During the radio show this week, one of the long time miners and entrepreneurs in the crypto space made an interesting statement during a segment concerning Bitcoin Cash. It set me back in my thinking and the following day I spent a good half day doing additional research into the coin to see if I needed to add this to my core long term portfolio. What really blew my mind was his statement that Bitcoin Cash was really what Satoshi had envisioned for bitcoin and that bitcoin cash with less fees, faster processing, and larger block size limit was more in the spirit of the original white papers then bitcoin itself. Ok that's quite a statement, but this guy is not only an early miner but a code developer as well. So who am I to argue. In fairness my buddy on the show believes ETH' is the best bet in competing with bitcoin and they have added it to their ATM's in addition to DASH' and Bitcoin. (market penetration)
In doing my research I came across numerous articles but one really stood out. It was the final nail in the coffin so to speak in why I have added a position of bitcoin cash in my core portfolio. Now where bitcoin goes from here is anyone's guess, and I'm not anti bitcoin, but when arguments are valid you must put emotions aside and think rationally, after all it's about Benjamins and not how you feel about a specific equity. Ok at first I thought it was an anti bitcoin conspiracy, but as I read I realized that many of the points were valid. Of course I'm not dumping bitcoin and sinking it into cash as bitcoin I believe is still the leader, and will be a store of wealth vs a core currency. Similar to gold vs fiat currencies. The article was titled "Bitcoin Cash: How it's going to Triple My Net Worth".
Three valid arguments were made in this article that hit a tune with me. #1 - Bitcoin cash is faster and the fees are cheaper than bitcoin #2 - Litecoin already implemented Segwit so why copy litecoin? #3 - Large mining operations are dumping money into Bitcoin cash at a loss (ok this got my attention)
But then for peer to peer there is also DASH' Well though many disagree I like Dash' and it is part of my core holdings as it has a working product and market penetration, However, unlike litecoin it is not available through coinbase so I own both.
So why add bitcoin cash when you have dash? Well another key point and the reason I own litecoin is coinbase is adding the long awaited bitcoin cash wallet. This means the average guy investing does not have to risk money on these dark exchanges. Yes you can buy directly and store it in their vault which is insured by Lloyd's of London. It also has name recognition (bitcoin) and anything that may go airy during the upcoming fork, or a divide among miners may have an impact to the positive for bitcoin cash as detailed in the article.
I also like the chart and feel safe entering a position here. $300 is very good support level and as bitcoin was dropping this morning bitcoin cash was rising. Now I do not play into the conspiracy theories of bitcoin being replaced by bitcoin cash or dash, but back in the day I didn't think anything would replace AOL' either, then along came yahoo and google.
Core Portfolio is being adjusted to the following: Now these actually vary as I have added to XRP recently, but as I add to my portfolio allocated amounts over time it will break down like this. I have this same principle in stock investing as well where I buy into positions I am adding to my core. (a little different there as several of my core holdings I no longer add to just because of their size at this point and the dividends do that for me) BTC' -20% ETH - 20% DASH' - 10% LTC' -10% BCH' - 10% OMG' -10% NEO -10% XRP - 10%
Komen
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Holy moses, I missed the breakout of the consolidation box, and this is what I wait days for!!!
Also been looking into it - this could be the last big trade before the end of the year.
"#3 - Large mining operations are dumping money into Bitcoin cash at a loss (ok this got my attention)" - this is VERY telling.
There are big power politics in play here and the future of Bitcoin itself will be decided in the fight between BCH and BTC. For BCH it is now or never - this is the perfect time to launch a bid to become known as "Bitcoin".
That's what it's all about and now that the line has been drawn between two chains and companies/devs/big players are lining up on either side, the segwit2x fork looking increasingly fragile (meaning that anyone who thinks big blocks are a good idea will have BCH as the only choice because Core is like a brick wall on the subject) is the perfect catalyst for potentially the biggest pivot in the history of Bitcoin.
There is so much at stake and so many vested interests - time to go long on popcorn!
@goldbug1, my pleasure - thanks for providing the forum!
The way I see it is as a fight between Bitcoin as a business and Bitcoin as an ideal.
Both have strengths but at the moment the Bitcoin-as-a-business model is being underestimated, I believe.
Loads of people troll Ripple but plenty more buy it as a business-themed crypto, because ultimately they want to make money and they believe business sense will get them what they want.
Roger Ver, Bitmain and Chinese partners, and many others are businessmen with HUGE means behind them (huge mining power, ownership of key domains such as bitcoin.com, ownership stakes in practically all the major Bitcoin companies, exchanges, etc. etc.). That counts for more than a lot and I do think Core would have been far better off taking this into account and doing proper negotiations with mutual respect, as they could have been much more receptive years ago but instead chose the brick wall approach. Not a wise approach in all real worlds.
Now it's too late for compromise and the fight is on! Make no mistake - it's for the name "Bitcoin". It's the perfect storm.
SheriU
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I am in BitcoinCash 100% that's the level of my confidence
@familywoodvideo, this will be volatile before the forks... I hope it drops again I have not finished buying ..
goldbug1
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@SheriU, Well that is definitely having skin in the game!! Great, I do like some diversity but if you feel that strongly then that is the way to go. Thank you for commenting!
fernx
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That is really breaking it down for us newbies. I like your reasoning ...Thanks for sharing.
Have a look at the volume for BCH on Korean exchange Bithumb - cryptowat.ch/bithumb/bchkrw/1d