BEWARE! Whales are pumping Bitcoin Cash and luring suckers in
Hello fellow Steemians and Crypto investors,
I’ve been in this game for over 4 years, which for crypto land, is a very long time... During this time I’ve seen so many pump and dump schemes that every new one becomes more and more transparent.
This morning I woke up to the latest one:
The Bitcoin Cash pump and dump scheme:
This article from Cointelegraph released today has all the hallmarks of a classic pump:
Bitcoin Classic Shuts Down As Staff Claim Bitcoin Cash Will Rule ‘In 6 Months’
Not only are they making highly improbable claims about Bitcoin cash in a very short time, they are also introducing FUD (Fear, Uncertainty and Doubt) into Bitcoin holders to get them to sell.
Keep in mind all these news outlets need to make money, so they are not going to publish what’s in the interest of you, the reader, but what interests their sponsors and ad providers.
Bitcoin Cash is dead on arrival and they all know it. You can’t possibly scale by ever increasing block size. To do that you would need to store a Blockchain that increases by several petabytes each year and the blocks would become so big you would need super-fast internet connections just to transmit them in time. All of this would only be big enough to accommodate the commercial transactions of a medium sized city like Miami.
What you need for scaling is sidechains
As a programmer, I can tell you with a very high degree of certainty, that sidechains like the ones provided by the Lightining Network for Bitcoin and Litecoin are the only real solution to scaling Bitcoin (also for Ether, through its Raiden network). Watch this video for more insight into the technical details:
What you should do
It’s a very bad idea to buy and hold something that’s being pumped because you never know when the whales are going to turn and dump everything, unless you are part of their closed circle and know it for a fact.
If you want to play the game and ride the pump up be very careful, when they decide to dump, it’s going to be a wild ride down.
What I’m doing
Absolutely nothing! I really don’t care for the stress and dangers of timing the markets and chasing whales.
I follow a safe passive indexing strategy as I've explained in previous posts.
Whatever happens I continue to hold the millionth or more of the supply of coins in both Bitcoin and Bitcoin Cash (21 coins+) so whatever the outcome I’ll be safe in the long term. I, however, do hold way more Bitcoin than Bitcoin Cash for the simple reasons explained above about long term scaling.
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Tell me what you think of this post in the comments below. This is not professional investment advise. I'm not your financial advisor. Only invest money you can afford to lose!
Follow me for updates news and commentary on "sane" crypto investing.
Happy crypto investing!
It's all very interesting but as a non technical person it's impossible to know who's right!
informative post
Oh man my dude it is going to be a shit show after the 13th! So many people are going to lose money and there is even a chance no fork even happens because the mining power for BCH is so low that everything should go smoothly for the updated blockchain. Its crazy how much people don't read and understand things. Then they wonder why 1% of the people in the world have 99% of the money!
We the 1% deserve every penny we have ;) Most people are just too stupid and only care to see one step ahead of their noses. They only care about spending now, whatever the cost later and getting rich fast despite the risks. Unfortunately that's how it works.
Yes, we do belong in the 1%, just look yourself up here: http://www.globalrichlist.com/
i seee
welllll
@cryptoeagle thanks for sharing your experience on this, and showing today's specific case of bitcoin cash. upvoted. @gold84
Good work...
The sad thing is that the same exact thing will happen again and there will be just as many suckers as November 12th. STRONG HAND BITCOIN!
keep it up... like it!
Bitcoin cash has a design problem
You can't duplicate a database between ALL users who simply want to transmit their shopping transactions. Networks like IOTA are and lightning network are more efficient in that.
Then again, you can simply use a light SPV wallet. It is kinda cool that you CAN be a full node and have all transaction history.