What cashless are you talking about?
Today, I saw this article on cointelegraph.
Bitcoin ‘Not The Answer To Cashless Economy’ Says European Banks’ Top Brass
I am not going to discuss this article in detail. I just want to ask one question, are we talking about a different 'cashless'? In another word, are 'government cashless' and 'crypto cashless' the same cashless?
Nowadays, we can hear many banks and government talk about cashless. It appears that they like cashless and they aim to build a cashless society. Meanwhile, with bitcoin and cryptocurrency, we can also achieve cashless. Are these two cashless the same?
Actually, they are not. The government cashless is to encourage people to use debit/credit cards and mobile payment. Banks can easily track where the money comes from and where the money goes. They still have full controls on your asset. In the contrast, if cryptocurrency is used to replace fiat currency, the government will have a hard time to control the your wallet. Although they can still track the transactions on blockchain and see bitcoin is transferred from one wallet to another, they have no idea who the sender and receiver are, who may even be different countries.
Perhaps we can say that there are two cashless-es, the government cashless and the crypto cashless. Government cashless hates crypto cashless. Next time when we hear people talk cashless, we perhaps need to ask this first: What cashless are you talking about?
There has been some good news and some bad news as we keep riding the regulation fear and panic wave. As with any market, we have to figure out how to adapt to market conditions. While we hold for the long term, we also trade in and out of positions to grow our portfolio for adding to the longer term cryptos.
Here is a prediction that a trader made today. You can see his technical analysis chart here. Make sure to read the comments as well. This chart is showing what is called a falling wedge meaning that there may be a breakout up towards $10.5k plus for BTC. So, what does that mean?
It means that you can trade bounces between short term highs and lows. This is just an example, not an actual "trade," but if you were to get some BTC right now (around $9100 as of this minute), you could then sell it when if it goes to $10.5k, then if it dips again, rinse and repeat. Right now, it is looking like BTC is staying above $8k, though it has been struggling to break through $12k. So, you can try to buy when it's in these low ranges and sell when it pops up. This can be done with other cryptos as well.
If you try any short term trading it is good to only put 1-5% of your total balance into a trade, and also, it is good to set a stop loss or exit the position if it goes down 10% from your buy in point. You also have to have a target to enter in and a target to exit. We are not saying trading is simple, but these bounces are coming fairly predictable at the moment.
Nice write up