Bitcoin price exploding ahead of hardfork

3년 전

Bitcoin on its way to the stars

What to do ?!


As many of you have noticed already, bitcoin is has risen significantly since yesterday. Well the reason, most of you know already, but for those who don't I will try to explain and expose the few options at hand.

The reason of the sudden rise

The reason is actually pretty simple. On 25th October, there will be a second hardfork (Segwit2x) and in the same way as for bitcoin cash, bitcoin gold (BTG) will emerge. Those holding bitcoin on that date will receive the same amount of their holdings in bitcoin gold. People in the cryptospace are now familiar with this phenomenon as it happened twice before with ethereum (split between ETH and ETC) and bitcoin (split between BTC and BCC). This is why people are buying into or dumping their coins for bitcoin.

What is bitcoin gold ?

Jack Liao, the founder of Lighting ASIC (a mining company based in Hong Kong) and an anonymous developer under the username "h4x3" first announced the project on bitcointalk, in July. The aim of the new protocol is to change the bitcoin algorithm consensus to allow miners to extract coins using graphic processing units (GPUs). The algorithm that will be used for bitcoin gold will use the Equihash algorithm, also used for Zcash, instead of the original SHA256 algorithm used by bitcoin.

The miners can choose the size of the block they want to extract, with a default value of 1MB. It will include protection against replay attack and wipeout.

The goal is to hinder centralized mining.

The options at hand

1st option - You already have bitcoins
Well great you're already on the ship - probably hold on to them until the hardfork.

2st option - Buy bitcoin now
If you have the funds perhaps it's the best time to invest in bitcoin. The price might skyrocket further more till October 25th and when it splits you will have the same amount of bitcoin gold. The problem with this option is that bitcoin has gotten pretty expensive at the moment and when the hardfolk happens the price will drop proportionately to the hashrate lost to bitcoin gold. You could win on it or you could lose on it, or it could equal out.

Example of a possible scenario : You buy one btc now worth 4100 euros, split happens btc drops to 3000 euros and btg emerges at 600 euros => you lose 500 euros at first... you might have to wait a little to make gains. Refer yourself to what happened to bitcoin cash.

3rd option - Buy bitcoin at the drop
You can wait to buy at the dip after the hardfork (or if possible ideally some time before the hardfork). Split happens, you buy bitcoin at a low price and you'll benefit from it afterwards.

4th option - Invest in dropping altcoins while they're at record lows
The price of all the other coins besides a few have dropped and will probably continue to drop till the hardfork. It might be worth more to invest in one of those instead of trying to get free bitcoin gold. Most probably the coins will double or triple their value after the hardfork as bitcoins will flow back into the cryptocurrency ecosystem.

In the long run bitcoin is always a good investment and there is benefit to be made in all these options. The trouble is picking the one which will have the most significant gain at the right time. The choice is up to you.


I personally invested in a few altcoins and I won't be selling them for bitcoins. I believe if I sell them now I will lose more than I will gain. I'll just wait till they rise once again.


Thanks for reading,
Kind regards,
@ronahi

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Exactly the options I was looking to clarity, thanks for your post. I don't quite get this frenzy just to get some free BTG. Nevertheless, it creates a great buying opportunity again for altcoins. I bought some BTC today so that I can invest this in altcoins and wait for them to spike after the hard fork. I'm gonna resteem your post.

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You're welcome. Indeed, the obvious option isn't always the best. Which altcoins do you think you'll be investing in ?

Thank you for the comment and resteem.

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I'm gonna evaluate my previous investments shortly and look at where I see the most upside. XEM, NEO, Steem, QTum, TenX and BAT are on my list at the moment. Do you have any recommendations?

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I strongly believe there is a huge potential in ada, that's where most of my money is at.

Eliot wave, apparently, predicts big pullback- $3000.

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That will be quite nice, to be honest. I want to have 1 BTC in my portfolio at that price.