November 24, 2017
By Dave @ Dave's Crypto
Well, sheet…just when I thought I was starting to get a handle on the crypto markets, Bitcoin Cash (BCH) goes and does what it did the other day…
You’ve been watching, of course? Maybe even sold some of your BCH on the rise that saw it gain over 30% since Tuesday?
Right now, BCH is trading at about $1680 USD, which is nearly double what it was at the start of this month (if you were HODL, then good for you!). That’s not the highest this coin has gone; it reached about $1953 on November 12th. But what got my attention was the rapid rate of its rise. And it began three days ago, right after an announcement was made by the lead developer of Bitcoin Cash that Bitcoin (BTC) was “dead,” and Bitcoin Cash was going to be coin for the future.
Well, BTC has been declared dead many times, at least 191 times, apparently, if anyone is keeping track (looks like some are, like 99bitcoins). So, take this latest prediction under advised consideration. I don’t think BTC is on the way out, and there’s room for more than one crypto, we’ve known this for a while now, for several reasons (the right tool for the job comes to mind).
What amazes me is how one person’s opinion, repeated through a few news stories and social media, can have such a large affect on a coin. Looks like we’re now into the “Greenspan” era of crypto, where what certain people say has the ability to move the market. You may recall that in the “regular” financial world, what Alan Greenspan says often becomes the news. But without the masses to follow on with action after people like Greenspan have spoken, the markets would not move.
So the fact that BCH has risen as fast as it did tells me that there’s either: a group of people who also believe that Bitcoin is dead and were just waiting to buy a lot more BCH (but why didn't they buy before?), or that a lot of the masses are now in crypto and are easily swayed by what the news says (more likely). I’d go with the second one, and I’d expounded this opinion to a friend of mine who has been in crypto longer than me, but he doesn’t think we’re at that point yet. I say, what other proof do you need? Say hello to the herd, at least a good portion of them, with more to come. It's not like every mainstream financial news report talks about BTC these days, or that crypto ATMs are sprouting up like mushrooms, or anything...(Read with sarcasm).
When the BCH news story broke, I read the comments on different sites and it appeared that many were joking around, saying things like it was time to sell your BTC and buy, buy, buy BCH! Guess they were not all joking, but it’s kinda hard to tell, sometimes. Sheesh! Wish I had known/listened! Just like I wish I could go back to 2009 and get a lot of those sweet, cheap Satoshis! (If you feel bad for me, my BTC receiving address is...aw, never mind. Just “vote” for my stuff on Steemit!)
I’ve heard it said that there was a lot more going on behind the scenes in regards to BCH, and BTC, and I don’t doubt it. What I’m saying is that the news story that broke three days ago was the trigger for this big BCH buy and rise…and it’s still rising. All you have to do is look at the timing of the news stories/social media posts and the rise of BCH, there’s really no debate on that. That is not just the way I see it, or a guess, it’s something anyone can check out.
But some folks love to argue and debate what’s right in front of their own eyes – have at it, just leave me out of it. I can clearly see the correlation between what someone who was behind the development of BCH said, the news breaking, and the rise of the BCH coin. To me, there’s an obvious parallel to that and what’s been happening in the mainstream news and financial worlds for a long time; influential people can move the markets with their words and opinions (or rather, move those masses who follow what they say). Now the crypto world seems to be following suit. Not saying that any of this is good or bad, it's just what’s happened, I'm making an observation. Such influence of these "market movers" can certainly be abused, of course. As far as I'm concerned, the more people into crypto, the better off all of us, and the world will be, even those who aren't in crypto.
But the way is forward, and for those who are despairing a bit that they missed out on another bull run (me included), remember that the crypto world is pretty big now, and getting bigger all the time, and that opportunities are out there all over the place (cue the Pet Shop Boys with their song “Opportunities”). You have to look, recognize them, and then take the chance when you see them – easier stated than always done, and sometimes we miss. Sometimes the market does things we never thought it would do…Count me surprised!
Is the lesson here to follow the herd? Scary thought, but it might have some merit, in some cases, but I wouldn’t count on it for a general rule. But this is coming from a guy who just missed out on most of the BCH rise (so far), so does my opinion mean much? Means something to me, and you are free to take it or leave it – after all, I’m not giving investing advice here, just letting you in on some of my thoughts on this wild crypto ride we’re on.
Now, I better go and look into that BCH before it gets even higher!
Oh, and also BTC, of course! ;)
-Dave
Dave's Crypto
http://davescrypto.com
"To the moon!"