Have patience with Alt coins including Steem. My Theory
This is my personal theory, and please do your own research and due diligence when it comes to your own financials.
We've seen Bitcoin on a bull rally for the past 7 days, and if we don't count some turbulence a week ago, we've been going up pretty much for two weeks. Alt coins however, and even stable coins like Ethereum and Litecoin, has been slaughtered.
Why? Because people want "free" Bitcoin. Last fork a lot of people, my self included was a taken a little bit off guard with the fork. Some had their Bitcoins on exchanges, and for all of us it was a great event that forced us to learn more about how Crypto Currencies works. I think a lot of people fail to see the positive effects all this technical stuff has. To own your own money requires a lot responsibility. You must constantly stay updated on the technology and gradually learn more.
With this Fork, even if it is said to be much less significant (some even call Bitcoin Gold a hoax) even more people are forced to educate themselves. More people gain more knowledge in the BlockChain technology. Which is of course great.
Now - after the fork, it is expected that a lot of people will sell their Bitcoin Gold fast. We will probably see a pump'n dump, like we saw with Bitcoin Cash.
This money will undoubtedly flow into Alt Coins. "Free" money that people feel they can gamble with.
I am almost certain in my mind that we will see a huge surge in Alt Coins after the fork. That being said, we could still see more drop in prices, and even though I have bought a little bit of Alt Coins in this latest drop, I am afraid it could drop more short term.
Long term however, you should not (in my opinion) be afraid. We are only seeing the beginning, and at this point it is all about positioning yourself in an emerging market. I own mostly Bitcoin, Ethereum, Litecoin and Steem. But I also do own 30 other Alt Coins. All of them are for hodling 10 years +. If just one or two survives and becomes the next Google or Apple or Facebook it will rise 100,000% or more.
Imho, the real big serious investors have not yet seriously gone into crypto. When that changes good cryptos will take off. So far it looks like a speculators wild west
I think the surge you might see in the Alts will be different to what they were before the BTC hard fork. It's a good time for those who got out of alts to re-evaluate their choices.
I also have friends with alts in the HODL drawer. I can't pretend I have a crystal ball, but there are certain things I look for in an early stage alt. A problem they solve with a unique technical solution is a good start. That eliminates most alts right there.
I'l have some money in Steem and Ark.
Steem is useful, so even if the price temporary is a bit lower than usually. It will still help my account.
I'm always a bit afraid when people is talking about "Free" money. I stayed out from the other fork because of this gut feeling (and I suppose that I lost an opportunity). Now we have the same opportunity and got the same gut feeling... maybe I'm only hungry.
If you think about it its not really free money, a chain split happens because people aren't happy with the original chain (or want to make some sort of change) when they do this it gives value to the new chain.(if people think the fork was valuable). This doesn't necessarily erode value from the original chain though it might.
So a fork can increase or decrease the value depending on how valuable people think the split is.
With Bitcoin Cash there are enough people that approve of it that it still has value.
It is basically the same when people create a new coin. It isn't "free money" out of thin air, the creation of a good coin brings new value to the world (though many don't bring value and they are just scams so be careful) and the market will price it accordingly. If there really isn't a value created there won't be profit to be made (except of course short term profits from speculation)
hopefully that makes a little sense at least...
Yes, of course that make sense, as we crypto-users know the only value of money (and everything in the world, I guess) is the value that people believe it has. Imho, the difference is that there will be no ICO and you cannot buy bitcoin gold (at least, not before the fork). You simply find your wallet with more cash. In a normal economy that should bring almost an instant devaluation but that's not true in crypto. But, of course, it COULD be true, we don't really know until it is done :)
I concur
Spot on.
Unless you an active trader, do the due diligence and find an investment. Great write up and should be recommended minnow reading material!
@scandinavianlife 100 % agreed !
Awesome read. Quality material and nice points taken. 10/10 will read again.
I'm just starting to learn about crypto having come to steemit looking for a better deal as a content creator that felt crapped on by the likes of youtube and facebook. I'm slowly getting up to speed with how the markets work and for now I'm keeping what I earn as Steem for use in Post promotion and Steem power.
What comes next after the fork is selling. Off course they do, electric bill and food need to get paid.