Ford’s vision for an energy currency was that, unlike gold, it could not be controlled. Every country could issue currency backed by the natural wealth of its energy resources. The standard of value for this system was to be a certain amount of energy exerted for one hour which would be equal to $1.
This currency idea, backed by kilowatt hours (kWh), has great similarities with Bitcoin, which can also be considered as “backed” by energy input.
Bitcoin meets Ford’s definition for an energy currency
For the last decade, the majority of Bitcoin’s price history is explained by a constant value against energy input. Price fluctuates around value. But price and value are intrinsically linked and mean-reverted. Bitcoin has a fixed value through time based on the mining energy exerted and its supply growth rate.
“Mr. Ford proposes that this currency be issued only to a certain definite amount and for a specific purpose.”
In other words, you could only issue more energy currency if you put more energy in, which is analogous to what Bitcoin does. The more energy you put in as an individual miner, the more freshly minted Bitcoin you will receive. On the other hand, the more energy that all other miners put into mining Bitcoin, the more difficult, and costly, it is for you to mine Bitcoin, and that is what drives the price predictions of Bitcoin.
BTC/ETH/XRP/LTC Price Predictions
BTC/USD
BTC price has finally smashed the $12,000 resistance and made a further $1,000 move up towards $13,000 yesterday, which opens up the possibility of reaching $14,000, which is one the most important pivotal points to establish a strong support for BTC to aim for the all-time high price of $20,000.
If $14,000 gets rejected, we might again see a move in BTC price down towards $12,000 and potentially $10,000, which are the two main support zones.
This big jump from $11,000 to $13,000 USD was catalyzed by the announcement by PayPal, who released a statement that its customers will be able to buy and sell Bitcoin and other virtual currencies using their PayPal accounts.
Those virtual coins could then be used to buy things from the 26 million sellers which accept PayPal.
ETH/USD
We have seen an expected move on ETH price from the support at $370. It is more likely for ETH to head towards $435 first since the resistance at $406 has been cleared. A long from $406 with a stop-loss below $400 and target of $435 and $465 could be a good trade.
If we break $400, bears will target $370 again, and in that case, we can open a short from $400 with a stop-loss above $406 and target of $370.
XRP/USD
The XRP chart has completed an inverse head and shoulder pattern and broken out of it on the daily time frame. Inverse head and shoulder breakout is generally a very strong indicator. It should head up towards $0.28/0.3 and $0.32. Breaking below $0.24 would bring the bears back in control, and we can see an XRP price pull back towards $0.22.
It would be a good idea to start accumulating XRP for holding for a long term if we see a dip towards $0.24.
LTC/USD
There is a higher chance of rejection of this zone, and a good short opportunity would be to short from $55.5 on rejection (close of daily candle below 55.5) with a stop-loss at $57 and target of $50.
