CHAINLINK Review (2021) : Opportunity and Risk levels

Hi everyone, Today, I'm going cover ChainLink 
because it has unique features that catch my   attention in the current environment. I'm starting 
to explore new coins to share with you what I   learn and understand in this industry.
My goal is not to make you purchase any   of the coin that I will present, but 
rather give you pieces of information   so that you can make your own decisions.
In the logic of expanding my cryptocurrency   knowledge, I'm trying to understand 
competitors better by researching new things. Hello everyone, my name is Jerome I do videos 
about cryptocurrency investing. My mission is to   bring and share with you the right tools, so that 
you can invest with more confidence. Short terms   gains are one thing, but being able to keep in 
the long is another skills. So if you want to join   this journey, please considering subscribing to 
the channel by clicking on the red button below,   I truly believe we can go far together. I do have 
a telegram channel for those that want to discuss   more actively, so feel free to join ( the 
link will be in the description down below).

This video will be broken down into three parts :
• Part 1 : What is ChainLink ?  • Part 2 : Why should you care ?
• Part 3 : Risk levels to watch  • And like always, watch until the end because 
we will end off with the french quote of the day. #Part 1, What is ChainLink ? • ChainkLink : Decentralized oracle 
network. In order to understand this,   you need to understand what is an Oracle.
• An oracle is a data feed that connects   blockchain to real life data.
• In Ancient Greece, an oracle   was the term used to describe a female priest, who 
game people wise but often mysterious advice from   a god.

Today people this term more generaly to 
describe someone who knows a lot about a subject   and can give good advice. The idea remained 
the same : give directions, to take actions. • In the context of a blockchain, if it requires 
information about the real world like the Price of   Apple, Tesla stock or more generic things, like 
weather locations, sporting events results, it   will be speaking to what we call on orcale.
• Why would it need information from the   outside world ? Well, if you think about third 
generation blockchains that allow smart contracts,   they need these data to fuction properly.
• Smart contracts are often conditions based,   and the trigger of their execution can 
be based on real world information.  • In the past you'd have specialized 
insitution dedicated solely in providing   thruthful information about a particular subject:
• When you rely on a centralize insitution to   provide information, you are essentially trusting 
their expertise. Blockchain taught us that we   don't need the information to be centralized 
because it can result in errors, hacks,   or manipulation of data.
• ChainLink had it's ICO   in 2017, and what it was trying to solve 
is to make the information decentralized.   Instead of having one person or entity holding 
the truth, we will now have people coordinating   on verifying outside informations.
• It works as a regular mining process :   participants in the network are essentially 
helping smart contracts to understand and   verify what is happening in real life.

In return 
for their workd, they receive ChainLink Token.
  • One of your question might be, how do you 
actually verify that an information is true?   For example how can you make sure that 
people say that Biden was elected,   when others are pretending the opposite.
• Informations provided by oracles need to   have three characteristics :
○ Veracity, meaning that the   information is verifiably truthful
○ Availability, meaning that it’s   readily accessible.
○ And Completeness,   meaning that it’s able to be computed.

• Chainlink has an incentive mechanism   for people to tell the truth: The reputation 
of verifiers are store into the blockchain,   and when they attempt to push false information,   it is slashing it's reputation.
• I like to use analogies and   images to remember thing, so you can 
try to picture Chainlink and Oracles   as the eyes of smart contracts, this should 
allow you to not forget what we are talking about Part #2 Why it's a coin to watch ? • People holding ChainLink tokens 
are called the ChainLink Marines.  • We had wild moves over the past 2 years. 
Chainlink has been one of the best performing   asset for two consecutive years.

What I like 
about it, is that It's performance is somewhat   decoupled with the rest of the crypto space.
• In traditional finance and investing,   this is exactly the types of asset you want to 
see. The ones that are doing their own things,   no matter what the market is doing.
• ChainLink rose in 2019 when the market   was still struggling to find momentum.

• Since its launch, it more or less has   done things on its own. That is 
why it is the first coin that I'm   currently watching to build a position.
• The 3 months correlation of ChainLink   to Bitcoin is currently standing at 
around 0.3. Note that historically   is has been gravitating more towards 0.5.
• This correlation is lower than most of   the coin in the cryptospace, and that 
is why it's catching my attention and   instinct of portfolio and risk manager.
• Compare this Ethereum's correlation to   Bitcoin which is more around 0.7 or 0.8.

• On the news side, ChainLink has been   selected by the Chinese BSN Network   alongside other projects like Tezos, NEO, and EOS.
• The BSN Network is a chinese blockchain network   that is built for Small Chinese tech enterprises.
• China has been investing heavily into blockchain   technology.

And Some of you might remember the 
news from the summer 2019, as it caused a massive   pump of bitcoin price after the announcement.
• My guess is that China wants their developpers   to work with best in class protocols 
like ChainLink in order to inspire from   their technology, and in a few years, 
build and integrate their own version. • ChainLink Data feed are being used on larger 
projects like, bancor for market making, synthetix   for price feed, and is intended to be used by 
Celsius Network to determine their interest   rates. We must not disregard the current network 
of apps using ChainLink, which is is quite large. • Another thing is really like about it is that 
people are trying to short ChainLink : There   is a fund called Zeus Capital that has 
built massive short positions on the name.  • It was already squeezed once last 
year around 15$, but the fund keeps   on doubling down on its position.
• With Gamestop shortsqueeze going,   you understand better than ever how 
things can get out of control when   someone needs to close a large short position.
• I wouldn't be surprised if at somepoint shorts   are being attacked and squeezed to the upside. 
It's an eventually that exists and it could be   adding some fuel, to an already crazy market.

• Competition on the Oracle side is also going   to come from Cardano for example.

Cardano recently 
announced in december that it would partner with   Wolfram Alpha in order to build oracle services.
• Wolfram has one the largest sets of data in the   world to operate on. And the company powers both 
Apple’s Siri and Amazon’s Alexa assistants and has   deals across an entire spectrum of industries
• IOHK spent most of this year gathering the   right people to work on oracles and evaluating 
the market. Hoskinson himself said that this was   both the right place and the 
right time to dive into oracles. • I am not invested in Oracles solutions yet 
and don't own ChainLink, but i'm starting to   look at it as a potential evolution of my current 
stakepool services. If you have knowledge about   oracles, please feel free to reach out to me on 
Telegram. By the way, if you want to stake your   Cardano with me and support this channel, you 
can find the link in the description down below.

Part #3 Where does ChainLink 
stand in terms of risks ? • Alright so, using my risk metric : Chainlink 
used to be in the Cheaper zone when I first   highlighted it January,
• It as moved upward since,   and is now slowly moving into the medium 
risk zone. Meaning that If I were to buy,   I would'nt necessarily buy very aggresively.
• For those of you that want the complete levels   for each risk zones : they are as following :
○ Anything under $28.52 will remain on   the Cheap zone
○ Above $28.52,   Chainlink will enter a medium zone risk
○ And above $48.11, Chainlink will enter   expensive risk zone.
• In terms of price target,   50$ wouldn't surprise me, and with the 
ecosystem of smart contracts expanding so fast,   I think Chainlink still has bright days ahead. It 
could easily reach the $100 mark in my opinion.   When ? I have no idea.

I will let the market 
decide if and when it wants to get there.
  • I will repeat it again, those are not direct 
recommendations to buy or sell. I don't own the   coin yet, and I use this model to gage where 
an instrument stands in terms of relative   expensiveness or cheapness.
• At the end of the day,   i'm looking at things with a very open minded 
approach, and i'm okay with the markets doing   whatever it wants, whenever it wants.
• Remember that price dynamics are very   unpredictable. We'd like to believe that price 
is a reflection of how good a company is doing,   even though it is somewhat true in the 
long term, there are times were price is   not a reflection of the real value and asset.
• You do have periods of euphoria and bubbles,   and also periods of capitulation where assets are 
very undervalued compared to their fundamentals. OK guys, I hope you learned something.

If you 
like this type of reviews please let me know   in the comments, and don't confirm 
to subscribe, it helps me so much.  Now let's end off with the 
french quote of the day: « Le plus beau moment de la vie humaine 
est un départ vers des terres inconnues.   The most beautiful moment of life, 
is when you explore the uknown. So don't be scared to challenge your 
mind on what you think you know,   wether it is people, places, and beliefs, 
it will ultimately make you grow.

Alright guys,
That was jerome , thank you for watching  Until next time
bbye.

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