Hi all!
The market cap dropped repeatedly this morning. Not in that landslide-style, it has shown more than once, but it dropped. With a capitalization below 250 billion USD, I do not feel comfortable about my crypto-CFDs. 95% loss is the barrier where the position will get closed. At the time I opened those positions, I did not have the fantasy that this might happen. But some lessons are learned the hard way, it's part of the game of investment.
Stopping the meme and getting on with business. The current constellation bugs me because I thought about investing a bounty I received in BTC (Bitcoin) in KCS (KuCoin Shares). Now the thing is both currencies performed well lately but on different battlegrounds. While BTC lost in terms of price it won in terms of market shares. The price of KCS, on the other hand, did pretty good lately.
Source: https://coinmarketcap.com/currencies/kucoin-shares/
But why am I stubborn wanted to buy KCS only? It's not the price or its recent evolvement. KuCoin changed the reward-system for shareholders. When I bought my first shares in March 2018, shareholders would be rewarded according to specific revenues of each cryptocurrency. So returns on your investment were spread across different cryptocurrencies. That's different now. Since 10th July 2018, your ROI is given to you in KCS, in order to achieve that KuCoin takes the earnings to buy back shares. Those shares are then divided between KCS-holders according to their portion of shares.
This method is suitable for firing the price up. The reason is pretty simple. Those holders who do not want to trade their shares will see their stacks increased, therefore the tradet amount of KCS will become smaller. As we all know prices are driven by the mechanism of offer and demand.
So you see, it's not all dark and apocalyptic in the cryptoverse. What brings me back to Bitcoin. Why is Bitcoin a winner? Again that's only my opinion - and I really do not like Bitcoin-
BTC works. It does exactly what it's supposed to do. In times of struggling developments, security-breaches, corruptable smart-contracts and multi-purpose-designs, the old simple thing becomes the most stable solution.
Fascinating, isn't it?
There is one more thing I would like to bring to your attention. I got paid in BTC lately for participating in a bounty program for hunting/finding bugs of a cryptocurrency. I reported a simple graphic-bug which took me few minutes to find and got rewarded almost 60$.
So Bounty programs and maybe investing the rewards in some solid crypto shares can be a way to go. KCS is not the only one out there, it's just the one I am familiar and happy with. An interest rate of average 5% p.a. is not that bad.
The bounty program I mentioned above: https://medium.com/@otncoin/otn-bounty-program-98de0fadf6f4
If you liked my text and want to become involved with KCS I'd appreciate you using my referral link: https://www.kucoin.com/#/?r=2JsM7
Thank you for reading
Yours JP
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