Trend Letter Blogs

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Headlines – December 13/17

US stocks gain, dollar weakens on price data. Read story Democrat Jones defeats Roy Moore In Alabama election upset.  Read story What Alabama upset means for Trump. Read story With rate hike in the bag, Fed may hint at Trump effect on economy. Read story Dubai billionaire, Nickelodeon join Speilberg backing VR startup. Read story […]

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Headlines – December 8/17

US added 228,000 jobs. unemployment rate steady at 17 year low. Read story After dramatic gains, Bitcoin tumbles 20% in 10 hours. Read story UK, EU reach deal on Brexit divorce terms. Read story Here is why stocks will likely be higher in December 2018. Read story California wildfires could mean over $27 billion in […]

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Headlines – December 7/17

Tech gains lift Nasdaq, consumer stocks weigh on S&P, Dow. Read story North Korea says US threats make war unavoidable as China urges calm. Read story US state department issues global travel warning after Trump Jerusalem speech. Read story Trump faces off with Democrats over potential government shutdown. Read story Bitcoin blasts through $15,000 milestone, […]

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Headlines – December 6/17

Wall St has no idea what’s going to happen to credit markets in 2018. Read story Russia banned from Winter Olympics by IOC. Read story Warnings intensify ahead of Trump recognizing Jerusalem as Israel’s capital. Read story Oil drops as industry data show US gasoline stockpiles grew. Read story Does US government shutdown on Friday? […]

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Headlines – December 5/17

Dow, S&P struggle to stay at record heights, but tech rebound boosts Nasdaq. Read story Oil holds near $57 as OPEC output drops to lowest in six-months. Read story Mueller subpoenas Deutshe Bank for Trump account info. Read story Senate bill ‘bombshell’ could raise taxes on tech. Read story Mueller’s office has spent $3.2 million […]

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Headlines – December 4/17

Dow, S&P hit new records, ‘FAANG’ stock pressure Nasdaq. Read story Trump lawyer: “President cannot obstruct justice”. Read story Oil slips as OPEC deal seen leading to potential shale surge. Read story Bitcoin now bigger than Buffet, Boeing, and New Zealand. Read story Venezuela creating difital currency amid financing crisis. Read story UK looking to […]

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Headlines – November 30/17

Dow opens above 24,000 for the first time. Read story Google faces mass legal action in UK for collecting personal data. Read story OPEC is said to agree on oil cuts extension to end of 2018. Read story Goldman says highest valuations since 1900 leave investors in for a world of hurt. Read story Bitcoin […]

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Headlines – November 29/17

Dow, S&P hit records, but tech selloff weighs on Nasdaq. Read story Bitcoin surges past $11,000 less than 24 hours after topping $10,000. Read story North Korea says ‘breakthrough’ puts US mainland within range of a nuclear attack. Read story Senate Republicans shove tax bill ahead as Democrats fume. Read story This is the big […]

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Headlines – November 28/17

Wall St set to grind higher, Powell hearing on deck. Read story These eight senators can make or break the GOP tax plan. Read story Congress stares down shutdown amid December deluge. Read story Oil falls on doubts over OPEC, pipeline restart. Read story CME plans to manage customer exposure to Bitcoin futures. Read story […]

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Headlines – November 27/17

S&P set for near record: Cyber Monday has retailers in spotlight. Read story Cyber Monday showdown: Wall-Mart closes in on Amazon in online price war. Read story Cyber Monday poised for record as retail focus turns to online. Read story Tech trouble knock stocks, Bitcoin eyes $10,000. Read story Oil slips from highest in two […]

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Headlines – November 24/17

US stocks set to climb, with retailers in focus for Black Friday. Read story Egypt attack: More than 230 killed in Sinai mosque. Read story Putin crowns himself OPEC king. Read story GOP tax plan is entering its make-or-0break week. Read story One shot outside Missouri mall, brawls close Alabama shopping centre as Black Friday […]

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Headlines – November 23/17

China stocks suffer mauling, Fed leaves dollar in a daze. Read story As Black Friday nears, US stores get creative to battle e-commerce. Read story Euro up for third day as outlook brightens. Read story Oil eases from highest level since 2015 as traders weigh US data. Read story Stock market could tumble 15% if […]

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Headlines – November 22/17

World stocks ride tech boom to scale new highs in pre-Thanksgiving rally. Read story Oil price rises to two-year high above $58 on supply slowdown. Read story Uber paid hackers to delete stolen data on 57 million people. Read story Skype removed from China Apple and Android app stores. Read story HPE CEO Whiman’s surprise […]

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Smart City or Surveillance City?

As reported in New Scientist, in Toronto, and many other cities around the globe, ‘smart city’ projects are underway. The concept of infrastructure interlinked by software isn’t new.  Having Artificial Intelligence (AI) use data to actively improve our everyday lives seems like a worthwhile endeavour. This is not just some futuristic concept, as for the […]

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Headlines – November 21/17

Nasdaq opens at record on tech gains. Read story Mugabe resigns after four decades. Read story Merkel signals readiness for new election after coalition talks collapse. Read story Tencent chief ‘richer than Google founders’. Read story Iraq is giving OPEC a headache. Read story A $31 million hack freaked crypotocurrency traders out and sent Bitcoin’s […]

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Headlines – November 20/17

Stocks rebound in short week for US stocks. Read story European markets power on after early German wobble. Read story China’s shadow bank clampdown hits stock market. Read story Canadian dollar dips as oil falls, investors weigh NAFTA talks. Read story A Chinese tech giant just joined Facebook and Amazon in the $500 billion valuation […]

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Headlines – November 16/17

House GOP set for big tax win. Read story Europe’s longest stock sell-off of the year abates. Read story Russia and Venezuela agree to debt deal. Read story Mortgage rates spike to four-month high as tax reform drives bond sell-off. Read story The world’s biggest wealth funds wants out of oil and gas. Read story […]

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Headlines – November 15/17

Dow sinks 150 points, threatens 3-week low as global markets slump. Read story Airbus seals massive $49.5 bln order for 430 aircraft. Read story NAFTA talks resume as US warns ‘short fuse’ risks burning down. Read story Zimbabwe’s military seizes power, detains Mugabe. Read story Japan’s economy posts the longest growth streak since 2001. Read […]

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Headlines – November 13/17

Stock indexes on track to extend last week’s pullback. Read story World’s top tech giant amass $1.7 trillion in monster year. Read story GE cuts dividend by half, slashes profit goals. Read story Oil trades near $57 as OPEC signals rebalancing could speed up. Read story Pound slides as British government faces turmoil. Read story […]

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Crypto TREND Blogs

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Don’t miss the next recommendation from Crypto TREND – Premium

We launched Crypto TREND – Premium on Monday, making three recommendations. In this incredibly volatile sector, each of those recommendations are up significantly, after only two days, and one of them is up over 100%. 

As reported in yesterday’s issue of Crypto TREND, the Chicago Board Options Exchange (CBOE) began selling Bitcoin futures contracts on Sunday, and the initial response has been positive, driving Bitcoin prices higher. The debut was relatively orderly, in contrast with expectations oi high volatility and heavy short selling.

If you are ready to dip your toe into this sector, you really want to subscribe to our Crypto TREND – Premium service to be your guide in this “wild west” market.  For the next week we are offering a 25% discount off the regular price of $699.95, meaning you pay only $525.00.

If you do decide to get on board in this sector, be sure to only invest capital that you can afford to lose. While we believe there are still big gains to be made in this space, this is an incredibly speculative market, so invest accordingly.

It is going to be a wild ride, and if you want to climb on board, Click Here.

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Crypto TREND – Fifth edition

As we expected, since publishing Crypto TREND  we have received many questions from readers. In this edition we will answer the most common one.

What kind of changes are coming that could be game changers in the cryptocurrency sector?

One of the biggest changes that will impact the cryptocurrency world is an alternative method of block validation called Proof of Stake (PoS). We will try to keep this explanation fairly high level, but it is important to have a conceptual understanding of what the difference is and why it is a significant factor.

Remember that the underlying technology with digital currencies is called blockchain and most of the current digital currencies use a validation protocol called Proof of Work (PoW).

With traditional methods of payment, you need to trust a third party, such as Visa, Interact, a bank, or a cheque clearing house to settle your transaction. These trusted entities are “centralized”, meaning they keep their own private ledger which stores the transaction’s history and balance of each account. They will show the transactions to you, and you must agree that it is correct, or launch a dispute. Only the parties to the transaction ever see it.

With Bitcoin and most other digital currencies, the ledgers are “decentralized”, meaning everyone on the network gets a copy, so no one has to trust a third party, such as a bank, because anyone can directly verify the information. This verification process is called “distributed consensus.”

PoW requires that “work” be done in order to validate a new transaction for entry on the blockchain.  With cryptocurrencies, that validation is done by “miners”, who must solve complex algorithmic problems. As the algorithmic problems become more complex, these “miners” need more expensive and more powerful computers to solve the problems ahead of everyone else. “Mining” computers are often specialized, typically using ASIC chips (Application Specific Integrated Circuits), which are more adept and faster at solving these difficult puzzles.

Here is the process:

  • Transactions are bundled together in a ‘block’.
  • The miners verify that the transactions within each block are legitimate by solving the hashing algorithm puzzle, known as the “proof of work problem”.
  • The first miner to solve the block’s “proof of work problem” is rewarded with a small amount of cryptocurrency.
  • Once verified, the transactions are stored in the public blockchain  across the entire network.
  • As the number of transactions and miners increase, the difficulty of solving the hashing problems also increases.

Although PoW helped get blockchain and decentralized, trustless digital currencies off the ground, it has some real shortcomings, especially with the amount of electricity these miners are consuming trying to solve the “proof of work problems” as fast as possible.  According to Digiconomist’s Bitcoin Energy Consumption Index, Bitcoin miners are using more energy than 159 countries, including Ireland. As the price of each Bitcoin rises, more and more miners try to solve the problems, consuming even more energy.

All of that power consumption just to validate the transactions has motivated many in the digital currency space to seek out an alternative method of validating the blocks, and the leading candidate is a method called “Proof of Stake” (PoS).

PoS is still an algorithm, and the purpose is the same as in the proof of work, but the process to reach the goal is quite different. With PoS, there are no miners, but instead we have “validators.” PoS relies on trust and the knowledge that all the people who are validating transactions have skin in the game.

This way, instead of utilizing energy to answer PoW puzzles, a PoS validator is limited to validating a percentage of transactions that is reflective of his or her ownership stake. For instance, a validator who owns 3% of the Ether available can theoretically validate only 3% of the blocks.

In PoW, the chances of you solving the proof of work problem depends on how much computing power you have. With PoS, it depends on how much cryptocurrency you have at “stake”. The higher the stake you have, the higher the chances that you solve the block. Instead of winning crypto coins, the winning validator receives transaction fees.

Validators enter their stake by ‘locking up’ a portion of their fund tokens. Should they try to do something malicious against the network, like creating an ‘invalid block’, their stake or security deposit will be forfeited. If they do their job and do not violate the network, but do not win the right to validate the block, they will get their stake or deposit back.

If you understand the basic difference between PoW and PoS, that is all you need to know. Only those who plan to be miners or validators need to understand all the ins and outs of these two validation methods. Most of the general public who wish to possess cryptocurrencies will simply buy them through an exchange, and not participate in the actual mining or validating of block transactions.

Most in the crypto sector believe that in order for digital currencies to survive long-term, digital tokens must switch over to a PoS model. At the time of writing this post, Ethereum is the second largest digital currency behind Bitcoin and their development team has been working on their PoS algorithm called “Casper” over the last few years. It is expected that we will see Casper implemented in 2018, putting Ethereum ahead of all the other large cryptocurrencies.

As we have seen previously in this sector, major events such as a successful  implementation of Casper could send Ethereum’s prices much higher.  We’ll be keeping you updated in future issues of Crypto TREND.

Crypto TREND Premium

We have received many questions asking if we will be making specific recommendations, similar to what we do in The Trend Letter & Trend Technical Trader. The answer is yes, we will be making recommendations on cryptocurrencies and blockchain technology companies. These recommendations will be in our Crypto TREND Premium service. This service is a subscriber only service which costs $699.95 per year. For those who are already subscribers to The Trend Letter and/or Trend Technical Trader, we are offering Crypto TREND – Premium at a $300 discount for only $399.95.

We will be sending out links to subscribe to Crypto TREND – Premium in the very near future.

Note that we will continue to publish this free Crypto TREND newsletter to help readers who are not yet ready to take the plunge and invest in this space to better understand this very volatile digital currency sector and the amazing potential of the blockchain technology.

Tomorrow is the first day that Bitcoin futures can be traded on the CBOE Global Exchange, and in a week they can be traded on the CME Exchange. These are two key events that will open the door to greater inflows of institutional money, while also making it easier to bet on bitcoin’s decline.

We will be watching.

Stay tuned!

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Crypto TREND – Fourth edition

At the time of this writing, the price of Bitcoin is $17, 049, up over $9, 971 or 140% in the last month. In the first issue of Crypto TREND we warned that the cryptocurrency space was the “wild west”, and recent action certainly confirms that status.

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Here is a chart that compares the rise of Bitcoin to the rise of the S&P 500 over the past seven years.

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While Bitcoin has been red-hot, the other cryptocurrencies have been a little less volatile, with Ethereum up only 48%, and Litecoin up 57%.  The reason for the latest surge in Bitcoin’s price is that the CBOE Global Markets is due to launch Bitcoin futures on Sunday, December 10th, and the following week, the Chicago Mercantile Exchange (CME) is slated to open its own Bitcoin futures contract.

These futures contracts on mainstream exchanges will bring a new type of investor into the Bitcoin space, and we will get a reading of how large institutional investors view Bitcoin.  After the initial frenzy, a clear picture will emerge of how many are ‘shorting’ Bitcoin, and how many are going ‘long’.  This is the first opportunity for Hedge Funds and large institutional investors to pile in.  The results will be telling, and we will be watching closely.  As mentioned in our third edition, Nasdaq is planning to launch Bitcoin futures in the first half of 2018 – another way for retail and institutional investors to put significant amounts into this market.  The first ten years have been phenomenal – this next year could be even more so.  If you were an early investor and bought Bitcoin in February 2011 and held on till today, you would be sitting on gains of over 1,000,000%!

There is no shortage of opinions and predictions about cryptocurrencies (CC’s), but it is still too soon for many investors to take the big leap of faith required.  There is hyperbole on both the positive and the negative side of the cryptocurrency debate.

Detractors include:

Warren Buffet

“The idea that bitcoin has some huge intrinsic value is just a joke, in my view.”

Credit Suisse Group AG CEO Tidjane Thiam

“The only reason today to buy or sell bitcoin is to make money, and such speculations has rarely led to a happy end,”

Themis Trading LLC

“A bitcoin future would be placing a seal of approval around a very risky, unregulated instrument that has a history of fraud and manipulation.”

JPMorgan Chase CEO Jamie Diamond

“If you’re stupid enough to buy it, you’ll pay the price for it one day.”

“The other thing I’ve always said about bitcoin, governments are going to crush it one day. Governments like to know where the money is, who has it and what you’re doing with it, in case you haven’t noticed.”

One of the most dramatic of the negative outlooks is this from Pan Gongsheng, deputy governor of the People’s Bank of China

“So there’s only one thing we can do – watch it from the bank of a river.  One day you’ll see Bitcoin’s dead body float away in front of you”.

On the other side of the debate, there are many prominent proponents:

Bill Gates

Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.”

Dr. Eric Schmidt, former CEO of Google

“Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value”

Kay Van-Petersen, Saxo Bank analyst

“This is not a fad, cryptocurrencies are here to stay.  There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering.”

Mark Cuban, Tech billionaire

“While it’s hard to establish any intrinsic value for bitcoin or any of the cryptocurrencies, none of this has anything to do with the applications that can be built with blockchain. The question is whether great companies can be financed and built, and I think the answer is yes.”

The Chinese government has shut down Bitcoin Exchanges and banned Initial Coin Offerings (ICO’s).  Measures to curb the use of CC’s are gaining momentum in Asia as India, Bangladesh, and Indonesia have issued warnings.  Some governments have banned the use of Bitcoin as a payment tool. The European Central Bank, the Bank of France, the German Central Bank, and Vladimir Putin have warned against investing in Bitcoin at these high prices.  Governments are starting to realize that a currency they don’t control is a currency they cannot inflate, or tax.

While the cryptocurrency space will continue to act like the “wild west”, as Cuban stated, it is the underlying Blockchain technology where we believe great gains can be made over the next 10 years.

In the last edition we talked about exploring ways to invest in this market space indirectly, by investing in publicly held companies that utilize Blockchain technology, or are involved in Blockchain related projects.  We are watching about fifteen of these companies, to see if they become worthy investments.  Also, we are aware that efforts are being made to launch Exchange Traded Funds (ETF’s) that track Crypto Currencies.  ETF’s will make it easy for the retail investor to use their current Broker or Stock Exchange to make a “long” or “short” bet on crypto coins.

Also, we are aware that efforts are being made to launch Exchange Traded Funds (ETF’s) that track Crypto Currencies.  ETF’s will make it easy for the retail investor to use their current Broker or Stock Exchange to make a “long” or “short” bet on crypto coins.     

If you are looking to buy some cryptocurrencies, understand that more than any other sector, investing here will be only for your most speculative capital, money that you can afford to lose.

CRYPTO TREND will be your guide if and when you are ready.

Stay Tuned!

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Third Edition

Every day in the investment world there is a deluge of news and chatter about BITCOIN, the other 1000 digital tokens, and the underlying technology of them all –  Blockchain.  At Crypto TREND we sort out what matters and provide you with solid information that you can use to make informed, rational, and profitable investment decisions. Some early investors in this space have seen returns of 10,000%, 100,000%, and even over 1,000,000%.  As we said in issue #1, we are in the “wild west” phase of the Crypto Coin (CC) market right now, however, there are several indications that the CC market is moving towards becoming mainstream.  Many investors want more credibility and stability in the CC market space, and that may be coming.

  • The Chicago Mercantile Exchange (CME) has received regulatory approval and is preparing to launch Crypto Coin (CC) futures contracts as of December 18.
  • Nasdaq is planning to launch Bitcoin Futures in the first half of 2018
  • The Chicago Board Options Exchange (CBOE), the largest US options exchange, is planning to launch its own Bitcoin derivatives trading products by early 2018.
  • The Bank of Canada is considering the merits of establishing a digital currency.  Of course, this is somewhat troubling, as governments that are heavily in debt want to find ways to see and tax every transaction they can find.  Many investors see anonymity and low fees as two of the great benefits of CC’s.  Bank involvement in the CC market place could conceivably compromise or erase those benefits.
  • Many governments around the world are actively considering if and how to regulate and tax the CC markets.  This is an indication of how significant these markets are becoming.

To gauge for yourself how close the CC market is to becoming mainstream, try this little test.  When you are with a group of friends or relatives, ask how many have heard of the BITCOIN phenomenon, and if so, how many have made a purchase.  At this stage, there will likely be many who have heard of BITCOIN, but very few or none who have actually invested.  We believe the number of CC investors will increase dramatically.

At Crypto TREND we see opportunities to invest in this market space, but only on a speculative basis. We see two different investment strategies to explore and consider:

One – to invest directly in the various tokens and other offerings available at the CC Exchanges.

There are many CC Exchanges, and below we provide a brief list of exchanges that offer a variety of products and services.  To become a client, most of the Exchanges will require you to be “verified” and it will take some time to go through the verification process and the initial “funding” process.  Funding will typically involve a fee, as you need to move fiat currency into your CC Exchange account in order to purchase CC’s.  Compared to dealing with your current Broker or Exchange, these Exchanges may seem quite awkward, but they are all in a relatively new market space and will need more time to develop into mature entities.  Each exchange offers a different selection of products for sale or exchange, but they all include BITCOIN – the original Crypto Coin.

Brief list of CC Exchanges:

COINBASE – One of the major exchanges, based in the USA, with many subsidiaries around the world.  Coinbase is relatively easy for new investors to use, however transaction fees are higher than many other exchanges.  As with most CC Exchanges, they permit only a low initial funding which will increase over time as trust is earned.  They have a limited selection of Alt-Coins available.  Transferring your CC’s to your digital wallet is easy and free.

Web Site: https://www.coinbase.com/

COINSQUARE –  A Canadian exchange based in Toronto, which bodes well, as Canada has a sound financial and regulatory environment.  COINSQUARE has a unique bundle of offerings, such as gold bars, silver bars, silver coins, as well as a good variety of CC’s and global currencies.  They also feature a “Quick Trade” window for very fast quotes and transactions.  Fees are in line with most other CC Exchanges.

Web Site: https://coinsquare.io

KRAKEN – Based in San Francisco, and very popular with Bitcoin and Ethereum investors in Europe, Kraken has a solid reputation and a good selection of CC’s, and intends to add more in future.  Fees are in line with other exchange averages, and they have good charting tools using TradingView.

Web Site: https www.kraken.com

QUADRIGA CX – Another Canadian exchange, this one based in Vancouver, with a current selection of seven CC’s.  The web site is well designed and easy to navigate.  Funding options are varied and fees are a little higher than average.  The exchange does not have charting or analytical tools, but is a solid contender in the small scale exchange space, with good security and performance.

Web Site:  https://www.quadrigacx.com/

Two – to invest in this market space indirectly.  This is a strategy that we think has great promise, as we note that there are increasingly more ways to invest in publicly held companies that utilize Blockchain technology, or are involved in funding Blockchain projects.  Also, there are efforts being made to launch ETF’s that track Crypto Currencies, which will make it easy for retail investors to use their current Broker or Stock Exchange to invest in crypto coins.

We are actively following about fifteen companies to determine if and when they will fit our model investment parameters.  With change happening so quickly, we expect to see many of these companies  come and go from the evolving list of rational investment choices

More than any other sector, investing here will be only for your most speculative capital, money that you can afford to lose.

CRYPTO TREND will be your guide if and when you are ready.

Stay Tuned!!

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Crypto TREND – Second Edition

In the first edition of CRYPTO TREND we introduced Crypto Currency (CC) and answered several questions about this new market space.  There is a lot of NEWS in this market every day.  Here are some highlights that give us a glimpse of how dynamic and exciting this market space is:

World’s largest futures exchange to create a futures contract for Bitcoin

Terry Duffy, president of the Chicago Mercantile Exchange (CME) said “I think sometime in the second week in December you’ll see our [bitcoin futures] contract out for listing.  Today you cannot short bitcoin, so there’s only one way it can go. You either buy it or sell it to somebody else.  So you create a two-sided market, I think it’s always much more efficient.”

CME intends to launch Bitcoin futures starting on December 10, pending regulatory review. If successful, this will give investors a viable way to go “long” or “short” on Bitcoin.  Some sellers of Exchange-Traded Funds have also filed for bitcoin ETF’s that track bitcoin futures.

These developments have the potential to allow people to invest in the crypto currency space without owning CC’s outright, or using the services of a CC exchange. Bitcoin futures could make the digital asset more useful by allowing users and intermediaries to hedge their foreign-exchange risks. That could increase the cryptocurrency’s adoption by merchants who want to accept bitcoin payments but are wary of its volatile value. Institutional investors are also used to trading regulated futures, which aren’t plagued by money-laundering worries.

CME’s move also suggests that bitcoin has become too big to ignore, since the exchange seemed to rule out crypto futures in the recent past. Bitcoin is just about all anyone is talking about at brokerages and trading firms, which have suffered amid rising but unusually placid markets. If futures at an exchange took off, it would be nearly impossible for any other exchange, like CME, to catch up, since scale and liquidity is important in derivatives markets.

“You can’t ignore the fact that this is becoming more and more of a story that won’t go away,” said Duffy in an interview with CNBC. There are “mainstream companies” that want access to bitcoin and there’s “huge pent-up demand” from clients, he said. Duffy also thinks bringing institutional traders into the market could make bitcoin less volatile.

Japanese village to use crypto currency to raise capital for municipal revitalization

The Japanese village of Nishiawakura is researching the idea of holding an Initial Coin Offering (ICO) to raise capital for municipal revitalization.  This is a very novel approach, and they may ask for national government support or seek private investment.  Several ICO’s  have had serious problems, and many investors are sceptical that any new token will have value, especially if the ICO turns out to be a another joke or scam.  Bitcoin certainly was no joke, but it was the first, and now there are many imitators, some of which may overtake Bitcoin eventually.

INITIAL COIN OFFERING –  ( ICO )

We did not mention ICO in the first edition of Crypto Trend, so let’s mention it now.  Unlike an Initial Public Offering (IPO), where a company has an actual product or service for sale and wants you to buy shares in their company, an ICO can be held by anyone who wants to initiate a new Blockchain project with the intention of creating a new token on their chain.  ICO’s are unregulated and several have been total shams, whereas IPO’s are regulated to ensure that investors are provided the information needed for due diligence.  A legitimate ICO can however raise a lot of cash to fund a new Blockchain project and network.  It is typical for an ICO to generate a high token price near the start and sink back to reality soon after.  Because an ICO is relatively easy to hold if you know the technology and have a few bucks, there have been many, and today we have about 800 tokens in play.  All these tokens have a name, they are all crypto currency, and except for the very well known tokens, like Bitcoin, Ethereum, and Litecoin, they are dubbed alt-coins.  At this time Crypto Trend does not recommend participating in an ICO, as the risks are extremely high.

As we said in Issue 1, this market is the “wild west” right now, and we are recommending caution.  Some investors and early adopters have made large profits in this market space; however, there are many who have lost a lot, or all.  Governments are considering regulations, as they want to know about every financial transaction in order to tax them all.  They all have huge debt and are strapped for cash.

So far, the crypto currency market has avoided many government and conventional bank financial problems and pitfalls, and Blockchain technology has the potential to solve many more problems.

A great feature of Bitcoin is that the originators chose a finite number of coins that can ever be generated – 21 million – thus ensuring that this crypto coin can never be inflated.  Governments can print as much money (fiat currency) as they like and inflate their currency to death.

Future articles will delve into specific recommendations, however, make no mistake, investing in this sector will be only for your most speculative capital, money that you can afford to lose.

CRYPTO TREND will be your guide if and when you are ready to invest in this market space.

Stay Tuned!

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Crypto TREND 2017-01

Everyone has heard how Bitcoin and other crypto currencies have made millionaires of those who bought as recently as a year ago.  Gains of 1,000% or more are not just possible, they have been common place with many of these crypto currencies. Someone who bought Bitcoin in May 2016 at less than $500, would have had a gain of 1,400% in about 17 months. Then over the past few days, we saw Bitcoin lose almost $1,000, so to say these cryptocurrencies are volatile would be a massive understatement.

Since the inception of Bitcoin in 2008, we at Trend News have been skeptical of crypto currencies’ ability to survive, given that they present a very clear threat to governments who want to see and tax all transactions. But while we may still be cautious on the actual crypto currencies, we are very aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will be a significant disruptor in how data is managed, and that it will impact every sector of the global economy, much like how the internet impacted media.

Here are some questions & answers to get started…

Q: What are Crypto Currencies ?

The most well known crypto currency (CC) is BITCOIN.  It was the first CC, started in 2008.  Today there are more than 800 CC’s, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, and they are all “virtual”.  There are no “physical” coins or currency.

Q: How do CC’s work ?

CC’s are virtual currencies that exist in very large distributed databases.  These databases use BLOCKCHAIN technology.  Because each Blockchain database is widely distributed, it is thought to be immune to hacking, as there is no central point of attack and every transaction is visible to everyone on the network.  Each CC has a group of administrators, often called “miners”, who validate transactions.  One CC called Ethereum uses “smart contracts” to validate transactions.  Crypto TREND will provide more details in upcoming news publications.

Q: What is BLOCKCHAIN ?

Blockchain is the technology that underpins all CC’s.  Each transaction for the purchase, sale, or exchange of CC’s is entered into a BLOCK that is added to the chain. This technology is complex and will not be explained here, but it has the potential to revolutionize the financial services industry, as transactions can be executed quickly and easily, reducing or eliminating fees.  The technology is also being examined for applications in many other industries.

Q: Are CC Exchanges regulated by government ?

For the most part, the answer is NO, which, for some users, is a big attractions of this market.  It is the “wild west” right now, but governments in most developed countries are examining this market to decide what regulation may be needed.  A big decision is whether to treat CC’s as a currency or a commodity / security.  Canada and USA have so far declared that CC’s are legal, however the situation remains fluid as for reporting and tax implications.  Crypto TREND will be following and reporting on these developments.

Q: How do I invest in this market ?

You can buy, sell, and exchange CC’s using the services of specialized “Exchanges” that act as a brokerage.  You start by selecting an Exchange , setting up an account, and transferring fiat currency into your account.  You can then place your BUY and SELL CC orders.  There are many exchanges around the world.  Opening an account is fairly simple and these exchanges all have their own rules about initial funding and withdrawals.

Crypto TREND will be recommending CC Exchanges in future.

Q: Where do I keep my CC ?

To have the freedom to move your crypto currencies around, and to pay bills, you will need to have a digital wallet.  These wallets come in several formats, such as desktop, cloud based, hardware (USB), mobile phone, and paper. Many of them are FREE, however, security is a big factor as no one ever wants to lose their wallet or have it stolen.  Crypto TREND will be recommending digital wallets in future.

Q: What can I do with my CC ?

As well as investing in CC products, you can also use crypto currency for some financial transactions, such as money transfers and paying bills.  The list of companies accepting crypto currency is growing fast, and includes big hitters like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.

Q: What’s next ?

As we start off, we will keep each of the Crypto TREND articles short and keep the scope of each one as narrow as possible. As we noted earlier, we believe that the crypto currency technology will be a game changer and potential investment opportunities like this come by once or twice in a lifetime. Make no mistake, early investing in this sector will be only for your most speculative capital, money that you can afford to lose.

Even if you are not wanting to invest at this time, gaining an early understanding of this new disruptive technology will put you in an advantageous position to profit from our recommendations as we move forward.

Expect to see more news and specific recommendations from Crypto TREND as we start this journey into what may seem to be a foreign jungle at first.  This is a volatile market and may not appeal to all investors, however, Crypto TREND will be your guide if and when you are ready.

Stay Tuned!