Thursday, July 17, 2014

Janet Yellen dreaming of DOW 30,000!

I just could not resist drawing this after watching the speech by Janet Yellen on the TV the other day. I am sure DOW @ 30,000 is probably on the low end, the FED probably wouldn't mind the Dow Jones Index at 50,000.

Friday, June 20, 2014

Janet Yellen running from the Bitcoin Bazooka!

I am a big proponent of cryptocurrencies and with the recent wave of Bitcoin acceptance by major retailers and business across the globe, it seems to me the days of the central banking and fiat money are numbered. There is nothing worse for an economy/society/country than the blatant debasement of it's currency. Inflation hits across the board and the poor always get it the worst. I hope someday we will live in a world free of central banking!

Thursday, June 19, 2014

This is probably how the Spanish goalie feels after the 2014 World Cup!

I know this is not forex related, but I just could not resist. A picture can truly be worth a thousand words!

Wednesday, June 18, 2014

Why I like Darkcoin and anonymous cryptocurrencies!

I had some free time the other day and I decided to draw this for some reason. I feel this cartoon depicts fairly accurately how I feel about Darkcoin and anonymous cryptocurrencies in general. I am sure not all people will share this point of view, but I got a hunch many will agree!

Thursday, April 24, 2014

Gold Technical Analysis - Bullish Formation Showing On The Daily Chart!

I haven't posted any forex setups in a while, but today there is a nice formation on the daily XAU/USD charts. On the one hour chart I have marked a massive trend line break with a green line. Gold has been in a very consistent and steady downtrend for the past few days, but today I think everything has changed. The daily chart is showing a bullish engulfing candle right on the $1277 price level which has been used both as support and resistance in the past (marked with green arrows). My gut tells me in the next few days or even tomorrow we might see a lot of Gold buying!!!

1: If we break higher tomorrow I expect first resistance is @ $1304 level.
2: If the $1304 breaks hard I think we may even see Gold heading for the $1330 high from the 14th of April!

1-HR Chart

Daily Chart

Sunday, April 13, 2014

Blackcoin, The First POS (Proof of Stake) Cryptocurrency!

Most of the "alternative" cryptocurrencies that exist today are copycats of either Bitcoin or Litecoin with a few exceptions. Bitcoin and Litecoin are POW(proof of work) cryptocurrencies that require miners to do work with their mining equipment in exchange for getting coin rewards. Blackoin is a POS (proof of stake) cryptocurrency with a built in 1% annual inflation rate. What this means is that there are no miners who do any mining like in Bitcoin, instead new coins are generated by everyone who has Blackcoins in his/her wallet that are "staked". "Staking" is when you leave the coins sitting in your wallet and let them accumulate interest that is paid out every few days depending on several factors. The 1% annual inflation model was chosen because it does not encourage hoarding, and is enough to provide a steady supply of minting that is not too inflationary which is very important for stability. The whole point of Blackcoin's POS structure is that miners are not required to purchase mining equipment and spend lots of money on maintenance and electricity costs. This makes Blackcoin a very efficient and most importantly, a "Green" cryptocurrency. I tried sending some BC to and from several wallets to test the speed of the transfers and I was absolutely blown away by how quickly the network confirmed my transactions. The Blackcoin network requires 10 confirmations, but those 10 confirmations were done in almost under a minute. I had become frustrated with how slow Bitcoin had become in the recent weeks, sometimes waiting for up to 1 hour for my transfers to complete. When I saw how quickly the Blackcoin network sent my payments I knew this is exactly what I had been looking for. If you are a long time user of Bitcoin or any other cryptocoin you will be very pleasantly surprised with the lightning fast transfers that BC is offering.

The other very interesting thing about Blackcoin is the introduction of the "multipool". Because Blackcoin is a "proof of stake" coin, there is no mining directly taking place on the network. The multipool allows traditional Bitcoin and Litecoin miners to mine other crypoticurrencues and get paid in BC. The multipool takes the coins that are mined by the miners and automatically buys BC before paying out to the miners. This results in a very steady stream of new Blackcoin buying every single day, I don't have to tell you what this means for the future price of Blackcoin. The multipool is already sporting north of 6000 Mh/s on scrypt and 50 TH/s on SHA256 cryptocoins. If the pool continues to grow or at least maintains it's current mining power, this could be a very stabilizing force for the value of Blackcoin and will ensure adoption by merchants. Other cryptocurrencies do not have this stabilizing force that dampens the effect of speculators cashing out of the market. The multipool is a very reassuring thing to those merchants who wish to accept Blackcoin because it gives them a sense of security that the BC they receive in exchange for good and services will not be devalued overnight. There have already been several online point-of-sale portals like Coinkite that have accepted BC and I am sure many more will join in very soon. I see a bright future for Blackcoin because many online and offline merchants will be just as amazed as I was at how quickly transaction are confirmed on the Blackcoin payment network.

When I first started researching BC the exchange rate for BC/BTC was 0.00004. In the past week the exchange rate for Blackcoin has exploded to 0.0004 as of the writing of this article. What is even more impressive was the amount of volume on which this rise happened. I have been around cryptocurrencies for about 2 years now and I have seldom seen 2000-3000 Bitcoin daily trading volumes on any alternative cryptocurrency. Whether this trend continues or not I have no idea, but so far the support and vote of confidence from the cryptocurrency community has been nothing short of stellar.

Chart courtesy of Mintpal.

Monday, February 17, 2014

Darkcoin, The Anonymous Cryptocurrency!

Official Darkcoin Site

Privacy and anonymity these days are a very tricky proposition. Everyone is snooping on everyone else. Government agencies and hackers are on the prowl, how is one to keep any form of basic financial privacy and security in their life with all these mounting threats? Bitcoin and other cryptocurrencies provide a layer of anonymity in that everyone looking at the public ledger of transaction can see who sent what to whom and the balances of all the accounts in the system, but you can't tell which account belongs to who. So that is a nice feature of Bitcoin, but it is not a hundred percent anonymous.

Darkcoin is a new cryptocurrency that is promising to create a fully anonymous transaction network and anonymous blockchain using "coinjoin" technology. Unlike the publicly visible transaction of the Bitcoin network where you can see who sent what to whom, this information will be hidden on the Darkcoin network. Darkcoin will be implementing a method called "coinjoin" to obfuscates the transactions in a manner that renders any tracking impossible. I will attempt to give a very crude example of how "coinjoin" works in a simple diagram, the actual cryptography that allows this transaction merging is a lot more complex.

How does "coinjoin" work?

Steve wants to send one coin from address A to address B

Bob wants to send one coin from address C to address D

Coinjoin will combine those two transaction into one and a third party looking from the outside will not be able to tell if A or C belong to Steve or to Bob!! Now imagine you have 100 transactions combined into 1, it becomes impossible to determine who sent what to whom, and that is a big improvement over the publicly visible transaction on the Bitcoin network.

Darkcoin was launched on January 18th, 2014 and since then has been growing in popularity in the cryptocurrency community. From what I have observed on the official Darkcoin forum thread, the developers are very competent and have done a lot of work on implementing the "coinjoin" technology into the blockchain. Development on the encrypted transaction network is a work in progress and the "coinjoin" technology is currently in Alpha testing with very promising results so far. If you would like to keep on top of any new developments you can visit the official Bitcointalk thread here.

If the current price of DRK/BTC is any indication of investor confidence, then the future of Darkcoin is looking very bright indeed. It seems anonymity in this day and age is extremely important and people are willing to pay good money for it. Just a few days ago the exchange rate for DRK/BTC was hoovering around the 0.0005, in just one day DRK/BTC hit a high of 0.002 on very heavy volume on the C-CEX crypto exchange. If that is not a vote of confidence, I don't know what is.