Stop panicking people!steemCreated with Sketch.

People are going full on FUD!

Everywhere I go I seem to come across people talking about how they are HODLing their crypto, and not a single person openly admitting they sold. The truth is that the primary factor that determines the price of any given crypto is the amount of buy and sell orders. If there are more buy orders than sell orders (bullish) then the price goes up and if there are more sell orders than buy orders (bearish) the price goes down.

The simple fact is that if everybody was really HODLing the price would not be crashing, it would be at least steady.

The price dip is a bit of a vicious cycle, people start to panic, which causes them to sell their crypto, which lowers the price, which makes people panic, which makes people sell, which lowers the price. This goes on and on and on until the people with lots of money decide to start buying again.

Don't worry about BIP 148

If you do not understand what BIP 148 is or how it effects you, I will briefly explain what will happen in laymans terms. In short, on August the 1st, the bitcoin blockchain will split (fork) into 2 chains. On one hand, you will have legacy Bitcoin and on the other, you will have the new BIP Bitcoin. This will be only temporary as long as there are more nodes running BIP than there are legacy bitcoin nodes. At that point, the legacy bitcoin blockchain will be integrated into the BIP one, essentially making them one again. This does come with problems and for some users will involve risk if steps are not taken to avoid loss of bitcoins.

BIP 148 is not something I worry about. There are two types of users of bitcoin. The HODLers and the traders.

HODL
If you just HODL then this whole thing is really not an issue for you. Just keep your bitcoin in a safe place and let all this nonsense pass.

traders
This is where things can get sticky, there are a few things you need to do in order to stay safe. First you NEED to have control of your private keys. (To be honest this is advised for anything anyway) secondly you need to set up both legacy and BIP bitcoin nodes. This isn't very expensive to set up in terms of electricity but can slow down or not run on low end computers. And thirdly you need to make sure that the trading platform supports both versions of bitcoin.

Truth be told, I am just going to use Ethereum as a base for my trading. I would rather just keep my bitcoin secure and let this whole thing ride out. The fact is that people are getting scared about nothing. BIP 148 will come and when it does, it will overtake legacy bitcoin and will Intergrate it, resulting in lower transaction fees and more transactions per second.

Conclusion

To my view, all you are doing by panicking and selling is lowering the price for people who are a bit more calm and collected (like me) to buy up all your cheap bitcoins. Part of me wants people to FUD the price of bitcoin down to $1... I would buy huge amounts of them and then retire and live the life of luxury when the price rebounds, but I don't want you all to lose all your money, I am not that selfish. Guys and girls, I suggest you become less emotional and be strong. Bitcoin WILL survive, Bitcoin WILL rebound and bitcoin WILL take the world by storm. All you need to do is crack open a beer, lay back and relax, all will be fine!

Happy Trading

Viking

viking.png

Sort:  

Nice article. I would also be interested to know how this affects miners?
I have never mined BTC, but other coins.. thx.

It does effect miners pretty substantially, which is why most of them were on the "bitcoin unlimited" side of the arguement instead of the segwit side. Bitcoin unlimited would have given miners much more power and the right to vote on changing transaction fees at any time. BIP 148 will force miners to either stick to what they are doing now, and risk losing all the bitcoin they have mined when Legacy bitcoin merges back with BIP bitcoin, or upgrade their mining Nodes to BIP Bitcoin nodes. What that does to difficulty and profit is anybody's guess though.

people need to stop panic selling when the price goes down. the only way beat this market is to buy and hold.

Good info. Have not heard it spelled out so clearly before. Awesome.

My understanding is that paper wallets are safe. Probably a trezor as well?

#payitforward

Both paper wallets (cold storage) and hardware wallets (trezor/keepkey/ledger) are safe. Anybody those options will keep you secure.

The skies might also come crashing down :-)

Haha I very much doubt that.

Everything's possible!

But not equally likely.
Bitcoin, the big daddy of cryptocurrency crashing and burning? I just don't see it being so.
Even if it did crash down to 1 dollar... how long before people snatch up all those 1 dollar bitcoins and the price goes up and up and up back to where it is now.

If bitcoin hit a dollar I'd buy thousands of them lol

bitcoin will be on the moon very soon. their loss

I guess so... I'd still rather people didn't lose all their money though lol

People!
Buy, Transfer to offline wallet and chill!
in 3 years time you will be pissed off that you didn't go ALL IN where the prices were so low...
Buy, Hold, Relax, and be rich in the near future!

or...

SELL SELL SELL SELL
So I can buy some more!

This is a great post, we have to look forward, if the price goes down, the smartest strategy could be even investing money to buy crypto now and have faith in the coin waiting to go up, I was thinking about buying some crypto with "real money" and try to play a smart game. anyway, great post, we have to hang on and have faith in the future of crypto.

I have started buying crypto again with real money, these prices are too good to pass up. If it keeps going down the more I will buy.

It sounds like the fallacy of sunk cost but it isn't. The price will go up again and when it does those of us who held on and kept buying will be the ones who are laughing.

I totally agree with you, these times are the opportunities you don't want to let go, this is where smart investors makes the difference.

The same thing is also true for steem. Why people aren't buying right now is beyond me. This seems like the PERFECT time to buy.

Everything will be alright ;)

I just want this guy's followers. FOLLOW ME, check my blog
https://steemit.com/@coolthingssite
and
http://coolthings.life BUY BITCOIN WITH PAYPAL? EZI Cheesy, just relax and do it.

That isn't a way to get followers man...

Well done post thanks for sharing

My pleasure :)

Coin Marketplace

STEEM 0.16
TRX 0.16
JST 0.030
BTC 57932.25
ETH 2469.34
USDT 1.00
SBD 2.37