Some historical background

BTC and ETH are doing well according to what we discussed in the last post. Looks like it will take day or two more before the current structures will be completed. Then we will look together into the charts again.

For today the author wants to talk about more general topics.

The history tends to repeat itself. But before we go deeper on it, we need to understand one point. Regarding the Ethereum there are two general opinions:

  • It is Bitcoin 2.0
  • It is just another altcoin

Let us first start with “altcoins”. Their price rises over quite short period of time and then crashes. Here are some examples.

Dogecoin

Litecoin

Ripple

So the opponent of Ethereum like to repeat it is just another pump and dump coin. It will repeat the story of other altcoins (means price crash and stagnation).

If we, however, are going to get Bitcoin 2.0, as the Ethereum believers say, then we will repeat the story of Bitcoin itself. May be even with magnitude x2.0. Surely, we need to take into consideration that at the end we will have around 90 mln. ETHs against 21 mln BTCs. So it is unlikely we will get to 1000 USD per ETH. But the price of 100-200 USD per ETH seems to be reasonable enough. So the speculators speculate and the investors invest.

And here we are coming to the “some historical background”. The BTC price was never like a quiet and steady rise. It was pretty bumpy, to say the least. Just read this very nice post from reddit -> Bitcoin bear traps

There is no reason why ETH should behave in a more quiet way. It will be rising and crashing all the way to the high. Finally, we are dealing with smart contracts and as the example with “the DAO” shows it is quite unknown territory with many more surprises on our way to be expected.

But unless something completely unpredictable will happen on our way, the Ethereum is very likely to become Bitcoin 2.0

Enjoy the ride and be careful with dumps. Also risk only as much as you can lose. Cryptoinvestemts are potentially very profitable. But high profits are always bound to high risk. After the next depression now is officially confirmed (brexit is the key event here) we never know what our beloved governments will try to do in order to stop the increasing power of decentralised networks. During the 1929-1934 crash they banned gold. Can be they will try to ban or at least heavily control crypto assets during the oncoming crisis now.

The Elliott Wave Principle describes the behaviour of the financial markets. This Principle is build on the mass psychology swings from pessimism to optimism and back in a natural sequence. When these swings happen, the specific Elliott wave patterns in price movements are created and become visible. Each pattern has implications regarding the position of the market within its overall progression, past, present and future.
The purpose of our blog posts is to outline the progress of markets in terms of the Elliott Wave Principle.

While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will my posts make specific recommendations for any specific person, and at no time may a reader or viewer be justified in inferring that any such advice is intended.

Very important. Investing carries risk of losses. You should be aware of all the risks associated with investing/trading financial instruments. Information provided in this blog is expressed in good faith, but it is not guaranteed.
The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities.

This blog and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions.
In no event will we be liable for any loss or damage on your account in connection with the use of our publications.

Author: Ravno_108

Sentiment wave rider. Product creator. Yogi

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s