It has been a while since I blogged. A few months ago I took a little bit of flak, but the steem reward was nice, for suggesting that cloud mining may no longer be profitable. Now that the difficulty has doubled since then, and the price has been cut in about half, CNBC reported a study that found mining crypto is no longer profitable except for a few areas. Since about new years, crypto as we all know has been on the decline.
I am no crypto expert. And to be honest, I don't think anyone is. Even as bitcoin has been in a free fall, there are still news reports coming out saying bitcoin could reach 91k in two years. I think such a claim is quite silly to be honest, I am just unsure how much more people people will put into this old dinosaur of limited use. For the first time, I have been tempted to buy some altcoins for something other than an experiment. There are maybe 3 small high risk projects that I like the potential in as far as a currency. But the reason why I hadn't been buying crypto was I felt the prices were too d*** high, and the entry point buying altcoins is often either bitcoin or ethereum.
When the news came out that google was going to stop carrying bitcoin ads, and the market started to crash down to $8700. I recognized that as a ridiculous psychological movement that would correct itself, and I considered buying low and then reselling high and buying what I wanted-but scoffed at the 4% fees coinbase wanted. So I decided to see if the price fall a bit more to make up the difference rather than trying the gdax bank transfer method. If it fell to the 8400s, maybe, but see how low it really goes. I am glad I did wait, and soon afterwards more microcrashes. Another so called expert is saying that bitcoin has no intrinsic value and a bubble about to burst. In the lack of an intrinsic value, people are/were spending $8k to mint one coin. That same day you later had our own congress poopooed bitcoin as a crock,and went on a tangent about how it allows all these evil things to happen. Despite the fact all the arguments made against bitcoin could be made against the US dollar they so worship. A fear of regulation also creates a sense of legitimacy to some-one of the reasons the Koreans were careful about regulating bitcoin.
Anyways I saw the price decline to under 7700 and recover a bit. And I figured I would wait until it fell that low again, then by morning or the next day some outfit bough enough to surge it to 8500 and I figured I miss the ship but also hoping it was called a dead cat bounce. One of the reasons why from stocks they say, "don't catch a falling knife", you risk getting yourself hurt. I considered ethereum at $590-600. The price fell again. Anyways there was more and more bad news regarding a technical analysis. From a technical analysis the 50 day ma was about to fall below the 200 day ma-a so called death cross . When bitcoin fell back below 7700, I was going to buy it-but again wanted to see how much it would fall given the how those technical traders would respond. What are these technical indicators? A market ideology that enables a self-fulfilling prophesy? Came back and it was down to $7400, ethereum is about 450-470-and as I blogged,with many interruptions-it even traded in the 7300s.
I Read the news again this morning, more concern about the tax rules-seems the tax uncertainty and penalty is causing more panic and FUD. I am not sure what the tax rules actually are here in the US, but the u.k. guardian reports (According to the Internal Revenue Service, anything purchased using a digital currency is liable to be taxed as a capital gain), even when used to buy altcoins. I don't know how true that is. I'll worry about it more after I decide whether to stay in the United states. I am not going to make any recommendations about buying or selling-although it feels like ethereum has been hit particularly hard. The powers that be will do their own thing, and most of my readers, I assume, are rather insignificant to have any impact in these large markets.
I am hoping to buy soon, but safer to wait and watch-and do faucets. In closing I see bitcoin is currently back up to 7500. could be another dead cat Bounce, could be the start of a correction. Who the hell knows. if I had more money, I would probably just buy then if it drops some more buy more to average down.
