Tag Archives: opinion

The Real Extent and Effect The Cryptopia Hack Is Having On Me.

I don’t think about the Cryptopia hack a lot. Partly because I try not to dwell on negative things too long. It took a couple days to realize exactly what could be lost. Although, in the back of my head I always knew this was a possibility. So in many ways, I was already prepared for this. As crypto traders, we know the risks and these are the games we play.

Considering the time I’ve been involved in trading, it was bound to happen sooner or later. I missed the Cryptsy debacle by about a week. I knew something was amiss and withdrew all my funds a little over a week before disaster struck. There were signs, and I acted accordingly.

With Cryptopia, there really weren’t any signs. Honestly, I was comfortable there. I never had a problem, and I really liked the UX of the exchange. Order history was always there, pages loaded fairly quickly. I was never crazy about the charts, but everything else was perfect. Frankly, it was one of my favorite exchanges.

Which leads me to my point. I’m not super concerned about the coins I had on the sight. It was a small percentage of my overall portfolio. What bothers me more, is the work I lost. In the greater scheme of things, I spent the better part of 6 months building positions, buying and selling, and preparing for the next bull run. All that work is gone now.

For the most part, I trade altcoin on three major exchanges. I haven’t really used Bittrex since they updated the site. I don’t like the UX, and I have to fumble around with my own software when I want to review order history. With that said, I just hadn’t been trading there. I even planned on leaving the exchange this year. Only a few days before the Cryptopia incident I planned on moving my coins from Bittrex over to Cryptopia and two other exchanges. Had I done that, I would have been completely REKT, with the exception of a few cold storage wallets, and my trading nut of BTC and USD.

I suppose it was a complete tragedy averted. Thinking back on that, things could have been much worse. I don’t know what will happen with Cryptopia. For the most part, they’ve always acted honorably in the past, so I’m giving them the benefit of the doubt now. I have to admit though, the lack of communication coming from the company is rather troubling. Currently, I’m expecting the worst and hoping for the best.

My understanding is that the hack was centered around Ethereum wallets and ETH related tokens. Fortunately, I didn’t trade ETH or own very many ERC20 tokens. Considering all the information I’ve received so far has been through a third party, I’m not going to comment further on what’s happening over there. Hopefully, a statement will be made, and the truth comes to light.

In the meantime, losing about a third of my work from the last 6 months is really starting to sink in. All those trades, all that position building, gone!

I practiced decent risk management splitting my position over multiple exchanges. Again, I’m not concerned about the money either. I’ll build the money back. Christ, I started in this game with pennies earned from Dogecoin and Bitcoin faucets.  Losing all that work is the real kick in the nuts!

With all that said, who knows what the future holds. For all I know, they may announce tomorrow that they’re open for withdrawals. I’m not holding my breath on that. I’ve already written it off as a loss. If for some reason I’m surprised, I’ll consider it a nice windfall.

So for now, a nice chunk of the last 6 months of my work is flushed down the crapper. I’ve already started rebuilding my positions. That’s all I can do. Move forward. Never look back, keep on learning, and try not to repeat the mistakes of the past. Another hard lesson learned!

Cryptocurrency Is Far From Dead.

The bear market has turned a lot of cryptocurrency believers into crypto doubters. “Crypto is dead” they tweet and exclaim every chance they have. “We’ll never come back!” shout the doubters. “I told you it was a bubble!” shout the skeptics. If you’re paying attention though, it’s obvious that they’re wrong. Here’s why.

First lets define a dead coin. To me a dead coin is a coin that 1) has no active dev or ongoing work or maintenance. 2) Community support for the project has completely died. 3) The blockchain no longer works for transactions. Once a coin meets these three criteria, you can safely declare the coin is dead.

 Most coins in the current crypto market don’t meet this definition. For the most part, most coins on reputable exchanges are alive and well. They have active devs, strong community support, and the blockchains are doing exactly what they were designed to do! In the greater scheme of things, as long as two people are trading a coin, and that coin has some form of intrinsic value to them, you could say the coin is still alive and well.

Although market caps have lowered for most coins, if you look at the top 100 cryptos on coinmarketcap or livecoinwatch you’ll see there are still several people actively trading the top 100 coins and many others coins too. People are trading.

As hard as it may be for some to believe, new people are still finding an interest in cryptocurrency. “What is bitcoin” was a top search term for google in 2018. On top of all that, a study out of Cambridge announced that cryptocurrency users have doubled in 2018 with over 35 million active users by ID. It may not be mass adoption, but were still moving in a really positive direction! People are interested in cryptocurrency and our numbers continue to grow.

With all this said, I was bitcoin’s biggest skeptic when I entered towards the end of 2013. I’m still a bit skeptical but I really want to believe. With crypto a better world is possible. Still, I scan the headlines daily searching out clues of it’s demise. I tell you now, I’m not finding them. Quite the opposite. As the price continues to decline, I continue to see incredible headlines, that make me believe we’re still heading in the right direction. Institutional investors are taking an interest. Wall St. continues to take an interest in “Blockchain” technology. Companies like Ripple & XRP are starting to get noticed by banks. Coinbase users can now make deposits directly into their PayPal accounts. IBM and Stellar are accomplishing big things. If you scroll the headlines, and see through the hype, the evidence is out there. Cryptocurrency is alive and well and far from dead!

I have no idea when the bear market will end. I do know however that bitcoin and cryptocurrency in general is far from dead. I’ll even take it a step further. Not only is it alive and well, it very well may be stronger than it has ever been before. We haven’t even scratched the surface yet people. This thing continues to grow, new uses are constantly being discovered, and like the early internet and email, eventually cryptocurrency will just be a part of our everyday life. Till then, there’s going to be highs and lows but before you scream “The sky is falling, the sky is falling” take a good long look at the headlines. Look at all the positive news. Look at the market caps and the amount of people trading. Watch our user numbers grow! These are not signs of death, but the birth pains of a new and growing technology! This is not an obituary, this is a celebration of life, the evolution of finance, and the birth of a new technology.

One Reason Why The Deplatforming Of Alex Jones Bothers Me.

Here’s a perfect example of why the deplatforming of Alex Jones bothers me so much. Baidu, China’s “Google” equivalent is now blocking cryptocurrency related search results. Although blocking searches in China may not be breaking news, the deplatforming of Alex Jones should be. WeChat China’s social messaging app also blocked cryptocurrency related accounts.

WeChat Blocks Crypto-Related Accounts, Suspends Huobi News, Coindaily

This now becomes alarming to me, because how far off is this from deplatforming a major source of alternative news. Regardless of how you feel about Alex Jones, and his sensationalist style of journalism, our corporate overlords are now dictating what we can view, or hear in the realm of alternative news. They have decided that “we the people” are too stupid to discern fact from fiction. This now becomes very alarming.

China’s Baidu Joins Tech Giants Tencent, Alibaba in Imposing Fresh Anti-Crypto Measures cointelegraph.com…

If they did it to Alex Jones, what’s to stop them from doing it to crypto….. “In the name of your safety we’ve decided that you’re too stupid to handle your own money. The crypto market is volatile, and isn’t a legal asset. We have decided to block all crypto related media and links for your own protection.”…. or something based around that narrative. You get the point.

I strongly feel what happened to Alex Jones sets a dangerous precedent for US companies. It’s not much different from the state controlled censorship of China. If they deplatformed Alex, they could certainly do it to crypto or any other subject matter they don’t approve of.