In the red corner, we have Bittrex weighing in at a market cap of $245 million...
And in the blue corner, we have Bitshares weighing in at a market cap of $163 million...
The fight is on. Bittrex announced they will be delisting Bitshares from their exchange.
It seems to me that Bittrex being a centralized exchange is worried about Bitshares which is ultimately the superior exchange due to its decentralized, anonymous nature.
Notice how the downtrend in Bitshares has accelerated on the log plot below:
While Bittrex has never been hacked in its long cryptolife in the cryptospace, and also has an excellent trading platform, decentralized platforms are the way forward.
This is why 90% of jobs on Wall Street will be gone in the next several years.
It will be interesting to see if other centralized exchanges also decide to delist Bitshares.
Chart credit: https://bittrex.com/Market/Index?MarketName=BTC-BTS
Image credits: https://bitcointalk.org/index.php?topic=1150229.0
About Dr. Chris Kacher
- Appearances on major television, radio, and print programs https://www.virtueofselfishinvesting.com/news
- Bestselling author of "How We Made 18,000% in the Stock Market"
- Co-founder of Creative Group Trading Inc., a pro bono cryptocurrency platform with proceeds going to various cutting edge technologies aimed at space exploration, environmental protection & remediation, and AI/VR enhanced education
- Co-founder of http://www.virtueofselfishinvesting.com
- Helped to discover element 110 on the Periodic Table of Elements as well as confirm the discovery of element 106 which his team named Seaborgium after his UC Berkeley Ph.D. thesis advisor Professor Glenn Seaborg
- His music has charted on the iTunes music charts twice
- http://en.wikipedia.org/wiki/Chris_Kacher
Professional traders would love to use the Bitshares DEX, however it is not supported by the very popular trading tools such as the Coinigy and TradingView. The DEX wallet interface is not sufficient for the professional trading, so the high volume traders must still resort to using the Bittrex and Poloniex. I think that the Bitshares team must focus on collaborating with the trading tools providers and promoting the exchange platform with the targeted Youtube, Google and Facebook ads. The Bitshares platform would be so much more popular and enjoy much higher liquidity much sooner if some money were invested into these relatively simple efforts.
I think one reason for delisting could be that the bittrex-deposit account had 303,013,767 BTS as of Oct 3 according to the Bitshares report. This was a considerable holding of more than $60 million USD just a few days ago. Now compare this with the bitcoin holdings at bittrex: $69 milion. As the BTS account shrinks very rapidly due to the BTS price fall, it can present dangers for the exchange holding too many coins. The BTS price fall is accelerated due to the blockchain's automatic selling of BTS to cover the bad BitUSD loans. I just saw $2 million order on the bitshares order book for BitUSD against Bitshares, it was 1000x larger compared to everything else in the books. A huge "seller" like this is the blockchain bot that makes sure that BitUSD loans have sufficient collaterals. This bot is putting a lot of downward pressure on the BTS. BItshares is conceptually the best coin on the market - better than bitcoin and ethereum. But there seem to be too few liquidity pools for BitUSD and this likely exacerbates the volatility of the BTS. I think the Bitshares definitely needs to have a big liquidity pool trading account with a smarter AI algorithm trading it to support the BTS price - buying BTS when the price us low and selling some for BitUSD when BTS is high, it could require some initial emission of BTS to support it, but would be very good for the system in the long run. What do you think?
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Excellent insight and point you made... @deepbrain so from your informed advise which coin amongst these do you think is a good buy now... for quick sale...am venturing into the crypto trading option and i need coins i can buy very cheap and withing days sell off... A guide will be ideal
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I think you make an interesting point regarding bittrex holding a sizable amount of bitshares. But bittrex has been operating for a number of years now during which bitcoin has had massive corrections, yet bittrex has withstood the volatility just fine. So even if bitshares were to sharply correct further, it would seem bittrex could withstand the correction. Would you agree?
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If you look at the BTS/BTC chart on bittrex, you could see that the previous down trend was from 1300 to 280 in the course of Sept 16 till March 17 - 7 months. So, it had lost about 4.6x of its value in 7 month. Right now the trend is from 16,000 to about 1300 or about 12x loss in value from June till October or 5 months. So, this downtrend is much more severe. Plus the relative marketcap of BTS and its holdings at bittrex are at least 10x higher now than before compared to the bitcoin, so the exposure to BTS at bittrex grew a lot relative to the bitcoin. Also, there were almost $7Million BitUSD in June 2017, right now it is down to $3 million with the Bitshares DEX exchange trying to cover the $2 million of BitUSD loans automatically by selling the BTS. In the previous bear run, there were just $100,000 of BitUSD in circulation or 30x smaller than the current position. On top of this the leverage required to hold the BitUSD is 1.75, this translates into the selling pressure 1.75 times higher than the BitUSD level in a downtrend.
Consider the extreme scenario, where somebody, say a pro trader X holds those $3 million BitUSD and is not going to sell them until the bear trend clearly reverses. The accounts that sold those BitUSD to trader X are going to be liquidated against the collateral BTS they hold until those accounts buy back the BitUSD by selling BTS or get automatically liquidated to zero BTS. So, the downtrend is more likely to continue until the big trader X considers the bear trend to be over at which point those BitUSD will be converted to back to BTS. I am not saying that it will happen, but if the bear trend in alt coins continue for a few more months, a lot of BitUSD will continue to put additional pressure against the BTS with too little liquidity on the market and the price can continue its collapse. It would be good if the big trader X was the blockchain itself as I proposed, so it could intelligently support the BTS at key points and punish the speculators.
Bitcoin is loved not because of its slow transaction times, but because of its relatively low volatility. In contrast, the BTS essentially absorbs all of the volatility from BitUSD which has zero volatility. If we wanted to make BTS a lower volatility asset, we need to give it a big liquidity pool against the USD, like the central banks do in smaller countries around the world. Those banks buy their own currency by selling the USD from the pool when the national currency falls unreasonably and buy the USD when the national currency rises too fast. This is what the BTS blockhain should have done in June. The same goal could be partially achieved by advertising the benefits of BTS more during the downfalls on Youtube, Google and Facebook with the targeted ads and advertising it less when the price rises too fast - the blockchain should sell the BTS and put it into BitUSD liquidity pool used for advertisement and liquidity support during the bear downfalls.
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A friend of mine who is one of the early investors in BTS and founder of Satoshi Point in London got nearly a 100-bagger out of BTS from March - June. I told him in June it was a classic climax top so to take my chart reading expertise to heart since I used to do this with dot.coms in the late 90s, and sell at least half of his massive profits, if not the whole lot, then buy it back at a much lower price. He did end up selling much of it, so his small investment made him a millionaire.
That said, I couldn't agree more that the BTS blockchain should have been intelligently supporting BTS at critical points on the way down but only if it reduced the drawdown. In the world of stocks, stocks tend to find their level based on the health of the stock, the general market, and overall sentiment.
When it comes to supply/demand and psychology, perception is key. A dot.com with a worthless business model may have ran up hundreds of percents with a $500 million market cap in 1999 only to go bust by 2000. And even those stocks such as AMZN with strong business models had severe drawdowns from 2000-2002.
It was inevitable the 100-fold rise in the price of BTS in just 4 months would result in a severe drawdown which currently stands at -85%.
But how much buying power would blockchain need to support BTS on the way down, especially if the perceived value of BTS was $0.06 where it currently trades? If the market sees BTS worth $0.06 where it currently sits, trying to push it up with massive buying may just encourage other sellers.
As an aside, BTC has had a number of such severe drawdowns with the most recent from the BTC peak in Dec 2013 to the lows in mid-2015 for an -87% drawdown. While BTC may have less severe drawdowns going forward, there is no guarantee. Meanwhile, the price of other cryptocoins correlates to some extent with the direction of BTC. When BTC corrects, other coins correct far more. When BTC rises, many coins rise far more, at least from what we saw from Jan-Jun 2017.
I would think with time, many of these coins will die out leaving on the stronger ones, similar to what happened with the dot.coms.
But in the case of the stock BCST (Broadcast.com) there was much institutional support trying to prop it up, but its model was flawed and sentiment on the whole internet space turned sour after March 2000. Trying to support BCST after March 2000 was wasted money.
BTS on the other hand has a top flight business model in the cryptospace. It would be worthwhile for BTS blockchain to support it at critical levels to prevent fallout, provided the perception of BTS remains healthy.
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I like BitShares and I use it for some low volume market making on a few niche tokens where I think it's barrier to entry for new players is incredibly low and the features available are very good (along with performance)
But I don't like the way the SmartCoins are functioning. The way the trader collateral is held and trigger a "Black Swan" event which is like a big flush of the system, along with the implied volatility in the BTS price makes it a risky crypto to hold.
Trading is excellent though when liquidity is there. The DEX has to be the best exchange available from a functionality perspective. The only other DEX to go close would be EtherDelta and it's a distant 2nd. That said, for assets outside the BTS network there is still reliance on gateway providers, which introduces another centralised point of failure.
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I guess investing in coins on downward trend with future hope of rebound is idea.. @buggedout any ideas for a new guy into crypto trading... Or any good ICO coins?
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If your new to crypto trading I suggest you stick with the "blue chip" cryptos. The ones in the top 10 on coinmarketcap.com or maybe the Top 20. They will still be volatile but hopefully a lot less chance they will go to ZERO. Make sure you're familiar with how they are used and understand the value they can bring. Steer clear of ICOs until you're more experienced. Good luck :)
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Ok...thanks... Need a video tutorial to learn more... Was guided on ICO. ...bought COSS and sold after 48hrs for 3x d price ... Although i guide from an experienced steemian...
Will take ur advice as i also use coinmarket... Using etherdelta for the trade
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Nic info @selfishinvesting so what is the Implication for traders....is it time to buy some bitshares?
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Bitshares has fallen -85% from its highs achieved in June. Given its sterling fundamentals, I am monitoring it closely as its buy point is probably near. I don't like to catch falling knives, so I usually wait for evidence the downtrend has ended. As a trendfollower, evidence of the start of an uptrend or a major floor in the price would be a green flag.
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ok good.. thanks... please remember to update me when the trends is positive and good time to buy... any nice ICO out there?
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Kyber just started trading. Vitalik Buterin is a shareholder. Same for OmiseGo.
I also like Voise, the decentralized music platform.
ICOs:
Auctus is decentralizing the $40 trillion pension market.
Filecoin is also tackling a massive market.
I also like DMarket (though they recently completed their ICO so will start trading soon) which creates a p2p decentralized market for virtual gaming items for MMPORPGs.
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Thanks....i bought and sold COSS and buying CREDO... Will look into your tips...do check my blog posts
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