Hey yo, what is going down with my people, the Chico army but if your new, you gotta
earn your stripes, your still just a viewers of the tube.
My name’s Tyler, the host of the crypto channel that knows this fall is scary, but
you gotta have fun with it….just like these monkeys.
You put that mankey on that stick, when I dip you dip we dip.
It’s time for Chico Crypto!
Ouch, is all I gotta say...cuz in the blink of an eye, the gains that BTC has made over
the past week, were wiped out in hours.
12k resistance is proving to be a tough one, as once that level was hit, immediate rejection
and the slide began.
As of yesterday, we were sitting just above 11300, a 5.8 percent decrease.
Which, you see this is where the big money was made for those pesky leverage exchanges.
From Bitmex data over the past 2 weeks, this freefall liquidated 60 million dollars in
Longs, which is more than the shorts over 2 weeks, combined.
A single day, a single move netted the exchange more money in 24 hours with long liquidations,
than 2 weeks with short liquidations.
They set em up...those who like to play the dangerous game of leverage.
I personally didn’t think there would be that many dumbshats, putting in longs in unknown
price territory...but I get it now, how they got people to LONG BTC, whales with millions,
in unknown price territory, was fueling that bullish narrative, with DeFi…
Although there was news that coincided with the DIP this time….South Korea’s largest
exchange Bithumb was reportedly raided & siezed by the Police.
Coindesk covered it and the raid happened apparently in connection with a 25 million
dollar token sale hosted on the platform for BTHMB tokens that never materialized.
AKA bithumb ran a shady IEO, and the POPO came in to figure out what is going on, and
get a hold of downright illegal operations.
Not pull the plug & ban them outright, as lower in the article, it says the exchange
appeared to be active at press time.
But this DIP should have come earlier, if this is the reason, as last week August 26th,
the country's third largest exchange, Coinbit was raided and seized over allegations of
wash trading.
And Korea, isn’t as much of a crypto haven dominance powerhouse as it once was.
There are 5 big exchanges in Korea with volume worth talking about, combined they have about
1.8 billion in 24 hour volume spot trading volume.
It’s a smidgen of the world’s actual trading volume as we can see total volume yesterday
was over 100 billion, and the top exchange binance had over 7 billion alone 4 times than
that of all of South Korea...shoot Uniswap had over 1 billion yesterday, a decentralized
exchange almost has more than any centralized Korean exchange, and almost more than all
their top ones combined.
So, this dip scare has a backing, but that backing has no weight, it’s BS kind of like
the China FUD in 2017.
Now my personal opinion of what is going on?
It has slightly changed since we last spoke of Bitcoins movements.
People within the DeFi space, where making money over fist, with the Yield farming schemes
& social media hype.
This placed bullish sentiment in the markets, and some of the whales who were making millions,
thought hey why not take some of that willy nilly profits & gooo long on BTC, the markets
look ripe.
Even though the price of BTC is in unknown territory, which in the past has the majority
of the time went down...peple went & gambled & went LONG like dumb bois.
So, those in Charge took it down like Charlie brown, and here is where my opinion slightly
changes, I am going slightly bearish, as it’s time to set up the short dumb bois.
Here is what I’m seeing.
Pulling out the BITCOIN chart since last week, it was a slow & steady rise from under 11200
to that 12k mark.
This took place over the course of 6 days, now pulling out the Bitmex liquidations, it
wasn’t anything to speak about...short liquidations, were spread out across the time period, and
look small in comparison to the LONG REKT on September 1st.
So they will do the exact same thing to the shorts, we will slowly deflate, and look like
we will be hitting the CME gap, at 9.6k as with any downward movement in this range brings
that right back into mainstream thought.
But this time, the CME GAP has a technical indicator to go along with it...the head & shoulders
pattern, people are charting it like MAD..warning of the technical gods saying it must now be
filled.
So, we are going to see suckers, get suckered.
Many will try to short BTC as the charts with this pattern are a shoe in... and the whales
in control are going to play into it in my opinion, I personally see 10.2k to 10.5k as
the bottom, and this will take place over the span of a week or so.
Although BITCORN, it gonna bitcorn as the whales play their games….and while the whales
play, the Chico army preys.
As there are opportunities abound in the crypto space which have everything to do with Ethereum
but every opportunity comes from a problem.
The problem?
Ethereum transactions Fees are too gosh darn High!
People thought the average Fee was high in 2017 & 2018, well today it’s ridiculous.
It’s not benefiting anyone, except a certain sector of Ethereum’s protocol...the miners.
Total Fees earned by the miners, reached over 17 million 24 hours, or you wanna know how
much that is per hour.
800 grand.
So it’s highly, highly profitable for the miners to keep things how they are, for the
time being.
Ethereum as a proof of work protocol, is making the mining farms bank..even more profitable
than the BITCOIN miners.
Checking out bitinfo charts, and their mining profitability one...we can see it has never
been this profitable to mine ethereum, with one Megahash of power.
How about we try and add bitcoin on the chart to compare….well, it doesn’t even show
up, ethereum is red bitcoin is blue because it’s so low compared to ethereum.
Then coindesk covered this topic August 12th in an article titled…”Daily Profitability
for Ethereum Miners Hits Over 2-Year High.
The article states…”The increasing profitability is a result of the recent price rise of the
ether (ETH) cryptocurrency and a surge in transaction fees brought on by increasing
levels of decentralized finance (DeFi) activities on Ethereum.
As a result, most of Ethereum mining equipment is now able to operate with a profit margin
above 90% even at an electricity cost of $0.05 per kilowatt-hour”
Who get’s that 5 cent per kilowatt hour price or even lower?
China does, which is seen in the mining pool breakdown for Ethereum.
3 pools control over 50 percent of the hashrate, Sparkpool, Ethermine, f2pool and ZhiZhu.
Sparkpool..Chinese, Ethermine is from Bitfly an Austrian company, f2pool chinese, and zhizhu
better known as spider pool is chinese.
Now these pools, are not using your regular ole GPU..they are using specialized Ethereum
based ASICs, like the powerful Innosilicon A10 models & Bitmains own line up called the
e3s.
Although, the max megahash is 500 per second.
But things in this mining industry are going to get ohso interesting, as the Linzhi e1400
gets ready to launch.
Back before this world craziness, Lizhhi announced they had ordered the 1st set of wafers for
this miner, announced in 2018.
The power of this baby?
1400 Megahashes at 100 watts of power.
Now this is what Linzhi said about their testing…”this will happen in our Shenzhen factory under
our full control, Our factory test environment is currently setup for a maximum load of 80
kW, which translates to 112 GH maximum Ethash hashrate.
Now is that significant?
Well looking at Ethereum’s Hashrate, it’s over 222 Terahashes, or 222 thousand gigahashes,
so not significant for Ethereum, but….lower in their medium article, the question was
asked “Will you do chip testing on a testnet?
Of which they reply “We plan to do chip testing on the Ethereum Classic mainnet”
Ohhhh, .as looking at Ethereum Classics Hashrate, its 1.27 terahashes or 1270 gigahashes, thus
Linzhi’s test alone would nearly have 10 percent of Ethereum’s hashrate...now these
test’s were supposed to begin in Novermber of last year...we are almost 1 year away.and
guess who has been getting hit by 51 percent attacks lately?
The Ethereum Classic mainnet.
Coindesk covered on August 6th “Ethereum Classic suffers second 51 percent attack in
a week.
And then, in prior attack to ETC, Linzhi has been blamed for the attacks.
Cointelegraph covered one and said “A tweet from the ETC Twitter handle, which has since
been deleted, speculated that testing of new 1,400/Mh ethash machines by application-specific
integrated circuit (ASIC) manufacturer Linzhi may have been a potential cause”
So the point I’m trying to get across is not an Ethereum attack is coming, but there
are industries and businesses who have dumped millions into the Ethereum mining industry,
and they are not going to let this type of profitability for themselves go away that
easily.
It’s going to be the miners versus the DeFi user’s here soon...ethereum has a light
at the end of the tunnel with 2.0 and proof of stake...but there is a tunnel, and time
where Ethereum will be in the dark.
And that is where the opportunities will lie, the solutions that ease ethereum’s pain
during this painful time & also push it forward….scaling, layer 2s & NFTS, which is the topic of tomorrow’s
video.
Don’t miss it.
Cheers I’ll see you next time!