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TRANSCRIPT
TRADER MAGAZINE
JANUARY - MARCH 2018
WILL THE BIRTH OF A NEW DIGITAL ECONOMY M A R K T HE END OF FIAT CUR R EN CIE S ?
cr yptocurrenc y
B I T C O I NT R A D I N GSTRATEGIES
fever
BTCBACK TO THEF U T U R E
ICHIMOKUKINKO HYO
EXPLOITINGFIBONACCIEXTENSION
ZONES
US DOLLARS TA B I L I Z E S
FXCONTENTs
BITCOIN, CRYPTOCURRENCY AND BLOCKCHAIN... The Birth of a New Digital Economy
33
Reveals where major currencies and BTC are heading in 201856
07 EDITOR’S NOTE
FUNDAMENTAL ANALYSIS
62 Central Bank Meetings: a look at December’s BoE, FED and ECB meetings outcome
CURRENCY WATCH
29 Swiss Franc: CHF to keep weakening
14 US Dollar: USD medium-term consolidation ahead
26 New Zealand Dollar: NZD is expected to strengthen
23 Swedish Krona: SEK should
strengthen over the course of 2018
TRADING SYSTEMS
40 Exploiting Fibonacci Extension Zones: how to exploit price behaviour to define zones of tradeable probability
CRYPTOCURRENCIES
08 Back to the future. Will Bitcoins future be dictated by the past?
20 Bitcoin: A Standout of 2017
51The truth behind Bitcoin success: does BTC represents the final chapter of the repudiation of fiat currencies?
BOOK REVIEW
65 Trading Cryptocurrencies: A Beginner’s Guide by Clem Chambers
TECHNICAL ANALYSIS
66 Technical Outlook:EUR/USD, GBP/USDUSD/JPY, AUD/USDNZD/USD, USD/CADUSD/CHF, USD/NOKUSD/SEK,
75 EXCHANGE RATES
71 CONFERENCES & SEMINARS
72 ECONOMIC CALENDAR
ICHIMOKU KINKO HYO INDICATOR 20
POPULAR BITCOIN STRATEGIES
Which strategy to choose before entering the cryptocurreny boom
FX TRADER MAGAZINE January - March 2018 3
FX TRADER MAGAZINE January - March 2018 33
Bitcoin, Cryptocurrency and Blockchain...The Birth of a New Digital Economy
The constrained
supply of mining
equipment has created
a perfect storm for
price appreciation
Miners have almost
cartel type pricing and
play games on the new
units
Retail acceptance of
bitcoin has been slow
but is starting to get
some traction
by Michael Sheikh
The exploding price of bitcoin has ushered in a new cryptocurrency ecosystem. Michael Sheikh of Falcon Strategic Research decodes the bitcoin world order for investors.
FXCRYPTOCURRENCIES
34 FX TRADER MAGAZINE January - March 2018
Bitcoin is starting to dominate headlines and as it powers higher, investors want to know what exactly does this mean for portfolios. The exploding price of bitcoin has ushered in a new cryptocurrency ecosystem. Investors can draw parallels to the Apple (AAPL) ecosystem, which includes suppliers of parts, retailers that sell hardware, telecom providers of bandwidth, and application developers that create useful utilities. The point is if AAPL did well so did the whole ecosystem of interrelated companies. If it did poorly the results tricked down and they were correlated.
The same thing is happening with bitcoin. There is an ecosystem that surrounds bitcoin and drives innovation and productivity forward. The computer graphics makers like Nvidia (NVDA) that make the CPUs for the mining units have been growing full tilt. Exchanges and money changers like CoinBase and Bittrex have started to see markets develop and in turn spurred the creation of funding mechanisms through Initial Coin Offerings (ICOs). The blockchain is creating new industries and removing the inefficiencies of clearing transactions. All of this is built on bitcoin. The miners play a big part in this ecosystem providing the coins or raw materials for all of it to exist and new innovations in the blockchain technology are fueling the growth in fin tech applications.
Factors Propelling Bitcoin Price Action
Moore’s Law states that the number of transistors per square inch of chip doubles every two years. In reality it has been every 18 months. Common sense tells us
that exponential growth cannot last forever. According to Investopedia, “Many designers, engineers and computer scientists agreed in early 2016 that Moore’s Law may run its course within 10 years. Progress achieving the doubling of the number of circuits has
CRYPTOCURRENCIESFX
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