BIP 91 finally locked in last night and should activate within the next 2-3 days (I). With BTC’s fundamentals safe for now I have entirely abandoned cash and now aim to consolidate my trading profit into Bitcoin (II) at least until the hard fork scheduled for the end of the year (III).
I- BIP 91 finally locks in.
BIP 91 is the first milestone on the road to a Segwitx2 deployment.
Segwit is a welcome, yet often misunderstood technological improvement for the Bitcoin network;
...and last night came very good news as BIP 91 finally locked in;
...causing an immediate relief rally in BTC, which mooned to $3000 before sellers stepped in.
BTC is now up 60% from when it last dumped just a week ago among fears of a chain split and it’s possible we get another massive leg up if the price can break above $3000.
If you missed the dip buy on BTC at $1900, I suggest you wait until BTC breaks $3000 to buy more so to benefit from the momentum and set sell orders around the $3700 area.
With Bitcoin's looking healthy again I decided to shift my strategy.
II- Trading altcoins and cash for BTC.
Before BIP 91 locked-in, BTC's fundamentals were compromised by the threat of a chain split, but its price kept climbing regardless, possibly fueled by the raging altcoin bubble.
As the bubble started to pop, many cashed out off their altcoins through BTC and ETH, thus precipitating a serious drop in both their prices.
With the scaling debate out of the way however, it's possible we see many large altcoins drop in BTC value as more and more traders dump their alt bags to jump on-board the BTC bandwagon.
For that reason I have decided:
to trade altcoins exclusively for the purpose of accumulating more Bitcoin and to abandon cash entirely.
to stay away from major altcoins and especially Ethereum because of its inverse correlation to BTC:
This will be my strategy from now on until we reach the next phase of the scaling debate.
III- The scaling debate on hold for now.
Segwitx2's activation will do a lot of good for the crypto sphere but another potential drama is looming on the horizon.
See, Segwitx2 is composed of two elements:
"Segwit" a backward compatible softfork meant to modify the architecture of transaction blocks and further secure the network (but not to accelerate transaction time);
"x2" a non-backward compatible hardfork aiming at doubling the size of the transaction blocks. x2 is meant to happen by the end of the year and will require a hardfork of the network.
For more:
https://bitcoinmagazine.com/articles/countdown-segwit-these-are-dates-keep-eye/
The "x2" hard-fork is still very controversial among miners and we could see the old wound of discord re-open as we get closer to its date.
Fortunately this leaves ample time to make loads of profit in the market but it's worth keeping an eye on how this hard-fork will develop. In brief, we're not completely out of the woods yet.
Trade safe guys, and please follow and upvote if you like the content.
