Bitcoin is absolutely crushing it
As everyone have noticed, as of high noon (GMT) of yesterday 12th of October, Bitcoin (BTC) broke the sound barrier with a sonic boom and left altcoins behind bleeding. This is a followup post from a small piece we read about called "powerful investors vs weak investors vs intelligent investors, Bitcoin (BTC) and Diamond coins (DMD)".
Reason primum
The first and prime reason for this bull run is the upcoming BTC forks and people, having a tendency to think that there is something called a free lunch to be had. For those that are new, if you hold BTC in your BTC wallet (not on an exchange), you will be guaranteed "free" cryptotokens corresponding to how much you were holding at the time of the fork. People are anticipating this and selling altcoins left and right in order to take up a position in BTC, for right or wrong reasons.
Reason secundum
Moving on, reason two for this uptrend is of course the macro (long term) picture; cryptocurrencies are definitely a part of the future of how humans will be doing business. One is through systems of payment. Another, is because investors will always want to park money in a safehaven. Cryptocurrencies with a very limited supply like BTC and Diamond coins (DMD) will most definitely be a storage of value. Anyone holding a rare cryptocurrency with a limited supply will very likely see a sharp rise in said portfolio value.
Reason tertium
BTC and cryptocurrencies are beginning to get adopted in real world applications. We are now at the beginning of an exciting and lifechanging S curve. More and more companies are, and will be implementing cryptocurrencies in their business models.
As always, I asked our community why they thought BTC was going through the roof right now and here was what one of the DMD founders had for an answer:
"I wouldn't be so sure the incoming fork is the only reason of BTC going up the push seems to be too strong - to me it looks like a network effect; more people getting into crypto, I've just recently seen three articles in the mainstream press about BTC with positive opinions in the comments section (unlike before where majority of commentators were trashing crypto, so the change in perception is certainly there). Then the biggest fiat inflow is institutional money, and words from IMF head to take crypto seriously certainly convinced some undecided. (Alex)"
How to capitalize when you understand primum, secundum and tertium
As we know, markets are here to take money from weaker hands and transfer that wealth to stronger hands. Experts are assuming that around 75% of people invest with their feelings and not with their heads. They have a tendency to sell when the numbers are red and buy when the numbers turn green, when it should be the opposite! So what to do? When markets move sharply up or down, have a plan that you have thought out BEFOREHAND that goes hand in hand with buying low and selling high and stick to it. Failure to do so, will make you the victim and transfer your wealth to stronger hands slowly but surely, click after click, deal after deal. When knowing that markets are in the reds, its a clear buy signal if the fundamentals or details for said market has not changed.
A quick example
Look at Diamond coins price graph on bittrex, or any other altcoin of your choice. Do you see a resemblence? Most altcoins are in the reds. Would this be a clear buy signal? Which type of investor would see this as a buying opportunity? Are you a contrarian investor or one of the 75%? This is the main reason for why the wealth distribution of bitcoin will follow that of the real world.
Needless to say, I'm heavily invested in DMD coins so please do your research before drawing your own conclusions.
DrDMD
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