Bitcoin Vs Altcoins – How they perform?

One of the Bitcoin enthusiast – r/inteblio has put in an interesting analysis on how Bitcoin(BTC) performs when compared to Altcoins like ETH, LTC, XRP, BCH and others. What’s the relation between Bitcoin and Altcoins in terms of price variation.

At high level, this is how they compare.

  • BTC goes parabolic (sudden increase) and Altcoins dip hard.

    BTC consolidates/goes sideways and Altcoins start to pump(Increase).


    BTC falls quickly due to fear/uncertainty and Altcoins fall further.



Source – reddit


What are Bitcoin(BTC) Future Contracts?

By now, most of you would have heard about a term called “Bitcoin Future Contracts”. A lot of buzz is going on that Wallstreet and other main stream investment firms will start trading Bitcoin Futures.

For a layman, what is Bitcoin Futures?

In a traditional Bitcoin Exchange, a buyer will buy a Bitcoin from a seller with X  amount of $$. Once the transaction is successful, the buyer will now own a Bitcoin which can be used for any other purpose like payments, purchase and so on.

However, A futures contract allows a trader to place a leveraged bet on whether the price of the Bitcoin will move higher or lower before the contract (Ex: In next one hour) expires. A trader who thinks the price will rise can go “long,” while a trader who expects the price to fall can go “short.” In futures, there is a short bet for every long and vice versa.

Bitcoin futures will be cash settled, meaning no bitcoins will actually change hands when a contract expires. Winning traders effectively collect their gains from the losers. As with most contracts, traders will likely have closed out positions, collecting gains or ceding losses, before expiration.

Exchange prices are called “spot prices”. You can buy BTC on-the-spot there, transfer it to your wallet, and it’s yours.

Futures contracts are a guess as to what the price of BTC will be at the expiration date of the contract. So unless you expect the price to be exactly the same as it is right now, the prices between spot and futures contract will be different.

Ex: People trading the futures contracts expect BTC to be worth $2K more in 5 weeks or $2K less when the current contract expires.

Also, as there are not enough Bitcoins available for these traders to actually buy/sell, the futures contract will allow them to bet on the price of Bitcoin which is being actually traded world wide by just holding a partial amount of Bitcoin in their trading account. This allows huge amount of money to be used for betting on the price of Bitcoin without actually owning the equivalent amount in Bitcoins.

If you are not a professional trader, then  it is better advised to stay away from Futures contract.

You can learn more about Bitcoin Futures contract from the below links.

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Top Ten Richest Bitcoin Address

These are the top ten richest Bitcoin public address. Some of these are cold storage wallet address used by Bitcoin exchanges like BitFinex, GDAX and others identity of remaining address are not known.

Address Balance (As of 12/10/2017)
1 3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r 126,495 BTC ($1,971,620,100 USD)
2 16rCmCmbuWDhPjWTrpQGaU3EPdZF7MTdUk 119,203 BTC ($1,857,962,680 USD)
3 3Nxwenay9Z8Lc9JBiywExpnEFiLp6Afp8v 91,348 BTC ($1,423,804,426 USD)
4 1FeexV6bAHb8ybZjqQMjJrcCrHGW9sb6uF 79,957 BTC ($1,246,255,636 USD)
5 18rnfoQgGo1HqvVQaAN4QnxjYE7Sez9eca 76,000 BTC ($1,184,577,140 USD)
6 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx 69,370 BTC ($1,081,240,028 USD)
7 1PnMfRF2enSZnR6JSexxBHuQnxG8Vo5FVK 66,452 BTC ($1,035,757,886 USD)
8 1AhTjUMztCihiTyA4K6E3QEpobjWLwKhkR 66,379 BTC ($1,034,615,943 USD)
9 1DiHDQMPFu4p84rkLn6Majj2LCZZZRQUaa 66,236 BTC ($1,032,387,301 USD)
10 1EBHA1ckUWzNKN7BMfDwGTx6GKEbADUozX 66,234 BTC ($1,032,355,078 USD)

Source –


One BTC = $1,000,000 by June 2018 ?

Based on one of the reddit user r/jarederaj analysis, price of 1 Bitcoin could hit 1 Million USD by mid 2018. Although it sounds outrageous, his predication is not out of his gut feeling, but rather based on the past performance of Bitcoin. Below is the chart which is called “Moon Math Table” which has various milestones for Bitcoin.

Closing Date : 08 Dec 2017

Closing Price: 16,007.44 USD

30-day Performance 60-day Performance 90-day Performance 2017 – Present Performance 2016 – Present Performance
From Date 11/8/2017 10/9/2017 9/9/2017 1/2/2017 1/1/2016
Starting Price USD $7,415.88 $4,777.97 $4,375.56 $1,015.98 $432.00
% Change 216% 335% 366% 1576% 3705%
Doubling in months 0.9 1.2 1.6 2.9 4.6
Doubling Period in Days 28 35 50 88 141
Days in period 30 60 90 340 707
Compounding Daily Periodic Rate 2.60% 2.04% 1.45% 0.81% 0.45%
Daily Periodic Rate 3.86% 3.92% 2.95% 4.34% 1.49%
Annual Rate of Investment 1410% 1430% 1078% 1584% 545.60%
Over $20,000.00 on 12/16/2017 12/18/2017 12/22/2017 1/2/2018 5/2/2018
Over $25,190.00 on 12/25/2017 12/29/2017 1/7/2018 1/31/2018 6/22/2018
Over $31,620.00 on 1/2/2018 1/9/2018 1/23/2018 2/28/2018 8/12/2018
Over $56,230.00 on 1/25/2018 2/7/2018 3/3/2018 5/9/2018 12/17/2018
Over $79,430.00 on 2/7/2018 2/24/2018 3/27/2018 6/21/2018 3/4/2019
Over $100,000.00 on 2/16/2018 3/7/2018 4/12/2018 7/19/2018 4/24/2019
Over $1,000,000.00 on 5/15/2018 6/28/2018 9/18/2018 4/28/2019 9/17/2020


Source : Reddit Moon Math Table

Crypto Currencies per person

Today, the world population is 7.6 Billion. Everyone needs some kind of money for their day to day needs. What if (Personally, I am very confident) at some point in the near future at least a billion  people would adopt some of the major crypto currencies for their day to day transaction? There is only finite number of coins which can every be created for each of these crypto currencies. Example, Number of Bitcoins which can ever be in circulation is 21 Million. Today, around 16 Million Bitcoins are mined and in circulation. To reach 21 Million, it would take another 120 years. Bitcoin is expected to reach 21 Million in 2140.

With that in mind, lets do some math as to see how much each person can own.

Assumption :

  • Currency divided among only 1 Billion people
  • I am considering what these 1 billion people can own when the full set of coins which can ever be created are in circulation.
SL# Coin Code Coin Name Maximum Supply Coin/person
1 bitcoin BTC Bitcoin 21,000,000 0.021
2 ethereumETH Ethereum 96,231,228 * 0.09623123
3 bitcoin-cash BCH Bitcoin Cash 21,000,000 0.021
4 iota MIOTA IOTA 2,779,530,283 2.77953028
5 ripple XRP Ripple 100,000,000,000 100
6 litecoin LTC Litecoin 84,000,000 0.084
7 dash DASH Dash 18,900,000 0.0189
8 bitcoin-gold BTG Bitcoin Gold 21,000,000 0.021
9 monero XMR Monero 18,300,300 0.0183003
10 nemNEM XEM 8,999,999,999 9

*  Max Supply of ETH is unknown at this point in time.

With such limited supply of coins, the price are bound to increase astronomically.

Price of 1 BTC at the time of this posting : $ 15,002

How to buy Bitcoin?

Bitcoins can be bought from a Bitcoin exchange in your respective country. Most exchanges operate online. You will need to create an account and verify your account using your basic identity proofs. Once the account is verified, you will be allowed to make a payment using your local currency after which you will be allowed to purchase the bitcoin at the current market price + exchange fees.

You can get the list of Bitcoin Exchanges officially recommended by Bitcoin community from here.

Some Basic guidelines to buying bitcoin

  • Do not invest more than what you can afford to loose.
  • Always do a test transaction with small amount to make sure your payment is reflected in your exchange account.
  • Once you buy a Bitcoin, do not keep the Bitcoin in your exchange account. Move it to an offline wallet where is it is more secure. Exchanges are meant only for Buy/Sell/Trade bitcoins and not as a safe storage.
  • Do not ever buy Bitcoin using hard cash. Always go through a Bank transfer and pay taxes to any profits made out of it. Govt agencies are ruthless when it comes to avoiding taxes for profits made using crypto currencies.
  • The natural tendency is to wait till the price drops and then buy. But in case of Bitcoin, the expected price drop is very hard to catch unless you are a professional trader. So now is the good time to buy.
  • Do not try to experiment with day trading unless you are a professional trader. 90% of the time, people loose their money while day trading. Buy bitcoin and hold it as long as you can.
  • If you are keeping your bitcoin in the exchange account, make sure to write down the account recovery settings. This is very important in case if you forget login details. Also enable two factor authentication for your account. Most exchanges support this.
  • Remember BTC is the official ticker for Bitcoin. There are lot of other coins like BTG, BCC, BCH, ETH, LTC. These are called altcoins. I will try to cover about altcoins in another post.


Price of 1 BTC at the time of this posting : $ 15,513


Bitcoin, Should I invest?

A simple Straight answer is “Yes”. This is one of those once in a life time opportunities which can alter your life for good.  From $5 in 2012 to $15,000 in 2017 is an exponential growth which no other asset could have grown. Yet, Bitcoin is still in its early days which has huge potential to grow. It is now where large section of society is hearing about bitcoin.

Some of the big name who have invested in Bitcoin include Satoshi Nakamoto (Bitcoin mastermind), Bill Gates, The Winklevoss Twins, Mark Cuban, John Macafee and others.

Bitcoin is called by a ponzi scheme by many. I beg to differ. Usually a ponzi scheme is run by a few people or a group of small actors. However in case of Bitcoin, there is no single owner or company or a govt behind it. It’s completely open source and driven by millions of  people around the world. The main technology behind Bitcoin is called Blockchain. You can read more about it here.

There is only a limited amount of Bitcoin which can be ever created. To be precise, only 21 Million Bitcoins. To put it in perspective, there are 50 Million Americans who are millionaires. Even if each one of them wants to own a single bitcoin, there are simply not enough bitcoins to be owned. Hence each Bitcoin will be valued at an astronomical value in the near future.

Next biggest question is how much should I invest in Bitcoin? The only thumb rule which I use is, the maximum amount which I can afford to loose. DO NOT invest even a single penny more which you cannot afford to loose.

Most conservative estimates put value of Bitcoin at $100,000 by end of 2018.


Price of 1 BTC at the time of this posting : $ 15,370