BlackStar Enterprise Group Inc (BEGI)

[Crypto__1]

$BEGI CEO BLOG POSTED 02.06.18



02/06/2018

BITCOIN FUTURES SEPARATES THE SPECULATOR FROM THE BITCOIN CASH MARKET   

 

Speculation in the cash market moves to Bitcoin futures. Investment by speculators on a regulated exchange, in US Dollars, will have no direct effect on the supply and demand of Bitcoin Cash. The cash market for mature exchange traded commodities should reflect real time commercial use and producer or digital owner activity. The cash market shows the shift in real assets, with some arbitrage activity. Bitcoin Cash, as a decentralized currency, will find fundamental price strength or weakness with the shifting of those assets during times of uncertainty or prosperity.  Bitcoin futures are a pure decentralized hedge, unlike gold with reserves controlled by governments.

 

The forecast for most major economies is prosperity, conversely the forecast for Bitcoin’s fundamental strength is bearish. The supply of Bitcoin Cash today far exceeds the commercial use. Technical analysis resulted in my forecast of 3999, fundamental analysis shows weakness. With little increase in commercial use the decentralized currency could trade below 999. However, Bitcoin could strengthen or form a short-term bottom with a continued sell-off in U.S. Equities. The fear of higher U.S. interest rates and profit taking could see a 15 to 20% pull-back in stocks. This is the platform that Bitcoin has been training for, a decentralized currency hedge against uncertainty! 

 

FIRE IN THE HOLE

With the speculator in futures, the cash market of Bitcoin is transparent now to large purchases identified by volume and open interest. This activity, without increased commercial usage, might signal illegal movement of capital to the regulators; the rats are jumping ship, Coin holders are selling or hedging, commercial holders are selling or hedging. Faux crypto currency companies, who offered coins or tokens in Bitcoin, are selling or hedging. New ICO volume has waned, taking pressure off the supply and demand squeeze in Bitcoin.

 

THE CRYPTO CURRENCY CRASH

If you want to hold your portfolio, you might protect your entire position in the short term by selling Bitcoin Futures, hedging your portfolio of ICOs, aka crypto currency. I believe Bitcoin will survive as a hedge against economic downturn, world disaster or government uncertainty at much lower price levels. The SEC has started enforcement action issuing subpoenas to crypto currency companies and their affiliates that solicited U.S. investors. These companies must rescind their offerings, escrow the funds and file with the SEC. Most unregistered coin or token deals (ICOs) that involved U.S. investors will be investigated. Professionals and promotors that assisted these ICOs could be prosecuted


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