On the 12th of October, we saw Bitcoin break its all-time high of 5.000 as market participants prepare for the hard fork on the 25th October. On the precipice, it looks like the market pushed the Bitcoin bull-run due to the potential ability of receiving Bitcoin Gold after the hard fork. I am telling you that Bitcoin Gold regarded as ‘free money’ is the decoy for where the real gains are to be made. The key to understand the logic of this piece begins and ends with the question of ‘where does the money flow?’
I think people buying bitcoin prematurely to “hold for bitcoin gold” are missing out on the real gold that is right in front of our eyes. Which as I write this a couple of them have had little spikes… but we will get to that. Let’s take it back, and provide a recap of what has occurred over the past few months. We’ve had the fork on August 1st that created bitcoin cash, constant FUD and destructive regulation from powerhouse China. In the midst of all of this Bitcoin has reached new all-time high after new all-time high just recently breaking the 6k mark. So what is happening right now…
The market is buying bitcoin in anticipation of getting their bitcoin gold credits. This decision could be wrong as smart money continually picks up quality altcoins. We must analyse the most recent fork as the grounds to which the same occurs. Last fork on August 1st created Bitcoin Cash and the effect it had on altcoins was profound:
%7d according to coinmarketcap.com of some of the top volume altcoins post fork:
Ethereum – 28.53%
Nem – 34.88%
Neo – 100.61%
Stratis – 44.36%
Waves – 54.78%
OMG – 157.98%
Golem – 39.90%
To realise the actual impact we must calculate what the bitcoin cash credits yielded in that same 7 day period.
Bitcoin Cash was trading at 6.63% of bitcoin on the 6th of August and its 7 day high with around 9% of bitcoin credited.
Now if we look at alts in comparison to bitcoin: increases over the 7 day period.
Ethereum – 6.42%
Nem – 11.68%
Neo- 66.11%
Stratis – 19.54%
OMG – 113.58%
Golem – 15.87%
Now we have seen the 7 day post fork impact now we must analyze the immediate impact of the fork; here are a few examples
Eth/Btc:
Eth/Btc we see that green candle on the 1st of August…The volume indicates the amount that was swiftly transferred from bitcoin and bitcoin cash to alts.
Neo/Btc
Again with NEO we see the huge green candle and volume.
Nem/Btc
We see the same pattern here.
This huge jump occurred at the identical time of the fork occurring. The alt market saw green like it had never seen before. Bitcoin Gold acquirers, beware. The free money will come from the altcoin market on a much larger scale than Bitcoin Gold. Ultimately, this discussion aims at understanding where the money flows. As such, the altcoins I have invested in are completely at the bottom and I believe we are going to see a big jump. Get on board
Follow me on twitter @cryptogecko4 for updates.
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