Thursday, December 21, 2017

Have we already reached peak Bitcoin since even early adopters are dumping the crypto for the more reliable Bitcoin Cash

Earlier this week we published an article showing where one of the early Bitcoin pioneers reported that they had sold off all of their Bitcoin holdings due to their belief that it was now an 'extremely risky' investment.  And more importantly, that same co-founder of Bitcoin.com also stated that they were moving into Bitcoin Cash since its potential as a more reliable medium of exchange made it far better than the original Bitcoin.


In light of this news something interesting has happened to the Bitcoin market over the past few days... the price has fallen around 15% from its all-time high of over $20,000 per coin and stabilized in a range between $16,100 and $17,800.  And in the meantime, Bitcoin Cash has skyrocketed over $1500 during that time, validating that more and more investors are moving out of Bitcoin and into the spin-off alternative.

The bitcoin sell-off continued on Wednesday after the leading platform for buying and selling the cryptocurrency, Coinbase, announced it was rolling out support for rival bitcoin cash. 
“Sends and receives are available immediately. Buys and sells will be available to all customers once there is sufficient liquidity on GDAX. We anticipate that this will take a few hours,” the exchange announced in a blog post on Tuesday. 
Coinbase said in an updated tweet that buying and selling would likely not be available until Wednesday. Bitcoin cash trading has also been suspended on GDAX until noon on Wednesday. 
The news sent the value of bitcoin cash soaring more than 50 percent to $3,800 per coin. It then retreated to $3,549 per coin as of 7:20 GMT. 
The original bitcoin, which was trading at more than $19,000 on Tuesday, slid to $16,353 in less than 24 hours. 
Bitcoin cash split off from bitcoin on August 1 after a group of developers decided to try to improve transaction speeds and costs. The majority of those who supported the conventional bitcoin failed to reach an agreement this fall on their own upgrade proposal – SegWit2x. – Russia Today
What this should signal to any investor in the cryptocurrency space is that during a mania, those who are ruled by their emotions inevitably get burned as the savvy investor gladly sells when the iron is hot, and contentedly collects massive profits while everyone else waits for a future that may never come.  And as two famous axioms from Wall Street forecast for successful trading...

1.  If you want to get rich, do what the rich do, or in the case of Bitcoin, when the original buyers begin to sell, it's probably time to sell.

And...

2.  Bears make money, Bulls make money, but Pigs get slaughtered. 

0 comments:

Post a Comment