Signs Of Alpha? These Markets Continue To Rally Despite Large Cap Coins Dip

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Signs Of Alpha? These Markets Continue To Rally Despite Large Cap Coins Dip

By Tom Whitbread
October 30th, 2018

The markets are bloody nosed this morning, with Bitcoin shedding 2% to test $6200 - much to the delight of crypto skeptics world wide and outspoken short position holders such as Tone Vays. But don't get too excited just yet, there are still plenty of moon shots warming up their engines.

Although it's not all bad news looking across cryptomarkets, with Walton Chain up 6%, and securities to blockchain enabler Polymath coming off from a solid near 2 month run now up 139%. Despite the sell offs these coins stayed green, as did NXT which rose 20% from the ashes in a near textbook example of a hockey stick chart.

Altcoin pump? Or signs of diversity?

Everyone knows the usual run of affairs in crypto, bitcoin up - markets up. Bitcoin down - markets down. A phenomenon often referred to as the rising ships, meaning as the tide raises all boats go up or down with it accordingly.

But in an efficient market, we should see not such a close beta between instruments and actually have some diversity. So the outcome of one coin should not bleed into the other, and meaning you can actually hold a wide ranging portfolio that is unlikely to fall over due to one projects issues.

Last week it was Raven Coin (RVN) that returned investors 1.5x on their initial capital. Although the project has consolidated back a third since it's peak. Support is still strong and seems able to hold above 600 sats at present.

On the flip side, looking into the losses. There also seems to be some diversity growing in the pack. With many coins flat lined rather than following the large top 10 crypto sell off that swept the markets yesterday.

Maybe it is that panic grips people, and emotions take control. Without a clear investment plan and purely speculation they feel unsure of their position, cut losses and then feel the need to jump onto a bullish altcoin market and ride the wave for as long as they can?

I believe this is in the mix for many retail investors thought process, although I also believe serious accumulation is being done to prepare for the next decade of cryptocurrency based technology.

Disruptive by name, Disruptive by nature

Many crypto projects have such world changing implications - it can be hard to comprehend the disruptions when coming from a traditional, mostly antigued and coprable system that just seems to 'just work' and be manipulated as per normal. Corruption scandals and public budget fraud are considered part of the beast and unavoidable.

For example scandals of a political nature have been going on and on for decades in the UK, and reaching every corner of the world pretty much, wherever there are large bags of cash - expect there to be corruption. This obviously means we have a highly inefficient situation still.

In an efficient economy run by transparent remittance and public funds allocation, the scandals will no longer be hidden, the logistics no longer be fuzzy, and the immigration be water tight. All thanks to the power of cryptography and open source technology.

Blockchain has the power to keep business running across borders, it can ensure families are kept together even if they lost all ID in a freak weather crisis - by storing a identity on chain.

All this is possible to develop, for under millions of dollars - If only a government chose to use it, rather then choose to pursue a space adventure of which we do not know the likely outcome, nor do we know how to travel past the van allen belts. So what is truly more speculative risk, space money or earth money?

Sure blockchain can be used to ensure packages are not lost, to make sure payments go through and to save files in a decentralised cloud, but the limits really do not stop here. And it can do a whole heap of things before anyone starts talking about sending another car up into space.

Big business is getting involved, as Mastercard are clearly seeing they need to be in the blockchain picture, filing a patent for adding liquidity to bitcoin in a fractional reserve manner to shoot the total circulation up to the sky.

Expect to see many more old hands begin to embrace crypto in the new years, where prior they once turned a cold shoulder. With mandates from UAE to ensure all government is working on chain by 2012, it seems the message is well receieved by some visionarys.

But whats the hold up in Uk, EU and American jursdictions? Is the shift of power just too troubling?

Can legacy systems not be migrated keenly in such a proactive way as the UAE has done? Or maybe they are waiting for the dust to settle from the UAE and use it as a prototype / guinea pig. 

Remember The Future

Sidechains, AI, IOT and embedded devices may one day see you being able to add hashrate to the network via your kinetic energy generated during a workout whilst watching a AI generated news breakdown on a decentralised tube, in a gym that membership pays you with a cut from what your body heat mining has been generating… sounds ridiculous maybe, but why not?

The power is at our fingertips now more than ever before. Dutch researches already accomplished this feat in January of this year, putting ever more weight to working with a positive mental attitude - anything is possible, even far fetched concepts. While we can dream, we must dream big.

Looking at the future in this sense, knowing that we have a strong open technology that can better our economy, enabling the next generation to have a much more optimal life.

One that actions can be accounted for clearly on a public blockchain, and where votes count. It certainly is a very different world then the one we have come from to get this far, and it certainly appears that this is merely the beginning of a truly new age of industry.

Make sure to buy yourself a ticket for the ride, because once the show has begun there will be change like no one on earth has witnessed before. After the initial hype has died down, and projects come online. Akin to a mined block, there is no going back. What is being built is immutable and will have world wide disruption.