Hello fellow Steemians and Crypto investors,
I’ve been in this game for over 4 years, which for crypto land, is a very long time... During this time I’ve seen so many pump and dump schemes that every new one becomes more and more transparent.
This morning I woke up to the latest one:
The Bitcoin Cash pump and dump scheme:
This article from Cointelegraph released today has all the hallmarks of a classic pump:
Bitcoin Classic Shuts Down As Staff Claim Bitcoin Cash Will Rule ‘In 6 Months’
Not only are they making highly improbable claims about Bitcoin cash in a very short time, they are also introducing FUD (Fear, Uncertainty and Doubt) into Bitcoin holders to get them to sell.
Keep in mind all these news outlets need to make money, so they are not going to publish what’s in the interest of you, the reader, but what interests their sponsors and ad providers.
Bitcoin Cash is dead on arrival and they all know it. You can’t possibly scale by ever increasing block size. To do that you would need to store a Blockchain that increases by several petabytes each year and the blocks would become so big you would need super-fast internet connections just to transmit them in time. All of this would only be big enough to accommodate the commercial transactions of a medium sized city like Miami.
What you need for scaling is sidechains
As a programmer, I can tell you with a very high degree of certainty, that sidechains like the ones provided by the Lightining Network for Bitcoin and Litecoin are the only real solution to scaling Bitcoin (also for Ether, through its Raiden network). Watch this video for more insight into the technical details:
What you should do
It’s a very bad idea to buy and hold something that’s being pumped because you never know when the whales are going to turn and dump everything, unless you are part of their closed circle and know it for a fact.
If you want to play the game and ride the pump up be very careful, when they decide to dump, it’s going to be a wild ride down.
What I’m doing
Absolutely nothing! I really don’t care for the stress and dangers of timing the markets and chasing whales.
I follow a safe passive indexing strategy as I've explained in previous posts.
Whatever happens I continue to hold the millionth or more of the supply of coins in both Bitcoin and Bitcoin Cash (21 coins+) so whatever the outcome I’ll be safe in the long term. I, however, do hold way more Bitcoin than Bitcoin Cash for the simple reasons explained above about long term scaling.
CHECK OUT MY PREVIOUS POSTS:
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ETHEREUM’S RAIDEN VS BITCOIN’S LIGHTENING – What’s happening?
SEE THE CHARTS! Segwit progressing slow but already helping ease congestion in the Bitcoin network
Tell me what you think of this post in the comments below. This is not professional investment advise. I'm not your financial advisor. Only invest money you can afford to lose!
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Happy crypto investing!
