Don’t cash in as Bitcoin Value Rises—Here’s Why…
You Can Take Profit and Lose Profit at the Same Time
That’s not the enigma that it seems to be when you are talking about Bitcoin value. Whilst you can take profit and sell to gain the value of the difference between the price you paid for your Bitcoin, and the price of it now or now… or now… and then plan to buy in again using the extra capital you’ve gained to buy more Bitcoin, some people won’t buy back in, (once you’ve got that money in your hands you might be tempted to do something else with it, or your wife might have plans for it!) so long-term you can make a big loss. And the thing is, even if you are one of the majority who do buy back in you may find that you’ve lost more by trading than Bitcoin has risen in value. So what’s the point?
Just hold. That way you don’t contribute to instability, so your Bitcoin holdings gain more long-term strength. Fluctuations in value sap that strength to an extent, because people are worried that they’ll buy in just before a big dip in value. Not everyone realises that when Bitcoin suffers a loss in value it climbs back to a higher value than before the dip. They’ll realise it eventually if they buy in, but the non-realisation can stop people from buying in at all. So Bitcoin loses that potential market cap, and if you trade at every opportunity, you contribute to instability, and lose some speed on Bitcoin growth. So you can gain short-term profit but lose more on bigger long-term profit. Does that make sense to you? It does to me!
Then there are Forks
Whilst there are many detractors of forks that occur in Bitcoin, there are nonetheless benefits for everyone with investment in Bitcoin, and the benefits are not difficult to see. If you hold Bitcoin when a fork occurs, to state the obvious, you gain the new coin resulting from the fork in the equal amount as the Bitcoin that you hold.
So if you’ve been holding, say, to pick a number at random, 100 Bitcoin, since before the recent and only three hard forks that have occurred so far, you not only have the value of each Bitcoin, you have the added value of (at time of writing), Bitcoin Cash, $1,357.95, Bitcoin Gold $270.28, and Bitcoin Diamond $30.41, the latest and hardly talked about fork. So each bitcoin you own is worth an additional $1658.64. With a holding of 100 BTC you have an extra $165,864.00. Not to be sneezed at! You could buy a couple of very nice RangeRovers with that. One for you. One for your partner. More to the point, you got them free!
Getting things Free is Always a Good Thing
The thing is that having Bitcoin forked coins gives you added value. So while some people feel that by splitting the Bitcoin blockchain, you take value away from Bitcoin, it’s not really true, because if you are holding Bitcoin, rather than buying and selling every time there’s a big fluctuation in value, the new coins that are generated are giving you extra value, plus as people buy into them whilst their value is low, they are taking trade away from other non-Bitcoin-based tokens or coins.
Which means the branched coins value grows; Bitcoin value itself is not affected, and you make more profit. So long as you don’t sell, of course.
And there is also the point that upcoming forks drive more people to buy into Bitcoin, in the hope of getting the new coins. That SEGwit2 failed doesn’t mean a lot. Not all projected forks are going to happen. Instead of calling it SEGwit2, if they had called it Bitcoin Ruby, they’d not only have had a great name for the new coin, they’d have been able to use the ₿itcoin Symbol, with ruby colouring as their coin representation. I’m pretty sure they’d have managed the fork if they’d thought of that one! Never underestimate the value of a good name, whether for a business, a product, or a new cryptocoin.
On that point, let’s get back to Bitcoin Diamond (BCD). It quietly forked from Bitcoin at block 495866 on Nov. 24, 2017 with hardly any publicity, and with most Bitcoin holders not even knowing about it. What value will it achieve? Time will tell, but there’s no real reason that it should have a value less than Bitcoin Cash, so multiplying its value tenfold over the next few months is not out of the question, thus, worth an investment. Pick a number… Tell me in the comments section below what you think it’ll be worth in a year.
Long run, all Bitcoin forks are playing a catch-up game with Bitcoin. Of course, Bitcoin value will always lead the race, but the forked coins have the advantage of having the name ‘Bitcoin’ in front of them, so they’ll have that advantage over other front-runners in the race, and perhaps eventually they’ll get more investment than Ether, Ripple, Litecoin,or Monero, put together. What this means for Bitcoin Diamond, Bitcoin Gold, and Bitcoin Cash, is that you can expect to see them all rising in value faster than other coins eventually, and they’ll follow the same curve that Bitcoin is currently on although they’ll always be behind the main coin. Bitcoin has too much miner support for there ever to be a consensus on them switching their efforts to a lower value coin.
Plus, although Bitcoin has the most difficult hash to solve, it also has the biggest transaction rewards for miners, so there’s no point in them switching to a coin where they’ll be able to solve ten times the number of transaction in the time it takes to solve one Bitcoin transaction, but still get paid the same. And important point, Bitcoin miners have put their investment in ASICs so they won’t be supporting coins that can easily be solved with graphics boards that cost a fraction of the price.
So back to the title of this Crypto Kronos article: Holding on as Bitcoin Soars…
Don’t be discouraged
There is bound to be discouraging news on the way from the Central Banks, from government agencies, some blatantly false or deliberately misleading news, and release of stories of exchange thefts, coming your way soon. That always happens when Bitcoin surges in value. Whether or not you believe the stories, Bitcoin always wins, so grasp your coins tightly and don’t let the bastards cheat you out of the long-term profits that are coming your way.
Now I have to go because wow, at the rate Bitcoin is currently going, I’m going to have to do a new projection chart. I previously said Bitcoin could reach $20,000 by March ’18, and that chart is circulating around. If I don’t hurry up it’ll reach that value before I finish writing this… Now I think it’ll get to $80,000 by March at the rate it’s going. But then, I always underestimate the growth rate. Is $80,000 too conservative? Let me know your thoughts below.
Disclaimer: As always, my comments, projections and predictions on cryptokronos.com and elsewhere, are just my thoughts. Not investment advice. See someone else for investment advice.
Help get the word out and increase the value of Bitcoin at the same time with the shortlink to this article here: https://wp.me/p98E17-91