INTRODUCTION

Media and Influences

My name is Radulescu Alexandru. I’m a professional trader and in the following pages I will try to be fun and honest at the same time. In this book, I have outlined everything that needs to be understood about the current cryptocurrency situation. I’ve done my best to make it as easy to digest for beginners, while still making it engaging for crypto experts and ICO investors. Those of us who have won or lost from participating in the cryptocurrency market have done so without realizing that all of our technical expertise is really just a highly controlled illusion.

We are in the midst of a new revolution that is going to completely change the way we talk about finance and technology.  When we talk about Bitcoin, we are talking about a fully digital, peer-to-peer decentralized payment system supported only by the system’s users. The system does not have a central authority or any intermediaries. This is what made it a groundbreaking system that has turned the financial world on its head. This does not mean that there won’t be any price manipulation. There will always be people or institutions that manipulate the market. Even the media has the ability to shape the market.

The Painter. The Price. The Rising.

Consider the following example. Suppose we have a painter who paints on average six paintings a day. As time passes, the painter’s style becomes more complex and the paintings become more profound. The painter starts painting less. Now they are only painting five pictures a day. Soon they’re only painting four pictures a day. The more complex the paintings become, the less they can produce. Four becomes three; three becomes two. Then on one autumn day, the artist reaches a high point where the grass is green and the sun is bright. Everything comes together, and they leave behind a masterpiece worth $10 million. Those who believed in the painter’s work are a limited number of collectors, but, as the complexity of the paintings went up, it brought an increase in the price of the art. As collectors grow more interested in the masterpieces, the price of the paintings continue to increase, which, in turn, also causes interest in the art to blossom.

Media News. Exchanges. Manipulation. Industry.

Then comes the art critics. These are opinions from experts so they have a value to collectors. The artwork starts to be shown in exhibits all around the world, and auctioned off to new enthusiasts. Each piece has its own level of desirability. The artists creates a portfolio of work worth $10 million. Fast forward. When the artist dies and some time has passed, the market share of work rises from $10 million to $10 billion. Imagine being the person who sold a painting when it was worth $! million dollars when that painting’s value eventually became $10 million.  If you look at the the art ecosystem, you have opinion markers, critics, public exhibitions, auctions, big investors, and big portfolio holders. You also have investors who are not interested in the artistic value of the paintings in the long-term. They only care about the short-term profits they can gain by capitalizing on variations in the artist’s market share. As an industry, the art world is a lot like the cryptocurrency field. It is an industry, a business, and a financial tool that has a wide variety of money-earning possibilities.

The Financial System: Rich and Poor

When it comes to a payment system, it does not matter how complex the system is. It doesn’t matter whether the system is centralized or decentralized or if it consists of intermediaries. There will always be media manipulations or institutions that will try to manipulate the market to make it more profitable for themselves. There will always be people that do not recognize potential when they see it. There will be people that panic or jump to conclusions because they see another Bitconnect or Carlos where there isn’t one. There will be people who lack experience, and there will be people looking for a quick buck at the expense of long-term gain. The financial industry is complicated, and this intricacy far exceeds any blockchain or current technology. And unlike the quantity of bitcoin, which is limited, the number of fools seems to grow exponentially.

The Reality of 6 Billion Live Numbers

When considering these global statistics the ones that are higher are more likely to stay the same and more accurately shows how things work. Do you think the chart below is haphazard?

So get out of your Lamborghini and take a step back to consider the statistics in front of you. What Chart 1 shows is quite simple. The high income population is only 6-7% of the global population. But let’s take a closer look.

More than 70% of adults in the world own less than $10,000. That is only 3% of the global wealth. The people who hold more than $100,000 only make up 8.6% of the adult population. Those who have millions or billions represent only 0.7% of the adult population, but they control an astounding 45.9% of the total global wealth. Keep these statistics in mind. They will help you understand both the potential of the crypto industry and the wealth distribution that occurs in various industries.

In the chart above, you see the distribution of millionaires around the globe. It is important to understand which countries have a direct interest in keeping money.

These statistics do not mean that this new technology won’t represent the future or that Bitcoin won’t reach new heights. Far from it. What it does mean is that there will be obstacles along the road and there will be winners and losers. Between 80% and 95% of investors on Forex lose money on a short-term basis. This statistic is based on twenty years of data and analysis:

The research showed that while high-volume traders were sometimes able to earn gross profits, the profits were usually not enough to cover transaction costs. In a typical six-month period more than 80 percent of day traders lost money, and only 1 percent of them could be called predictably profitable.”

As you might expect, there is not one simple explanation. The reasons are as diverse as the investors themselves. Here are a few of the most significant factors:

Money Management: As an investor, you need to know how much to risk with each investment. A lot of people trade more than they can afford to lose. To be successful, you have to think about your decisions carefully. You have to know why you came into a trade and what you have to gain from it.

Lack of Experience: Online marketing often target novices by making them believe that they can easily make millions when it’s never as simple as the media makes it seem.

Psychology: There is also a psychological factor. If you overthink decisions or you’re in your own head, you will more easily mismanage your money.

Parrondo’s Paradox

There exist pairs of games, each with a higher probability of losing than winning, for which it is possible to construct a winning strategy by playing the games alternately.

How is it possible to lose yourself in a bullish market that has had a positive trend for a long time? When this happens, few people actually understand the problem, and if they do, they usually figure it out too late.

The above chart is a comparison of the Euro price and the USD price on the daily chart. The chart shows that the trend is ascending. A quick glance reveals that between A and B there is a clear bullish wave—a climb of more than 2,300 pips over the course of the year. For an open deal. this would seemingly have meant a profit of 230,000 USD. Unfortunately, reality is cruel, and it differs wildly from what you see on the chart at first glance.

The waves marked by the black line in chart 3 indicate correction waves. Correction waves appear on any indelible timeframe graph, and the information they tell you is more important than the climbing from point A to point B. If you consider only the waves greater than or equal to 150 pips, there is at least 2,850 pips at first glance. What the correction wave shows is that in a clear climbing trend measuring 2,300 pips, we have decreasing pips that add up to pips exceeding the distance traveled by price in uptrend. Why is this happening and why is this simple phenomenon important to traders and investors?

These waves are meant to show a price rise in the market and to gain profits from those who believed in the price rise. This is happening in the long-term, but this throws 90% of the short and medium-term traders out of the market.  The goal is to take the money of the crowd out of the market.  Without this phenomenon, there could be neither life nor continuity. It is not an accident that 0.7% of the world’s population owns 45% of world capital and 70% of the population owns 3%.

And it is not an accident that the percentage of millionaires is 4-5% of the global population. Note: these statistics reflect all areas of trading and industry, and they are on a scale of billions of people. These trends are widespread and systemic.

A Closer Look

The trend shown by the AB wave is clearly a bullish 750 pips. This is a great gain for any forex trader. Meanwhile, anyone who entered the market from point D to point E was affected by losses of up to 630 pips, almost as much as the total increase from point A to point B.

The investors that fall into the area marked by the red triangle suffered enormous losses. Even the most bullish optimists who have entered at point A, where the trend begins to form, went out 80% when the correction broke the Fibonacci retraction zone.  As long as your profits are lower than 60% in the short-term or you suffer enormous losses from the maximum point to the minimum point, the panic of the crowd and your own psychology will start to mess with you. It’s only a matter of time before the big shots swallow up 90% of the money in the market. To a certain extent, it does not matter whether you buy or sell. When and where are the more important factors. For those located on the A-D wave, the blue triangle still provides some comfort in that it will only have small losses or small profits.

The Bitcoin Era: Beginning and Present

Now let’s return to crypto and the phenomena that most investors don’t know about.

The above chart shows how the crypto market looks right now. This is the industry that will be the financial industry of the future. The graph in the picture shows Percentage of Total Market Capitalization (Dominance). The top 10 coins virtually hold 93% of the total capital market.

Let’s take a look at where all the crypto enthusiasts and the participants of the crypto phenomenon are. Let’s also look at those who will likely participate in the market in the future.

To understand the potential of an investment or a field, you need to first understand its current position and how that investment or field has evolved. When discussing cryptocurrencies, we want to know where we came from, where we are, and where we are going. This is a matter that  concerns those who have more or less connection with the cryptocurrency field.

To do this, we will analyze Bitcoin–the currency that hold the majority share in the crypto market.  I will focus on the reference period between January 2017 and the present. This is the period that is the most relevant because this is the accumulation period. This is also a period where Bitcoin experienced a significant boom.

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