What is the difference between Bitcoin, Forex and Gold – “A Tripod Theory” – Coyote Born

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Saturday, January 31, 2015

Written By: Patrick “PK” McDonnell CEO of Coyote WallStreet

FOR IMMEDIATE RELEASE

What is the difference between Bitcoin, Forex and Gold – “A Tripod Theory” – Coyote Born

As Bitcoin and it’s counterparties known as “altcoins” enter the mainstream many investors are seeking information on the mechanics of trading these revolutionary peer-to-peer niche oriented decentralized global cryptocurrencies.

Bitcoin, forex and gold have many similar yet distinct differences that make each a unique and viable investment vehicle. Bitcoin is a “hybrid” of both forex and gold structured to trade like a stock with stop loss protection and profit objective orders which help preserve capital and ensure profits through forex like market volatility.

Bitcoin like gold is a viewed by some as a viable long-term storage of wealth with many enthusiasts dubbing it “digital gold” due to the mining aspects involved that reward virtual miners Bitcoin for solving encrypted mathematical equations while keeping the underlying network (the blockchain) in sync. In theory, “Like gold as the supply becomes more and more limited the demand can increase value over time.” Bitcoin has a cap in place that will only allow 21 million coins ever to be mined giving it a controlled supply and rarity unlike the never ending printing of US Dollars.

“Because the monetary base of Bitcoins cannot be expanded, the currency would be subject to severe deflation if it becomes widely used.”

At the time of this writing exactly 13,780,750 Bitcoins were in the hands of the public leaving only 7,219,250 left for mining. Analyst’s believe the true value of Bitcoin will be recognized when the very last coin is rewarded. Chris Dixon a Silicon Valley Bitcoin enthusiast and VC thinks a single Bitcoin could be worth $100,000 while some have predicted $1,000,000. Learn More>

NOTE: One must remember to avoid confusion that Bitcoin first is a “currency” recognized by the US Government quoted as such, “decentralized virtual currency” with all US transactions subject to taxation by the IRS. It is designed to be a “decentralized” peer-to-peer monetary network that is disruptive to the traditional “centralized” money system. Much like Uber has disrupted the taxi industry, blockchain technology has disrupted the financial sector. Initially, the US Government tried disruption of Bitcoin but the underlying algorithm is open-source making it available to anyone in the world with an internet connection who chooses adoption. So just like forex and gold who both share Bitcoins “decentralized” nature they were forced to recognize, tax and propose regulation initially in The State Of New York State with Ben Lawsky, NY’s financial regulator leading the pack.

So what truly differentiates Bitcoin from Forex and Gold?

Bitcoin vs Forex

There is no real difference between Bitcoin and forex trading. Like Forex, The price of Bitcoin is determined by supply-and-demand factors of the currency markets. With forex you can trade leveraged contracts increasing your potential of gain and risk utilizing margin trading ratios. Bitcoin can be margined, it is structured identical to stock market trading with the extreme price swings and volatility that come with currency speculation.

The Winklevoss twins have recently announced their upcoming launch of “Gemini” the NASDAQ of Bitcoin while Coyote WallStreet is in Phase III development of NAKDAQ™. As the demand for Bitcoin or forex increases, the underlying price rises, and when the demand decreases the price declines. Unlike forex, Bitcoin has a limited supply in circulation with new Bitcoins being created at a predictable and decreasing rate as referenced above.

The main difference between Bitcoin and forex is liquidity factors. Forex is an estimated 5 trillion market depending on who is reporting the daily turnover figures while Bitcoin is a relatively new and smaller market valued at 3 billion. Bitcoin demand must follow this level of inflation to keep the price stabilized. Bitcoin value is based off the macroeconomics of the underlying cryptocurrency eco-system while forex pairs work off the economic fundamentals of individual countries traded. Due to Bitcoins relatively small market compared to forex and existing models, the market price may go up or down in response to relatively insignificant amounts of volume creating a volatile trading atmosphere.

Bitcoin can be traded 24/7 while forex can be traded 24/5 in response to traditional financial institution schedules.

Bitcoin vs Gold

“Bitcoins” are a form of digital or virtual currency stored in an encrypted wallet which may be boughtheld, sold or traded via peer-to-peer and/or established cryptocurrency exchange services. Bitcoin has a value which is determined by the normal supply-and-demand factors of the currency markets and represents a form of currency which is “decentralized” meaning it is outside the control of governments and central banks. The value is “directly” pegged to the US Dollar and can be converted to $USD just like $CAD, $EUR, $JPY or any other traditional fiat currency.

All alternative cryptocurrencies or “altcoins” are pegged directly to the value of Bitcoin making it the $USD of the cryptocurrency market. The underlying success of any cryptocurrency is determined by geographical and mainstream adoption combined with consumer confidence, merchant acceptance and real-world use thus creating a viable payment platform and true storage of wealth with trading market capabilities fueled by a thriving and innovative decentralized economy.

NOTE: Bitcoin is “virtual” in form and “not” a physical instrument such as gold. Bitcoin is more like forex compared to gold minus the enormous leverage provided through FX contracts. Many are confused due to cryptocurrency enthusiasts posting photos all over the internet of actual physical Bitcoins which are nothing more than pictures. Some choose to engrave their wallet addresses on gold coins or other types of precious metals merging both values into one unit.

Bitcoin wallets are controlled by two addresses: “Your public and private keys.”

I once met an early adopter of Bitcoin who had his public key (address) tattooed on his right forearm and his private key (address) on his left. So Bitcoin can basically be stored anywhere users choose. Your safest and securest bet is offline “cold storage” also known as a paper wallet which should be stored in a secure and moisture free area to avoid water damage of your keys. Offline cold storage protects your Bitcoins from online theft and hack attacks which have be duly noted in the media lately.

Public Key (Incoming Deposits & Sales) – Your public key is also known as your “address” or “addy”. This is a unique set of numbers or QR code that you show to people in order for them to send you Bitcoin payments.

Private Key (Outgoing Withdrawals & Payments) – Your private key is what shows the blockchain network that you own the Bitcoin in your wallet.

“Your private key needs to be kept safe, show it to no one!” If you lose it or someone acquires it your Bitcoins are lost with absolutely “no” recourse like losing a traditional hand purse or wallet full of $USD on the street. 

NOTE: You could think of your public key (address) as your bank account number and your private key (address) as your bank account password. The main difference is that you can create an “unlimited” amount of Bitcoin public and private addresses to “segregate” your personal and business finances.                                                                                                      

Ex: BusinessChecking (Bitcoin debit card w/ATM privileges), College, Savings, Retirement Accounts, etc.

Owning a Bitcoin wallet is consistant with controlling your own “personal decentralized bank” without all of the restrictions and centralized controls put in place by the forefathers of finance.

To sum things up… Bitcoin is a virtual floating exchange rate pegged to the $USD like forex with “no” underlying physical asset to base its price off and gold is a tangible currency backed by a physical commodity. Anyhow, both investments price valuations are dictated by investor confidence and overall market sentiment. In regards to Bitcoin or gold, stability should be one of the first aspects considered. While some believe Bitcoins offer the ability for a better currency, others prefer to rely on gold’s historical track record.

Bitcoins are still in their infancy and have many more years to go before investors will see a reliable track record while gold has been accepted the world over for thousands of years. This planet only has so much gold and it’s difficult to locate, mine and refine. These factors make it a rare commodity and therefore give gold its value. Modeled after the process of gold mining, Bitcoin has a controlled and limited supply with “electronic” mining capabilities. Gold has long been the smartest choice to represent “money” due to its durability, rarity and ease of divisibility. Gold is known to provide safety, security and stability against inflation and a struggling economy.

Is Bitcoin viable? Only time will tell… 

Recent Bitcoin Headlines

Overstock’s Radical Plan to Reinvent the Stock Market With Bitcoin

Winklevoss Bitcoin ETF Files to Sell 1 Million Shares (Nasdaq: COIN)

WINKLEVOSS BITCOIN TRUST (COIN) IPO

Winklevoss twins launch Gemini, the ‘regulated’ Bitcoin exchange

For more information and news on Bitcoin and alternative cryptocurrency follow @CoyoteOfWallSt There is a very high degree of risk involved in investing. Past results are not indicative of future returns. Coyote WallStreet assumes no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Before acting on any recommendations, one should consider suitability and should seek professional advice.

“Titcoin Director Of Business Development Patrick ‘PK’ McDonnell Launches A New Cryptocurrency For The Deaf Community.”

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Saturday, November 15, 2014 DeafDollars | $DEAF

FOR IMMEDIATE RELEASE

“Titcoin Director Of Business Development Patrick ‘PK’ McDonnell Launches A New Cryptocurrency For The Deaf Community.”

New York – Titcoin Director Of Business Development Patrick ‘PK’ McDonnell has announced, “He will launch DEAFDOLLARS his answer to the discriminatory practices in the world’s financial banking system towards the deaf and hearing impaired.” 

“My recent successes with Titcoin have afforded me the knowledge needed to finally launch DEAFDOLLARS which I had put on hold to join Ed’s team. This particular community will be built using a grassroots approach. I was raised for a portion of my childhood in a deaf household.”  ~ McDonnell

Titcoin has recently received mass media coverage from Cosmopolitan Magazine to Playboy. The Titcoin team spoke just last week at the Exxxotica adult industry expo. This was monumental for crypto being it was the first ever such conference in the industry. Titcoin is nominated for Alternative Payment Services Company of the year by XBIZ!

“I’m in touch with many deaf families and learned many things being a CODA throughout my teenage years, there are many reasons I’m building this community. It is a viable store of worth to over 360M people in need of seamless banking on their terms. That is more than the US population in total! I have a lot of surprises in store for $DEAF.” ~ McDonnell

What Are DeafDollars? DEAFDOLLARS, Exchange Trading Symbol: “$DEAF” is a peer-to-peer decentralized internet digital currency that enables instant payments to anyone in the world. Learn More>

Disclaimer – Forward looking statements Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements reflect the Development’s current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts. The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, the Development team’s examination of historical operating trends, data contained in our records and other data available from third parties, which have not been independently verified by the Development. Although DEAFDOLLARS believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, DEAFDOLLARS cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in the Development’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies, currencies and general market conditions. Information contained in this presentation (not limited to forward looking statements) speaks only as of the date of such information and the Development expressly disclaims any obligation to update or revise the information herein, except as required by law.

Breaking News: Official Statement from Nicholas Guccione regarding The Development of The ‘GuccioneCoin’ CryptoCurrency

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Friday, September 19th, 2014
Titcoin
FOR IMMEDIATE RELEASE

GuccioneCoin Digital Currency

First, I want to thank the CryptoCurrency Community, especially BitCoin for making this all possible and for giving us as citizens the ability to start to get back what should be our universal rights to be more in control of our financial freedoms and responsibilities.

My name is Nicholas Guccione and I have been following the development of BitCentavo from the beginning. In this process I have become aware of the great work of Titcoin since its primary focus is marketed to an Industry that I have grown up around, and as a younger man started working in the mailroom of Penthouse International all the way to eventually be the CEO of Penthouse Video.

This unique experience has taught me to see a certain level of success in professionals, and this is the reason why I am entertaining the thoughts of what could be. I am actively in discussion with my longtime friend the developer of BitCentavo, Edward the Co-Developer of Titcoin and a person that should need no introduction to you all, and that is Patrick ‘The Coyote of Wall Street’, to possibly create a CryptoCurrency that if it becomes a reality, will bare my families great name.

As soon as there is more to know in this regard, I will be back to make a formal announcement in regards to these very historic discussions.

Thank you,

Nicholas Guccione

Source: GuccioneCoin

Disclaimer – Forward looking statements

Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements reflect the Development’s current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts.

The forward-looking statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, the Development team’s examination of historical operating trends, data contained in our records and other data available from third parties, which have not been independently verified by the Development. Although Titcoin believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Titcoin cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in the Development’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies, currencies and general market conditions.

Information contained in this presentation (not limited to forward looking statements) speaks only as of the date of such information and the Development expressly disclaims any obligation to update or revise the information herein, except as required by law.

Pump & Dump is “no longer” an acceptable term in cryptocurrency, it cheapens this technological innovation that will change our financial landscape

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Greetings Yung Astronauts!

I would like to start by saying, “There is no such thing as a bad child”. I believe that children learn what they live and are products of their everyday surroundings whether it be poverty or prosperity. With that said, “There is a such thing as a bad child in cryptocurrency”. A “wild child” who is rapidly creating new coins, mining at the speed of light and then reaping rewards through fraudulent methods of exchange trading.

This means of trading is called a “Pump & Dump Scheme” and is a criminal offense on Wall Street that comes with fines, forfeiture, incarceration, parole and restitution. I know your yung minds are saying, “It’s unregulated, we can do whatever we want!” But the reality is if cryptocurrency were regulated you would be considered a criminal. Understanding crypto is one thing, understanding securities law and regulation is another.

My point is obvious to a seasoned investor, but would be inconceivable to a yung crypto investor. NYS will be the first to basically take control of Bitcoin in the form of a license and adopted rules which I believe to be a hoax. They haven’t a clue on what they are doing from the public eye and are cooperating wanting Bitcoin to work. I believe this to be true, but I also believe it to be a slight of hand on their behalf.

Why? NYS regulation has nothing to do with CFTC, Federal, FINRA, or SEC regulation in the US. Ex: Medical Marijuana is legal in some US states, but not federally legalized in “any” US states, same premise will apply to Bitcoin.

So now we have COIN? The brainchild of the Winklevoss stooges, a joke when they got robbed of Facebook and a still a joke today in my book. Money doesn’t come with brains, these guys pay “so-called” trusted advisors, for me to take these guys serious would be a cardinal sin. They are giving Bitcoin away to it’s natural born enemy, “the state” and selling it out commercially for their own personal financial agenda and objectives.

Much like MC Hammer or Vanilla Ice were accused of… Hey, “Let’s give this kitten to the pitbull’s.” I wonder what Satoshi Nakamoto is thinking? Remember Bitcoin was created for equality, not for the rich to get richer, while gaining MORE control. Why even support BTC? It will become another version of USD if we are not careful. However, COIN which is an ETF created by the Winklevoss twins is a Bitcoin oriented Exchange Traded Fund based on the WinDex market price of Bitcoin which is Winklevoss created.

I believe in the concept completely, but I believe COIN should have been launched on Coinbase as their “second” investment product which would have helped in the “self regulation” of Bitcoin, not the “joint regulation”. Coinbase has enough capital and support to do this and the Winklevoss twins are in bed with them. Their sole reason for listing on NASDAQ is to gain mainstream “investor” exposure and trap real whales or bag holders they so “urgently seek” to profit tangibily on Bitcoin.

The twins cannot possibly sell off their BTC, it would kill it! They need to “cross out” of their position at equal pricing (both buyer/seller) to keep the price stabilized the old fashioned way, the Wall Street way. They need new blood, new money. The 2 stooges own a total of 1% of all Bitcoin’s mined, so new capital will allow them to “gently liquidate” their valuable holdings and convert them to USD.

They do not believe in Bitcoin, they believe in capitalism and this is their EXIT strategy. By their doing, Bitcoin will now be sanctioned by a whole “new” set of rules outside of NYS. These rules will be enforced by FINRA and the SEC if the COIN ETF gets a NASDAQ listing, it is mandatory or the Winklevoss ETF cannot list and that is a fact.

My reasoning, You cannot get half pregnant! Without boring you with all of the stock market rules and regulations, upon COIN’s listing I would have to believe any NYS/US Bitcoin related exchange and/or investment vehicle will eventually fall under strict FINRA/SEC federal regulation. NYS regulation will act somewhat like the Investment Advisory Act Of 1940 to govern states individually.

FINRA/SEC regulation will cover the markets in general like other investments. We might see CFTC regulation enforced if ever Bitcoin is reclassified as a commodity. So it is important to understand they are going to enforce similar regulation to Bitcoin as they did FOREX, gold, and other precious metals in which the physical side is still the wild west.

They want to enforce the sale of Bitcoin, so they can weed out some who have made bad decisions in the past which is about 50% of adult crypto. Restricting people who have a criminal past or securities related charges is a standard position taken on Wall Street for investor protection purposes. While they appear to be protecting the public, their white shoe friends will take over Bitcoin and sell it through all the major wire houses generating commission checks and capital gain tax for everybody!!!

I see Bitcoin’s future, I really do. It’s gonna work well, but we will lose our foot hold as a community, It will just become another form of Paypal. So my rant on regulation is simple. When the IRS classified Bitcoin as an asset everything was “retroactive“. Let’s say they impose federal regulation and do the same thing? We are looking at many crimes committed in cryptocurrency and many people going to crypto prison exchanging astronaut suits for orange jumpers.

My main objective of this article is to educate our youth on the future laws to come. Pump & Dump is “no longer” an acceptable term in cryptocurrency, it cheapens this technological innovation that will change our financial landscape. When an investment trades higher in value on Wall Street it’s called a “price increase”, “surge in value” or something of that nature.

Please understand Yung Astronauts you were taught wrong, choose your actions and words wisely. Become the good children of cryptocurrency and make more money developing the altcoin side of Bitcoin, it is “our” only hope for a future with anonymity.

Talk at cha’ Patrick ‘PK’ McDonnell/CEO Coyote WallStreet

Website: www.CoyoteWallStreet.com