There is a movement called a “User Activated Hard Fork”, something akin to a stock split, that is projected to occur on or about 1 August (that’s Tuesday next week). Of course, everybody and his Uncle John / her Aunt Matilda has an opinion on what is going to happen and how it will impact YOUR holdings.
Our opinion is that this is mostly smoke and little fire. From our point of view, the existing Bitcoin populace is too large and too involved and too concerned about maintaining their capital to make a major boat rocking a high probability. Our advice (and we follow it ourselves, as well) is to hold your BTC and try to keep exchanges down until the dust has settled.
The exchange rate BTC against USD has been held down the past month or so, presumably by concerns over what will happen, and we would not be surprised if there is a large jump in the rate when the event (or non-event) is over. $3000 and higher would not be surprising, more or less making up for the exchange rate increase that was denied by the concerns. If the new alt-coin is reasonably successful, then it might take part in the increase. On the other hand, if it fails, some folks are going to lose whatever they invested in the alt-coin. One other factor here is that the major exchangers are saying (for the most part anyway) that they will continue to deal in BTC and not in the new alt-coin until it has proved itself and stabilised to a reasonable extent.
In any rate, we stick to our advice above: “Hold on to your BTC and try to keep exchanges to a minimum until the dust has settled.”
A second advice: “Stay tuned and we will see what develops!”
Hello and welcome to The Bitcoin Advantage.
What is this about?
The basic idea is fairly simple – if you play your cards right, you can take advantage of the immense price run-up that Bitcoin has had over the past half-year (from 1 Feb to 28 Aug 2017) that is an increase to 2744.918 from 958.374 => 186 percent increase. If you assume that rate for a full year, then it is over 470% per year. Where else can you get almost 5 times the value of your initial input in one year?
And if you look at the past full years (Jul 1 – Jun 30 or Jul 1 – Jul 1), it is still impressive (looking at USD for 1 BTC):
What that tells me is that it is important to get in, regardless when you start. Even the lowest return (90% annual increase in from 2014 to 2016) is still an amazing feat.
Here’s a chart using closings as recorded by Oanda, a foreign exchange firm. [ Note: with Oanda, the daily prices quoted are the fixing from the day before. That means a value with today’s date is from yesterday, and the price for today is a look at the present exchange rate, and is constantly moving until it is fixed. ]
Here is a plot of the value of Bitcoin in USD over six-plus years [the dates are a little bit crazy in this plot]. Suffice it to say that the chart starts in mid-2010 and finishes at the beginning of 2017. Since this chart was made, the price of BTC has more than doubled (to well over $2550 in late July 2017).
BTC Price in USD
Advice: “Stay tuned and we will see what develops!”