Thinking of selling your alt-coins for bitcoins for Aug? Think again!
Lots of people have turned their alt-coin investments to bitcoin investments. And lots of people are still contemplating to do so now or further along in the weekend. Here is why I think that would be a losing investment.
- Bitcoin has already outperformed alt-coins strongly today by 8-10% on average, due to BTC gaining 4% and alt-coins losing a similar amount). In addition bitcoin has outperformed alt-coins steadily over the past month. Trading in your alt-coins now means taking that loss as well.
- The Bitcoin cash fork will not give you the return you think you will have. think of it like a dividend of equity. Everyone knows it is coming and it is priced in. Once the stock goes ex dividend, the value drops. I expect roughly the same behavior from bitcoin after August 1. Bitcoin should lose the value that bitcoin cash has. In perfect markets this happens, lets see how good the crypto market is.
- I expect the altcoins to close the gap rapidly after the fork as there is not much point holding the bitcoins more and alt-coins have a lot of ground to make up (and are other technically superior, but that is for another time).
Make sure you don't make a rookie mistake. I am certain enough of us will.
Good luck and stay tuned!
Images:
https://crushthestreet.com/articles/digital-currencies/protect-bitcoins-shady-entities