June 2020 Issue

Contents

The Crypto Vigilante Portfolio Monthly Snapshot 2

Cryptocurrency Fundamental Metrics Charts 3

Big Block Fundamental Analysis Rafael LaVerde 9

Crypto Asset Outlook & Market Commentary Mr. X 27

www.cryptovigilante.io 1

www.cryptovigilante.io 2

Bitcoin (BTC) Number of Transactions on Per Day - Historical Chart (Logarithmic)

Source: https://bitinfocharts.com/comparison/bitcoin-transactions.html#log ​

Monero (XMR) Number of Transactions on Blockchain Per Day - Historical Chart (Logarithmic)

Source: https://bitinfocharts.com/comparison/monero-transactions.html#log ​

Bitcoin (BTC) Average Transaction Fee (USD) - Historical Chart (Logarithmic)

Source: https://bitinfocharts.com/comparison/bitcoin-transactionfees.html#log ​

www.cryptovigilante.io 3

Monero (XMR) Average Transaction Fee (USD) - Historical Chart (Logarithmic)

Source: https://bitinfocharts.com/comparison/monero-transactionfees.html#log ​

Bitcoin (BTC) Google Search Trends - Historical Chart (Logarithmic)

Source: https://bitinfocharts.com/comparison/google_trends-btc.html#log ​

Monero (XMR) Google Search Trends - Historical Chart (Logarithmic)

Source: https://bitinfocharts.com/comparison/google_trends-xmr.html#log ​

www.cryptovigilante.io 4

Bitcoin (BTC) Hashrate Distribution Amongst The Largest Mining Pools

Source: https://blockchair.com/bitcoin/charts/hashrate-distribution ​

www.cryptovigilante.io 5

Monero (XMR) Hashrate Distribution Amongst The Largest Mining Pools

Source: https://minexmr.com/pools.html ​

www.cryptovigilante.io 6

Bitcoin Hash Rates by Network (Logarithmic)

Source: https://coin.dance/blocks/hashrate ​

www.cryptovigilante.io 7

Daily Bitcoin Transactions by Network (Logarithmic)

Source: https://coin.dance/blocks/transactions/log ​

“Disclaimer: The above chart is misleading since BTC has lots of batched transactions & transactions which are not included on this graph. Also, Craig Wright & Jimmy Nguyen of BSV have stated in a recent interview that they are testing large numbers of transactions as part of the development process, ​ ​ so many of the transactions are arguably not true economic activity, but rather development testing.” -Mr. X

“Alternative Perspective: The above chart solely pertains to transactions that settle on-chain. That is, all transactions that do not directly/automatically settle on the blockchain, such as the transactions that happen within the LN, are irrelevant to the actual PoW that happens on the actual blockchain settlement layer.” -Rafael

Both perspectives are valuable. We are not an echo-chamber. We strive to give you the most well-rounded perspective.

www.cryptovigilante.io 8

Big Block Bitcoin Fundamental Analysis

Rafael LaVerde

Bitcoin’s Capitalist Competition - Bitcoin miners capitalize across three chains: BTC, BCH, & BSV.

At the most fundamental level Bitcoin is defined as a competitive network of miners. ​

From the time of the first , we have told our subscribers to bet on the entirety of the . That is, to hold one BCH and one BSV for every one BTC you hold. We called this the Bitcoin Index. ​

The entirety of the Bitcoin network refers to all competitive market options for Bitcoin miners. Bitcoin ​ SHA256 miners now have three blockchain networks fighting for their business: BCH, BSV, & BTC.

Why the Bitcoin Index? -The Bitcoin Index is most valuable because of the PoW committed in protecting all 3 chains.

Throughout the entire crypto world, no other holds as much investment securing its chain of historical transactions as the three Bitcoin sibling chains. We now have three alternative histories of the original Bitcoin blockchain: BTC, BCH, and BSV respectively.

Bitcoin miners have the ability to mine and monetize across all three chains.

Note that the committed historical investment into Bitcoin is not just in terms of market capitalization or the worth of the coin. The particular investment that makes the Bitcoin Index special revolves around the expenditure of energy which secures the transactions of the network(s). This expenditure of energy comes from the (PoW) nature of the Bitcoin protocol.

The costly expenditure that comes from PoW miners signals the commitment of capital in securing the future of these networks. Capital investment into Bitcoin mining is a signal of confidence for investors and future ​ ​ entrepreneurs.

The Bitcoin Index is also composed of the early Bitcoin adopters. These early investors are the most seasoned and committed network of crypto investors. When we invest in a crypto we don’t only invest in the technology of that given crypto, we as investors also invest in the community of investors of given cryptocurrency. The quality of investor composition within a cryptocurrency is incredibly valuable.

www.cryptovigilante.io 9

HODLing the Bitcoin Index opens yourself up to the future of Bitcoin Mining on all fronts. No one knows for sure what the future holds, but what we do know for sure that the enterprise of Bitcoin mining has three clear ​ options for its future. ​

Ask yourself this rhetorical question, “what Bitcoin sibling chain(s) will miners consider to be best for their future?” If you don’t have a clear answer, we recommend that you hedge your bets across the Bitcoin Index.

Profit Seeking is Bitcoin’s Motor -The Nakamoto Consensus is an economic structure that aligns everyone’s interests and incentives.

Nakamoto Consensus: A constantly verifiable competitive system of energy spent in securing Bitcoin, where ​ the financial incentives of miners are aligned to continually better Bitcoin.

Bitcoin has been designed as a capitalist system meant to uphold itself via profit seeking. Without profit there is no incentive for miners to run a Bitcoin mining business. Without PoW miners there is no securing of the Bitcoin network.

The competitive nature of Bitcoin mining is the driver for constantly improving Bitcoin’s security, profit, and cost efficiency. Bitcoin mining was designed to become more competitive and profitable as time goes on.

In a blockchain you are only as strong as your weakest computer miner or validator

The well-being of miners is intrinsically tied in with the well-being of all users within the network. If a miner decides to do something that is not in the best interest of the rest of the network, that miner gets orphaned.

It is always suicidal for a miner to sabotage the network for quick gains. ​

You can’t cheat PoW. PoW is a reliable signal of capitalist commitment which increases market confidence.

The work of miners is energy spent that signals to the rest of the network - in an undeniable and provable way - that their committed capital is constantly improving and securing the network.

The Current State of the Bitcoin Mining Competition

All of Bitcoin was once united under one blockchain. After much debate about scaling, the market is in the process of deciding which chain - or chains - is/are best for miners and users. We currently have three sibling Bitcoin chains competing for the future of Bitcoin mining.

The BTC camp thinks they have already won. I personally think that this is a presumptuous position. BTC merely inherited the ticker symbol, which confuses most people.

www.cryptovigilante.io 10

Bitcoin is not politics, it is a strict capitalist competition. Most of the debate regarding Bitcoin scaling was political. We are now moving into an era where politicking in Bitcoin is meaningless.

Big Blocker Perspective on BTC

I think that there is a place for the small blocker mentality within crypto. The definition of having an asset as “digital gold” makes sense. However, in order to have this title the asset must be fungible. No Bitcoin sibling chain - BTC, BCH, or BSV - is fungible. Any attempt at making any of these three Bitcoin sibling chains fungible is a trite endeavor.

The most intelligent crowd within the BTC crowd - that wanted true “digital gold”- realized that this could only be achieved by starting over again. Monero (XMR) has been the result of this endeavor. The logical conclusion for what BTC desires to become is found in Monero (XMR). In my opinion, the most intelligent BTC proponents have already moved on to XMR.

Be careful with the BTC presumption of thinking that BTC has already won. BTC has not won the race for the rest of history. Big blockers (BSV & BCH), like myself, perceive BTC as having made a fatal mistake for not being miner centric in its scaling.

BTC chose a scaling route that necessitates a second layer. The Lightning Network (LN) has become the most championed second layer solution for BTC scaling.

Even if the LN were to work to perfection, the LN still cripples BTC miners economically.

The Lightning Network (LN) is not Bitcoin. The LN is a separate protocol where digital tokens - that represent BTC - are transacted. No actual BTC is transacted on the LN, only representations of the amount of BTC locked up in a BTC wallet.

To lock up the BTC that is going to be used in the LN is what is referred to as “opening up an LN channel.” To unlock said BTC from that same BTC wallet is what is referred to as “closing an LN channel.” In other words, ​ actual BTC only “settles” on the BTC blockchain when a LN channel is closed, not being used.

No actual BTC is ever transacted within the LN since the BTC blockchain is not at all involved within LN node transactions. That is, no Bitcoin miners process transactions that happen within the LN.

All transaction fees that LN node operators gain are transaction fees that could have gone to profit Bitcoin miners.

I don’t consider transactions that happen on the LN to be BTC transactions. If the miners are not processing the actual transactions on the BTC blockchain, then said transactions are not Bitcoin transactions by definition.

www.cryptovigilante.io 11

There is no going back for BTC. BTC is now for the rest of history - unless they increase their block size (which they won’t) - incapable of being a functional global medium of exchange without a second layer.

BSV: The Logical Conclusion of Bitcoin’s Original Design at Scale

The ultimate manifestation of the big blocker scaling plan for Bitcoin is found in Bitcoin Satoshi Vision (BSV).

One of my personal mottos is to look where it is forbidden. When the crypto masses aggregate around a cause without providing satisfactory argumentation, I venture out with my own research in search for my own conclusions.

Nakamoto Consensus Defined -The Nakamoto Consensus as Bitcoin’s free market oracle

If the Bitcoin market were to fall, a HODLer of any of the three sibling Bitcoin coins could short their way out of the market. A Bitcoin company/business could pivot their engagement away from Bitcoin to something else in fintech; not losing the totality of their investment and work. A miner, unlike these first two classes of investors, is completely committed to the security, health, and profitability of the network.

If the market were to fall, the capitalist miners would not be able to divest out of their mining equipment. SHA256 miners are created for the sole purpose of mining the Bitcoin protocol. There is no way to repurpose these computers, aside from turning them into spare parts or junk metal.

Satoshi designed Bitcoin as a highly competitive market where those who benefit most from protecting the network can have the most say in the direction of the network’s development. Right, wrong, or indifferent, miners have just recently begun to be at the forefront of Bitcoin development.

Historical Motivation of Miners

The Bitcoin forks occurred because miners deferred responsibility to Bitcoin protocol developers. Miners were too comfortable living off the Bitcoin block reward subsidy to choose Bitcoin’s future for themselves.

www.cryptovigilante.io 12

During the Bitcoin forks, miners did not make decisions based on financial pressure. Miners were overall indifferent as to what the protocol developers of Bitcoin decided. For example, when the user activated soft fork (UASF) happened within BTC, miners in BTC got paid the same from the block reward subsidy no matter what was decided.

When miners deferred responsibility to Bitcoin protocol developers, these technocrats warred against one another in political factions. Developers from all camps were guilty of acting like central planners for thinking they knew better than the market what was best for Bitcoin.

The good news is that Satoshi designed Bitcoin with the intent of weaning miners off the block reward subsidy. The weaning of the block reward subsidy - via the halving every four years - puts pressure on the miners to choose what makes most economic sense for them in securing the network.

For the first time in Bitcoin’s history we are beginning to see miners take on the leadership role that is proper to them.

Big blockers (BCH and BSV) were the group within Bitcoin that foresaw the importance of miners to get involved in the decision making process of Bitcoin scaling. Big blockers found it horrible that miners would be so careless to simply allow different factions within Bitcoin to fight over its scaling future.

Fortunately, not all miners were passive and/or indifferent regarding Bitcoin’s scaling future. Some miners foresaw their fate under future financial pressure. These miners went along to mine what later on went on to become (BCH) and Bitcoin Satoshi Vision (BSV).

As you can see from the chart below, BTC still has an overwhelmingly higher amount of hash rate in ​ ​ comparison to BCH and BSV. However, notice the amount of transactions of BSV in comparison to BTC.

www.cryptovigilante.io 13

Notice that BSV has the most transactions while having a small hashrate

BSV transactions per day compared with other

Bitcoin Satoshi Vision (BSV) is positioning itself to be at the vanguard of Bitcoin mining development. Miners throughout the world are noticing.

● Japanese firm SBI is planning on having the biggest mining facility in the world based out of Texas. SBI ​ ​ is a Bitcoin bigblocker oriented financial institution. ​

www.cryptovigilante.io 14

● Divestment out of Hyperblock has many within BSV positioning themselves to revamp the mining ​ ​ facility. ​

● ViaBTC started mining BSV. ​

● is now mining BSV (over 25% of total BSV hashrate). ​

Right, wrong, or indifferent, we cannot deny the fact that the BSV network is the most miner-centric

Recap on BSV

● BSV is a capitalist driven meritocracy. One that keeps in line with the original design of Bitcoin at scale.

● BSV is the network where miners have the most autonomy.

● BSV is the logical big blocker scaling plan wherein the technology, game theory, and applied economics remain unchanged from what made Bitcoin successful before the forks.

● BSV shares in the same blockchain history as BTC and BCH up until the point that they all had their respective splits. BSV, BCH, and BTC share in having the same Genesis block.

#DelistBSV

The marketing campaign we saw against BSV was the biggest negative marketing campaign against a cryptocurrency project that we had ever seen. At the heart this negative marketing campaign was Craig Wright (CSW) and his claim about being Satoshi.

The result of the CSW drama has led many to disregard BSV because of “Aussie Man Bad!” #DelistBSV had everything to do with CSW, and nothing to do with an honest attempt at understanding this big blocker approach to Bitcoin scaling.

The BSV community is a brutalist objectivist libertarian community; they did not care one bit about the coin being delisted from many major exchanges.

For people within BSV, CSW is regarded as the scarecrow that keeps the birds away. In this popular BSV metaphor, the birds spend all day picking on the scarecrow while the crops grow undisturbed.

The campaign to delist BSV was fierce. CSW is hated by the vast majority of crypto. Most of the entrepreneurs in BSV simply don’t care about the CSW fiasco.

www.cryptovigilante.io 15

Recently, the BSV network showed how little they cared about being delisted from KYC/AML exchanges that they re-ignited the #DelistBSV campaign to have the recent Binance acquisition of Coin Market Cap (CMC) delist BSV from CMC.

CMC has been known for being sketchy in the past. At TCV we recommend Coingecko over CMC.

Binance Quietly Starts Mining over 25% of BSV’s Total Hashrate!

www.cryptovigilante.io 16

Capitalism thrives irregardless of ideologies.

There are over a billion communists chinese and they all walk around with smartphones because of capitalist incentive structures. There are also over a billion muslisms that are anti-libertarian that also walk around with smartphones because of the economic incentives.

In like manner, I see Bitcoin thriving irregardless of the purity test a given group upholds. By definition a byzantine fault tolerant network is one where rivals can compete fairly and safely.

It doesn’t matter what a collectivists “group consensus” says, economic incentives will motivate people to act and move in the most efficient and profitable of ways.

The Binance mining of BSV was no surprise to me. It does not matter what the crypto mob says or thinks. What matters to Bitcoin miners is having a sustainable future. BSV has positioned itself as an undeniable profitable option for the future of Bitcoin mining.

www.cryptovigilante.io 17

There were no big announcements. There were no articles about this important occurrence within the crypto space. Over a week later, after I noticed that Binance started mining BSV, did Cointelegraph and Crypto Potato ​ ​ ​ grudgingly address the situation.

For a second there the entire crypto space was in shock of Binance mining BSV. The crypto mob could not understand how Binance was mining the coin that they themselves delisted.

Many in the space were asking; “How can Binance profit from the mining of BSV while not allowing its own customers to buy it or exchange it?” “Did Binance realize something about BSV that is not PC to say out loud within the crypto space?”

It is still weird to realize that Binance allows its users and its company to mine BSV while not allowing its users to buy or trade it on their exchange.

This is a pivotal moment in Bitcoin’s history. We are for the first time witnessing the outright market trumping over politicking and censorship of cryptocurrency within crypto.

Miners as profit seekers are now beginning to call the shots regardless of popularity contests.

The collectivist mobs within crypto that manipulated the space via “Proof of Social Media” are coming to an end. We are finally beginning to see the PoW market driven capitalist meritocracy take shape.

The crypto space is finally being forced to realize what I realized before BSV even existed as its own chain; that Bitcoin miners have the unique financial incentive to do what is best for themselves and the network, regardless of politics and censorship. Bitcoin mining was created by Satoshi to be the utmost objective market oracle.

When pressed for an explanation as to why Binance was mining the forbidden coin BSV, the Binance CEO gave us the answer that I was expecting; BSV is just too profitable for miners to ignore.

www.cryptovigilante.io 18

https://twitter.com/cz_binance/status/1273842615381680128

CZ Binance’s response was exactly what I predicted. I predict many more anti-BSV people will realize that they cannot stop the will of Bitcoin miners. Whether they like it or not, BSV is propositioning a great future for Bitcoin miners.

Binance was not the first BTC to start mining BSV. ViaBTC has also been actively mining BSV. Binance was just a big surprise, given their previous ardent campaign against BSV.

For those who think that Binance may be attacking BSV, let me inform you that Binance has not been mining empty BSV blocks. They are not selling the BSV that they are mining because BSV is not listed on their exchange. Furthermore, the exchanges that hold BSV have not seen an uptick in sales of BSV.

My tentative conclusion is that Binance is hoarding BSV.

www.cryptovigilante.io 19

This movement from Binance is in my opinion the canary in the coal mine for what is to come. I predict that the rest of the crypto space will also quietly begin to re-list BSV. I also predict that we will see other traditional BTC mining pools begin mining BSV alongside Binance and ViaBTC.

The Entrepreneurial Uniqueness of BSV

Bitcoin’s original design is not something that entrepreneurs can simply ignore. BSV offers things not found anywhere else in crypto.

● It is the only network where the protocol is fixed, making the competition and development amongst entrepreneurs fair with a clear - never changing - ruleset. ● BSV is the only Bitcoin sibling chain with an uninterrupted chain of digital signatures; allowing for there to be wallet configurations not found in BTC or BCH. ● BSV is the only Bitcoin sibling chain that aims to have an uncapped block size where the size of transaction processed is determined solely by market demand and miner sustainability. ● BSV is the only Bitcoin sibling chain that has only the genesis block as its sole checkpoint. ● BSV is the only Bitcoin sibling chain where entrepreneurs can literally “use the blockchain as they please.” As long as it is financially feasible and profitable for the miners, anything is possible. You can literally use the BSV blockchain as the back-end for your business. ● BSV is the only cryptocurrency that is capital intensive. BSV foresees Bitcoin miners of the future competing directly with Google, Amazon, and nation states. ● People in BSV understand that natural monopolies are a myth. ​ ​

www.cryptovigilante.io 20

Blockchain activity on BSV just keeps on increasing. ​

I firmly believe that entrepreneurs from Ethereum and EOS will soon realize that what they want to accomplish is most feasible within the original Bitcoin ruleset, BSV. I expect a wave of innovation coming out from BSV in the next couple years.

In BSV you can do everything you want to do in EOS, Ethereum, Cardano, Tezos, and even Chainlink. Codough ​ is positioning itself to be the Chainlink competitor on BSV.

www.cryptovigilante.io 21

Note that BSV will provide entrepreneurs with the safeguarding of smart-contracts via the greatest PoW network in the world, Bitcoin miners.

BSV is the only Bitcoin sibling chain that does not discriminate against transaction sizes and/or what is transacted- there is no such thing as “transaction spam” on the BSV network. If the miners voluntarily agree with you or your business mine a transaction, then that transaction will be processed. There are no developer central planners dictating to miners what they can or can’t mine.

Keep an eye on Twetch, BoostPoW, and 21e8. These three represent in my opinion a new paradigm of social ​ ​ ​ ​ ​ ​ ​ media. This paradigm revolves around the use of proof of work (POW) in social media interactions. If you really want to understand this, I highly recommend you listen to this conversation. If you want to understand ​ ​ Twetch, watch this talk. ​ ​

I don’t want you guys to miss out on Twetch! There is a lot of FUD about BSV… Think for yourself! Get on Twetch and try it for yourself!

A famous BTC proponent, Meltem Demirors, recently announced on Twitter that she had joined Twetch. The ​ ​ BTC shaming and bashing against her was rough! She was shamed and bullied away from using Twetch. Don’t be like Meltem, don’t give into BTC bullies.

There are already celebrities using Twetch. Twetch is like Twitter on capitalist steroids. If you want a Twetch invite, I will personally pay for your Twetch lifetime subscription; pm me on Telegram. Once you use Twetch, you will feel dirty using the people’s republic of Twitter.

www.cryptovigilante.io 22

The frog is Coinyeezy, Josh Petty, the founder of Twetch ​ ​

For anyone interested in the world of advertisement, marketing, and affiliate marketing I’d highly recommend you check out TonicPoW. ​ ​

BSV Bullish Call to Action

BSV is a very unorthodox cryptocurrency.

In the short term I’d pay close attention to what Mr. X has to say. Mr. X complements my bullish BSV outlook. Mr. X will provide you with the most popular perspective held by the crypto masses. As time goes on, I expect for the entire crypto space to become more pro-BSV.

I don’t care for CSW. To me he is just another dude. I think there are more important people to focus on in the BSV ecosystem. I do not think CSW matters at all.

In my opinion, the most significant projects in BSV have nothing to do with CSW.

As a cryptocurrency, BSV offers extremely unique market options. There is really no other cryptocurrency that can match the entrepreneurial possibilities of BSV. On top of all of its virtues, remember that BSV shares in the original network of Bitcoin investors. This is an aspect that no altcoin could ever match.

BSV is different from BCH and BTC, in that in BSV the miners call the shots. In BCH and BTC, the central group of developers call the shots. When people realize the importance of having a fixed protocol, where developers cannot change the protocol to their whims, I expect many to flock to BSV.

www.cryptovigilante.io 23

I am long term bullish on BSV. During these times, I find it opportunistic to load up on BSV. If you want to watch an ancap perspective on BSV, I would encourage you to watch this interview of by the ​ Numpties and this juxtaposition of BTC and BSV by the Anypay co-founders. ​ ​ ​

I am very happy to be giving you guys this unique contrarian perspective. This pro-BSV perspective is missed out by most of the crypto space because they are completely obsessed with CSW and/or do not fully comprehend the Nakamoto Consensus.

In a nutshell, if you want to see the value of BSV, you need to start looking beyond CSW. If you simply stick to the narrative around CSW, you will miss out on everything valuable happening within BSV.

Bitcoin Cash (BCH)

The probable Bitcoin Cash (BCH) fork split in November

www.cryptovigilante.io 24

BCH was the original Bitcoin big block scaling alternative. Unfortunately, BCH has begun to devolve into political factions similar to what led BTC to fork.

Unlike BSV, BCH is not a fixed protocol. Unlike BSV, BCH is not a miner maximalist network. You need both a fixed protocol and miners in charge at the helm otherwise the crypto governance becomes politically driven.

When the protocol is open to constant change, and miners are second rate followers to developers, you end up with warring factions of developers. BCH entrepreneur, Vin Armani, recently shed light on the very probable ​ BCH fork split in November between the two warring BCH camps; namely, Bitcoin ABC & BCHN. ​

DevTax

BCHN came into being as a response to the Bitcoin ABC backing of the DevTax; aka, the Infrastructure ​ Funding Plan (IFP). Roger Ver is on the BCHN side of the debate. The fight against the DevTax is so intense that you can even see Roger Ver arguing on the comment section of Armani’s second video. ​ ​

The camp in favor of the DevTax is led by Bitcoin ABC. The Bitcoin Camp implementations that oppose the forks are , Bitcoin Verde, Flower, BCHD, and BCHN. As you can see, no other BCH implementation is for the DevTax aside from those who benefit most from it, the Bitcoin ABC developers.

The State of BCH

Bitcoin ABC developers see themselves as the leaders of BCH, similar to Bitcoin Core developers’ attitude regarding BTC. This is not good. Unfortunately, when the protocol is not fixed - and miners are not autonomous - lack of adherence to the Nakamoto Consensus creates a vacuum of direction readily filled by political factions of developers.

The vast majority of BCH proponents consider applications on the BCH blockchain to be spam on the blockchain. Within BCH it is nearly impossible to create an application on the blockchain as it is possible within BSV.

The ever changing protocol on BCH makes it difficult to build applications on chain. Furthermore, the culture within BCH overwhelmingly considers the use of the BCH blockchain as “spamming the network” if it is not for the sole purpose of making transactions.

BCH desires to compete solely as a currency. Roger Ver and Bitcoin.com have been really ramping up the adoption of BCH. Recently, Roger Ver put together a $200 million dollar investment fund to grow the ​ adoption of BCH. ​

Bitcoin.com has become an incredible reservoir for BCH adoption. Tools.Bitcoin.com is incredible to witness. ​ ​ The amount of work that Roger Ver and Bitcoin.com have put into the adoption of BCH is commendable.

www.cryptovigilante.io 25

If you want to learn more about what Roger Ver and Bitcoin.com have been up to, watch my recent interview ​ with Roger where we talk about Cash Fusion. After my interview with Roger, he was interviewed by a group of ​ BSV supporters. I’ve already made reference to this conversation, but it is so good that again I urge you to ​ watch it. ​

Recently news broke out of China regarding and . Allegedly, Jihan is defrauding his business ​ ​ partners and Bitmain is in trouble. This is not good for BCH, as Bitmain is one of the leading mining companies committed to supporting BCH.

BCH Bearish Call to Action

BCH is not going through good times right now. Roger Ver and Bitcoin.com have been creating much value for BCH, however the rest of the BCH network is in turbulence.

It is best to not accumulate anymore BCH until we have a better understanding of how this entire situation develops. Up until the scheduled fork in November we will be keeping a close eye on BCH.

Bitcoin-On!

-Rafael LaVerde

www.cryptovigilante.io 26

Crypto Asset Outlook & Market Commentary

Mr. X

Updates to TCV Portfolio allocations: Wownero (WOW) added (1%), EOS.io (EOS) decreased (1%)

Wownero (WOW) is our latest microcap cryptocurrency long-term speculative investment.

As explained in this month’s special report, TCV Featured Crypto Asset Wownero (WOW) - June 8th, 2020, we ​ ​ have recently added Wownero (WOW) to our TCV Portfolio with an allocation of 1%. Since adding WOW to our portfolio at a price of 0.00000074 on June 8th, it recently rose to a high of 0.00000518 on June 25th, for a gain of 600% in just under three weeks.

As I’ve explained in previous alerts and updates, we are holding WOW for the long term as a speculative investment. Since it currently has a small community and market capitalization, the price can be quite volatile, and there is much room for further growth and adoption.

For more information on WOW, please read the above report, and last week’s TCV Crypto Market Update – ​ Wownero (WOW) & Aeon (AEON) (June 22, 2020) which highlights some more bullish news regarding ​ Wownero which occurred earlier this month.

Bearish developments in EOS have resulted in our reduction in its portfolio allocation.

To make room for WOW, we decreased the allocation of EOS.io (EOS) from 2% down to 1%. This is due to the fact that we have shifted towards a neutral/bearish stance on EOS for various reasons, including: ● The corruption of the Chinese block producer (BP) vote buying cartel ​ ● The class-action lawsuit which was recently filed against EOS’s Block.one, CEO Brendan Blumer, CTO ​ ​ Dan Larimer, former CSO Brock Pierce, and former partner Ian Grigg for securities fraud by failing to deliver decentralization as promised ● The lack of adoption of Voice.com (which was a costly pivot), and the fact that Voice also requires ​ ​ ​ ​ ​ KYC/AML on a transparent (surveillance) blockchain ​

We discussed some of these topics and others in last month’s TCV May 2020 Issue (see pages 23-25). ​ ​

www.cryptovigilante.io 27

Haven (XHV) announces xUSD mainnet launch as the world’s first ​ private DeFi stablecoin

For over a year, we've had Haven (XHV) on our radar. Earlier this month, Haven Protocol announced the ​ ​ ​ upcoming launch of their xUSD mainnet on July 20, which will be the first private stablecoin on the market. ​ Unlike other stablecoins such as Tether, or MakerDAO’s Multi-Collateral Dai system, Haven Protocol is based ​ ​ ​ ​ on the strong foundation of Monero’s codebase, and is therefore both private and fungible. Like Monero, Haven utilizes ring signatures, ring confidential transactions (RingCT), stealth addresses, and bulletproofs, and is a proof of work (PoW) mineable coin.

In general, Rafael & I aren’t typically fans of so-called “stablecoins” since they are pegged to the value of fiat currencies, and are therefore guaranteed to lose value over time due to inflation by central bankers. However, the Haven team has managed to accomplish some breakthrough technical feats, and we’ve decided to bring this small coin to your attention.

Leading up to and after the announcement of the xUSD mainnet launch earlier this month, the price of XHV has experienced some rapid growth. Haven is a good example of so-called “DeFi” (decentralized finance). Buzzwords like “DeFi” and “DEX” (decentralized exchange) have been all the hype in the crypto sphere, with many of the mainstream crypto commentators discussing the new projects in this area. However, Haven is a unique project that has slipped under the mainstream crypto radar.

Another great example of true DeFi (specifically, a DEX - or decentralized exchange) is Bisq, but as we’ve ​ ​ mentioned before, we highly recommend being very cautious with buying BTC on Bisq. If you choose to use Bisq, we recommend immediately converting any BTC to XMR, since there have been reports of people selling “dirty” BTC there due to its decentralization, privacy, & anonymity via Tor.

Haven Protocol (XHV) is essentially “private DeFi.” I would argue that while much of the DeFi space is filled with hype, Haven is truly unique due to the fact that it is careful to address the issue of fungibility and privacy first and foremost, which I consider to be extremely important, and overlooked by the vast majority of individuals in the crypto space.

www.cryptovigilante.io 28

We haven’t officially added XHV to the portfolio at this point, since it was originally designed to be a stablecoin. The project also has a miner dev “tax” to help fund the XHV developers. This might not be as bad as a premine, but it is still a blemish on the coin in my opinion. Nevertheless, we are keeping a close eye on XHV, and we are pleased by the innovative system they have built.

Interestingly, Sarang Noether (one of the Monero Research Lab’s Ph.D. cryptographers) provided the Haven ​ ​ team with some assistance with their replacement of Monero’s multilayered linkable spontaneous anonymous group (MLSAG) signatures with compact linkable spontaneous anonymous group (CLSAG) signatures.

The Haven team integrated a Chainlink (LINK) decentralized XHV pricing oracle to determine the current ​ ​ XHV exchange rate price. This is necessary for the wallet software to allow users to convert their XHV coins to “Offshore Storage” and hold them at a particular USD value. This is done via private and anonymous synthetic assets, which are known as “xAssets” (in this case, Haven Dollars, or “xUSD”).

As explained in the Haven Protocol whitepaper, the Haven team promises that “1 xUSD will always be ​ ​ redeemable for $1 worth of XHV.” The design of Haven Protocol allows a user to “burn” their XHV coins and “mint” them as xUSD within their wallet, which is called the Haven Vault. After “offshoring” their coins by converting them to xUSD in their Haven Vault wallet, the user can later convert their xUSD back to XHV, and they will receive the same USD value of XHV (which could end up being a larger or smaller number of XHV coins, depending on the current XHV price at the time of conversion). Eventually, Haven plans to add other xAssets, such as xBTC, xSILV, and xGOLD in the future.

If you are interested in learning more about how the Haven Protocol works, you can read the FAQs here and ​ ​ here. For more technical information on how xUSD works, I recommend reading the article, “Haven Deep ​ Dive: Cracking the xUSD Code” which is available here. ​ ​

Haven (XHV) Technical Analysis

www.cryptovigilante.io 29

Bittrex XHV/BTC weekly log chart

As seen in the weekly logarithmic chart above, XHV/BTC has been in a massive bullish rally which has accelerated in parabolic fashion over the past three weeks or so. Even before this month’s accelerated rally began, price had gradually begun rebounding in an upward trend off the September 2019 major low of 0.00000904. After reaching a high of 0.00006643 in March 2020, the bulls flexed their strength and broke above that high earlier this month, having taken prices to current levels around 0.00022337.

Moving on to the indicators on this weekly log chart, the moving averages are all pointing upward, price has bullishly broken above the Ichimoku Cloud which has recently flipped green and is rising out in front of the market, volumes are okay but could be better, the accumulation/distribution line is just starting to point up again, MACD made a bullish cross and has also moved above the zero line in bullish fashion, Willy is heading towards overbought levels, and the Fisher Transform Indicator remains bullish and pointed upward.

www.cryptovigilante.io 30

Bitcoin SV (BSV) Analysis & Outlook

Some of My Opposing Viewpoints Regarding BSV’s Toxic Leadership, & BSV’s Fundamental Weaknesses/Risks

As many of our subscribers already know, Rafael & I have had some major disagreements regarding our fundamental outlooks for BSV and BTC. However, this is a good thing, since it allows our readers to see multiple perspectives on these coins, and it challenges both of us to interact with one another’s ideas.

In regard to Bitcoin and its hard fork/hash war splits, Rafael is more partial to the big blocker scaling philosophy (specifically, BSV), and I am more partial to the small blocker and 2nd layer scaling philosophy (BTC).

However, I have personally shifted towards being a Monero (XMR) maximalist, so I don’t really follow BTC development quite as closely anymore, due to the lack of default privacy & fungibility across all Bitcoin chains & the vast majority of cryptos in general. For this reason, I prefer to focus more of my time on coins that I believe to best fulfill the qualities of sound money, and Monero simply does this better than any other coin I’ve seen thus far, as I’ve explained in previous writings.

Many of BSV’s supporters believe that Craig Wright (the Chief Scientist of nChain, who leads BSV’s development) is either , or was part of an alleged team who went by that pseudonym. Craig S. Wright (CSW) has publicly claimed on numerous occasions that he is the inventor of Bitcoin.

Rafael & I often have discussions and debates with one another on these topics, and we try to include some of these thoughts in our writings, some of which I have included here.

Important Background Information on BSV & Its Toxic Leader, CSW

For some background information with my opposing viewpoints and fundamental analysis perspective regarding BSV, I encourage you to read the following articles where I have extensively covered the serious problems with BSV and especially its toxic leadership in the past:

● My section of the TDV April 2019 Dispatch, focusing on pages 33-41 (this includes my perspective on ​ ​ the #DelistBSV campaign and crypto infighting/lawsuits) ● TCV Weekly Crypto Market Update (May 25, 2019) - focusing on the section, “Craig Wright tries to ​ ​ copyright Bitcoin’s code, resulting in BSV pump, then US Copyright Office releases disclaimer” ​ ● TCV Weekly Crypto Market Update (June 4, 2019) - focusing on the section, “Bitcoin Cash (BCH) 51% ​ ​ attacked with over 3,000 BCH double-spent by ‘honest’ miners in an attempt to reverse another attacker’s transactions” and the section, “BSV pumps on fake rumors that it will be relisted on ​ ​ Binance, then flash crashes on after Chinese citizen Wei Liu files 2nd copyright claim for Bitcoin whitepaper” ​ ● Extended TCV Crypto Market Update (October 1, 2019) - focusing on the section, “Judge rules against ​ ​ Craig Wright, finds that he ‘intentionally submitted fraudulent documents to the Court, obstructed a judicial proceeding, and gave perjurious testimony’” ​

www.cryptovigilante.io 31

● TCV Crypto Market Update (January 14, 2020) - focusing on the section, “Bitcoin SV (BSV/BCHSV) ​ ​ pumps on speculative, potentially fraudulent rumors in Craig Wright lawsuit” ​ ● TCV Crypto Alert – Buy the dip on Monero, Bitcoin (BTC) bullish outlook (February 19, 2020) - starting ​ at the 3rd paragraph to the 10th paragraph (important background info explaining issues with ​ BSV) ​ ● My section of the TCV December 2019 Issue, focusing on pages 17-22 ​ ​ ● My section of the TCV January 2020 Issue, focusing on pages 26-36 (more important background ​ ​ ​ info) ​ BSV’s most vocal leader, Craig S. Wright (CSW) is a fraud, its community has alienated itself from the rest of crypto, and they openly despise exchanges & liquidity (see details in linked background information above).

As I’ve explained in the past, the repeated false and misleading statements from BSV leaders/influencers Craig Wright and Calvin Ayre do not inspire confidence for me as a prospective investor, and for many others too. I believe that if BSV is to succeed, it will need to somehow overcome the repetitive negative actions of its two most vocal and powerful leaders.

Thus far in 2020, the BSV/BTC price has been in an overall decline since its massive price spike back in January, which occurred largely due to speculative rumors that Craig Wright (who is known for his false claims to be Satoshi Nakamoto) allegedly received the private keys for Satoshi’s stash of from a bonded courier via the so-called “Tulip Trust.”

I would argue that this rumor was the primary reason for the massive price spike back in January. I do not believe it was a direct result of the underlying fundamental values from the utility of the coin itself.

From my experience, many, most, and perhaps even all of CSW’s followers in BSV seem to believe that he is the real life identity behind the pseudonym Satoshi Nakamoto, Bitcoin’s creator and author of the original Bitcoin whitepaper. Regardless of his followers’ beliefs, I strongly disagree with CSW’s claims.

CSW’s followers’ emotions were clearly affected by the news rumors that CSW had received access to hundreds of thousands of bitcoins, and speculators caused the price of BSV to skyrocket, before quickly crashing back down after these claims were again shown to be false.

I debunked Craig Wright’s false claims in my TCV Crypto Market Update (January 14, 2020) where I explained ​ ​ some more details on this topic. I highly recommend reading the background information in the links in the bullet point list above to get a more balanced view of BSV and its controversial leader, CSW, who has been proven to be a scammer & liar on numerous occasions. ​ As a result of CSW’s antics and lawsuits against those who accused him of fraud, Bitcoin SV has also been delisted from numerous crypto exchanges, including ShapeShift, & Binance, due to the controversy surrounding it. The decrease of BSV’s market acceptance and liquidity is bearish for its price. I wrote about these events, and some other controversial events that are bearish for BSV back in my section in the TDV April ​ 2019 Dispatch (see pages 33-41). ​

www.cryptovigilante.io 32

Large Block Sizes Lead to Centralization

In the past, I have also explained some of my fundamental arguments about why I believe that large block sizes are dangerous and bad for Bitcoin’s security, and inevitably result in centralization, which undermines the purpose of Bitcoin.

As I’ve mentioned in previous reports, I recommend reading independent Bitcoin researcher & developer Paul Sztorc’s article, “Measuring Decentralization” as a good place to start learning about why it’s important to keep ​ ​ the cost to run a Bitcoin full node low, in order to preserve decentralization. One of the most important innovations of Bitcoin and its blockchain is its decentralized, immutable , where no single entity can exert complete control. I believe that the Bitcoin (BTC) core developers have done a good job in their commitment to keep the software stable and secure with small blocks in order to keep the cost of a full node low, and thereby protect the network.

For more information on why the big blockers are doomed to fail, I also recommend watching the following presentation from Bitcoin core developer Luke Dashjr, who gave an excellent talk at the 2019 Magical Crypto ​ ​ ​ Conference with some very good reasons about why Bitcoin’s block sizes shouldn’t be too big. ​ At the time of the first BTC/BCH fork/hash war in August 2017, the free market showed BTC to be the winning ​ chain with the greatest hashpower, not BCH, and in the second hash war where BCH (ABC) and BSV further ​ ​ split in November 2018, the free market of miners chose BCH as the winning chain of the two, with the greatest hashpower. ​ Even after losing two hash wars, CSW and his band of followers in the BSV network have still continued to survive and BSV has continued its development and made some positive progress, as Rafael has explained.

Miners are important, but not at the exclusion/expense of users & merchants.

In the course of our debates, Rafael has said many times that Bitcoin is defined as a “network of miners.” For Rafael, it almost seems as if “the Nakamoto Consensus” is the Holy Grail - the answer to life, the universe, and everything (Rafael says to look up “21e8” - you will fall down a rabbit hole). ​ ​

www.cryptovigilante.io 33

How Rafael sees Bitcoin. ​ He seems to be laser-focused on that point as if it is all that matters in Bitcoin, at the expense of everything else. I agree that the Nakamoto Consensus is very important, but we cannot forget about the importance of users.

In response, Ed and I have said that the users are actually the most important. I consider users to be the “ultimate market” since they determine the usage of the currency. What good is it if no one actually uses any of a particular cryptocurrency ecosystem’s applications?

As an example of the tribalism and sharp disagreements throughout the crypto community, BSV has in many ways alienated itself from many of the other cryptos (many of them are BSV maximalists who claim that BSV is the only real Bitcoin and that everything else is junk). Unlike with BTC & BCH, there are very few real-life merchants accepting BSV as payment.

BTC Still Dwarfs BSV in Daily Transaction Value

Many BSV supporters have claimed that it is the “most active blockchain in the world” and that it processes “the most transactions” (see Rafael’s graph in his section above). However, when comparing with BTC, this

www.cryptovigilante.io 34

claim fails to take into account the transactions that take place on the Lightning Network (LN), all of which eventually have to settle on-chain whenever LN payment channels are closed. This claim also fails to account for the value of the transactions.

When comparing the USD value of BTC’s daily transactions BSV’s daily transactions, it is evident that businesses & individuals use and trust BTC for their transactions on a scale orders of magnitude greater than that of BSV, as seen in the chart below.

Daily USD on-chain transaction values: BTC $4.55 billion vs. BSV $42.1 million - Source: CoinMetrics ​ Remember that the LN transactions aren’t reflected in this graph, which means that BTC handles even greater transaction value than what is shown here.

A Glimmer of Hope for BSV?

In my opinion, the blossoming in BSV is its saving grace, but I don’t see it overtaking BTC any time soon. After discussing with Rafael and seeing some of the entrepreneurship being built on BSV, I am starting to be more welcoming and accepting of a possible future where BSV could see some degree of success, even in areas where I had previously expected it to completely die off.

Since the BCH/BSV fork, BSV started as a relatively small niche community of very vocal enthusiasts, but has since seen some growth which was indeed greater than I had initially expected. BSV has gradually gained more followers and entrepreneurs, as seen through some of its innovative apps such as Twetch, as Rafael has ​ ​ explained.

I am pleased to give the BSV community credit for their entrepreneurial developments. I am certainly more accepting of BSV than I was a year ago, based on these positive developments. However, the ugly stain of Craig

www.cryptovigilante.io 35

Wright and his antics is a big one, and is a turn-off for many investors and potential users. I’ve written on this topic extensively in the past, as seen in the above list of recommended articles.

Nevertheless, I believe that the big blockers underestimate the innovation of the Lightning Network (LN). I still don’t see BSV overtaking BTC any time soon, and I think that the benefits, strong security, and censorship resistance of BTC and its small blocks (which are uniquely able to be used via Satellite for ​ ​ example) will continue to incentivize the majority of its miners for the foreseeable future.

Bitcoin SV (BSV) Technical Analysis

From a technical analysis perspective, BSV/BTC spiked in value back in January 2020 (for the reasons I stated earlier regarding rumors about CSW’s alleged Bitcoin stash), as seen in the weekly linear chart below.

Bittrex BSV/BTC weekly linear chart with Fibonacci levels

As seen in the chart above, the BSV/BTC price has declined from the highs of January, and then failed when it attempted to bounce near the OTE zone (70.5% Fibonacci retracement level) near 0.02339, and has since continued its decline down to where it is currently trading in the 0.01724 area.

www.cryptovigilante.io 36

Since the high volume spike in January, trading volumes have declined, the 10-SMA (simply moving average) is preparing to make a bearish cross and move underneath the 50-SMA, price is struggling to stay above the Ichimoku Cloud which recently flipped red out in front of the market, and will soon bearishly fall underneath it unless there is a steep price spike to the upside very soon (which is unlikely in my opinion), accumulation/distribution continues to steadily decline showing that sellers are still active, MACD is diverging bearishly, and is bearishly crossing below the zero line, Willy is heading into bearish territory, but the one potentially bullish glimmer of hope is that the Fisher Transform Indicator has just barely managed to flash a bullish cross, so I could see the possibility of a small relief bounce, provided that a short term bottom can manage to form around these levels.

Bitcoin (BTC) Analysis & Outlook

Bitcoin (BTC) is the original Bitcoin chain which hasn’t hard forked since its inception, unlike what the supporters of Bitcoin SV (BSV) would have you believe. BTC only went through a soft fork, whereas BSV underwent its “Genesis” hard fork “upgrade” in February. As the original Bitcoin, BTC is the most widely ​ ​ adopted and recognized Bitcoin chain.

I have provided my revised projection of where I think BTC/USD prices could go over the coming months as seen in the weekly logarithmic chart below.

www.cryptovigilante.io 37

Bitstamp BTC/USD weekly log chart with my revised projection

As seen in the above chart, I see the possibility of a lopsided IH&S (inverse head & shoulders) pattern forming with the right shoulder making a final drop to retest local lows in the $8k’s or perhaps even slightly lower. If a more symmetrical IH&S pattern forms, we could see an even deeper drop down to the $6k’s.

There is also the possibility that price just continues to experience more sideways choppy price action in the current trading range, and that the bulls manage to defend the $8830.63 local low.

In regards to the technicals, price is struggling to break above the upper descending trendline after briefly poking above it, the major moving averages remain healthy, price remains above the Ichimoku Cloud which is getting closer to flipping green out in front of the market, accumulation/distribution is starting to point back up again, MACD is bullish above the zero line but is starting to converge which could potentially be bearish, Willy appears to be stalling near overbought levels, and the Fisher Transform Indicator recently made a bearish cross.

Notice also that the Bitcoin Hash Ribbons indicator is very close to flashing a buy signal, as seen in the ​ ​ daily logarithmic chart below.

www.cryptovigilante.io 38

Bitstamp BTC/USD daily log chart with Hash Ribbons indicator

I wrote about the miner capitulation which began late last month in the TCV Crypto Market Update (June 5, ​ 2020) in which I referenced this particular indicator. Notice also that price is within the Ichimoku Cloud which ​ should also provide at least some temporary support in case of further downside.

Overall, I remain long term bullish, but for the short to medium term, my outlook is for more choppy sideways consolidation in the upper $8k to $10k range for now.

Invest and trade wisely,

-Mr. X

www.cryptovigilante.io 39

Disclaimer: The Crypto Vigilante needs no disclaimer. Everything we say here is what we believe. Furthermore we need no disclaimer because we believe that all nation states, governments, securities agencies or other legislative bodies are illegitimate and we do not recognize them nor believe we need their permission to say what we feel about any topic and frankly think it is hilarious that people think a government body should be there to protect them.

However, because we know that all manner of Government agencies will come after us just for showing such disdain for them we are going to include a standard, cookie-cutter disclaimer below just to keep them off our backs.

Enjoy reading it, bureaucrats at the SEC. Information contained in The Crypto Vigilante Emails or on The Crypto Vigilante website (www.cryptovigilante.io) is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The information contained in such publications is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. The opinions expressed in such publications are those of the publisher and are subject to change without notice. The information in such publications may become outdated and there is no obligation to update any such information, such as cryptographic advice. Jeff Berwick, Ed Bugos, Rafael LaVerde, Mr. X, and other analysts or employees of The Crypto Vigilante may from time to time have positions in the crypto assets, securities or commodities covered in these publications or web site. Any Crypto Vigilante publication or web site and its content and images, as well as all copyright, trademark and other rights therein, are owned by The Crypto Vigilante (TCV). No portion of any TCV publication or web site may be extracted or reproduced without permission of The Crypto Vigilante. Unauthorized use, reproduction or rebroadcast of any content of any TCV publication or web site, including communicating investment recommendations in such publication or web site to non-subscribers in any manner, is prohibited and shall be considered an infringement and/or misappropriation of the proprietary rights of TCV. TCV reserves the right to cancel any subscription at any time, and if it does so it will promptly refund to the subscriber the amount of the subscription payment previously received relating to the remaining subscription period. Cancellation of a subscription may result from any unauthorized use or reproduction or rebroadcast of any TCV publication or website, any infringement or misappropriation of TCV proprietary rights, or any other reason determined in the sole discretion of TCV.

www.cryptovigilante.io 40