Bitcoin Crypto Trading Bot: Foundations

Mob Theory

The mobs and I are trading cryptocurrencies with bots. Do we care about identity, privacy, security and financial inclusion? Let’s find out. This is an introduction to Bitcoin, Blockchain, Cryptocurrencies, Decentralization and reasons to care.

I allow myself to participate in the natural wonders of the planet when I'm not trading crypto.

The significance of understanding money

How do I store the economic energy of my time and freedom? With money. How do I leak economic energy of my time and freedom? With currency. Therefore, I should aim to make a living by making money. This article is a draft summary of the foundations of psychology, technology and finance needed to begin trading cryptocurrencies, the aim of which is to make money, in this case in the form of Bitcoin, gold’s baby brother.

The root psychological origin of blockchains

As human beings we have the ability to develop tools which help us with daily life. Discoveries and inventions are initially psychological in nature. They arise in the mind and manifest as technologies. As we progress we also develop tools that are beneficial for all life, not just our own. This should be the case, especially with the breakthrough innovation enabled by Bitcoin.

Blockchain technology is primarily a psychological revolution arising out of the needs of the people and their realizations of keeping together following the 2008 financial crisis. It is an open-sourcing of the particular scientific breakthrough in the science of distributed computing: using cryptographic Proof-of-Work (PoW) to achieve network consensus, thus eliminating the need for trust. This technological feat has advanced since its initial conception but the fact remains that its transparent release into the open was an unusual decision of great magnitude, and this decision was made and accepted by human beings with a vision.

The parent named Bitcoin

Bitcoin was first, all the others are altcoins. There are many types of altcoins, some are cryptocurrencies. For simplicity, this article refers to all altcoins as cryptocurrencies. Notably, at MIT they give it more space as “crypto currencies”. Over time it is worth getting to know the debatable difference between securities, commodities, tokens, and utilities if one is a cryptocurrency trader.

At the Bitcoin blockchain core, random numbers are the cause of disruption in the current system, advancing the innovation towards a new and unknown horizon. Such design forms part of the risk we are assessing. Let’s go down the rabbit hole to the guest room.

“I’ve heard about Bitcoin. I’ve heard about making money by trading cryptocurrencies. I want to understand how to invest and trade, both manually and with the help of a bot. I want to buy cryptocurrencies, and generate profits all the way up to a #lambo and #rarri “#whenmoon”. I have a need to know because I feel I would enjoy making money in this way. I resonate with the founding values of the open-sourced computer science breakthroughs, which upon deeper inspection, are psychological in nature: I care about businesses and technologies which add value to greater harmony on the planet.”

Bitcoin spelled with a small “b” refers to the cryptocurrency while Bitcoin with a capital “B” refers to the foundation and its values, developers, advocates etc… Most cryptocurrencies are bought and traded with bitcoin since that is what is available on major cryptocurrency exchanges. Therefore, I must buy bitcoin first and I must understand that I am responsible for understanding everything about how to do so. Please read my article about secure bitcoin storage. By buying and using bitcoin, I am supporting the entire movement. Yes, it can be the Bitcoin with a capital “B” for the founding values and the storage of value (comparable to gold), Bitcoin Cash for the bitcoin which I can use as a medium of exchange, and Bitcoin Gold in order to participate in the usage of a decentralized bitcoin mineable by GPU. There also many other “bitcoins” aligned to various needs.

A need for Bitcoin, blockchains and cryptocurrencies

The question of need is important. Personally, I do have a need arising out of my daily interactions with the global high-tech telecommunications industrial complex which thrives on ignorance and people’s “hands up” signatures on their privacy and usage terms. However, from a different viewpoint, as a human being living on a wonderful planet I should not have to have a need for blockchains. I only do because the extent of manipulation in every sector is beginning to have a major impact on my personal life and the lives of millions of people I do not know (mostly unsuspecting), therefore affecting life in general on this planet. 

I do not have a need unless I participate in the macroeconomic order at my individual scale. I do this by accepting the monetary system as it is in order to receive payment for services rendered and in order to pay for food and shelter using commonly accepted means. 

Meanwhile, it seems that I have been hypnotized to tolerate trusting completely unknown impersonal transnational agendas with my time and freedom. These agendas simply take my economic energy because they can legally do so through loopholes as long as I have no interest in the truth. Moreover, the perpetuation of this misunderstanding is seeded at the deepest levels of psychological immaturity. Some call it fear, uncertainty and doubt. 

I need to include myself in society if I wish to travel and be certain I can provide basic necessities by accepted means of exchange. However, the inceptive open-sourced blockchain technology, when understood at its core, allows people to create their own jurisdictions and financial exchange systems completely outside of the existing paradigm. We remain stuck in the old habits by our own tolerance of them, by the lack of need arising from carefully planned transnational psychological agendas, and the by the lack of experiential values of privacy, security and inclusion. When we try to make easy profits by trading cryptocurrencies instead of claiming responsibility of the new paradigm to use them, we are gambling away the possibility to create the life we wish for on the planet.

Therefore, I don’t need technology if we could thrive harmoniously without it until the end of time, but I need technology if we are to collaborate on fixing the world as it is, because we have little time.

Defining the function of a cryptocurrency

We make the cryptocurrency market. We need to use cryptocurrencies for their value to be driven by network effects. Otherwise we may be seized by profit seeking manipulations of the old paradigm.

When used responsibly, the general function of a cryptocurrency allows me to claim financial sovereignty and thus be able to send and receive money instantly, privately and securely, anywhere and at any time. With the same technology I can responsibly build entire businesses outside of all jurisdictions, free from all regulation. Policies, guidelines and regulatory frameworks may be necessary as with law enforcement but these technologies allow people to co-create outside of their reach. To complete work, I can sign my aims by mutual agreement in code and collaborate with a corresponding network to deliver the results. Perhaps like a social operating system. This human-machine interplay is leading towards the emergence of code in the form of artificially intelligent algorithms which are the dawn of consciousness-assisted technology and technology-assisted consciousness. 

Blockchain seeds Artificial Intelligence

Are rapid advancements a good idea? I agree with Stephen Hawking about being careful with the development of artificial intelligence: then it is a good thing there is more talk than results these days, especially if the impetus comes from the dangerous mob of public opinion.

Networks built by people (as opposed to governments, institutions, high-tech corporations and similar stakeholders) are forming decentralized organizations which are potentially capable of resolving major global challenges such as wars, poverty and the environmental crisis. They attempt this through the ongoing advancements in every sector’s transparent approach to blockchains, distributed ledger technologies (DLT), autonomous agents converting smart contracts, and decentralized autonomous communities (DAOs/DACs) moving towards the Internet of Things (IoT) and oracle-based artificial intelligence (AI) swarms. Why is this happening? People have a need. Life on the planet has a need.

However, if the “blockchain revolution” does not deliver - then this may come at our own peril, as its breakthroughs can be used to empower ignorance instead of awareness. There is a destructive side to the magnitude of the disruption if “cared for” by an immature psychology. Perhaps this may be temporarily the case with the energy question around Bitcoin application-specific integrated circuit (ASIC) mining. My personal project listed in the footer section of this article proposes a method of approach to new energy research and development. After spending two years in the space overcoming ridiculous obstacles out of my own pocket, and after being ridiculed for proposing crowdfunding for fuelless open source energy systems, I know the mobs on both sides have a long way to go in their personal developments. We have some time, and that time is palpable when observing our natural cohabitat on Earth. There is a crisis but the responsibility is individual, not something to suffer from and worry about. I may only be an influence of inspiration by setting an example at most. 

Responsible Mobs

Why blockchain? Business owners may benefit from new forms of accounting which include ledger traits such as immutability, auditability and trust, especially across jurisdictions with multi-stakeholder databases and assets. Why decentralization? Decentralization delivers value. It is part of a new business model for the open source movement. No company can disrupt decentralization because it is a fundamentally new paradigm belonging to the people.

People have succeeded in building a trustless system: a mathematical encryption impossible to decrypt without a fuel-less self-running energy source or a quantum computer. This code within the machine is the convergence and fruit of hundreds of years of discoveries by many people, its release is the risk people have taken. Now banks, high-tech corporations, governments and centralized institutions are scrambling to hire talent to catch up - but they can’t find any because there are no such people available to work on their side. Therefore, people are obtaining quick training to specialize in blockchain development but they have little connection to the values for which the technology was developed. They go work for the old paradigm, perpetuating business as usual. At the moment, the top applications of cryptocurrency technologies from all sides are not much more than promises with small-scale use cases. People are at work however, and it is a rather silent revolution. 

Here it may suffice to mention that “unacknowledged” fintech startups with unlimited funding are collaborating with financial institutions to create exponentially more powerful algorithms than those contained in bots developed by the volunteer open source community whose results they can obviously see, and take, and use for control and monetization purposes. At the same time the global community of blockchain knowledge hubs working on deployment is a power to be reckoned with, despite the amazing naïve sentiment of the majority that everything will turn out fine and go to the moon. Meanwhile intelligent and well organized cyber-criminals and Robin Hoods are the ones in the rockets sojourning other planets.

We must not only work together but keep together. I must not only work together but keep together. If enough university students were to find out about the powers given to them through cryptocurrencies, their abilities to use this power could have a dramatic impact on civilization within a short time span. The current paradigm of greed and control hides its mission in plain sight: to continue to observe the habits of the mass of humanity in order to ascertain that people do not to care about themselves nor anything else that could have an impact on the way things are. This is what all the recent data wars are about, the fight for data about people’s habits. The data is used as a profiteering control mechanism. 

The overseers understand how habits are positioned in the minds of people as much as they understand how cryptocurrencies are positioned in the minds of the people. This is how Potcoin and Titcoin begin to “sound good”. The psychological obscurement of reality has been going on according to plan for centuries. Who cares? That’s the point. I don’t recommend cryptocurrency trading to anyone who does not care. One may lose all funds and not understand why.

Responsible cryptocurrency trading

I would not recommend getting involved with cryptocurrency trading to anyone who does not have at least a general appreciation of the general functioning and potential of a computer, the telecommunications industry, the Interweb, and Artificial Intelligence.

The majority of humanity is of a certain character, going about its daily life using ubiquitous technology as if it always existed. Among unsuspecting people there exists a force known only to a few: in an open market it is possible to purchase the computational power for an emergent, adaptive, fuzzy logic algorithm which organizes Big Data from the trading charts of the majority and combines this with the orderbooks from all cryptocurrency exchanges. This information is then transposed into unique buys and sells but looks like any other orderbook entry.

Due to the impossibility of global regulations without a spooky transnational government, these personalities are currently able go undetected by loopholes in the habits of humanity, namely ignorance and carelessness. The future of HCI/HMI is interactive physically and this is what the founding technologies are advancing towards. I must understand that my ability to relate to computers and machines must expand at the pace of innovation in order to remain in the game. Constant learning requires space and a flexible mind.

Example cryptocurrency trading observations pertaining to the question of responsibility

Bitcoin that is pulled from markets takes away liquidity and can drive volatility. This is what can happen if I HODL bitcoin in a paperwallet after buying it on an exchange.

In a free market, pump and dumps happen daily. Jumping in on them is fun and may be profitable but this is like gambling with the life of this planet.

If I buy cryptocurrencies and merely wait for profits, to some extent, I am participating in the stagnation of the market instead of its flourishing.

It is a young open market and it is not yet possible to invest or trade very high amounts without resorting to “whale” practices and other emergent approaches. The cryptocurrency daytrader may witness a whale when looking at the chart prices which have suddenly risen or fallen by a few hundred percent.

The implications of profit seeking through cryptocurrencies

Do I understand decentralization, distributed ledger technologies and the blockchain revolution or do I simply want to make money fast?

The breakthrough science behind crypto currency technologies is a tool which can assist in resolving some of the major global challenges on the planet today. Using the tool for mere profit-seeking may prove to be destructive if misused, and at our own peril, as there is no game with artificial intelligence gone “out of control”. 

Blockchains baffle even the ripe polymaths of today. Unlike popular video channels, highly concentrated knowledge can be found in investigative podcasts which attempt to demystify so-called cryptocurrencies, for example Trace Mayer’s “ Bitcoin Knowledge Podcast”.

By trading cryptocurrencies without knowing what they are I might be ignorantly supporting the rapid advancement of artificial intelligence. Most of the projects behind cryptocurrencies aim at the development of such technologies. Without knowing this, I may act like a volunteer puppet pawn in the price manipulation of the entire market. The big players know about my bots and my psychology and my budget. They know abut the million other people with a quarter of a bitcoin also. They can take the market in directions we can’t predict because they simply look at what the mass of humanity’s psychology is predicting and they do otherwise, in subtle undetectable ways. They are starting to use deep artificial intelligence mechanisms making it a challenge for the experienced trader to navigate trading strategies without the assistance of a helpful personal bot. 

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Articles in this series

Next: Bitcoin Crypto Trading Bot: Example - Profit Trailer
Final: Bitcoin Crypto Trading Bot: Risk - Portfolio Management

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About

I’ve been an independent blockchain researcher since 2016. For the real deal, please read, meet, or listen to people such as Trace Mayer or advocate groups such as The Chamber of Digital Commerce. I can only aspire to understand and share like they do regarding deeper investigations into the ongoing breakthroughs.

This article series will be the basis for future posts, workshops, and live broadcasts. Your support in the form of comments, likes and donations helps me combine my thirst for the demystification of the blockchain sciences with the job of organizing and presenting the knowledge of human solutions in the form of articles.

Links

Personal website: http://www.meshcode.ca
Sole Proprietorship: https://www.theskyishigh.com
A proof-of-concept niche crowdfunding platform for clean, renewable, fuel-less open-source energy technologies on the blockchain.
Twitter https://twitter.com/meshcode
LinkedIn https://linkedin.com/in/meshcode
Blockchain Science Human Solutions
https://www.facebook.com/groups/blockchain.science.human.solutions/ (facebook)

BTC 13uMuecDkSEps8kGhh1BpVdAHafsEQnqeY
ETH 0x0deca25b0e8f075f63c15c2537d3ae4f838a39fe

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