(GLOBALINTELHUB.COM) — 10/15/2017 Dover, DE -- The Bit Paradigm has arrived; with billions being thrown into projects that no one knows who are the founders, or if the profiles they use for their 'team' pages are guys working from home or have day-jobs at the local grocery store. It is transforming the landscape so rapidly, we compiled a sequel to Splitting Pennies entitled Splitting Bits - Understanding Bitcoin and the Blockchain - available on Amazon Kindle for $2.99 and Paperback $9.99.
As Currency experts, we found nothing unusual in the Bit World, it's just FX 2.0 and hopefully a catalyst for real global financial reform beyond the scope of the myopic Dodd-Frank Consumer Rip Off and Exploitation Regulation that have plagued the US consumer going on 5 years now. As we've explained in our previous work, Splitting Pennies - FX is the basis for the global financial system. Don't forget that Bitcoin is denominated in US Dollars. While FX is the least understood market in the world it is also the most important.
Just remember one thing - customers (business) need currency, they don't need stocks or Crypto. Take any business as an example, McDonalds (MCD) is always a great FX example - they need foreign currency as they accept it in more than 110 countries worldwide.
And being based in Chicago, they need to repatriate those currencies into US Dollars, making them one of the biggest FX traders in the world. So where does Bitcoin fit into all this? At the moment, it doesn't. Of course that's all changing - and changing quickly. The news changes by the day - as the Bit Paradigm goes mainstream. The current market cap of the entire CryptoCurrency Market is $170 Billion according to Coinmarketcap.com.
While that is still far away from traditional markets, the growth rate is beyond parabolic. Skeptical traders should remember the late 90's when fears about the Euro kept investors away. Just take a look at this Monthly EUR/USD chart showing the Euro's rise against the dollar from lows of .83 to highs of 1.58 before settling into the range that it's been in recently:
The Red line from .83 to 1.58 is about 190% or double - and traders should also bear in mind in FX there is a lot of leverage, so the 100% return in 6 years could have been 1000% or greater (many funds did profit from this simple trade).
Of course, the real money in FX is in algorithmic trading, what the banks learned the hard way.. But the Euro is a great example of a synthetic currency that was created artificially, and finally succeeded to be an alternative to the US Dollar as a world reserve. Although the technicalities of Bitcoin are far different, the gestalt is the same - Bitcoin is a currency created artificially, backed by nothing, and is increasing in value because people believe that it will be used in the future and that the price will go up. Just like there's nothing behind Bitcoin, there's really nothing behind the Euro - with one key difference. It's possible for the ECB to print (mint) as many Euros as they want, but it's not possible to do this with Bitcoin because of the design (there is a limited number of Bitcoin) and because there's no central bank behind it.
The big story of currency trading Crypto is of course, new alt-coins other than Bitcoin, which are being issued so rapidly it's impossible to even keep track of them. Coinmarketcap.com lists 1170 different Cryptocurrencies, you can see the full list here.
For a detailed breakdown of how you can profit from trading Bitcoin, checkout our new book Splitting Bits.