Riding Space Mountain (or, Doubling Down on the Dip)

olyup (55)in #steem • 7 years ago

While traders lost their minds over the bitcoin chain split, I doubled up my Steem Power on the cheap - by buying the dip.

BTFD!

Riding Space Mountain

Anyone who has ever been to Disney World (or at least, anyone who has been there more than once) knows one simple truth. The only trick is to apply it to areas of your life beyond the Magic Kingdom:

The best time to ride Space Mountain is during the parade.

Space Mountain is probably the most popular ride in the park, and there is always a long line to get in. Anyone with a little experience knows that when the parade happens (especially the big one), most people are watching the parade. That means during the parade, almost no one is in line for Space Mountain, even though it's still just as awesome.

In this little parable, Steem is Space Mountain and Bitcoin Cash is the parade.

I took advantage of the hype around Bitcoin Cash to get some lowball orders for Steem filled. I’m no expert as TA goes, but my my predictions weren't bad. I have a feeling we won’t be seeing those low prices again any time soon.

When Getting Something Free Costs You

Altcoin prices in general have been depressed for the past week or so in anticipation of the Bitcoin Cash chain split. Many traders sold off alts in order to be sure they were holding as much bitcoin as possible. As much BTC as anyone held when the chain split, they could claim an equal amount of BCC.

Can you spot the best time to buy?

Steem bottomed out on Bittrex at 39k sats over the past 24 hours. Shortly after the bitcoin chain split, the price bounded back up over 49k and has so far held pretty close to there. That’s about a 25% gain so far.

Holding bitcoin at the split would have given me an equal quantity of Bitcoin Cash; so far BCH has maxed out at a price of 0.147 BTC – meaning that gettting the “free cash” everyone anticipated earned them just under a 15% gain, IF they were lucky enough to sell at the peak.

Now, I'm not selling my Steem, and prices are changing all the time. But if I had held BTC instead to get the free BCH before moving into Steem, all my "free money" would be eaten up by the now-higher prices.

Of course, BCH will continue to exist, and no one really knows where it is going from here. Someone out there is buying it; maybe true believers will turn BCH into something more than the joke it has mostly been seen as until now. But unless you are one of those BCH true believers, there were better moves to make - like picking up Steem.

Steeming Ahead

No doubt I could search the market for even better trades to kick myself over missing, but for me, buying Steem was the move that made sense because I’m a Steemit true believer.

I intend to keep using this platform, so it makes sense to increase my potential influence over it via Steem Power. I'm in it for the long haul, so I’ve already powered it up.

I look forward to using my new voting strength on some of my followers, too ;)

I hope you’re enjoying my posts, and if there’s ever anything you want to hear more about, just let me know. Thanks for sticking with me!