Both Ed Bugos and I have been telling subscribers to take profits on the cryptocurrencies in the last few weeks as we felt they were well overbought.
I’ve even made mention of it in public numerous times and did so again in this most recent interview I did with World Alternative Media on June 23rd.
In that interview I warned that “Ethereum has a lot of problems” and Ethereum has since fallen more than $100.
It wasn’t the only one though. Of all the cryptocurrencies in the top 50 everything was deeply in the red. Only one had a minor 0.17% gain today. Something called MCAP, whatever the hell that is.
I like Ethereum a lot… and even recommended it to subscribers in 2016 at $2. But felt it had gone too high, too quickly considering some of the issues with it.
Like, for example, that Ethereum’s future still rests on a relatively small number of people.
The creator of bitcoin is Satoshi Nakamoto and it is still unknown who he really is. But, it isn’t important, because bitcoin is open source code and there are now hundreds of coders who work on the bitcoin code. So, there isn’t any particular person who could have problems and cause problems for bitcoin.
The same can’t be said for Ethereum. Or, at least the market thinks so.
While there are a few key people involved in Ethereum the market really sees just one man as being the man who makes things happen, Vitalik Buterin. This comes despite the fact that many believe it was actually a former Microsoft research scientist named Gavin Wood who wrote “100% of the code” for the currency, according to an early investor in both Ethereum and bitcoin, Brock Pierce.
And we saw just how important the market considers him when Ethereum sold off by a large amount on the rumor that Vitalik Buterin was killed in a car accident.
The news of Vitalik’s supposed death appeared on 4chan’s /biz/ thread at 4:30PM EST on 25th June. The poster cited another post on a Slack channel. Although the header read “Vitalik Buterin confirmed dead” the post provided zero evidence nor links.
Vitalik lives in Singapore and when this all happened it was of course still quite early in the morning in Southeast Asia, which allowed for rumors to brew for several hour before a response came from Vitalik indicating that he was still in fact alive. To prove that he hadn’t died he took this time stamp with the most recent ETH block:
He was looking a little rough though. Maybe a few dozen less Red Bulls per day, Vitalik.
Nevertheless, this ordeal still resulted in a panic selloff which probably wasn’t helped by last week’s incident with heavy network congestion and two ICOs that resulted in massive volatility and a major sell order of (96,100 ETH) on the GDAX exchange which triggered stop-loss orders and margin positions and resulted in a flash crash which momentarily caused the value of Ethereum to plummet as low as $0.10!
While things like this can happen from time to time it does beg the question about just how liquid the ETH market is and if it can withstand a major selloff without falling from $400 to $0.10 in a few seconds!
An additional incident that really caused skepticism among Ethereum investors was the DAO hack. DAO stands for “Decentralized Autonomous Organization” and it was meant to operate like a venture capital crowd fund, however, a flaw in the platform which was built over the Ethereum network allowed a hacker to siphon nearly $70 million worth of tokens out of the fund.
While this was not a problem inherent in the framework of Ethereum itself, it still added a “guilty by association” shroud of skepticism to the currency.
In light of this problem with the DAO application built on top of the Ethereum network, the Ethereum community quickly began coming up with solutions. Ultimately, they decided upon a fork. At first, in an effort to prevent the hacker from cashing in the Ether from his child DAO after the standard 28 days, it was voted that a soft-fork would be introduced. However, several hours before it was supposed to be utilized, several members of the community found a bug with the implementation that could open a denial-of-service attack vector.
Thus, alternatively, a hard fork was ultimately agreed upon by 89% of the community to be the next best solution and consequently Ethereum Classic was born which is why we have two Ethereum currencies many know of today.
But, this fork was more or less decided upon by Vitalik Buterin himself, showing just how centralized the currency is… which is another reason to have some concern about it.
With all the upside Ethereum saw before these two most recent panics, ETH was bound to have a major correction one way or another. Just look at the growth it has had over the past two years:
If there is any other asset in the world that has even come close to Ethereum’s gains in the last two years I haven’t heard about it.
In fact, the entire cryptocurrency space was badly in need of a pullback. It’s just healthy after such massive gains.
This week we’ll be releasing our June issue of The Dollar Vigilante newsletter to subscribers. We told them to take profits on cryptocurrencies over the last few weeks and many will be wondering at what price we think may be a good time to buy back in.
If you’d like to get access to that information, click HERE.
If you’ve yet to get into cryptocurrencies then this is the pullback you have been waiting for. If you still want to learn more check out my free 4 video webinar which tells of the importance of cryptocurrencies and even offers to send you your first $50 in bitcoin if you accept our offer.
You can check that out HERE.
This isn’t the end for cryptocurrencies. It’s just a very healthy pullback after a massive runup. Vitalik isn’t dead and cryptos aren’t either.
Stay tuned here at The Dollar Vigilante, where we have been covering the cryptospace unlike any other since 2011.
I think Ether is decentralized enough to survive the developer death.
I agree.
I think the biggest risk for Ethereum is inferior computing power
I also agree. Ethereum is a platform that many other things are built upon. It is not just a currency like most others being traded in the exchanges, are.
Yeah I second you
People criticize Dan for walking away from Bitshares and Steemit... but could VB walk from ETH? What would happen? A single rumor about VB's death tanked ETH, whereas BTS and STEEM are thriving, self-sustaining decentralized organizations that are growing without a single leader. If Dan can do the same with smart contracts via EOS, ETH is dead and buried.
then again: ETH may tank not because of those rumours but as a part of the plan.
Say you're big whale, wanna push ETH price down. So you spread rumour + make a biggish sale and the ball is rolling down the hill. Then you wait a bit when there is more sale, some start to panic, and then you buy.
Profit :-)
Cryptocurrency is still at its infancy, with great potential and inherent risks. This kind pull back is health. The real danger is the ICO frenzy - looks like bubble to me. Regardless We are early adapters and way ahead of the curve. Look at the long term...
The equation that ICO marketers use is simple: ROI/time=profitability.
There are many who have made a lot of money in crypto, and many more will make a lot of money as well. The next phase of this is commercialization, where the term ICO is familiar but exciting.
Long term wealth accumulation is what a day job is for. Instant wealth accumulation are subject to the formula above, and usually have the interest of the initiators for as long as they are still making the most amount of money with the smallest investment of time.
ICO frenzy is a result of band wagon effect, there is this rush to make a quick one from each initial investment.
Wow! Rumors of Vitalik being dead while he was well and asleep in another time zone sure has been a major troll move.
Dont forget, EOS needs ethereum to run on it :-)
well put
EOS is only using ethereum for the ICO..
Source?
Right here. That post states that "Consensus The Blockchain shall use Delegated Proof of Stake Consensus (DPoS) algorithm in combination with Transactions as Proof of Stake (TaPoS)." Does that sound like it will run on Ethereum, which is developing Casper for a PoS consensus mechanism?
you obviously "ARE" blockchainguru if you post this :-D
Well put.... I've been looking into EOS all day :-D
yes i see the future and it likely to be steem and eos - best to be involved
Free money - Not a scam - Official LBRY project :)
Share and like this post to get more people to sign up to LBRY.
This will increase the value of your coin.
If you've not got any LBC's, buy them now while the price is still low and sign up below to get free LBC's.
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https://steemit.com/lbry/@smurphed/lbry-early-adoption-easy-free-lbc-cryptocurrency
Great post, I saw the death hoax today, crazy lol. UpVoted.
He probably is dead and they have inserted a double to control Ether all the way, im really glad that Bitcoin does not and will never have that problem. What a great invention.
LOL, followed.
Followed too!
In time, more distributed open source blockchain will emerge for DAO's without centralization on an individual.
I think this is the best time for investors to any coin they want at cheaper rate.
can you share some link to that?
Sorry, I saw it on my discord channel, same pics that are here on this blog.
I saw the value tank, and then a bunch of posts about it ..... crazy
shoutout to NEO (Antshares), first thing I think of when I see Matrix memes now.
One meme to rule them all. FOLLOW baby.
Did you see my tech analysis on the Antshares support today?
leme kno.
what you saying then.
<3
6K
I think ETC is the next big thing in cryptoworld
I agree to this. And like @jeesto said, I hope they will keep developing it.
I like Ethereum Classic too, but they need to improve on their official website to convince other investors to dip their money in. Right now only the crypto world knows about them.
Follow me @Yehey
Thank you.
Remember Ethereum is the development blockchain and Ether is the means to fund raising, I do not have much faith in ether as soon as metropolis update pushes and a hard fork is created and new icos's start using that platform ether (Eth) may drop dramatically. Ethereum platform will have waves as more hard forks are created and more updates are pushed to solve the day to day problems ethereum has with scaling issues.
[deleted]
Or even better - hold Bitcoin and use real gold as a hedge #krugerrand 😘
Gold, Bitcoin, Stocks, Bonds, Real Estate, Art...
PMs. BTC, ETH and LTC. Diversified.
Dam , who ever pulled of this sure would have made a packet
Always love your posts Jeff!!
LUCY Sitz
i agree...love it @dollarvigilante
these are crazy crazy times
Really crazy times. crypto was really a mess yesterday. I started 10 days ago on steemit. I see you have a lot of steem power. Can I ask you how did you build this? Did you invest in steem? Or just by using the platform? Thx up front
I invested. I just started a few weeks ago, new to steemit as well. I believe its a good investment with a really strong community and an actual chance at hitting somewhat mainstream.
Thx, so you bought steem and powered up to steam Power? Does this mean you will keep the investement and use the steem power for voting? The only risk you have is hat steem price goes down when you bought it. But when you have it you can upvote daily. And you willnot loose your steem power in $.
yes, thats what I did. You're right, I bought steem around $2 and now its at $1.62 so.. and I think it will go as low as $1.15-1.3 before aug 1st. We've lost about 21 billion in crypto currency in the last week and its due to the soft/hard fork about to happen to bitcoin. Buy as much as you can before the 1st as it will rebound
Do you buy Steem or Steem Dollars?
SO you think the bitcoin hard fork will make the bitcoin more valuable? I mean it's 2300 -2500, you recommend to buy right now or wait till the panic?
good
Blockchain's USP is decentralisation.
No one (or govt) can cut off its head because there isn't one.
If this isn't the case, then a weakness exists.
Same goes for figureheads that embody the crypto they evangelise.
Decentralisation is power.
It's literally power to the people.
Nice post! thanks!
BTS ist the Best Crypto
My thrust in Ethereum is gone. The fact that the price rose so much after the banks got on board combined with the fact that they will go to POS makes me suspicious. What if they already own more than 50 %? Then they can manage ETH after the change, the inflation e.g. After this crash they could buy up even more, maybe they made up this rumor about Vitalic.
What if the banking consortium who were investigating how to use blockchain also were investigating how to destroy Bitcoin. It could be that they didn't find a way. Maybe the only option they found was to take over and hype the 2nd cryptocurrency that is far less secure and decentralized and let it overtake Bitcoin and call it the new Bitcoin?
But there are many more reasons that I don't believe in ETH at the moment. Happily I sold halve of my stack 2 days ago and wrote here why:
https://steemit.com/bitcoin/@michiel/flippening-part-2-yesterday-i-sold-half-of-my-ether-for-bitcoin-and-here-is-why
hmm, but is your thrust reallygone, though? I mean - why didn't you trade all of your ETH for BTC, then?
That said - you make some great points in your linked article. I recently put my foot in my mouth when I was speaking to how ETH is like 'BTC 2.0' - but little did I know that it's not entirely decentralized like BTC is, until someone else pointed that out to me. Whoops.... that's definitely a concern for me. That said, its smart contract capabilities are a nice step ahead in terms of BTC.
Looking in the future is never 100% sure, so I never sell a full stack of an asset. Beside this, when my suspicion is right and the banks are hyping it up, the price could rise again and I can dump another half (of my remaining half) later, and so on and on.
Also when RSK won't deliver their promise or just not get adopted, ETH might have a good future over the longer term and then it is good to own some even if it is controlled by the banks. By owning I will have the power to decide when to dump it, so I don't see it as supporting them.
Vitalic sounds like an honest guy, but he also sounds a bit naive from time to time. He is more in it for the technical challenge then for any idealistic reasons in my oppinion. This makes Ethereum a bit vulnerable, he is a bit too eager to join forces with bigger companies, he showed that in previous interviews as well as the meeting with Putin etc... Ether might crash and bounce back, so can be a good investment in a few weeks/months. On the longer term I like Bitcoin and Steem is of course good because of us, the community/movement!
Yes I think Vitalic is a good guy too, but the question is whether he can keep the power over ETH. He could be threatened, bribed or just fooled. I think the lack of decentralization and security of ETH will finally be a huge problem.
I think the guy is a genious, Einstein was a genious too but was also not able to keep his nuclear discoveries out of the wrong hands. What I like about Steem is the community. We do not only share the cryptos, but also the in the essence of the project we keep the knowledge in the same blockchain, that is not only very cool, but also very valuable ! Why? Because this way it is easier to spot and keep out "evil" forces on the long term.
@michiel Dutch / Belgian? I am from Utrecht, but living in Brazil currently, I am new here, check out the first part of my story here.
Yes he is genious indeed, if your able to launch a platform like that on that age, respect. Especially other forces around him make me worry.
Yes I am Dutch, but living in Thailand. When you live abroad you see how pathetic the Dutch government and press are and how they play with the people, by making them upset by the bullshit events they serve in the news. All to distract them from the real problems like dept, inflation and depression where we are heading to.
For sure.. If you didn't yet, make sure to check out the Ronald Bernard interview on YouTube. Very insigtful (and a bit disturbing). Makes you realized how mind controlled most people are.. And they just love to close their eyes for these things.
What I like to see as well are the discussions in the parlement with Baudet talking about the government job carrousel and the parties cartel.
Any plans to blog about your travels / immigration ? I would love to follow!
I do agree with you and the power play definitely would have started already for the control.
Good points, yes it definitely will.
Probably, but good. But it's bad that the etherium is on it alone.
I think the best thing for him to do is open source ethereum, he holds so much power talking about the next generation technology and the powers that be will definitely want to control it.
Way too much rhetoric for an emerging technology. Take a breath and stay calm.
For 3 weeks i have been monitoring my etherium as its going down down down.. mY investment here is going lowlowlow.. An d now i am sad
If a 51% attack does occur with POS, the community can pass a hardfork that deletes the attacker's currency.
If more than 50% is owned by one party (banks / governments), is there a way for us to know that? Since addresses are anonymous, I think they can get a majority without anyone noticing, and raise the inflation for example to proceed doing there central banking. This can be seen by the public as a decentralized and democratic decision if they say via the press that it is done to make the use of the network less expensive. Nobody will think of a hard fork in this situation
You don't need to know who the attacker is. It doesn't really matter who it is, the coin and value of the coin would be severely jeopardized regardless and so the community I think would easily agree to pass a hardfork deleting the attacker's currency.
Could the government convince everyone to willingly give up control of the currency to them? I kinda doubt it, but that's not a fault of PoS if they could. They could take over the crytpoeconomy regardless of the consensus mechanism in such a case.
I am agree with you
Ugh, I was a little disgusted when all these big companies climbed aboard that quickly. Natural growth is what ethereum needed, not this massive explosion in price and trying to fulfill promises it can't keep as an early project. It wasn't ready for that yet. And you're right, trust it in is fading really fast. All the people new to crypto are going to be burned after buying at ATH thinking ethereum would keep going up. Now they are all dumping and ethereum is way less valuable. Other projects that are similar to ethereum at least have a chance now though.
He always looks really, REALLY pale and emaciated.
How would you be able to tell if he's dead?
Vitalik is back from the dead already?
look like he has mate...
The FUD is strong in this one.
hahahha
hahahahahahaah
That's the way it is
Great Video! I couldn't agree with you more that people should be taking this recent pullback as a buying opportunity....nice work @dollarvigilante
Always great stuff Jeff!
Interesting test of what would happen if VB really had walked or worse..
Long live VItalik
Has anyone withdrew Eth recently to myethwallet? if so how long did it take?
so FAKE
What a nice article that was... Didn't know so much about etherium's centralised approach.
It would be very useful to have cameras integrated with the universal hash time :)
"Universal Hash Time is a proof of existence service that you can build on top of a blockchain"
I like this roller coaster, every market needs to breathe! Especially one that is trying to be a free-market!
Yes, I agree the market needed a little healthy break from all that upward climbing. You can't climb Mount Everest without stopping a few times for a break.
I agree! It is only natural that the market will fluctuate even with a good currency like Etherium. All good coins experience this.
First of all, thanks to for such a great content. it is always wonderful to read your blog post. your post always helps me for any problem.
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that will be very big lose to the crypto if this was true glad was just fake news :)
Sad that someone could put out a hoax like this. Even though Ethereum has had some rough patches recently and in the past; Vitalik has always stayed focused. And it's been paying off, I can remember how excited I was when Eth went from $7 to $30. And look at it now still up over $200, we're just having a well deserved correction. Yes, take small profit but stay calm people it's going to be a bumpy ride up:)!
i agree and all the haters following like sheep - next week they will buy again if someone says it will hit $1000
Agreed lol!
I always wonder what will happen if the heads of Steemit will leave. Will Steemit break down or continue on its own because of decentrelization? Can anybody explain?
Hii @dollarvigilante i saw you post and i enjoyed reading it, could you please have a look on my daily analysis for Bitcoin and give me your opinion. https://steemit.com/bitcoin/@ohamdache/midday-update-of-the-bitcoin-price-29-06-2017
The scale of the Ethereum was profitable for me, it happened at the time I had planned to make a profit.
What a trip I really thought that dude passed away hahah
That's wild.. I'm just going to keep buying Ethereum at these levels. I think it's really cheap compared to what it willl be in the future!
I've had a change of perspective recently on these huge dips. I don't see them as a negative thing, at all - but I see them as a "Limited Time Offer!! Huge SALE on ETH @ 25% OFF - but hurry in before closing!" kind of situation. (ie- this is the market's way of taking a breather, and allowing the 'little guy' to get involved and buy during the temporary price drops.)
TLDR; Buy the dip, baby! :-)
Same here, buy the dip!
Exactly!
thanks jeff always a pleasure to be acquainted with such a good teacher
having a "cryptomessiah" is not in keeping with decentralization. it is achilles heel/central point of vulnerability. this is likely in part why satoshi was hands off after 2011.
It's unbelievable how the media will go to the xtremes to get some attention. What the heck are they going to come up with next lol
I love the value flucuation of eth I just don't see a legit use for token (compared to bitcoin/steem). I do consider eth-c tho
Great thing to read. i am thinking in next couple days we will see prices rise again. Now is the time for anyone that wants to buy in to crypto to not think twice i bet this time next week most coins are up 10-25%
I do not understand about digital currency
I keep trying to learn it
I read this, this post helps my knowledge of the currency and its market
I really want to understand a lot about digital currency
How can I learn about it?
" Only one had a minor 0.17% gain today. Something called MCAP, whatever the hell that is " !! Hahaha :D Jeff Berwick 2017
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HAHAHA lay off the red bulls V!
Gotta agree on ETH's hype. It's raising to monstrous heights. I mean don't get me wrong – the tech is really interesting and it has huge potential, but the shills praising it to heavens, not seeing the issues are just too much. Feels a bit like Apple cult fanboys (no offense).
yap
The main stream media is trying everything to make cryptocurrency go away. But we will maintain and succeed. The crypto train has become unstoppable.
Thank fo sharing and get your wallets ready, it is the right time to buy.
@dollarvigilante ...keep posting such ...resteemed it ...#nice one
Love your videos and articles Jeff!
Crazy stuff happend to the prices yesterday....
@jeffberwick your almost as cool as Vitalik
Sell the news, buy the dip.
Obviously some people wanted ETH to crash even harder and spread FUD with this fake accident news. Has been done before, Its part of the game. I wonder which ETH holder would be influenced by some internet news , and no research to just go and sell at a loss... but oh well... lots of dumb money is starting to pour in so, anything can happen.
I still like cryptos, and ETH, will hold without questioning it.
Thanks for a great read @dollarvigilante
yes buy the dip - thats for the one who has courage
Getting really interested to direct all of my 600Mh towards ETC instead of ETH.
Just as the first movie often is the good one and the sequel sucks, i think the original idea of ethereum that ETC have preserved will be the strongest in the future.
As you mention, the decision for the hard fork was a centralized one. That is not a word i like in my crypto investments to be honest...
For me as a miner, statements as the one quoted below taken from the ETC official website really makes it hard to not switch.
And for me as an investor in an decentralized future, quotes like...
...makes it almost impossible to not feel enchanted by the possible future ETC holds.
This just shows how badly central banks and mainstream media are trying to destroy cryptocurrency and create panic. They know that they are losing control, because cryptocurrency will put their systems out of existence. We no longer need a middleman to steal our hard earned money!
yeah my neighbor and I were discussing crypto's and their future as asset protection from the bank. His dad had n clue what we were talking about and making fun of us, can't say i blame him. Then I mentioned how much could he get with a dollar 30 yrs ago compare to now, so all money saved in the long term in the banking system will lose purchase power because they are slowly robbing us of our future. They will lose control but they will fight until it all blows up in everyone face.
Great post! This shows how fake news can manipulate cryptoprices in an easy way. Thank god these markets recover faster than any other market :)