August 26, 2017
Now seems like an appropriate time to update previous posts and recommendations relating to Bitcoin. Why is now an appropriate time? Because I am making changes to my own holding.
My original recommendation suggested buying BTC in December 2015. At that time the price was 401.93 (Bid) and 402.87 (Ask) euros on Kraken. Now that I am telling you that I am selling, the price is 3628 (both Bid and Ask) on Kraken. That works out at a pretty solid 802% gain.
Over the last few years there has been a very contentious battle of ideology between what I will call big and small blockers, for ease. I shant bore you with the details. Trust me, it was very technical, complex and boring. The result was that on 1st August Bitcoin split into what is essentially two competing currencies.
The “new” Bitcoin is called Bitcoin Cash and to my mind it is the most like Satoshi’s original vision. Even in these early days, I have the feeling that the split will be very bad for Bitcoin in the long-term, but in crypto who knows what counts as the long-term! That might only be three months! However, there is a lot of existing infrastructure around Bitcoin and a lot could be switched over to the new currency quite quickly, meaning that it could be very successful.
If you were holding Bitcoin on 1st August, you were also able to receive an equal amount of the new Bitcoin Cash. As I type this, they are trading at US$627 on Kraken (525 euros). Adding that to the original holding provides a total price of 4153 euros. In case you are counting, that is a 933% gain in 611 days. I’m gonna go out on a limb and consider that a win 😉
My current thinking is that I will reduce my holding to 1 BTC (just in case it does go to the moon!) and invest some of the gain into the new Bitcoin Cash. So that I can keep track, I am going to consider this to be my buy recommendation at US$627 / 525 euros. Crypto currency prices are generally very volatile, but for the next few months it is best to mentally prepare for wild swings.
It seems to me that that market is currently unsure about which digital currency will emerge as the number one. The market seems to be trying to decide between Bitcoin Cash, Dash and Monero. Happily for me, I purchased Monero some months ago and am now sitting on roughly 400% gains. My personal opinion is that Monero is the better currency technically, Dash feels highly valued and Bitcoin Cash is so new that it is very difficult to assess. How this will look in a few months, who can say…
In case you are interested, I made a recommendation to buy Ethereum in December 2017. Things are going pretty well there too 😉
Once again, it goes without saying that this is for information and entertainment purposes only. Asset prices rise and fall and you should not hold responsible or sue an anonymous blogger if his tips do not work out. Please do your own reading and research before making any significant financial decisions.financialguy