Bitcoin Cash vs Bitcoin Long-term Profit

By | September 22, 2017
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Projecting Ahead

Bitcoin Cash will possibly make some headway over the next few years, because there are millions of new private users entering the marketplace, and some of them hope that BCC will go the way of BTC in the long term. Plus, people have a tendency to want to buy whole coins, and to do that with Bitcoin is harder for those who are short of cash, but still want to invest in crypto-currency. But the problem with BCC is SegWit, (Segregated Witness) which means that if you lose track of a transaction, it’s not very long before the log of the witnesses to that transaction is overwritten, and there will be no way to discover where your coin ended up. Especially if you’ve not visited your wallet in a while, just being confident that you sent your Bitcoin Cash to the right address.

How much of that sort of thing happening will it take before BCC completely loses authority as a viable investment option? Imaging a bank moved $100m worth, and then lost it… That’s not impossible with BCC. It’s next to impossible with BTC.

But back to who is buying BTC

Does it turn out that it is the already comfortably-off who will continue to drive Bitcoin price up? Because the majority of people still don’t realise that they can buy as small a portion of a Bitcoin as they want to. Or as they can afford to.

I think that the comfortably off will continue to drive the price up, but that’s okay. Because the other thing about those who are comfortably off is that they won’t worry so much about the dips that happen as Bitcoin reaches new highs and price manipulators or profit takers sell their coins, hoping to buy again when the price reaches its low plateau for that particular swing in value. Call them the middle class—the majority of those people who can afford to hang-in there for the long haul as Bitcoin reaches its projected value of between $500,000 and $1m in 5 to 10 years. A retirement plan. There are plenty of middle-class people out there, if you want to use such a term as ‘class’ in the age of the crypto-currency revolution.

But the thinkers will be the long-term winners. The middle class are actually turning out to be the people who don’t think the world owes them a living. So they are The Thinkers. That’s probably a better term than the middle-class.

Buying and Holding Bitcoin

And of course, another thing that drives the price up is the fact that people who buy and hold reduce the amount of Bitcoin on the market, which inevitably causes the price to rise as the supply reduces.

Scarcity has a value, and ever-increasing scarcity has an ever-increasing value. Thus, I don’t see anything unrealistic about Bitcoin reaching the sort of values predicted by people like Sir Richard Branson in a few years. And they could be completely underestimating the long-term value. There is no cap on the price that BTC could reach. When there are very few Bitcoins on the market left available, there is no logical reason why single coins could not be worth $1 Billion each. Over-optimistic perhaps? It’s just impossible to predict that far ahead unless you are saying that it will be September 2027 in ten years time, and there will be a total eclipse of the sun on August 2nd of that year, which you’ll get a great view of if you happen to be in Benghazi or other Middle Eastern places at the time.

Anything could happen in ten years

Just don’t sell your Bitcoin to stockbrokers who have a vested interest in price manipulation, and destabilising the market for their short-term gain. And it’s not a good thing that more day-trading platforms are beginning to list Bitcoin, because that fuels speculation and price manipulation. A market-maker can make money on the margin whether the price rises or falls, and that gives them incentive to highlight false news, driving the market down, and then real news driving it back up again.

And these people can afford to play with a lot of money. The fact that most of them are crooks, and most day-traders lose, doesn’t stop the gambling addiction that feeds the profits of the often false prophets they gamble with.

All of that, of course, won’t stop Bitcoin from eventually rising to its long-term predicted prices, but it’ll slow down the process somewhat.

So when do you sell Bitcoin?

I’d say wait until it reaches $500,000, and then sell a few coins, to get those things you want, but hold onto the rest, because the price won’t stop going up.

You can read some more of my views on Bitcoin and other cryptos, including what some might call harsh criticism of the banks, of the Fed, and of price manipulation, on my other posts here. And I write about some altcoins too. For example, I think Ripple has legs, and you can buy thousands of Ripple for a single Ether.

I believe in not putting all of my eggs in one basket, despite my belief that Bitcoin will beat all the others long-term. But a few Ether worth of Ripple and some other alt coins, and getting into some good-looking ICOs, is, I feel, worth a bet. Only 2 or 3 of ICOs and new cryptos, out of every 10, statistically will fail in the next five years, and a few will shoot through the roof, meaning that if you have a few thousand say, ATS tokens, worth currently (so Authorship say) US15cents, and they go up to say $15 each over the next couple of years, you’ve made a good fast profit. You could buy a very nice new house and car with that!

Disclaimer: Take what I say, ‘tongue-in-cheek! I’m not a financial advisor. I sometimes get things wrong. But I do do research, I do love to take a dig at crooks and manipulators, and I do love to make a profit and help others to do so. And as always, never invest what you can’t afford to lose, because people who have done that have lost their house, their car, their job, and their spouse. Well, at least it might be a quick way of getting a divorce!