Why Bitcoin price is rising!
Is Bitcoin the best move?
As most of you have no doubt noticed we are currently experiencing something rather new to Cryptocurrencies. Bitcoin is up and Altcoins are down! Usually as bitcoin rises the altcoins follow suit but not this time. What can we attribute this to? Well I think the primary reason for that is that with the coming Bitcoin Cash fork people are selling up altcoins and buying up Bitcoin in the hopes of making a quick buck.
There are flaws in this strategy I thought I would share:
The price of Bitcoin Cash will inevitably crash to nearly 0 almost immediately as people try to sell it on the exchanges. Meaning that the "free 350 dollars" per Bitcoin will only be a reality for a small percent of sellers.
Selling Altcoins low in favour of buying Bitcoin high is not the best plan.
You actually would make more money selling Bitcoins for Altcoins than you would buying Bitcoin for free money.
Let me explain that in greater detail:
Currently the price of Bitcoin is $2744 dollars and you will end up with with a 1:1 ratio of BTC to BCC. This means you will gain a $350 dollars for every $2744 invested assuming that you somehow manage to sell before the dump, which is unlikely. This is a profit of a maximum of 12.75% and a minimum of crying miserably.
Now let's compare what can be achieved with investing in an Altcoin:
For this example I will use my current pet project, Reddcoin, but it works with any good Altcoin that is currently down. Reddcoin has tracked Bitcoins patterns well in the past, jumping up nearly 35% during the last Bitcoin surge. Since then it has gone back down and as soon as everybody gets their so called "free money" people will start to sell a bit of bitcoin and buy back into whatever altcoins they where supporting before the fork. Even being conservative you can expect a 15% increase in value which is $411.5. If it goes up by 30% which is not unrealistic at all then you are looking at $823.
Just to say, don't follow the crowd and do your own calculations.
Happy Investing
Viking
It seems like most people I know are just holding and waiting.
Good observation :) This recent rise of BTC, is off course due to supply & demand ratio rather than some good news. There are shortages of BTC in exchanges since people are moving them to hard wallet just because of fear or for extra profit from BCC. With low supply and high demand (BCC gold rush), BTC is going up even though there are some really bad news (e.g. btc-e went offline, SEC ruling). Therefore, I am assuming a correction of 20-30% just after hard-fork settles down.
Yeah thats probably going to be pretty accurate.
The uncertainty is playing the "interesting" role right now, but right before 8/1 the dumps will start and the price will dive for awhile.
Ahh I'd rather hold on to my altcoins for now.
Solid plan! :)
I figure everything is going on sale, but BTC.
That's a healthy way to look at it :)
This is actually a good time to invest in altcoins more than trying to gain off the fork. Today is a bloodbath and STEEMIT is actually at 1.20 (hint hint), I'm personally waiting to see how far down the rabbit hole it goes and will look at acquiring a bit. I'm not too concerned about making gains right now, but rather expanding my crypto holdings.
It should be a good time for those looking to invest more into crypto in general especially if today's bloodbath is any indication. I mean we have seen the bounce backs on all the alt coins from the bloodbath two weeks ago. As the memes say, have steady hands and HODL but also acquire when the time is right, it will pay off in the end.
I see it as not so important what Bitcon Cash futures suggest that the coin is worth currently. A fundamental fact is how much mining from the current Bitcoin network is comitted to this altcoin. Antpool , which is owned by Bitmain, mines 25% if i have the correct numbers. https://www.buybitcoinworldwide.com/mining/pools/
Antpool will mine Bitcoin Cash if i understand all of this correctly.
I bet they will not say within a week: screw it, it was a silly idea. And return to Bitcoin.
I agree, who in their right mind would mine Bitcoin cash? lol
Thanks for this! I hadn't noticed the bitcoin surge but I've been quite nervous about the whole thing.
Don't worry, its nothing to worry about.
Yes, you make a good point but you don't take into account the possibility of Bitcoin hitting record prices, this would make investing in Bitcoin a wise move. Of course it could also crash, but who knows the future?