Bitcoin Cash Getting into the Spotlight
After what Consensus did not do for Bitcoin prices last week, it could be plausible that sentiments of the investors have shifted
It was quite strange that the hyped up Blockchain Week with rented sports cars did not do justice to Bitcoin prices. Same observations were made by everyone, including Wall Street Journal's Steven Russolillo, who have also noticed the 10 percent drop in Bitcoin prices. Despite Fundstrat Thomas Lee's very bullish outlook, it seems that altcoins have been drawing much more attention than Bitcoin.
Image source: pixabay - WorldSpectrum
Planning Ahead
As much as I would like Bitcoin prices to go up myself, I would have to refrain from keeping myself in denial. As Bitcoin heavily influences the trends of the crypto market, just like oil prices in commodities, the majority with a stake in BTC would prefer to remain bullish. But think that one step ahead of the rest - takes more courage.
Bitcoin's "failure to launch" after the Consensus 2018 gave me two ideas: (1) Investors are re-aligning their investment strategies with better plans and not dumping money like they have done 6 months ago, (2) Investors are starting to divest, looking into other investment options including altcoins or other emerging technologies other than the blockchain.
Artificial Intelligence and Quantum Computing are some of the latest technologies mentioned by Datafloq's Mark van Rijmenam besides the blockchain. Large investors move to where the "green pasture" hasn't even been created.
Image source: pixabay - geralt
Bringing Your Attention to Bitcoin Cash
I have personally have my doubts on Bitcoin Cash [BCH] which was probably one of my biggest mistake as I see BCH prices jumping from $600 to $1400 while I was fumbling my thumbs. Looking further into a long-term investment decision, BCH has never been very legitimate and their saga fighting with Bitcoin did not help BCH portray a positive image. Perhaps Bitcoin was indeed succesful in doing so.
Brian Kelly, CEO of digital currencies-focused investment firm BKCM LLC endorsed Bitcoin Cash by stating that "Bitcoin Cash is a Must-own" (source: Investopedia - Shobhit Seth). Bitcoin Cash sets up a Development Fund to better develop applications on top of its blockchain - a move that its competitor, Bitcoin, has seemingly moved forward pretty slowly.
Bitcoin Cash has also successfully upgraded its blockchain protocol increasing its block size from 8MB to 32MB. Mass adoption is likely to take place as Bitcoin Cash continues to hold their low transaction fees. Read more at: https://news.bitcoin.com/this-week-in-bitcoin-smooth-bitcoin-cash-upgrade-bch-and-btc-tax-payments-in-florida/
Stay tuned for more news on Bitcoin Cash.
BCH Price Updates:
Image source: coinmarketcap - BCH
I still think the sell off of the MT. Gox trustee of 200,000 bitcoins will have a huge negative influence on the markets until all those bitcoins are sold. That means he will drive the price of bitcoin down for the rest of the year mostly. As soon as he sells a large amount of bitcoin, the price drops. And he keeps on selling huge amounts of bitcoin. He has only disposed of about 25% bitcoin at this stage. This is a disaster of epidermic proportions for the cryptocurrency markets.
My personal belief is that BCH will become irrelevant over time. There are already other altcoins with faster transactions times and much cheaper transaction costs than BCH. BCH had a price spike pre fork up to 15th of May, but I will not invest here. Much better investments available on the markets!
I haven't seen any convincing evidence that the trustee was dumping Gox coins onto the market, and he says they were sold OTC. Of course, OTC sales like siphon away demand that may have bought at market prices otherwise, so they are not entirely without effect.
Yes, the trustee is using 4 exchanges to get rid of the BTC, and got rid of a quarter of the 200,000 bitcoins so far. Which leaves another 150,000 bitcoins that are going to be dumped in the market. As this is a liquidation of the MT. Gox exchange(Japan), this has to be done as fast as possible to resolve the whole liquidation process. This does have a huge effect on the market and prices, as these bitcoins are sold off in huge amounts.
Bitcoin is Cash.
I have both Bitcoin and Bitcoin cash. There is still too much uncertainty and I will not go all in on one single coin.