The Bitcoin Crash Which Never Was is OVER
So guess what? The Bitcoin crash that never was appears to be over short term. There are still issues with Segwit come 1st August and a LOT could still go wrong, but it’s beginning to look as if BTC will climb much higher once this is safely out of the way. It’s worth remembering what Segwit is all about. Basically, the activation of SegWit will lead to a 75 percent optimization of Bitcoin blocks and a substantial decrease in Bitcoin transaction fees.
It’ll take several weeks to be sure, and whilst that’s all happening, as someone cleverer than me has said “ In the meantime don’t trust just one or two confirmations. Go for 6 at least!” The only problem with that is it could take quite a long time.
Interestingly, I did a couple of transactions this morning on “normal” as opposed to cheap or priority, and both were cleared and done within 15 minutes.
The 25% plus rise in Bitcoin this week has dragged up the total Crypto market cap, but not by as much. As a result, Bitcoin dominance has risen a couple of percentage points. There is a definite correlation between the value of individual crypto currencies and the value of Bitcoin, and what it is doing. The other interesting thing is the volume of trading in crypto currencies. Until a few weeks ago, this hovered between $500 million and $1billion per 24 hours. This last few weeks it has grown enormously. Today it was just under $6 billion, and it’s been north of $5 billion for quite some days.
I don’t pretend to be able to “read” the markets. As Nathaniel Rothschild said in the 1800s: “I buy 10% too late and sell 10% too early.”
“I buy 10% too late and sell 10% too early” – Nathaniel Rothschild
And Bernard Barouch said it again after the 1929 crash, when he was largely unscathed “I always buy ‘too late,’ and sell ‘too early.’” In other words, don’t be greedy and leave something on the table for someone else.
That said I’d expect a bit of a settling down over the next couple of weeks. I fully expect more ICOs (Initial Coin Offerings) not least in part of the Kik messaging service, issuing some 10 TRILLION tokens. That alone will knock some dominance points off Bitcoin. I don’t actually see that that matters. What matters in Cryptoland is acceptance and usage, and a community. Kik already has this, as does Bitcoin. But many others are just “Me toos” which longer term will have no relevance.
There are some exciting developments coming down the track and many businesses need to get on board before they are left behind.