and family to invest a bit too. I bought some in February of 2017 and continued to buy until my ether chest became my savings. Once ETH breached $100, I was extremely confident that the world was seeing Ethereum for what I saw (an economic/government-building toolset) -- wow was I wrong.
ETH grew and grew, as we all know, topping out around ~$1400. I vividly remember waking up one morning, checking how much $ my investment was worth -- almost a half million. "I'll sell some once my stake reaches $500k," I said to myself idiotically. The prior night, I had gotten into a debate with a friend (who also invested) who had doubts about how long the asset would increase. I argued that the utility of Ethereum had barely hit the market, he argued that had nothing to do with the rise -- he was right. The rise of price was fueled by people telling friends/family 'I JUST MADE THIS MUCH MONEY YOU HAVE TO INVEST!!!', and had absolutely nothing to do with Ethereum's true value to society.
My friend sold all of his investment around this time. I did not. I watched my investment dwindle from some ~$450k to just a few thousand. During this time, I was funding my business, so I would sell my ETH slowly as the price dropped. My stack of crypto is almost nothing today, but one thing I took away was the value of money.
When my stack had reached nearly half a million, I felt the same as I do today. I felt the same as I did before I earned the money. Nothing in my life changed -- my happiness was exactly the same, except for the fact that I didn't have any stress around money. What made me happy was using my money for good causes - I donated a decent amount to ocean relief funds and used my money to build a business which made people happy via convenience.
I'm sharing this because I don't know how many other people have made half a million dollars in under a year (after being broke), then lost it all, but I'm sure it's not common. This experience taught me the value of money and its limits to happiness contributions. That said -- when you're under the poverty line, the personal value of money is way higher. It's like a maslow's hierarchy of needs situation -- once you've satisfied your basic financial needs, your increase in happiness is fueled by further endeavors outside of 'earning money'.
submitted by MycologistMan to ethtrader [link] [comments]

Bitcoin Newcomers FAQ - Please read!

Welcome to the /Bitcoin Sticky FAQ

You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.
It all started with the release of the release of Satoshi Nakamoto's whitepaper however that will probably go over the head of most readers so we recommend the following videos for a good starting point for understanding how bitcoin works and a little about its long term potential:
Some other great resources include Lopp.net, the Princeton crypto series and James D'Angelo's Bitcoin 101 Blackboard series.
Some excellent writing on Bitcoin's value proposition and future can be found at the Satoshi Nakamoto Institute.
Some Bitcoin statistics can be found here and here. Developer resources can be found here. Peer-reviewed research papers can be found here.
Potential upcoming protocol improvements and scaling resources here and here.
The number of times Bitcoin was declared dead by the media can be found here (LOL!)

Key properties of Bitcoin

Where can I buy bitcoins?

Bitcoin.org and BuyBitcoinWorldwide.com are helpful sites for beginners. You can buy or sell any amount of bitcoin (even just a few dollars worth) and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also check out the bitcoinity exchange resources for a larger list of options for purchases.
Here is a listing of local ATMs. If you would like your paycheck automatically converted to bitcoin use Bitwage.
Note: Bitcoins are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. Preev is a useful site that that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".

Securing your bitcoins

With bitcoin you can "Be your own bank" and personally secure your bitcoins OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoins for you.
Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!
2FA requires a second confirmation code to access your account making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.
Google Auth Authy OTP Auth
Android Android N/A
iOS iOS iOS

Watch out for scams

As mentioned above, Bitcoin is decentralized, which by definition means there is no official website or Twitter handle or spokesperson or CEO. However, all money attracts thieves. This combination unfortunately results in scammers running official sounding names or pretending to be an authority on YouTube or social media. Many scammers throughout the years have claimed to be the inventor of Bitcoin. Websites like bitcoin(dot)com and the btc subreddit are active scams. Almost all altcoins (shitcoins) are marketed heavily with big promises but are really just designed to separate you from your bitcoin. So be careful: any resource, including all linked in this document, may in the future turn evil. Don't trust, verify. Also as they say in our community "Not your keys, not your coins".

Where can I spend bitcoins?

Check out spendabit or bitcoin directory for millions of merchant options. Also you can spend bitcoin anywhere visa is accepted with bitcoin debit cards such as the CashApp card. Some other useful site are listed below.
Store Product
Gyft Gift cards for hundreds of retailers including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
Spendabit, Overstock and The Bitcoin Directory Retail shopping with millions of results
ShakePay Generate one time use Visa cards in seconds
NewEgg and Dell For all your electronics needs
Bitwa.la, Coinbills, Piixpay, Bitbill.eu, Bylls, Coins.ph, Bitrefill, LivingRoomofSatoshi, Coinsfer, and more Bill payment
Menufy, Takeaway and Thuisbezorgd NL Takeout delivered to your door
Expedia, Cheapair, Destinia, Abitsky, SkyTours, the Travel category on Gyft and 9flats For when you need to get away
Cryptostorm, Mullvad, and PIA VPN services
Namecheap, Porkbun Domain name registration
Stampnik Discounted USPS Priority, Express, First-Class mail postage
Coinmap and AirBitz are helpful to find local businesses accepting bitcoins. A good resource for UK residents is at wheretospendbitcoins.co.uk.
There are also lots of charities which accept bitcoin donations.

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;
If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read more here. Still have mining questions? The crew at /BitcoinMining would be happy to help you out.
If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node using this setup guide. If you would prefer to keep it simple there are several good options. You can view the global node distribution here.

Earning bitcoins

Just like any other form of money, you can also earn bitcoins by being paid to do a job.
Site Description
WorkingForBitcoins, Bitwage, Cryptogrind, Coinality, Bitgigs, /Jobs4Bitcoins, BitforTip, Rein Project Freelancing
Lolli Earn bitcoin when you shop online!
OpenBazaar, Purse.io, Bitify, /Bitmarket, 21 Market Marketplaces
/GirlsGoneBitcoin NSFW Adult services
A-ads, Coinzilla.io Advertising
You can also earn bitcoins by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins.

Bitcoin-Related Projects

The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.
Project Description
Lightning Network Second layer scaling
Blockstream, Rootstock and Drivechain Sidechains
Hivemind and Augur Prediction markets
Tierion and Factom Records & Titles on the blockchain
BitMarkets, DropZone, Beaver and Open Bazaar Decentralized markets
JoinMarket and Wasabi Wallet CoinJoin implementation
Coinffeine and Bisq Decentralized bitcoin exchanges
Keybase Identity & Reputation management
Abra Global P2P money transmitter network
Bitcore Open source Bitcoin javascript library

Bitcoin Units

One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:
Unit Symbol Value Info
bitcoin BTC 1 bitcoin one bitcoin is equal to 100 million satoshis
millibitcoin mBTC 1,000 per bitcoin used as default unit in recent Electrum wallet releases
bit bit 1,000,000 per bitcoin colloquial "slang" term for microbitcoin (μBTC)
satoshi sat 100,000,000 per bitcoin smallest unit in bitcoin, named after the inventor
For example, assuming an arbitrary exchange rate of $10000 for one Bitcoin, a $10 meal would equal:
For more information check out the Bitcoin units wiki.
Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit.
Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.
Welcome to the Bitcoin community and the new decentralized economy!
submitted by BitcoinFan7 to Bitcoin [link] [comments]

Some Bitcoin Analysts and Prediction Today and Yesterday & Why "It's not the Price, Dummy"

This is just for fun, I generally have no strong feelings toward bitcoin price (I'm just fundamentally against zero-sum get rich schemes). But today I decided to do a little bitcoin search in news.google.com and see what today's bulls were predicting in 2018. Side note, almost all of the news articles came from crypto sites. I tried my best to stay away from them. Farming magazine telling you agriculture is the future isn't exactly shocking.
To people who invest, please don't consider this as a prediction that price will fall. I'm not astute or smart enough to predict either way. The only possible use is to make sure you are more skeptic regarding predictions. Keep in mind, a rich CEO or consultant can lose 100 million and not really affect his life that much, but a 10k or 100k lose for some people can be devastating. And remember, some of these rich hedge managers don't believe their own bullshit, and hopefully, some of these quotes will emulate that.
(Note, I won't waste time linking them all, but by quoting them directly, it should be easy to google)
(another side note, I didn't purposely search out specific names. I went by the first names I came across, and only ignoring those that I couldn't find anything regarding crypto in past years)

Mike Novogratz

Present: Business Inside: Bitcoin is like 'digital gold' and won't be used the same as a traditional currency in at least 5 years, billionaire investor Mike Novogratz says
Past: On Nov, 2017, he said: "Bitcoin could ‘easily’ reach $40,000 by the end of 2018, hedge fund legend Novogratz says"
2018: "Michael Novogratz calls a bottom in cryptocurrencies" (it wasn't)
Novogratz started a crypto funding in 2018. First 9 months "Mike Novogratz’s Crypto Trading Desk Lost $136 Million in Nine Months" (Bloomberg). Quarter 4: "Galaxy Digital Posts $32.9 Million in Net Loss for Q4 2019". Feb 2020 "Mike Novogratz’s Galaxy Digital Slashes 15% Staff"

Raoul Pal

Present: "For Raoul Pal, CEO of Real Vision, the bullish atmosphere had been reinforced, and further gains were more likely than ever.
“There are literally only two resistances left on the #bitcoin chart - 14,000 and then the old all-time high at 20,000,” he tweeted."
In a tweet today, he said, "Bitcoin is eating the world...
It has become a supermassive black hole that is sucking in everything around it and destroying it. This narrative is only going to grow over the next 18 months.
You see, gold is breaking down versus bitcoin...and gold investors will flip to BTC"
Past: 2014: "Put them in the same kind of equation we get a value of bitcoin and that value is a million dollars. Now, you'll never hear an analyst say this—but I don't mind this—I could be wrong by 90%, and it's still worth $100,000." (to be honest, that's a bit of an impressive prediction in 2014)
On the other hand, he probably didn't really believe his own prediction because in June, 2017 (when it was 2000 USD or so), he said: " “This is the most exponential move we have seen. I don’t know how far it goes, but I sold out last week… and I’ve [owned Bitcoin] since it was $200. Anything that moves exponentially, always [blows up].”"
In 2016, "This view brings Pal to the asset he favors most over the next year out of bonds, equities, currencies and commodities: the dollar."

---

Eh, that was just two. I was hoping to mention several people, but it appears not many people are actually making predictions anymore, and anyone mentioned are basically not big people so I couldn't find much on them regarding bitcoin before 2019.
So, the main thing I like to highlight are the analysts and such are going to make money whatever happens. Fund managers are playing with people's money and, as long as they are not involved in frauds, there is no real harm to them against wrong predictions. Generally, successful business people are successful because they were loud, confident, and were able to convince others that they had the right idea. Even when wrong, they bounce back. Most of us aren't like that.
Some bitcoiners come here to boast when price goes up, as if the increase in price is an indication that argument against bitcoin has been proven wrong. While some people here are fanatically anti-bitcoin, I am not one of those. I have nothing against people making money (why would I be upset that people I don't know around the world became wealthier??). But since bitcoin investing is by design a zero sum game, certain people will eventually lose, and it is most likely it is the people who were listening to predictions by experts that would ultimately be financially hurt, and not the experts making the predictions.
Crypto investing has been a platform where the average person works hard in his day to day life, and then brings the fruits of his labor into this field. The actual productive part of that person's life is the one outside crypto, where they had been productive for the community, and in exchange, they receive wages. Crypto investing's promise is for this wage to increase without the actual productivity. The concern is mainly that the result of all that labor will be misused by crypto "experts" who's own income (their labor) is directly linked to predictions on crypto.
The above paragraph is badly explained, but the main point is that the average person brings in outside money they worked hard for, while "experts" there is generally no outside money, crypto fund management or consulting itself is their job.
---
Money can be made, of course, but money being made isn't necessarily an argument for something. Bitcoin, and crypto, has for the past 1.5 decades still largely just about numbers going up. Google trend on "bitcoin" show top related queries being "bitcoin price", "bitcoin usd", "bitcoin usd price". When people come here when it hits a particular arbitrary price point thinking it's their gotcha moment, it actually just reinforces my argument that it is only about the price. Nothing in the history of human economy has ever lasted based only on the economic model of who you could resell it for at a higher price.
Even DeFi's smart contracts (as much as I could understand it) is about prices going up. It's like for these people the concept of contracts are based purely on money exchanging hands, and no actual task being done. Almost all contracts globally are based on specific productive tasks being done, such as employee contract, supplier contract, property contract, and so on. Only a tiny amount of it is based on "if this currency goes up, then give me that currency" contracts.
---
submitted by madali0 to Buttcoin [link] [comments]

$1k in Top Ten Cryptos of 2020 vs. the S&P 500 so far this year

$1k in Top Ten Cryptos of 2020 vs. the S&P 500 so far this year

EXPERIMENT - Tracking Top 10 Cryptos of 2020 - Month Eight - UP +83%
See the full blog post with all the tables here.
tl;dr
  • Don't panic, crypto is still crushing the stock market in 2020
  • purchased $100 of each of Top Ten Cryptos in Jan. 2020, haven't sold or traded. Did the same in 2018 and 2019. Learn more about the history and rules of the Experiments here.
  • August - strong month for 2020 Top Ten led by ETH and Tezos
  • Since Jan. 2020 - ETH, ETH, ETH, far far ahead (+266%). Tezos a distant second at +158%. 100% of 2020 Top Ten are in positive territory and have a combined ROI of +83% vs. +9% of the S&P
  • Combining all three three years, Top Ten cryptos outperforming S&P if I'd taken a similar approach.

Month Eight – UP 83%

2020 Top Ten overview - UP +83%
By the slimmest of margins, the 2020 Top Ten Portfolio has reclaimed its status as the best performing of the Top Ten “Index Fund” Experiments. ETH had a great month, up +32% and all cryptos were in the green except the forks.

Question of the month:

In August, which socialite sold a drawing of her cat for $17,000 worth of Ethereum?

A) Ivanka Trump
B) Paris Hilton
C) Kim Kardashian
D) That other one
Scroll down for the answer.

Ranking and August Winners and Losers

2020 Top Ten Rank
Despite another strong month overall, most of our 2020 Top Ten Cryptos either held steady or lost ground. XRP, BCH, and EOS each fell one position to #4, #6, and #12. BSV dropped two spots from #6 to #8. Heading the other direction, stablecoin Tether ended August climbing back up to #3.
August WinnersETH backed up July‘s massive +55% gain with another very solid month, finishing August up +32%. Tezos finished in second place, +15% on the month.
August LosersBSV and BCH were the worst performing of the 2020 Top Ten Portfolio, down -17% and -9% respectively
Since COVID-19 has hammered the sporting world, let’s be overly competitive and pit these cryptos against themselves, shall we? Here’s a table showing which cryptos have the most monthly wins and losses at this point in the experiment. With its second straight win ETH is now in the lead with three monthly Ws. On the other hand, BSV, even though it is up +100% since January 1st, 2020, has been the worst performing crypto of the bunch four out of the first eight months so far this year.
2020 Top Ten Ws and Ls

Overall update – ETH far out in front, followed Tezos. 100% of Top Ten are in positive territory.

Ethereum pulled farther ahead this month and now is up +266% on the year. Thanks to a strong month for Tezos and a week month for BSV, Tezos has now overtaken BSV for second place, up +158% in 2020. Discounting Tether (no offense Big-T), BCH (+32%) is now the worst performing cryptocurrency of the 2020 Top Ten portfolio. 100% of the cryptos in this group are in positive territory.

Total Market Cap for the cryptocurrency sector:

The overall crypto market gained almost $43B in August, ending the month up +104% since the beginning of this year’s experiment in January 2020.

Bitcoin dominance:

2020 monthly BitDom
BitDom finally saw significant movement in August: it fell to 56.8%, the lowest level of the year. This of course signals a greater appetite for altcoins. The range up to this point in the year has been roughly 57% to 68%.

Overall return on investment since January 1st, 2020:

After an initial $1000 investment, the 2020 Top Ten Portfolio is now worth $1,825, up +82.52%. It is back to being the best performing of the three Top Ten Crypto Index Fund Portfolios, but by the smallest of margins: the 2019 group came in at +82.51% in August.
Here’s the month by month ROI of the 2020 Top Ten Experiment, hopefully helpful to maintain perspective and provide an overview as we go along:
Monthly ROI to 2020 Top Ten
Even during the zombie apocalypse blip in March, the 2020 Top Ten managed to end every month so far in the green (for a mirror image, check out the all red table you’ll in the 2018 experiment). The range of monthly ROI for the 2020 Top Ten has been between a low of +7% in March and high of +83% in August.
So, how does the 2020 Top Ten Experiment compare to the parallel projects?
Taken together, here’s the bottom bottom bottom line:
After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my combined portfolios are worth $‭3,937‬ ($287+ $1,825 +$1,825).
That’s up about +31% for the three combined portfolios. It also marks the highest ROI of the three combined portfolios since I started keeping track in January 2020. The previous high was last month‘s +23%.
Lost in the numbers? Here’s a table to help visualize the progress of the combined portfolios:

ROI on $1k + $1k +$1k over three years
That’s a +31% gain by buying $1k of the cryptos that happened to be in the Top Ten on January 1st, 2018, 2019, and 2020.
But what if I’d gone all in on only one Top Ten crypto for the past three years? While most have come and gone over the life of the experiment, five cryptos have remained in Top Ten for all three years: BTC, ETH, XRP, BCH, and LTC. Let’s take a look at those five:
Three year club. ETH would have been your best bet.
At this point in the Experiments, Ethereum (+160%) would have easily returned the most, followed by BTC (+93%). On the other hand, following this approach with XRP, I would have been down -17%.
So that’s the Top Ten Crypto Index Fund Experiments snapshot. Let’s take a look at how traditional markets are doing.

Comparison to S&P 500

I’m also tracking the S&P 500 as part of my experiment to have a comparison point to traditional markets. The S&P continued its recovery and set an all time high in August. It is now up +9% in 2020.
S&P throughout 2020
Over the same time period, the 2020 Top Ten Crypto Portfolio is returning about +83%. The initial $1k investment in crypto is now worth about $1,825. That sane $1k I put into crypto in January 2020 would be worth $1090 had it been redirected to the S&P 500 instead. That’s a $735 difference on a $1k investment, the largest gap in favor of crypto all year.
But that’s just 2020. What if I invested in the S&P 500 the same way I did during the first three years of the Top Ten Crypto Index Fund Experiments? What I like to call the world’s slowest dollar cost averaging method? Here are the figures:
  • $1000 investment in S&P 500 on January 1st, 2018: +$310
  • $1000 investment in S&P 500 on January 1st, 2019: +$400
  • $1000 investment in S&P 500 on January 1st, 2020: +$90
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P:
After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,800.
That $3,800 is up over +27% since January 2018, compared to a +31% gain of the combined Top Ten Crypto Experiment Portfolios over the same period of time.
For the second month in a row, the better overall investment would be (drum roll please): the Top Ten Crypto Portfolios!
As you’ll see in the table below, this is only the second time since I started recording this metric that crypto has outperformed a hypothetical identical investment in the S&P.
Combined crypto vs. S&P over three years

Conclusion:

August was the second straight strong month in crypto and the 2020 Top Ten continue to do very well compared to traditional markets. As I’m putting together these reports, both crypto and traditional markets are diving, but these Experiments are great for a bit of perspective: there is no question that crypto has been a better investment than traditional markets so far this year. It’s not even close. How the rest of the year will develop is another question entirely, stay tuned and buckle up.
Stay healthy and take care of yourselves out there. Or better yet, just pop some popcorn and enjoy staying in.
Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the 2019 Top Ten Experiment follow up experiment.

And the Answer is…

B) Paris Hilton
At an auction in August, Paris Hilton sold a portrait of her cat that fetched 40 ETH, about $17,000 at the time. She donated the proceeds of the sale to charity.
That's hot.
submitted by Joe-M-4 to CryptoCurrency [link] [comments]

If you're stressed, zoom out - $1k in Top Ten Cryptos of 2019 is up +83%, double that of the S&P

If you're stressed, zoom out - $1k in Top Ten Cryptos of 2019 is up +83%, double that of the S&P

EXPERIMENT - Tracking Top 10 Cryptos of 2019 - Month Twenty - UP +83%
See the full blog post with all the tables here.
tl;dr:
  • purchased $100 of each of Top Ten Cryptos in Jan. 2019, haven't sold or traded. Did the same in 2018 and 2020. Learn more about the history and rules of the Experiments here.
  • August - solid month for the 2019 Top Ten, led by Tron and ETH.
  • Since Jan. 2019 - ETH takes lead from BTC. XRP worst performing since Jan. 1st, 2019
  • Over three years, cryptos outperforming S&P if I'd taken a similar approach.

Month Twenty – UP 83%

2019 Top Ten Overview
Although not quite a strong as red-hot July, the 2019 Top Ten Cryptos had a solid month. Overall, modest losses were offset by strong performances by Tron (+53%) and ETH (+32%).

Question of the month:

In August, this financial services giant filed for a new Bitcoin fund with the U.S. Securities and Exchange Commission (SEC).

A) Goldman Sachs B) Vanguard C) Charles Schwab D) Fidelity
Scroll down for the answer.

Ranking and August Winners and Losers

A whole lot of shaking going on this month as the 2019 Top Ten cryptos jostled for position. XRP, BCH, EOS, and XLM each fell one spot while BSV dropped two. Moving the other direction: Tether climbed up one, and is now back in the #3 position. Thanks to a very strong August, Tron made the most upward progress, advancing two slots to #14.
Only three cryptos have dropped out of the 2019 Top Ten since January 1st, 2019: Tron, Stellar, and EOS. Not bad after 20 months considering crypto’s volatility. As of August, they have been replaced by BNB, CRO, and LINK.
August WinnersTron, with a +53% gain, easily outperformed its peers. Tron was followed by ETH (+32%), a solid follow up to its +55% gain in July.
August LosersThe Forks. BCH and BSV under performed the pack, finishing the month down -17% and -9% respectively.
For overly competitive nerds, here is tally of which coins have the most monthly wins and loses during the first 20 months of the 2019 Top Ten Experiment: Tether is still in the lead with six monthly victories, twice as much as second place BSV and ETH. And although BSV is up over +100% since January 2019, it is running away with the monthly loss count: it has now finished last in eight out of twenty months. Swing trade anyone? XRP still hasn’t been able to take home a single W.
Ws and Ls

Overall update – ETH takes lead from BTC. XRP still worst performing since Jan. 1st, 2019

After three straight months ahead, BTC (+215%) lost its front-runner status to ETH (up +244% since January 2019). A distant third is BSV up +109%. The initial $100 investment in ETH is currently worth $353.
Twenty months in to the 2019 Top Ten Index Fund Experiment, 80% of the 2019 Top Ten cryptos are either flat or in the green. The other two cryptos are in negative territory, including last place XRP (down -19% since January 2019). At +82.5%, the 2019 Top Ten is essentially tied with the 2020 Top Ten, both far ahead of the 2018 group, which is down -71% (but trending upward).

Total Market Cap for the cryptocurrency sector:


Monthly market cap since Jan. 1, 2019
Since January 2019, the total market cap for crypto is up +204%. The overall market picked up nearly $43B in August and is approaching $400B. For the second month in a row, the market is at its highest month-end level since the 2019 Top Ten Experiment started 20 months ago.

Bitcoin dominance:

The last 20 months of BitDom
BitDom‘s wobble in July is nothing compared to the more than 5% dip we saw in August. It had been locked in the mid-60s% range for months, but started dipping in July, signaling a greater appetite for altcoins. Zooming out, the BitDom range since the beginning of the experiment in January 2019 has been between 50%-70%.

Overall return on investment since January 1st, 2019:

The 2019 Top Ten Portfolio gained over $100 in August, nothing like July‘s +$450 but still solid. After the initial $1000 investment, the 2019 group of Top Ten cryptos is worth $1,825. With some generous rounding, that’s up about +83%.
Here’s a look at the ROI over the life of the first 20 months of the 2019 Top Ten Index Fund experiment, month by month:
Month by month ROI of 2019 Top Ten
Unlike the completely red table you’ll see in the 2018 Top Ten Experiment, the 2019 crypto table is almost all green. The first month was the lowest point (-9%), and the highest point (+114%) was May 2019.
At +82.51%, the 2019 Top Ten Portfolio has lost its hard-fought position as the best performing of the three Top Ten Experiments, but just barely (the 2020 Top Ten is up +82.52%)
Speaking of the other Experiments, let’s take a look at how the 2019 Top Ten Index Fund Portfolio compare to the parallel projects:
Taking the three portfolios together, here’s the bottom bottom bottom line:
After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my combined portfolios are worth $‭3,937‬ ($287+ $1,825 +$1,825).
That’s up about +31% for the three combined portfolios. It also marks the highest ROI of the three combined portfolios since I started keeping track in January 2020. The previous high was last month‘s +23%.
Here’s a table to help visualize the progress of the combined portfolios:
Combined ROI on $3k
That’s a +31% gain by dropping $1k once a year on whichever cryptos happened to be in the Top Ten on January 1st, 2018, 2019, and 2020.
But what if I’d gone all in on only one Top Ten crypto for the past three years? While many have come and gone over the life of the experiment, five cryptos have remained in Top Ten for all three years: BTC, ETH, XRP, BCH, and LTC. Let’s take a look at those five:
Three year club - ETH out in front
Ethereum (+160%) would have returned the most at this point, followed by BTC (+93%). On the other hand, following this approach with XRP, I would have been down -17%.
Alright, that’s crypto. How does crypto compare to the stock market?

Comparison to S&P 500:

I’m also tracking the S&P 500 as part of the experiments to have a comparison point with more traditional markets. Even with everything that’s going on in the world, the S&P continues adding value and reached an all time high in August. It is now up +40% since January 2019.
Monthly S&P levels since Jan. 2019
The initial $1k investment I put into crypto 20 months ago would be worth $1,400 had it been redirected to the S&P 500 in January 2019.
The 2019 Top Ten portfolio is returning +83% over last 20 months, over double the ROI of the S&P 500 over the same time period.
But what if I took the same world’s-slowest-dollar-cost-averaging/$1,000-per-year-on-January-1st approach with the S&P 500? It would yield the following:
  • $1000 investment in S&P 500 on January 1st, 2018: +$310
  • $1000 investment in S&P 500 on January 1st, 2019: +$400
  • $1000 investment in S&P 500 on January 1st, 2020: +$90
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P:
After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,800.
That is up over+27% since January 2018, compared to a +31% gain of the combined Top Ten Crypto Experiment Portfolios.
As you can see in the table below, August’s 4% difference in favor of crypto marks the second month in a row the Top Ten Crypto Portfolios have outperformed the S&P had I taken a similar investment approach.

Combined crypto vs. S&P

Conclusion:

Thanks to a strong couple of months, the 2019 Top Ten Portfolio is doing just as well as the 2020 Top Ten group, both of which are far, far ahead of the 2018 Top Ten. Meanwhile, despite the presence of a global pandemic and all the uncertainty associated with an election year, the US stock markets reached all time highs in August. As we approach the fall, I’m buckling up for an unpredictable final stretch of an unpredictable year.
Be safe and take care of each other out there.
Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the 2020 Top Ten Experiment.

And the Answer is…

D) Fidelity
In August, the SEC published a new filing for a Bitcoin fund, submitted by financial services giant Fidelity.
submitted by Joe-M-4 to CryptoCurrency [link] [comments]

$1,000 invested in Top 10 Cryptos of 2019 now worth $1,260 (UP +26%)

$1,000 invested in Top 10 Cryptos of 2019 now worth $1,260 (UP +26%)
EXPERIMENT - Tracking Top 10 Cryptos of 2019 - Month Eighteen - UP +26%
See the full blog post with all the tables here.
tl;dr - Tether (as it's designed to do) holds its ground, all others finish the month in negative territory. Tron finishes June in second place, down -2%. BSV loses nearly 25% of value in June. Overall, since January 2019, BTC in lead, ETH takes over second place, XRP still worst performing. The 2019 Top 10 is up +26% almost equal to the the gains of the S&P 500 over the same time period (+24%).

Month Eighteen – UP 26%

Not a great month for the 2019 Top Ten
After a strong April and a mixed May, June was bloody for the 2019 Top Ten Cryptos. Stablecoin Tether was the only crypto to hold its ground, as it was designed to do.

Question of the month:

According to a June article citing unnamed sources, which two FinTech companies are planning to allow their users to buy and sell crypto directly?

A) Paypal and Venmo B) Square and Cashapp C) Robinhood and Revolut D) Sofi and Coinbase
Scroll down for the answer.

Ranking and June Winners and Losers

XRP and Stellar slipped one place each in the rankings in June, now at #4 and #14 respectively. EOS fell two spots to #11 and joins Stellar and Tron as the only three cryptos to have dropped out of the 2019 Top Ten since January 1st, 2019. They have been replaced by Binance Coin, Cardano, and newcomer CRO.
Tether was the only crypto to move up in rank in June.
Not a good sign when Tether is the only crypto to move up.
Not a good sign when Tether enters the Top 3.
June WinnersTether. Second comes Tron, which basically held its ground at -2%.
June LosersBSV lost -23% of its value in June making it the worst performing of the 2019 Top Ten portfolio. EOS had a rough month as well, down -17%, dropping two spots in the rankings, and falling out of the Top Ten.
If you’re keeping score, here is tally of which coins have the most monthly wins and loses during the first 18 months of the 2019 Top Ten Experiment: Tether is still in the lead with six monthly victories followed by BSV in second place with three. BSV also holds the most monthly losses, finishing last in seven out of eighteen months. The only crypto not to win a month so far? XRP. (In fairness, XRP has also not lost any month yet).

Overall update – BTC in lead, ETH takes over second place, XRP still worst performing

BTC is out front for the second straight month and ETH has taken over second place from BSV. Ahead until April, BSV has simply not keep up with the pack over the last two months. Bitcoin is up +144% since January 2019. The initial $100 investment in BTC is currently worth $249.
Eighteen months in, 50% of the 2019 Top Ten cryptos are in the green since the beginning of the experiment. The other five cryptos are either flat or in negative territory, including last place XRP (down -50% since January 2019).

Total Market Cap for the entire cryptocurrency sector:

The crypto market as a whole is down about $20B in June, but still up +106% since January 2019.

Bitcoin dominance:

BitDom finally wobbled in June, but not by much – it’s been in a very familiar zone for months now, indicating a lack of excitement (or at least a low risk tolerance) for altcoins. Taking a wider view, the Bitcoin Dominance range since the beginning of the experiment in January 2019 has ranged between 50%-70%.

Overall return on investment since January 1st, 2019:

The 2019 Top Ten Portfolio lost almost $175 in June. After the initial $1000 investment, the 2019 group of Top Ten cryptos is worth $1,259. That’s up about +26%.
Here’s a look at the ROI over the life of the first 18 months of the 2019 Top Ten Index Fund experiment, month by month:
18 months of ROI, mostly green
Unlike the completely red table you’ll see in the 2018 Top Ten Experiment, the 2019 crypto table is almost all green. The first month was the lowest point (-9%), and the highest point (+114%) was May 2019.
How does the 2019 Top Ten Index Fund Portfolio compare to the parallel projects?
Taking the three portfolios together, here’s the bottom bottom bottom line:
After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, the combined portfolios are worth $2,710‬.
That’s down about -10% for the three combined portfolios. Last month that figure was +4%. Better than a few months ago (aka the zombie apocalypse) where it was down -24%, but not yet back at January (+13%) or February (+6%) levels.
Here’s a new table to help visualize the progress of the combined portfolios:
ROI of all three combined portfolios - not exactly inspiring
How do crypto returns compare to traditional markets?

Comparison to S&P 500:

Good thing I’m tracking the S&P 500 as part of my experiment to have a comparison point with other popular investments options. Even with unemployment, protests, and COVID, the US market continued to rebound in June. It’s now up +24% in the last 18 months.
The initial $1k investment I put into crypto would be worth $1,240 had it been redirected to the S&P 500 in January 2019.
As a reminder (or just scroll up) the 2019 Top Ten portfolio is returning +26% over last 18 months, just about equal to the return of the S&P 500 over the same time period. Just last month the ROI of the 2019 Top Ten crypto portfolio was nearly double the S&P 500 since January 1st, 2019.
But what if I took the same world’s-slowest-dollar-cost-averaging/$1,000-per-year-in-January approach with the S&P 500? It would yield the following:
  • $1000 investment in S&P 500 on January 1st, 2018: +$170
  • $1000 investment in S&P 500 on January 1st, 2019: +$240
  • $1000 investment in S&P 500 on January 1st, 2020: -$40
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P:
After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,370.
That $3,370 is up over+12% since January 2018, compared to the $2,710 value (-10%) of the combined Top Ten Crypto Experiment Portfolios. Here’s another new table that compares the ROI of the combined crypto portfolios to a hypothetical similar approach with the S&P 500:
We see in June the largest difference in favor of the S&P since the beginning of 2020: a 22% gap. Compare that February, when there was only a 1% difference in ROI.

Implications/Observations:

Since January 2019, the crypto market as a whole has gained +106% compared to the 2019 Top Ten Crypto Portfolio which has gained +26%. That’s an 80% gap.
At this point in the 2019 Experiment, an investor would have done much better picking different cryptos or investing in the entire market instead of focusing only on the 2019 Top Ten. Over the course of the first 18 months of tracking the 2019 Top Ten, there have been instances this was a winning strategy, but the cases have been few and far between.
The 2018 Top Ten portfolio, on the other hand, has never outperformed the overall market, at least not in the first thirty months of that Experiment.
And for the most recent 2020 Top Ten group? The opposite had been true: the 2020 Top Ten had easily outperformed the overall market 100% of the time…up until the last two months.

Conclusion:

As the world continues to battle COVID, traditional markets seem to be recovering. Will crypto make a significant move in the second half of 2020?
Final word: Stay safe and take care of each other.
Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the recently launched 2020 Top Ten Experiment.

And the Answer is…

A) Paypal and Venmo
According to a Coindesk report in June, three sources familiar with the matter say that Paypal and Paypal-owned Venmo are planning to allow their users to buy and sell crypto. Paypal has declined to comment.
submitted by Joe-M-4 to CryptoCurrency [link] [comments]

I bought $1k of the Top 10 Cryptos on January 1st, 2020 (July Update)

I bought $1k of the Top 10 Cryptos on January 1st, 2020 (July Update)
EXPERIMENT - Tracking Top 10 Cryptos of 2020 - Month 7 +71%
See the full blog post with all the nerdy tables here. If you're just joining us, this probably isn't what you think it is: it's more of a documentary than investing advice. See the rules of the Experiments here.
tl;dr: As of the end of July, the 2020 Top Ten Cryptos were up +71%. ETH best performer in July followed by XRP and BSV. Overall since Jan 2020: ETH moves into first place, followed by BSV. 100% of 2020 Top Ten are in positive territory, all ahead of Tether.
Over three years, July 2020 is the first month that the combined crypto Top Ten Portfolios have outperformed a hypothetical same approach with the S&P. Details:

Month Seven – UP 71%

https://preview.redd.it/iiyifztdzrg51.png?width=1132&format=png&auto=webp&s=8fc7a653bd058f4664ad6443b590e368c58167fc
Last month, I warned the 2020 Top Ten to watch its back. After being ahead most of the year, the 2020 Top Ten has officially lost its status as the best performing of the Top Ten “Index Fund” Experiments. Up +71% as of July, the 2019 Top Ten is now second to the 2019 Top Ten, which is up…. +72%.

Question of the month:

Which cryptocurrency surged in value after a TikTok challenge that encouraged users to buy went viral?

A) Dogecoin B) Chainlink C) Bitcoin D) Ethereum
Scroll down for the answer.

Ranking and June Winners and Losers

2020 Top Ten Rank
Another month of mostly downward movement: the “T”s (Tether and Tezos) both fell one spot. BNB dropped two spots and now is at the very edge of the Top Ten. XRP climbed one in the rankings, taking back third place from Tether. Regardless of how you feel about XRP, it was a bad sign to many crypto observers to find a stablcoin in the Top Three last month (no offense meant, USDT).
July WinnersETH, up a massive +55% in July. XRP and BSV tied for second place, both up +52% on the month.
July LosersTether. The second worst performing crypto, Tezos, finished the month up +19%.
Since COVID has hammered the sporting world, let’s be overly competitive and pit these cryptos against themselves, shall we? Here’s a table showing which cryptos have the most monthly wins and losses at this point in the experiment. In a three way tie for first place we have ETH, Tether, and Tezos, each with two Ws. BSV and Tether have the most Ls – both have finished in last place three out of the first seven months of the 2020 Top Ten Experiment.

Overall update – ETH moves into first place, followed by BSV. 100% of Top Ten are in positive territory.

Ethereum has moved into a commanding lead, up +177% on the year, followed by BSV, up +141%. After three straight months in the lead, Tezos fell hard in July, now sitting in third place (although still up an impressive +124% in 2020). Discounting Tether (again, no offense Big-T), EOS (+27%) is the worst performing cryptocurrency of the 2020 Top Ten portfolio. 100% of the cryptos in this group are either flat or in positive territory.

Total Market Cap for the cryptocurrency sector:

The overall crypto market gained more than $80B in July, and is now up over +80% since the beginning of this year’s experiment in January 2020.

Bitcoin dominance:

BitDom
BitDom finally budged: it fell about 2.5% percent to land at 62.3%, signaling a greater appetite for altcoins this month. The range up to this point in the year has been roughly 62% to 68%.

Overall return on investment since January 1st, 2020:

After an initial $1000 investment, the 2020 Top Ten Portfolio is now worth $1,713, up +71%. It is no longer the best performing of the three Top Ten Crypto Index Fund Portfolios, but isn’t too far behind: the 2019 group came in at +72% in July.
Here’s the month by month ROI of the 2020 Top Ten Experiment, hopefully helpful to maintain perspective and provide an overview as we go along:
ROI, month by month
Besides the zombie apocalypse blip in March, so far so good: all green is good to see and a nice change from the all red table you’ll see in the 2018 experiment. The range of monthly ROI for the 2020 Top Ten has been between +7% in March and +71% in July.
So, how does the 2020 Top Ten Experiment compare to the parallel projects?
Taken together, here’s the bottom bottom bottom line:
After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my combined portfolios are worth $3,695‬ ($260+ $1,722 +$1,713).
That’s up about +23% for the three combined portfolios, compared to -10% last month. It also marks the highest ROI of the three combined portfolios since I started keeping track in January 2020. The previous high was +13% back in January 2020.
Lost in the numbers? Here’s a new table to help visualize the progress of the combined portfolios:
Combined $3k ROI
That’s a +23% gain by buying $1k of the cryptos that happened to be in the Top Ten on January 1st, 2018, 2019, and 2020.
But what if I’d gone all in on only one Top Ten crypto for the past three years? While most have come and gone over the life of the experiment, five cryptos have remained in Top Ten for all three years: BTC, ETH, XRP, BCH, and LTC. Let’s take a look at those five:

ETH then BTC well in front
There you have it: Ethereum (+98%) would have returned the most at this point, followed closely by BTC (+88%). Following this approach with XRP, I would have been down -23%. Many thanks to Reddit user u/sebikun for the idea for a new metric.
So that’s the Top Ten Crypto Index Fund Experiments snapshot. Let’s take a look at how traditional markets are doing.

Comparison to S&P 500

I’m also tracking the S&P 500 as part of my experiment to have a comparison point to traditional markets. Even with no end to the COVID pandemic in sight, the S&P continued its recovery. In July it moved into positive territory for the year.
S&P breaks even
Over the same time period, the 2020 Top Ten Crypto Portfolio is returning about +71%. The initial $1k investment in crypto is now worth about $1,713.
The money I put into crypto in January 2020 would be worth $1010 had it been redirected to the S&P 500. That’s a $703 difference on a $1k investment, the largest gap in favor of crypto all year.
But that’s just 2020. What if I invested in the S&P 500 the same way I did during the first three years of the Top Ten Crypto Index Fund Experiments? What I like to call the world’s slowest dollar cost averaging method? Here are the figures:
  • $1000 investment in S&P 500 on January 1st, 2018: +$220
  • $1000 investment in S&P 500 on January 1st, 2019: +$310
  • $1000 investment in S&P 500 on January 1st, 2020: +$10
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P:
After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,540.
That $3,540 is up over +18% since January 2018, compared to a +23% gain of the combined Top Ten Crypto Experiment Portfolios over the same period of time.
Do you know what that means? That means we have a first this month: a 5% swing in favor of the Top Ten Crypto Portfolios!
As you’ll see in the table below, this is the first time since I started recording this metric that crypto has outperformed a hypothetical identical investment in the S&P. This is a big turnaround from the 22% difference in favor of the S&P just last month.
Crypto takes the lead

Implications/Observations:

The crypto market as a whole is up +81% since the beginning of the year compared to the 2020 Top Ten Portfolio which has gained +71%. For the third month in a row, focusing on the Top Ten cryptos has yielded less than the overall market.
This approach has seen mixed results with the 2020 group. For the first four months, the Top Ten outperformed the market as a whole. This was a bit of a surprise, as this strategy did not work out very well in the other experiment years. Although there are a few examples of the Top Ten strategy outperforming the overall market in the 2019 Top Ten Experiment, it’s interesting to note at no point in the first thirty-one months of the Top Ten 2018 Experiment has the approach of focusing on the Top Ten cryptos outperformed the overall market. Not even once.

Conclusion:

July was undoubtedly a strong month in crypto. Where do we go from here? Do we consolidate for a time, fall back down, or continue the ascent? Will Bitcoin dominance continue to decline as altcoins receive more attention?
Final word: Please take care of yourselves and your neighbors. FYI – everyone is your neighbor.
Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the 2019 Top Ten Experiment follow up experiment.

And the Answer is…

A) Dogecoin
Much wow. A TikTok viral challenge drove up the price of Doge nearly 100% in early July.
submitted by Joe-M-4 to CryptoCurrency [link] [comments]

Bob The Magic Custodian



Summary: Everyone knows that when you give your assets to someone else, they always keep them safe. If this is true for individuals, it is certainly true for businesses.
Custodians always tell the truth and manage funds properly. They won't have any interest in taking the assets as an exchange operator would. Auditors tell the truth and can't be misled. That's because organizations that are regulated are incapable of lying and don't make mistakes.

First, some background. Here is a summary of how custodians make us more secure:

Previously, we might give Alice our crypto assets to hold. There were risks:

But "no worries", Alice has a custodian named Bob. Bob is dressed in a nice suit. He knows some politicians. And he drives a Porsche. "So you have nothing to worry about!". And look at all the benefits we get:
See - all problems are solved! All we have to worry about now is:
It's pretty simple. Before we had to trust Alice. Now we only have to trust Alice, Bob, and all the ways in which they communicate. Just think of how much more secure we are!

"On top of that", Bob assures us, "we're using a special wallet structure". Bob shows Alice a diagram. "We've broken the balance up and store it in lots of smaller wallets. That way", he assures her, "a thief can't take it all at once". And he points to a historic case where a large sum was taken "because it was stored in a single wallet... how stupid".
"Very early on, we used to have all the crypto in one wallet", he said, "and then one Christmas a hacker came and took it all. We call him the Grinch. Now we individually wrap each crypto and stick it under a binary search tree. The Grinch has never been back since."

"As well", Bob continues, "even if someone were to get in, we've got insurance. It covers all thefts and even coercion, collusion, and misplaced keys - only subject to the policy terms and conditions." And with that, he pulls out a phone-book sized contract and slams it on the desk with a thud. "Yep", he continues, "we're paying top dollar for one of the best policies in the country!"
"Can I read it?' Alice asks. "Sure," Bob says, "just as soon as our legal team is done with it. They're almost through the first chapter." He pauses, then continues. "And can you believe that sales guy Mike? He has the same year Porsche as me. I mean, what are the odds?"

"Do you use multi-sig?", Alice asks. "Absolutely!" Bob replies. "All our engineers are fully trained in multi-sig. Whenever we want to set up a new wallet, we generate 2 separate keys in an air-gapped process and store them in this proprietary system here. Look, it even requires the biometric signature from one of our team members to initiate any withdrawal." He demonstrates by pressing his thumb into the display. "We use a third-party cloud validation API to match the thumbprint and authorize each withdrawal. The keys are also backed up daily to an off-site third-party."
"Wow that's really impressive," Alice says, "but what if we need access for a withdrawal outside of office hours?" "Well that's no issue", Bob says, "just send us an email, call, or text message and we always have someone on staff to help out. Just another part of our strong commitment to all our customers!"

"What about Proof of Reserve?", Alice asks. "Of course", Bob replies, "though rather than publish any blockchain addresses or signed transaction, for privacy we just do a SHA256 refactoring of the inverse hash modulus for each UTXO nonce and combine the smart contract coefficient consensus in our hyperledger lightning node. But it's really simple to use." He pushes a button and a large green checkmark appears on a screen. "See - the algorithm ran through and reserves are proven."
"Wow", Alice says, "you really know your stuff! And that is easy to use! What about fiat balances?" "Yeah, we have an auditor too", Bob replies, "Been using him for a long time so we have quite a strong relationship going! We have special books we give him every year and he's very efficient! Checks the fiat, crypto, and everything all at once!"

"We used to have a nice offline multi-sig setup we've been using without issue for the past 5 years, but I think we'll move all our funds over to your facility," Alice says. "Awesome", Bob replies, "Thanks so much! This is perfect timing too - my Porsche got a dent on it this morning. We have the paperwork right over here." "Great!", Alice replies.
And with that, Alice gets out her pen and Bob gets the contract. "Don't worry", he says, "you can take your crypto-assets back anytime you like - just subject to our cancellation policy. Our annual management fees are also super low and we don't adjust them often".

How many holes have to exist for your funds to get stolen?
Just one.

Why are we taking a powerful offline multi-sig setup, widely used globally in hundreds of different/lacking regulatory environments with 0 breaches to date, and circumventing it by a demonstrably weak third party layer? And paying a great expense to do so?
If you go through the list of breaches in the past 2 years to highly credible organizations, you go through the list of major corporate frauds (only the ones we know about), you go through the list of all the times platforms have lost funds, you go through the list of times and ways that people have lost their crypto from identity theft, hot wallet exploits, extortion, etc... and then you go through this custodian with a fine-tooth comb and truly believe they have value to add far beyond what you could, sticking your funds in a wallet (or set of wallets) they control exclusively is the absolute worst possible way to take advantage of that security.

The best way to add security for crypto-assets is to make a stronger multi-sig. With one custodian, what you are doing is giving them your cryptocurrency and hoping they're honest, competent, and flawlessly secure. It's no different than storing it on a really secure exchange. Maybe the insurance will cover you. Didn't work for Bitpay in 2015. Didn't work for Yapizon in 2017. Insurance has never paid a claim in the entire history of cryptocurrency. But maybe you'll get lucky. Maybe your exact scenario will buck the trend and be what they're willing to cover. After the large deductible and hopefully without a long and expensive court battle.

And you want to advertise this increase in risk, the lapse of judgement, an accident waiting to happen, as though it's some kind of benefit to customers ("Free institutional-grade storage for your digital assets.")? And then some people are writing to the OSC that custodians should be mandatory for all funds on every exchange platform? That this somehow will make Canadians as a whole more secure or better protected compared with standard air-gapped multi-sig? On what planet?

Most of the problems in Canada stemmed from one thing - a lack of transparency. If Canadians had known what a joke Quadriga was - it wouldn't have grown to lose $400m from hard-working Canadians from coast to coast to coast. And Gerald Cotten would be in jail, not wherever he is now (at best, rotting peacefully). EZ-BTC and mister Dave Smilie would have been a tiny little scam to his friends, not a multi-million dollar fraud. Einstein would have got their act together or been shut down BEFORE losing millions and millions more in people's funds generously donated to criminals. MapleChange wouldn't have even been a thing. And maybe we'd know a little more about CoinTradeNewNote - like how much was lost in there. Almost all of the major losses with cryptocurrency exchanges involve deception with unbacked funds.
So it's great to see transparency reports from BitBuy and ShakePay where someone independently verified the backing. The only thing we don't have is:
It's not complicated to validate cryptocurrency assets. They need to exist, they need to be spendable, and they need to cover the total balances. There are plenty of credible people and firms across the country that have the capacity to reasonably perform this validation. Having more frequent checks by different, independent, parties who publish transparent reports is far more valuable than an annual check by a single "more credible/official" party who does the exact same basic checks and may or may not publish anything. Here's an example set of requirements that could be mandated:
There are ways to structure audits such that neither crypto assets nor customer information are ever put at risk, and both can still be properly validated and publicly verifiable. There are also ways to structure audits such that they are completely reasonable for small platforms and don't inhibit innovation in any way. By making the process as reasonable as possible, we can completely eliminate any reason/excuse that an honest platform would have for not being audited. That is arguable far more important than any incremental improvement we might get from mandating "the best of the best" accountants. Right now we have nothing mandated and tons of Canadians using offshore exchanges with no oversight whatsoever.

Transparency does not prove crypto assets are safe. CoinTradeNewNote, Flexcoin ($600k), and Canadian Bitcoins ($100k) are examples where crypto-assets were breached from platforms in Canada. All of them were online wallets and used no multi-sig as far as any records show. This is consistent with what we see globally - air-gapped multi-sig wallets have an impeccable record, while other schemes tend to suffer breach after breach. We don't actually know how much CoinTrader lost because there was no visibility. Rather than publishing details of what happened, the co-founder of CoinTrader silently moved on to found another platform - the "most trusted way to buy and sell crypto" - a site that has no information whatsoever (that I could find) on the storage practices and a FAQ advising that “[t]rading cryptocurrency is completely safe” and that having your own wallet is “entirely up to you! You can certainly keep cryptocurrency, or fiat, or both, on the app.” Doesn't sound like much was learned here, which is really sad to see.
It's not that complicated or unreasonable to set up a proper hardware wallet. Multi-sig can be learned in a single course. Something the equivalent complexity of a driver's license test could prevent all the cold storage exploits we've seen to date - even globally. Platform operators have a key advantage in detecting and preventing fraud - they know their customers far better than any custodian ever would. The best job that custodians can do is to find high integrity individuals and train them to form even better wallet signatories. Rather than mandating that all platforms expose themselves to arbitrary third party risks, regulations should center around ensuring that all signatories are background-checked, properly trained, and using proper procedures. We also need to make sure that signatories are empowered with rights and responsibilities to reject and report fraud. They need to know that they can safely challenge and delay a transaction - even if it turns out they made a mistake. We need to have an environment where mistakes are brought to the surface and dealt with. Not one where firms and people feel the need to hide what happened. In addition to a knowledge-based test, an auditor can privately interview each signatory to make sure they're not in coercive situations, and we should make sure they can freely and anonymously report any issues without threat of retaliation.
A proper multi-sig has each signature held by a separate person and is governed by policies and mutual decisions instead of a hierarchy. It includes at least one redundant signature. For best results, 3of4, 3of5, 3of6, 4of5, 4of6, 4of7, 5of6, or 5of7.

History has demonstrated over and over again the risk of hot wallets even to highly credible organizations. Nonetheless, many platforms have hot wallets for convenience. While such losses are generally compensated by platforms without issue (for example Poloniex, Bitstamp, Bitfinex, Gatecoin, Coincheck, Bithumb, Zaif, CoinBene, Binance, Bitrue, Bitpoint, Upbit, VinDAX, and now KuCoin), the public tends to focus more on cases that didn't end well. Regardless of what systems are employed, there is always some level of risk. For that reason, most members of the public would prefer to see third party insurance.
Rather than trying to convince third party profit-seekers to provide comprehensive insurance and then relying on an expensive and slow legal system to enforce against whatever legal loopholes they manage to find each and every time something goes wrong, insurance could be run through multiple exchange operators and regulators, with the shared interest of having a reputable industry, keeping costs down, and taking care of Canadians. For example, a 4 of 7 multi-sig insurance fund held between 5 independent exchange operators and 2 regulatory bodies. All Canadian exchanges could pay premiums at a set rate based on their needed coverage, with a higher price paid for hot wallet coverage (anything not an air-gapped multi-sig cold wallet). Such a model would be much cheaper to manage, offer better coverage, and be much more reliable to payout when needed. The kind of coverage you could have under this model is unheard of. You could even create something like the CDIC to protect Canadians who get their trading accounts hacked if they can sufficiently prove the loss is legitimate. In cases of fraud, gross negligence, or insolvency, the fund can be used to pay affected users directly (utilizing the last transparent balance report in the worst case), something which private insurance would never touch. While it's recommended to have official policies for coverage, a model where members vote would fully cover edge cases. (Could be similar to the Supreme Court where justices vote based on case law.)
Such a model could fully protect all Canadians across all platforms. You can have a fiat coverage governed by legal agreements, and crypto-asset coverage governed by both multi-sig and legal agreements. It could be practical, affordable, and inclusive.

Now, we are at a crossroads. We can happily give up our freedom, our innovation, and our money. We can pay hefty expenses to auditors, lawyers, and regulators year after year (and make no mistake - this cost will grow to many millions or even billions as the industry grows - and it will be borne by all Canadians on every platform because platforms are not going to eat up these costs at a loss). We can make it nearly impossible for any new platform to enter the marketplace, forcing Canadians to use the same stagnant platforms year after year. We can centralize and consolidate the entire industry into 2 or 3 big players and have everyone else fail (possibly to heavy losses of users of those platforms). And when a flawed security model doesn't work and gets breached, we can make it even more complicated with even more people in suits making big money doing the job that blockchain was supposed to do in the first place. We can build a system which is so intertwined and dependent on big government, traditional finance, and central bankers that it's future depends entirely on that of the fiat system, of fractional banking, and of government bail-outs. If we choose this path, as history has shown us over and over again, we can not go back, save for revolution. Our children and grandchildren will still be paying the consequences of what we decided today.
Or, we can find solutions that work. We can maintain an open and innovative environment while making the adjustments we need to make to fully protect Canadian investors and cryptocurrency users, giving easy and affordable access to cryptocurrency for all Canadians on the platform of their choice, and creating an environment in which entrepreneurs and problem solvers can bring those solutions forward easily. None of the above precludes innovation in any way, or adds any unreasonable cost - and these three policies would demonstrably eliminate or resolve all 109 historic cases as studied here - that's every single case researched so far going back to 2011. It includes every loss that was studied so far not just in Canada but globally as well.
Unfortunately, finding answers is the least challenging part. Far more challenging is to get platform operators and regulators to agree on anything. My last post got no response whatsoever, and while the OSC has told me they're happy for industry feedback, I believe my opinion alone is fairly meaningless. This takes the whole community working together to solve. So please let me know your thoughts. Please take the time to upvote and share this with people. Please - let's get this solved and not leave it up to other people to do.

Facts/background/sources (skip if you like):



Thoughts?
submitted by azoundria2 to QuadrigaInitiative [link] [comments]

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