Bitcoin hits $6000! There Will be Blood.

By | Oct 20, 2017
bitcoin-mining
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I Did Happen to Mention…

I’d hate to be one of those people who says ‘I told you so!’ all the time, but I had to make a comment on the recent value of Bitcoin. I told you so!

Well, I was being conservative, as my predictions usually are when I said Bitcoin would reach a value of $6000 (USD) by the end of October. Now I have to revise my prediction. Based on an extrapolation of the growth curve over the past six months, Bitcoin, conservatively, should hit $6300 before the 25th of this month.

My forecast, though, is not just based on extrapolation. The upcoming Bitcoin Hard Fork for Bitcoin Gold (probable acronym BTG) is drawing in investors who like the idea of a coin split which means they will own equal amounts of coin in each fork that actually happens.

This will only happen for people who own BTC before the chain-split, which is forecast to happen on October the 25th (just five days from now).

Time will tell if BTG Prevails. Some People will Bleed.

Now, whilst I still think the current main BTC blockchain will always be the one that prevails, there is nothing to stop BTG from making great headway, and doing better than BTH (Bitcoin Cash) has done since the last hard fork of the Bitcoin blockchain. This is a strong possibility because it’s likely to be supported by a lot more miners than BTH because of the reason for the split. As I’ve previously pointed out, it is currently difficult for individual miners to mine Bitcoin because the # (hash) difficulty has risen to the point where it can only be profitably mined either with close-to-free electricity, or with ASIC devices, which are specially built to efficiently mine Bitcoin, but are expensive, especially if non-power hungry.

The BTG hard fork, on the other hand, will introduce an ASIC-resistant Equihash proof-of-work algorithm that does not need specialised equipment to mine, and will let people who bought piles of $400 graphics cards just a year ago, start mining efficiently again. In other words, Bitcoin Gold is aiming to re-democratise mining, taking the power away from the massive Bitcoin farms in China and Siberia, who are using the ASIC chips to mine.

But if you are foolish enough to immediately move your Bitcoin onto the BTG chain immediately, before things settle down and you know for certain what is what, you could bleed money very quickly.

Move Now, or Forever Hold your Peace

If you want to get into Bitcoin before the next hard fork, now is the time, because you have few days left. And I wouldn’t actually do any transactions myself on the 25th Oct. 17, because, you never know, things can go wrong. Exchanges can freeze transactions. That always happens on hard forks, and it could be a day or two before things start moving again…

Disclaimer: Remember, I’m not one of THEM – a financial advisor, that is. Don’t be stupid and spend money you don’t have. Never invest more than you can afford to completely lose forever.