Why I'm Buying Bitcoin Cash Again.
Will it super crash? will it survive? who knows. The way I see it, Bitcoin is a token to incentivize people to share their computational power to the network, even if they don't have it they should get it. Like a maniac arsonist ritual.
The computational power is the core, so miners (computational miners, not necessarily the people who own them) are the most important thing. Because they are the ones keeping the service alive, the rest of us are beneficiaries of the services.
Developers are important but just as important as everyone else. Not more important, just different.
Bitcoin Cash has a lot of Blind spots but let's see the value proposition in it.
I was fortunate enough to be contrarian and buy BCC when it opened on Bittrex. I figured it was the place to be, since of the exchanges supporting it at the moment it had high liquidity and unlike Kraken is not used to freezing your accounts at the first sign of problems.
When BCC was announced my questions were many. Before considering if buying I was asking myself.
- Has any value at all?
- How low can it fall?
- How many are actually there?
Value: Even most shit coins are still in existence today. The original idea and project have value, the code has changed so much since then. I need not mention just how disruptive an idea it is. It might not be perfect but is pretty good.
Crash: If it falls to cents I could buy 100% of all the coins. So it was unlikely.
Maybe a dollar? So a person with 16 million dollars could buy theoretically all of them. Who? Western Union and other remittance companies, some Banks and some governments would be more than happy. So 1 dollar was unlikely.
Even 10 dollars was optimistic. Since most early miners and adopters had enough money to get most of the coins for that price. $50 was an extremely good price, supposing the coin was extremely well distributed. But it was not.
At the moment BCC/BCH should have 16.5 million coins premined, yet there are millions trapped in Coinbase and cold storage. There are millions already lost by people back in the early days. There's the genesis block that has not moved. These early miners and early adopters who don't outside of chain scalability.
So by Fermian calculations, there should be around 5 million BCC going around in exchanges, maybe less. Which made it a bargain.
When it opened people were dumping it at 50$ and in less than 15 minutes it was at $100.
At the time I was watching the Crypto World Network with Jimmy Song and Tone Vays talking about the dump. The first block took half a day to appear. So I knew arbitrage was gonna be impossible and I was right, after the 5th block and the announcements of the exchanges I took the risk of buying. Then as soon as it appeared I bought. Had the opportunity of seeing 20X returns in a single day.
Now I see all the bad press on Bitcoin Cash, so I know is undervalued because sentiments are low. Becuase: most of it is already gone.
At the moment I've been able to buy 1% of them. Every time it has dipped below $200 I buy a lot.
If things keep on going like this and BTC and the other altcoins keep growing I can use other services outside exchanges to get more and more. Like shapeshift and changelly.
I'm fairly sure Banks and Billionaires would be interested in finding a way to use these coins I have now, or I could distribute them to people all over the world to give them a way to transact cheaply. So I can profit or expand well being.
I always buy the dips, doesn't matter if I have to wait or I loose the bear market. It has served me well.
"I'm not smart enough to game the market, but seeing the flaws in estimates by experts that I can do." Me.
"The time to buy is when there's blood in the streets, even if the blood is your own." Baron de Rothschild
“The way to make money is to buy when blood is running in the streets.” John D. Rockefeller
"In every economy downturn, wealth will change hands." Benjamin Graham
"“Markets are in a constant state of uncertainty and flux and money is to be made by discounting the obvious and betting on the unexpected.” – George Soros
It's dropped to 0.06 BTC, I think that pricing is fine. I expect BCH to trade up to 0.10 BTC eventually, just like ETC often trades up into that range with ETH.
Maybe it falls to 0.006 I'll take it.I hope I've learned my lessons. With Stratis Bought at twice the price of the ICO didn't hold long enough and sold 90% of it at $0.5, with Bitcoin bought at $400 sold most of it at $800, same with Ethereum, bought at $20 sold at $20 after the DAO incident "plummeted" the prices and recovered my money.
Now retracing on my mistakes I learned what to do. Always try to find the bullshit in experts, buy when is early, Always be buying a little, buy a lot when it dips, diversify and hold. If it dies it dies. Either a zero or a one.
It's hard @ertwro, traditional investing wisdom gets thrown out in crypto. I bought my ETH back at $8 when I had previously owned 1,300 at 80 cents a pop. I sold at 80 cents a pop when I brilliantly learned ETH inflation was 30% a year so it was certain to tank! LOL. Bought my 9 million NEM coin because it was solid way before it was popular, then it dropped 50% and I thought I was an idiot so I sold. NEM would have made me a millionaire... but it probably would not have because the traditional wisdom is "sell on the way up". This works in the stock world because stocks might rally 300% or something. They go up some, but they never go up 10,000% or 100,000%. Selling on the way up works in the stock world, makes you look dumb in crypto. Then there are the cryptos that do the 5,000% spike but never recover, and you are left holding the bag if you do not sell those.
LOL 9 million NEM is a lot of NEM. Oh, man. Hindsight is not merciful but is better safe than sorry. I almost bit more than I could chew last month.
It's kind of funny we feel dumb for not being millionaires when this space has outperformed almost everything else in the world. Today I was sad I didn't invest more in OMG. But in all seriousness, I have not lost a single dime. I recovered my initial fiat investment in May.
50% seems like nothing nowadays. I helped my brother integrate a payment system with Bitcoin in his Gym. On July 16th he came to see me pale, worried Bitcoin had fallen like 30% and I was like:
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STOPawesome