What to Do as Bitcoin Falls and Returns to Crypto Throne

in bitcoin •  7 years ago 

Bitcoin has fallen substantially as the current market tone becomes more and more bearish. Interest in cryptocurrencies is lower than it has been in months and altcoins are getting slaughtered as Bitcoin dominance rises due to a perceived flight to safety. What can one do in such a market?

Well as mentioned previously, it appears we are full swing in a Bitcoin cycle as dominance has rose to around 44% at the time of writing this. I still remain set on my target of 50% dominance, meaning there is still some serious risk in holding any significant position in altcoins currently (at least in my opinion).

In this video, we discuss why Bitcoin is perceived as a "safer" asset than other cryptocurrencies (namely due to its track record and the history of these cycles) along with some altcoins that I'm watching including:

  1. Ethereum (still think lower levels are likely)

  2. Monero (waiting for 2m Sat)

  3. Cardano (made a mistake buying this at 2.6k Sat - should have waited til 1.2k Sat or not bought at all)

  4. Steem (not buying yet despite it reaching target of 20 - 22k Sat - think there is more downside to alts as a whole so am cautious of picking up here, will def pick up at 10 - 13k if it goes that low and potentially higher if we see Bitcoin lose steam)

We also discuss my overall approach to the market right now, which is to generally favor Bitcoin but to keep a close eye on altcoins that suffer significantly against Bitcoin, especially those that I have a favorable long-term outlook on.

What are your thoughts on this market? What actions are you taking, if any? Let me know in the comments below - thank you for watching / reading.

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  ·  7 years ago (edited)

Bitcoin is definetly the safest bet. With lightning, Rootkit (SmartContracts for Bitcoin) and the network effect which is has due to its popularity, it will most likely succeed from all the cryptos.
However, I think there are niches, which can be occupied by other cryptos in the long run:

  1. Ethereum cant be ignored and has great minds working on it, but the uncertainty around ICOs and the probable failure of 99% ICO projects, could make Ethereum maybe a less good investment than Bitcoin
  2. Icon seems to be a solid company and the Koreans probably would prefer it over Ethereum or Rootkit anyway. With rumours that Korea will allow ICOs again under strict regulatory rules, I think Icon has the best chances to take this niche.
  3. TenX has a great, trustworthy Co-Founder and I believe they try to be serious with their project and will make crypto spendable for a lot of people. It is popular in Germany and the German Tax Authorities clarified, that you dont have to pay capital gain taxes on Bitcoin you spend on products or services. And I think they wont be afraid to go the way to register their token as a security, because why not?
  4. NEO and Ontology seem to be very interesting to me, as they are building an interlocked network of dApps and enterprise solutions. But mostly I think NEO or better GAS will have a spike, if Hushpuppies (a CryptoKitty clone) will be released in summer (it looks great, will be on mobile devices and the NEO blockchain could prove that it can handle the network load)
  5. And finally some other great projects like SONM, OMG, ADA or EOS.

But as always... if the market drops, I am like a mice starring at a snake and not moving... regretting that I didnt bought, when the pain was the greatest.

Rootkit (SmartContracts for Bitcoin)

I think you mean Rootstock, now RSK

I meant Rootstock of course, I am just an amateur

Would appreciate your insight on Ontology and how it compares with Dragonchain. Dragonchain has a good team from Disney but not too thrilled at their ICO lineup or valuation.

No positions in either.

But hasn't TenX floped after the credit card issues problems?

Yes you are right. Wavecrest was their VISA card issuer and VISA revoked their right to issue the cards. But it apparently didnt had anything to do with crypto or TenX.

They say, that they have already with another card issuer a deal, which they cant yet annouce. However they also push to get a banking licence, so they can issue their own cards (without the middlemen of a card issuer), plus with the licence they can offer crypto to fiat and vice versa exchanges.

It is a lot about trust in the team and the founders. Hard to say if they tell the truth. But from my personal judgement I believe they really try to achieve what they are promising in a professional way. You can see that because they dont try to push the price of their token with artifical news.

Interesting... I liked the idea of TenX, but never looked for more information, specially after the VISA issues.

What you said just put them under my radar now.

Thank you for the answer.

Thanks for sharing your thoughts, I appreciate insight that others can find valuable even if they don't necessarily agree. Best of luck to you!

Whats going on Crypto investor? When's your next video?

TenX.. yeah. Yikes. I’ve followed this project since before launch. They’ve done nothing but consistently let their users down unfortunately. I would not have high hopes for these guys. I’ll give them one thing though, Julian Hosp is a great sellsman. He could sell rat venom to a mouse.

He either is that salesman, selling rat venom to mice or he does really know what he is doing. TenX is my worst performing coin, by far... but I do trust him as a person. At least, I think he has good intentions and believes in his project. If they will deliever, what they promise, is another question. But not because they didnt tried, but because they failed as a startup. And there are a lot of ICOs out, who plan to live off the collected money for 1-2 years and then let slowley die the project.
But I appreciate your view... he really is a very good salesman, I am going to consider this in future assessments.

I’ve been increasing my allocation of Bitcoin for the last month+. So far it’s going well, other than the market tanking. At a certain point BTC will turn around and possibly outperform STEEM for a while, in which time I’ll be taking BTC profits and buying STEEM. I will be buying STEEM if price below $1. Excited to see how the rest of 2018 goes! Thanks for the post!

I agree with you and i think we going down again soon

I think the strategy you outline in this video is a good one, given the bear market we are in, for those wanting to retain exposure to crypto as a non-correlated asset. With BTC holding up better than other cryptos it is for me the logical asset to hold. I am personally not sure about the alt-coins even those with good use cases as I feel they have much further to drop.I think the only upside to this bear market is that it may bring some sanity to valuations.

Good post. Still think Ethereum has a lot further down to go. No reason why it's got a $50 bln market cap when NEO is at $4 billion.

Bullish on Bitcoin and NEO here. Holding small positions in EOS, Switcheo, OMG, ZRX, ICX, KNC, STEEM, Fundrequest.

I agree on your point about ETH and NEO. But I dont think ETH should be at a much lower marketcap, but instead I would see NEO at about 20 to 50% of the marketcap of ETH (that would be NEO at 2x to 10x from current price).
And I think GAS will have a demand driven price (like ETH), which will push GAS price over the price of NEO in the long run. While NEO will be the governing token issuing GAS to its holders.

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That’s certainly one approach. Personally I’m going with...

Lmao.

Student loan bubble: 1.48 trillion ATH, https://bryantarchway.com/the-rise-of-american-student-loan-debt/

Auto Loan debt bubble: 1.22trillion https://ycharts.com/indicators/us_auto_loan_debt

unfunded liability debt: 15.7trillion
https://www.wsj.com/articles/why-america-is-going-broke-1519254875

corporate credit bubble: 5.6trillion
https://www.marketwatch.com/story/all-the-asset-bubbles-in-one-humongous-graphic-2017-09-22

stock indexing bubble: 6trillion
https://www.marketwatch.com/story/all-the-asset-bubbles-in-one-humongous-graphic-2017-09-22

Bitcoin bubble? 34 billion 311 billion
https://coinmarketcap.com/

It would be interesting to see what how everything plays out. I just visited a condo presale this morning all 90 units 50+ floors sold out. Diversity in finance is a good thing. I want to believe in BTC and hopefully we get to see the stars align and all conditions met for BTC to flourish. Good luck everyone.

Coins mentioned in post:

CoinPrice (USD)📈 24h📉 7d
ADACardano0.159$2.87%-28.96%
BTCBitcoin8227.020$3.55%-14.35%
ETHEthereum544.110$-1.88%-25.03%
STEEMSteem1.824$0.94%-28.71%
XMRMonero206.972$4.48%-26.49%

I like the idea of this kind of steemit account. Does anyone know if this comment changes with the USD price of the coins over time? If not, the poster should include a timestamp! cool stuff

What advice would you give to someone with a substantial position in 2 or 3 alts and who doesn't believe in the longterm success of those alts?

Conversely, what advice would you give someone with NO position in 2 or 3 alts that they DO believe in the longterm success of?
By longterm success I mean to increase in value either by price per unit on an exchange, or as a general asset.

edit: words

I don't want to go into too much detail, but if I didn't believe in them then I'd just compare their returns against the entire alt market. If it's more substantial losses, I'd probably take a risk and wait for a slight alt rebound (like the one we're currently having) to sell into. If not, I'd probably just cut loose and go into Bitcoin until that position size is satisfactory (you should keep at least some alts in the event that this is the end of the Bitcoin cycle).

If you don't have any alts and there are ones you believe in, this is a good time to start scaling positions. I don't think I'd buy a full position right off the bat personally, since we don't know how far Bitcoin dominance will go, but that's just me.

Cryptovestor,

Just wanted to drop you a line. I got interested in crypto around the Xmas rush. Been obsessed (LOL) ever since. On YouTube I follow & watch 3 of you, CryptoBobby, Doug Polk and yourself, all for different reasons. I have to say, I follow you because out of the bunch, you're the one that makes the most sense. Bobby is energy, Doug is funny, and you're a good cold shower. That, by the way, is a compliment! Keep it up, I appreciate it, and love your work!! signed, live-free-or-die

I would be interested to know if you believe in crypto long term, or whether you are just trying to time the market and get out.

As usual...a different view of the current market.

Somehow the picture seems to imply that Bitcoin is the King of Centralization. LOL

Great post, as usual. Perception and Speculation - this where it is at!

I like your argument that if bitcoin gets market dominace of > 50%, altcoins will crash further. But, I am out of bitcoin because of high fees, slow processing and high electricity cost to mine.

I too, sold VeChain.

I stumbled across and invested in Amon ICO - looks better than TenX pay. At the end of the day, a multi crypto wallet appeals to me (if technically possible).

I also have a small position with Ethos for similar reasons.

However, this market is dynamic and the challenge is DYOR, and follow the tech revolution. Of course invest only what you can afford to lose.

Would be great if you posted your videos on DTube instead of YouTube. For mobile users this would be helpful, it allows continuous playback when multitasking in other apps and when the screen is off.

I wonder which altcoins will get flushed out this time. Check out this historical snapshot from July 2014 on coinmarketcap and see how many coins and tokens you recognize: https://coinmarketcap.com/historical/20140720/
Conspiracycoin. Love it.

You seem to be a knowledgeable person. Check out my blogposts. i just don't have the time to post too much. Here is the last one. Check out the others when you get the time. https://steemit.com/bitcoin/@profchingachgook/crypto-market-recovery

@cryptovestor Have you made a separate video about Steemit yet?
I mean there are interesting arguments why this platform is broken and can't be sustained with the current conditions? Interested to hear your thoughts.

I think Bitcoin too got more downside yet, it fits well within the technical indicators on daily chart. I am trading a bit BTC, LTC and some BCH now as well as a couple smaller alts.

Looking at the BTC correction compared to older corrections it does seem to have more downside, altough it is quite similar to the 2013 dip.

price overlay 2013-14 VS 2017-18

I've always wanted to know (if you have one), a deeper opinion and or analysis of Substratum, i've already invested in it and truly believe they will solve a gigantic problem, which is pretty underrated in first world countries, for now. Also, they have been consistent on the development of the network and application, while being very active with the community. Any quick tought would be appreciated,other youtubers are starting to sound like they nothing to say anymore and looks like it doesn't really matter if the project/coin has a good current product, the market is completely bonkers, in my view. But i would really love to hear from you, and fellow readers aswell.
Cheers!

So this is mostly over my head, but what does cryptovestor think of this analysis of fake volume on Exchanges? https://medium.com/@sylvainartplayribes/chasing-fake-volume-a-crypto-plague-ea1a3c1e0b5e

I still think we need a big volume sell off or bounce off a support level for Bitcoin in order to establish a new uptrend. Anything else would be a dead cat bounce for me. In the meantime, I am looking into continue to scale into some of my long-term plays like Steem, EOS, and ZRX. Also holding on to my LTC and ETH... I think the flight to quality play will definitely hold until regulatory clarity is provided.

all the cryptocurrencies are falling down now, is it possible BTC to go below 5000 $??

I think that while its upside might be limited to other crypto currencies, Bitcoin has a fundamental upside potential due to its cost of mining. I've tried to compare the AISCs for Bitcoin and Gold in the following article.

https://steemit.com/bitcoin/@madmonkey/gold-and-btc-cost-analysis-bitcoin-in-gold-terms-would-be-substantially-higher-in-price-than-today-s-usd-7-000