Bitcoin vs. Bitcoin Cash
What Will Happen to Bitcoin After August 1st?
As we approach August 1st, many of you are probably noticing the surge in value of Bitcoin. Not only that, most of the other altcoins are dropping in value (which is a good thing!). Even interest rates on Poloniex are sky high right now. 12 hours ago interest rates were just shy of .4% and may even get close to 1%.
So some of you may be wondering... what's the deal? Well August 1st will bring the birth of a new Bitcoin called Bitcoin Cash (BCC). For those who own Bitcoin already and it's not being stored on certain exchanges, they will receive an equal amount of coins in Bitcoin Cash for what they have in Bitcoin.
What exactly does this mean? FREE MONEY! At least it means that if you're quick and play your cards right. What we're seeing leading up to August 1st is an indicator of what will likely happen the following days. We see people abandoning their altcoins (temporarily) to buy into Bitcoin to get the free Bitcoin Cash. The problem with this form of investment is the gains will likely become moot as this mad dash is creating a severe market manipulation.
Once the smoke clears, everyone will sell their Bitcoin Cash immediately, which will have the value of that drop like a rock. Then they'll sell their extra Bitcoin, which will also make the value drop like a rock, and buy back into their altcoins which will make their value increase; bringing the market back to normalcy.
Always Go Against The Crowd
In high school I coined a phrase for myself, "The majority is always wrong." It has worked out pretty well for me so far. If you scramble with the crowd, you'll be battling for crumbs. While a smarter investor can casually wait until July 30th or 31st. Get his cash together and buy every altcoin he/she desires for a steep discount. After the 1st, they'll see some great gains over the next few days. Meanwhile, they still have cash leftover to buy that overvalued Bitcoin. So as the days go on that their altcoins are gaining, Bitcoin should be coming back down and they can buy that up as well.
Wonderful time to be investing!
Seems pretty logical to me. This is exactly what I see happening as well...people are scrambling for that extra % gain...and most will get it but it will be a battle to keep those gains as the price drops.
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Mannn! I just checked poloniex.... OVER 3% FOR LENDING! I made some profit from my loans I issued yesterday and had some bitcoin to reloan. I was able to issue a loan real quick for 3.3% I think it was.
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Personally I think BCC has a better future than BTC. Lot's of quick cash grabbers will dump BCC and then I'll buy it with BTC. Multiple exchanges are already supporting BCC and it is a superior product in comparison.
Still they both look garbage compared to Dash which would end up being the #1 for transactions becoming our digital cash.
BTW is anybody going to use kraken or similar exchange to get the free BCC?
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I wasn't aware Kraken was one of the exchanges supporting this! I'm about to check it out now.
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