Being part of the crypto currency movement for a decentralized future sure has its dramatic moments. It seems every few months Bitcoin and the other crypto currencies go through a gut wrenching change. Earlier in 2017 we had the FUD filled hardfork for Bitcoin Cash (BCH). All of the drama related to that hardfork was necessary in a world where a change could wreck this amazing free market payment system that Satoshi Nakamoto birthed.
Now we have this hardfork that will produce another coin called Bitcoin Gold. When they first announced the hardfok all I could do was roll my eyes. What is so special about their coin that they need to cause so much malcontent? In my opinion I would prefer that they just launched their own coin on their own blockchain. Leave our money alone! I don't want your coins.
So this week the holders of Bitcoin are trying to decide what they are going to do with their coins. I won't divulge what my plans are for my Bitcoin Gold but I will say that the Bitcoin Gold plan does not seem well thought out. There are four ways I see that we can approach the Bitcoin Gold hardfork.
What To Do for the Bitcoin Gold Hardfork.
- Nothing, Leave Your Bitcoin in Your Hardware Wallet.
- Send your Bitcoin to an Exchange and Load Up on Altcoins.
- Leave your Bitcoin on a Hot Wallet and Hope for the Best.
- Exchange Your Bitcoin for Cash.
- Trade With Leverage to Protect Your Holdings.
Leaving Your Bitcoin in Your Hardware Wallet.
This approach would be the most conservative and will probably be the one that makes the most sense. If You use Ledger for your hardware wallet Bitcoin Gold will show up in your wallet. I am a big fan of Hardware wallets and recommend that everyone start using them immediately.
Send your Bitoin to an Exchange and Load Up on Altcoins.
If you think that the Bitcoin price will tumble after the Bitcoin Gold hardfork then this is a sensible option. Bitcoin has been strong for a while now and it is possible that the pendulum will be shifting back to altcoins soon. I love my altcoins and have been bag hodling many over the course of the last few months.
Leave Your Bitcoin on a Hot Wallet or Exchange and Hope for the Best.
This is usually a move that newer Bitcoin users do but as we saw with the Bitcoin Cash hardfork it was a wise move if you were a Bittrex user. Those people who had Bitcoin Cash on Bittrex were able to profit greatly with the following FOMO. Now some exchanges and most hot wallets that I know of will not support Bitcoin Gold so
you will most likely miss out on Bitcoin Gold.
Exchange Your Bitcoin for Cash.
Many crypto veterans suspect that Bitcoin will tumble post Bitcoin Gold hardfork. This could be an opportunity to increase your Bitcoin position. This is a very conservative apporoach. Buy back in after the hard fork is complete.
Trade with Leverage to Protect Your Holdings.
If you believe Bitcoin is going up or down after the hardfork you can buy leveraged positions. Shortly after the Bitcoin Cash hard fork Bitcoin went on a nice run and I know many people who took this approach. The people who have interests in Bitcoin Core will not let another coin beat them without a fight. Will the same scenario repeat with Bitcoin Gold? I use Bitmex to trade with leverage.
What's Next for Bitcoin.
The upcoming drama will be Segwit2x. I personally think Bitcoin Gold will be a non event but Segwit2X will divide the community. I will make my position known that I do not support Segwit2x and just wish that they would go away. Bitcoin is my store of value and I don't need anyone or any companies disrupting my money. I will have a full write up on Segwit2x soon.
