Monday, November 26, 2018

Navigating the turmoil ⛵️🌊

November 26, 2018

Navigating Through the Turmoil

Hodl has always been just a meme

The first thing you will hear during a market crash is 'hodl'. The strategy of always just holding onto an investment is most often plagued with people trying to convince you to do the same.

Game Theory is very prevalent in financial markets. Everyone will only look out for their own best interests. They will try to convince you not to sell because it benefits them, not you.

Don't listen to others, especially if their advice is simply 'hodl' without any reasoning to back their claim.

Know how the market works

For every seller, there is someone on the other side of the trade buying. Who do you believe is getting the better end of the deal? If you consider this time a great buying opportunity, why would you even think of selling?

Fundamentals are more important than ever before

During the bull run, fundamentals were sadly irrelevant. Every coin was surging no matter its use case or development team backing it.

Now in this market, fundamentals will make a difference and separate the winners from the losers. Projects without a real use case or determined development team will be abandoned and go to zero.

Choose projects that are gaining adoption despite the market conditions and with development teams who are determined to keep building despite the downturn.

Be ready for next time

Be ready for the next time this happens. The market has been through this phase numerous times already. Now it is just happening at a larger magnitude.

There is no reason to be caught off guard when this surely happens again. To be ready for the next time, it is crucial that take profits on the way up. If you believe in a cryptocurrency, now is the best time to have cash ready to enter the market. Listen to Warren Buffett's advice, you want to be the only buyer in a fire sale.

MINING

Bitmain Blasted with $5 Million Lawsuit Over Unauthorized Mining

Sneaking hash power

Bitmain has a new lawsuit on its hands. Allegedly, the cryptocurrency mining giant is preconfiguring mining devices to use customer electricity and mine cryptocurrencies before the equipment is setup.

Because the setup of mining equipment can be confusing and time-confusing for customers, Bitmain had some time to gather their own crypto profits - with zero expenses.

Over $5 million

Now, more than 100 members have joined a class action lawsuit to return over $5 million in damages.

Led by Gor Gevorkyan, the plaintiffs are seeking to get every penny that they lost due to Bitmain's unfair mining practices and are also asking for the company to halt the operation immediately.

So far, Bitmain hasn't commented on the matter.

GOVERNMENT

Ohio Begins Accepting Bitcoin for Taxes

First of its kind

This week, Ohio will become the first U.S. state to begin accepting Bitcoin for tax payments.

The announcement to legitimize cryptocurrencies through the new program came alongside a new payment portal at OhioCrypto.com. The website will use the popular crypto platform BitPay to process payments.

For now, only Ohio businesses will be able to use the system, however, regulators hope individual filers will be able to use the system in the near future as well.

Made by Mandel

The initiative to accept crypto payments came from the state's Treasurer Josh Mandel. Holding office since 2011, Mandel has been interested in cryptocurrencies for several years and even believes Bitcoin will become a "legitimate form of currency."

Previously, the state governments of Arizona, Georgia, and Illinois have all explored cryptocurrency tax payments but pushback has delayed approval.

While Mandel's new win is a small one for crypto, it is a big step that could help encourage cryptocurrency adoption.

BITS

But wait, there's more...

600,000 to 800,000 Bitcoin miners have shut down since the middle of November, according to blockchain.info.
Hardware wallet manufacturer Ledger is expanding to New York with plans to start developing an institutional custody offering.
U.K. financial watchdog has opened investigations into more than 50 different crypto firms suspected of operating without proper approval.

MEME