3 reasons why buying bitcoins now from your alt-coins is a losing trade!steemCreated with Sketch.

in bitcoin •  7 years ago 

bitcoin cash.jpg

Thinking of selling your alt-coins for bitcoins for Aug? Think again!

Lots of people have turned their alt-coin investments to bitcoin investments. And lots of people are still contemplating to do so now or further along in the weekend. Here is why I think that would be a losing investment.

  1. Bitcoin has already outperformed alt-coins strongly today by 8-10% on average, due to BTC gaining 4% and alt-coins losing a similar amount). In addition bitcoin has outperformed alt-coins steadily over the past month. Trading in your alt-coins now means taking that loss as well.
  2. The Bitcoin cash fork will not give you the return you think you will have. think of it like a dividend of equity. Everyone knows it is coming and it is priced in. Once the stock goes ex dividend, the value drops. I expect roughly the same behavior from bitcoin after August 1. Bitcoin should lose the value that bitcoin cash has. In perfect markets this happens, lets see how good the crypto market is.
  3. I expect the altcoins to close the gap rapidly after the fork as there is not much point holding the bitcoins more and alt-coins have a lot of ground to make up (and are other technically superior, but that is for another time).

Make sure you don't make a rookie mistake. I am certain enough of us will.

Good luck and stay tuned!

Images:
https://crushthestreet.com/articles/digital-currencies/protect-bitcoins-shady-entities

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I definitely believe long term alts are the better investment here, however, I have seen the "Tsunami Effect" of BTC strong uplegs where all the alt money gets sucked into BTC during the big moves up, only to come raging back into the alts later. Here are my Top alt picks for this week:
https://steemit.com/cryptocurrency/@cryptosphere/top-10-cryptos-of-the-future-july-29-2017-a-weekly-ranking-of-the-best-place-to-put-your-money-in-the-cryptosphere

great post as well. upvoted!

Agree. I'm accumulating more ANS.

good to hear. why ANTS specifically? And good luck!

Hi, ANS-NEO looks promising.
Tech is strong, comparable to Eth & possibly even better. More languages for smart contracts for example.
They are supported by big names like Microsoft (Azure) or Alibaba.
They are still not very well known in US. However, market is good & price does not systematically follows Btc patterns.
They started few years ago, though they are rebranding Antshares to Neo, so fresh stuff & announcements are likely in what they call « smart economy ».
China & Asia are huge digital places too

Great post !!!
Follow me and i will follow you !!!
And lets do the upvote and comments exchange !!!

I'm hoping the same...like ETC when first came out...dropped like a rock...people then bot it at rock bottom prices and made a nice profit ...

Yes, nice strat!

I have invested in alt coins like ripple lite coin and strongly on ethereum. I agree with you i think the btc will be replaced!

Yeah, though as BTC has first mover advantage, it will stick around till everyone understands it is inferior. Cheers

You have made interesting arguments in your post. I especially liked:

"Bitcoin should lose the value that bitcoin cash has. In perfect markets this happens, lets see how good the crypto market is."

Maybe we should simply take this Bitcoin HF as a free market experiment? The Crypto market will surely be tested and I'm basically glad about it. That's the nature of free market, which I expect Cryptos still to be. I've seen enough of other kind of experiments where central banks run for the rescue of broad/stock markets.

Thank you, appreciate your comment. I see you are not blogging much yourself, more of a curator are you? Good luck and hope to see you around!

Well, English is not my native language so there still is a small mountain to climb before I dare to blog...

At the moment I put my efforts on comments. Hopefully people understand what I'm trying to say and found my comments useful every now and then. I'm not here for the money.

Good luck to you as well. We'll see around, just started following your posts.

Thanks! and your English is pretty good. I am sure everyone will understand your posts. See you around indeed!

Nice post. I couldnt agree more. i nearly did this then i realised it doesnt make any sense because all the altcoins will be going up after august 1st.

Glad to be of help, stay tuned (follow) for similar content in the future!
Cheers

Im a bit nervous about this hardfork too. Currently buying altcoins here and there, I expect them to bounce back once this fiasco is over.