Coinbrakers: Review of Bitcoin - BTC

 Short History of Fiat Currency:

• In 1913 the US Federal Reserve Bank was established after approval by Congress, allowing them the monopoly to print the usd, and by lending it to the government, basically allowing them to take over the government control of the usa.
• From 1913 to 1944, the power of the Fed was limited to the united states of America. However, this all changed for worse when the world allowed the usd to become the global reserve currency, as agreed in the Bretton Woods Agreements in 1944.
• Initially the usd was backed by a gold exchange standard, giving it a backbone of 35 usd / 1 ounce gold. The usd was as good as gold! The world trusted the USA, not to print more usd bills in secret, which of course, they did, to finance their wars.
• The Vietnam disaster not only damaged the USA's status as global economic and military power, it ultimately led to the demise of the usd, because money was printed to pay for the war effort and the French discovered this.
• In 1971, president Nixon took the USD of the GoldExchangeStandard, making the usd fiat currency, worthless paper, without any intrinsic value.
• Immediately a solution had to be found, because all the countries holding on to their gold reserves in usd paper, might change their mind and dump usd's: enter the petro dollar: yet another disaster.
• The Petro Dollar Deal basically means that the whole world has to buy oil in usd, so the USA can print more usd's, export them and import goods without doing the work. The OPEC countries, of course, were military forced to do this, and when they didn't live up to their part of the "deal", well: try to ask Saddam or Moammar.
• Despite almost 5 decades of violence in the Middle East, the petro dollar is now officially losing the battle, as both China and Russia no longer use it and protect countries that want to trade oil with them directly.
• So it seems that the international status of the usd will end in a very near future, as more and more weaknesses see the light of day.

​Very short history of Cryptocurrency:

• Due to the massive problems leading up to the banking crisis of 2008, some very smart people did a lot of research and eventually developed Bitcoin, a decentralized currency, which is like gold, "mined", and also has a "limited supply".
• Although absolute no intrinsic value at all, the speed in which Bitcoin transfers can occur worldwide, makes more than good for its lack of a backbone.
• Bitcoin opened the door for many more Cryptocurrencies, and the blockchain technology that supports these currencies, is here to stay!
• The biggest infrastructure investments in mining companies for example, have created a platform, that supports the second wave of adoption: the world of apps.
• In a not too far future, cryptocurrencies will be adopted by the masses and wipe out all fiat currencies.
• At the moment they co-exist, but with the value of fiat being destroyed due to continuous printing, more and more people will run to Bitcoin and hopefully other coins on Cryptopia.​

 A look at the charts and what's to come!
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We will do an analysis of BTC, based upon the recent developments with regards to the hardforking event earlier in 2017.

Why was there a hardforking?

Bitcoin forked because within the core community of bitcoin, the developers couldn't agree on the roadmap for scaling bitcoin. Transaction times had become too slow, fees to high and this led up to two solutions, which ultimately lead to two chains: Bitcoin (BTC) and Bitcoin Cash (BCH), often referred to as bitcoin trash.

Short after that happened, China announced to start clamping down on ICO's and a lot of FUD eventually caused a sharp correction in BTC, and the rest of the cryptomarket.

At the moment, we are in a position to start our climb again towards 5000 usd, a very symbolic number, yet not broken by Bitcoin. There are many analysts, who predict that when the 5000 usd barrier is passed, we will go directly much higher! That may be possible, but I want to see a steady climb, if we go parabolic again, we will have to take another correction! On the chart below, you can clearly see the former top, the dead cat bounce and the bottoming out of this correction! The weak hands now sold their bitcoins, I expect more new buyers to step in. The hedge funds have already invested in Bitcoin. That's why Jamie Dimon pushed Bitcoin down even further. China has tried to stop bitcoin many times, it never worked out the way they hoped and we're ready for new highs! Keep the faith!