Flippening part 2? Yesterday I sold half of my Ether for Bitcoin and here is why…….

In the previous month the media was writing about the flippening several times.

The Flippening would be the event that ETH should overtake BTC in market capitalization and become the new number one cryptocurrency. ETH had seen huge gains, because of the scaling problems in BTC, the ICO hype and investments from big companies and banks.

Yesterday I sold half of my Ether, because I think Ethereum will crash soon and a new Bitcoin bubble will start. I bought my Ether at 7 USD, so anyway I locked in a huge profit (about 5000%). Ethereum has grown too fast in a short periode of time, the security and decentralization is a joke and the future is uncertain. On top of this, I saw the chart with a double top and bottom. The 2nd top and bottom were lower than the first, and this could be very bearish.

This looks a lot like the bitcoin bubble of 2014, that was followed by a huge crash….

Charts can tell something, but fundamentals are more important:

-Ethereum has risen 20 X from previous ATH within a few months
-Ethereum is unstable at the moment, many exchanges disabled Ether deposits / withdrawals. Are the scaling issues for Ethereum starting?
-Ethereum will change from POW to POS, that’s quit experimental for a 30 bilion market cap coin.
-ICO’s are in a grey area, it is realistic to expect that regulators will (try to) prohibit it.

The Bitcoin price was down too, but the resistance of a long term uptrend is still holding

More importantly:

It looks like Segwit is coming soon. This will lower the transaction fees and decrease the delay on the network in short term, but bring the possibility for very powerful scaling solutions in the long term. Huge innovation wil come to Bitcoin, that will new use cases and enable Bitcoin to do everything what alts are doing now by using side chains.

Also Rootstock (RSK) is almost ready for real use. Rootstock will enable smart contracts on a sidechain of Bitcoin, but faster, cheaper and more secure than Ethereum (If they deliver what they promised). Especially when Ethereum goes through a negative periode, facing their first scaling problems and huge price drops. This could be a perfect timing for RSK to get adopted!

Probably when ETH drops, other alts will follow in the selloff because of the panic. The question is if Bitcoin will drop too, or will gain because it is the reserve cryptocurrency and mostly people will have to change to BTC first before they can exchange their alts to fiat.

Furthermore the alts were booming because of Bitcoins problems, so there was a negative correlation. If thats the case now too, Bitcoin could rise. This is why I called it ‘the flippening part 2’, If alts drop by 60% and BTC multiplies, the dominance of BTC is as before again.

I expect alts to fall, but steemit is an exception, so I didn't sell and remain positive. here is why:

-Competition of Steemit will need to win by getting a stronger community than Steemit has. Other alts will compete on the infrastructure as a currency, so they are easy to defeat by Bitcoin because of it’s network effect. Steemit will compete by community, so is not threatened by Bitcoin.
-When other alts were booming in the previous months, Steemit was relatively flat, especially in the beginning. This means that Steemit has proven that it is not correlated to other alts. When an altcoin crash occurs, it is possible that Steemit remains growing.
-Last but not least: SP is next to an investment also an influence token. I enjoy Steeming every day and will keep doing this. Even if the Steem price goes down, I will hold on to it and enjoy using it till the new uptrend.

Disclaimer:
Don’s see this post as investing advice. Everything I have written here is a description of how it could turn out based on my knowledge and experience. One singe event can change everything and cause the situation to go in the opposite direction. Be careful while trading or investing, especially with cryptocurrencies.

Do you agree with my expectations or not? Please let me know in the comments and let’s have an interesting discussion!