Although I was able to warn of the impending collapse of the crypto-currency, I am not sure if these speculators ever were able to preserve their purchasing power. At the time, Bitcoin was trading at $1100-$1200 dollars per coin.

My call, although not detailed in long explanatory articles was mostly seen on Twitter and IRC Channel Freenode, a large collection of programmers from all over the world (10,000+).

BITCOIN: $1150 Strong Sell – Convert $BTC To Physical Silver #FREESILVER

The Shamir Paper. “Satoshi” Doesn’t Exist

1. if you have any bitcoin i highly advise you to sell at 1100
2. * hej_ ([email protected]) Quit (Quit: Leaving)
3. * jianhe ([email protected]) has joined #drupal-contribute
4. it’s a lot worse than vapor. a lot worse. Just this week there was this sloppily written, hastily revoked paper by Adi Shamir and Dorit Ron which liked DPR and Satoshi. What it shows, however, that based on the “all connections are public forever” quite interesting… ‘constructions” are possible
5. what are you going to do when the man knocks on (or down, for that matter) the door because you are charged on an equally stupid, false construction with supporting terrorists?
6. we have seen evidence to all parts of this: people get charged with supporting terrorists for no reason; we have seen the government constructing evidence; and the Shamir paper shows the construction of a Bitcoin chain “evidence”
7. The only thing i want to do with Bitcoin is stay far, far away

http://pastebin.com/WXMWP4mQ

At the time, Silver was Trading at $20.00 per ounce. One bitcoin could have been converted to approximately 60 ounces of silver.

Today, That same Bitcoin can only be converted to 18 ounces of silver. In terms of Bitcoin to Silver, holding the worthless cyber currency would have resulted in a loss of nearly 70% real purchasing power!

The Litecoin Collapse- 95% Loss in Purchasing Power

Where do we go From Here?

Speculators have been driven out of these crypto-currencies and have lost a lot of money. Similarly, there has been a lot of speculation into penny stock trading and commodities futures trading. With the strong dollar, there has been changes in the attitudes and the type of trading that has gained popularity.

A Rise in CFD Trading

I am NOW seeing a lot of speculation, just as the bitcoin boom into these CFD instruments. Especially in Europe and other countries. The strong dollar has produced a phenomena that has allowed the popularization of these highly leveraged ‘weapons of mass destruction’ to proliferate and cause massive gradual price declines or increases in securities and commodities.

How a CFD Works
If a stock has an ask price of $25.26 and 100 shares are bought at this price, the cost of the transaction is $2,526. With a traditional broker, using a 50% margin, the trade would require at least a $1,263 cash outlay from the trader. With a CFD broker, often only a 5% margin is required, so this trade can be entered for a cash outlay of only $126.30.

Higher Leverage
CFDs provide much higher leverage than traditional trading. Standard leverage in the CFD market begins as low as a 2% margin requirement. Depending on the underlying asset (shares for example), margin requirements may go up to 20%. Lower margin requirements mean less capital outlay for the trader/investor, and greater potential returns. However, increased leverage can also magnify losses.

Will Speculators Ever Return To Bitcoin or Crypto-Currencies?

We shall see. But, I think Not.

Managed accounts offer investors an opportunity to invest in hedge funds on a customized basis, while allowing them to retain control over their own assets. The move to managed accounts has led to a rise in managed account platforms as a new investment structure, as the extra reporting and controls provided by the platforms address investor demands for flexibility.

Conclusion

Managed accounts are becoming an increasingly sizable part of the hedge fund arena, largely as a result of their inherent flexibility, strong operational oversight and the benefits of enhanced liquidity and greater transparency. Managed accounts do, however, require a significant change in approach from both the investor and the manager. Investors should be aware of the shift in responsibility on the operational side from the manager to them and the need to fully understand their requirements and their own capabilities, while managers may have to accept tighter controls around trading, liquidity and investment allocation placed upon them.

John Chalekson

Volatility and Short Selling Specialist

Managed Account Structure

Independent Trader/ Researcher

John Chalekson is 37 years old with 20 years of experience in equity markets. John Chalekson is an ex-hedge fund manager who started a fund at the age of 23 years old after success at multiplying several individual stock trading accounts up to 150 fold. John Chalekson specializes in shorter term swing trading as a short seller. He is currently open to handing new accounts in the Managed Account Structure, making decisions for the account holder with Power of Attorney. Individuals or Institutions who are Accredited or Qualified Investors may consult with Mr. Chalekson via Linkedin, Email, or Telephone.

Please Connect With Me on Linkedin and Send Me An Introduction Message:

http://www.linkedin.com/pub/john-chalekson-unicorn/52/357/653/

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