Anytime is a Good Time!
Dump BTC for STEEM and BTS now? After a major decline that some are even going so far as to call a crash? That question was posed to me in the comments of yesterday’s post, and most appropriately so. I hadn’t been clear about when I thought it would be a good time to roll out of the old legacy crypto and into the future leaders and the question was due.
My first reaction was to say NEVER!
ON THE OTHER HAND, everything is relative, and especially so in this case. The fact of the matter is that in BTC terms, both STEEM and BTS are in the buy zone: perfectly normal pullback areas where smart bulls load up. In BTC terms, neither STEEM nor BTS have “crashed”. USD terms aside – and indeed the losses have not gone unnoticed there – it’s not USD that we are competing against here: it’s BTC and the other old era crypto accompanying it that we are measuring ourselves up to.
In BTC terms, both STEEM and BTS may never be this cheap again.
So, a better thought out answer to the question might have much better been:
I also encourage you to read that post - A Better Possibility? - and especially the great comments you all left! I tried to arrange them with upvotes so that the more interesting and thought provoking are closest to the top and I will do my best to answer more of you as I get the time.
You say you’ve learned from me. Guess what? I’ve learned just as much from you! You know what they say? What goes around comes around! Thanks a million! 🙂
Bonus Chart
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This is the essence of Steemit....it really sums it up.
This article pisses me off....I thought I had it down but now you are making me think.
I have some LTC that I want to lighten my position in and I was going to keep it knowing that it will see a big run. However, you are right, STEEM and BTS will also see a big run. So, perhaps I am best off moving some of my LTC to them at this time....
Oh the problems we have. LOL
Okay I couldnt help myself...took some LTC off the table and added more BTS...another 12K+.
Thanks for the rethought on your position, one I agreed with and the re-evaluation....you made me think.
Now we just need at least a 200 bagger off here (be more conservative than @stan and his 1K bagger).
Yep.
Glad to hear you're well balanced.
There's also something to be said for the more conservative parts of our investments too.
The more conservative parts of our investments?
I am not following...which ones are those?
Well, in this case your LTC would be a more conservative part of your crypto portfolio.
😉
@cryptographic,
You explained it well. Shall I add small thing to it? Why I am looking at STEEM, BTS and EOS rather than BTC is depend on 2 reasons.
Speed and Fee of the transaction - BTC has high fee and low transaction speed, I feel it's time wasting and waste of money as well. So if we have a better solutions (alternatives) I won't hang on such costly unwanted technologies anymore.
ROI - Current price of BTC $11,600+, just assume if we need to get 100% ROI it might reach to $23,000 or above. But if we check STEEM, BTS, EOS prices of course they are all very cheap too. Without a doubt I can make 300%-1000% ROI by holding for a year of time :D
So, I am choosing 3rd Gen, STEEM, BTS, EOS as my best horses for 2018. The power they contain will leads us to the maximum profit level without a doubt. What we all need to do is HODL for a year. And with this market drop, we got a nice opportunity to make more profit as well!
Thanks to your strategies and techniques I decided to focus more on those technologies. It worked well and always too.
Cheers~
BTS looks really promising because people will soon realise the importance of decentralised exchange's. Steem is going to rock because it literally doesn't have any competition. BTC is hanging behind because of high transaction fees and slow transfers.
Thanks as always for the thought provoking post @cryptographic! For anyone thinking about swapping out their positions, I'd suggest folks to think about the timeline of their own investment and the related opportunity cost.
For what it's worth, I'd say bitcoin has a "higher floor" given the low supply, its increased use case, and its entry to the "traditional" markets. Does that mean it won't experience huge swings? Probably (likely) not, but I think it you're on a shorter timeframe or investing money that you may need in the near future, there's some risk in swapping out.
If you're willing to play the long game (as you should be!), the costs of swapping now (including transaction costs) can be easily outweighed by the long-term potential payoffs - depending on your investment thesis. This may mean riding out some BTS or STEEM volatility - driven by a lack of understanding in these products by folks - but in exchange for greater return. Remember in finance, a higher beta or volatility is usually associated with a higher return stock!
So certainly worth considering but as with many things in life, the answer depends (on you)! Of course, feel free to argue with me on which you think is more volatile too!
Excellent post as always.. I actually a week or so ago stopped converting SBD for Steem and started selling back my STeem for SBD. I don't think either has "crashed" so to speak.. The market is just doing what the market does and it always comes to balance at some point.
I want to buy steem but like market is falling few days before i thought that i will buy steem when it will fall at 1$. Now i think that it will never happened again . You are right anytime is best time to buy steem because we are at very early stages of steem.
It doesn't happen often, but I may have bought steem and bts at the lows yesterday. knock on wood While many EW theorists I follow predict there should be one more low in BTC before bouncing, I would like to see STEEM and bts outperform regardless of what happens with BTC. Either way, it will be exciting to see how this unfolds.
I gave up on Bitcoin a while ago already and I reoriented to more volatile coins like Steem as you just mentioned. The main reason behind this it is the reduced ability to scale of Bitcoin over the PoS based blockchains. I believe there will be no PoW in the future so unless any major hard fork changes Bitcoin, it will become just cryptogold at most...
Yeah. POW has some serious unsutainability issues.
I know, and I hope it won't be here for long (it can just be forked and replaced with PoS) so the entire earth benefits from less energy consumption.
I would include as well EOS as a promising crypto to invest on.
STEEM, BTS and EOS are for me the 3 future kings...time will demonstrate 😉
I'm still trying to warm up to EOS and following it closely. Would really like a lower entry level.