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
