Looks like bitcoin has run out of momentum.
The technicals look terrible. The crypto has broken down like basement furniture.
I fully expect the chart to fail and excellerate the selloff tomorrow.
But don’t get me wrong, I’m not a hater. My investment newsletter, Christian DeHaemer’s Bubble & Bust Report just banked 2,528% gains on Bitcoin.
But it is to Ethereum that you must look for future gains. I’ll tell you why...
First Mover Advantage Bitcoin is the first mover and has all the advantages that brings. It gives Bitcoin a head start. But as we’ve learned from countless companies from AOL to Ericsson, it's not the end of the story. The main innovation of Bitcoin is that it created what is called blockchain.
Blockchain is an incorruptible digital ledger of transactions that can be programmed to record not just financial transactions but just about everything of value. It has become a focus of the financial industry since it first came out in 2008.
Before Bitcoin, when you made a transaction online, a bank had to verify the exchange by holding your funds until it was confirmed. Basic blockchain technology allows a person to exchange money online in the same way someone would exchange cash in a peer-to-peer transaction. It also keeps an incorruptible, ongoing, real-time log that is open to everyone who wants
to look at it. This is what Bitcoin does.
Ethereum (ETH) — a separate digital currency backed by Microsoft, JPMorgan, Intel, Visa and IBM in a blockchain alliance — adds to this basic idea.
Ethereum uses what is called a “smart contract.” This takes blockchain to the next level. Here’s how Blockgeeks defines Ethereum’s transactions: It uses computer code to facilitate the exchange of money, content, property, shares, or anything of value. When run on the blockchain a smart contract becomes like a self-operating computer program that automatically executes when specific conditions are met.
Because smart contracts run on the blockchain, they run exactly as programmed without any possibility of censorship, downtime, fraud or third party interference. Ethereum is being used in financial industries. But it can also be used to decentralize any service that is currently centralized. Thousands of intermediary services exist across every industry.
Ethereum could change everything from vendor relationships to voting systems, how you pay taxes, house registries, car titles, or for almost any trade that needs accounting and verification. Blockchain is a massive creative disruptor that will change the world in ways we have yet to understand.
Ethereum Alliance Ethereum has the added bonus of having a large backing. As I mentioned above, big Wall Street and tech companies formed the Enterprise Ethereum Alliance (EEA) with the goal of "producing the industry standard, open source, free to use blockchain solutions that will be the foundation for businesses going forward." Furthermore, the United Nations began a pilot test on after successfully using Ethereum blockchain to transmit Pakistani rupees to 100 people earlier this year.
Japan cleared the way for large institutional money managers and banks to get involved in the space.
The Indian government is leaning toward legalizing digital currencies. And although China has cracked down on money laundering and market manipulation, which has driven volume in digital currencies sharply lower, it has also forced the largest cryptocurrency exchanges to upgrade their anti-money laundering systems.
Ethereum is Safer
Bitcoin has also suffered due to scams in its dealers. Backing by major countries, organizations, and regulators helps make Ethereum a viable option versus the first mover.
You want to own Ethereum as the upside here is tremendous. If the currency gets an ETF retail investors will flood into it. Despite the run-up, we are still in the early stages.
If you want to buy Ethereum you should go through coinbase. https://www.coinbase.com/join We have set up a deal that if you invest $100 in Ethereum you get $10 worth for free.