Most currencies have taken a beating over the past 4-6 weeks. IMHO this is just part of a natural correction of profit taking amid uncertainty in parts of the market (Bitcoin scaling, exchange DDoS, geopolitical factors etc) I'm expecting a market turnaround sometime between now and September. So we need to be prepared to take advantage of that.
For those holding Bitcoin, who wish to keep holding Bitcoin throughout the UASF on Aug 1st, I highly recommend pulling all of it off the exchanges, and storing it in a paper or offline wallet for now. At least until we see what the situation will be post Aug 1st. I'm not going to speculate on values, but there may be an issue where one exchange supports the wrong coin in the event of a hard fork, and you could be left bagholding near worthless coins if your BTC is converted to the least popular coin by your exchange.
Ethereum should (theoretically anyways) be unaffected by a successful UASF in BTC. However, if the BTC situation goes tits up, ETH and LTC stand to gain more traction. LTC is a likely looser if the BTC UASF goes through without a hitch.
If Aug 1st runs smoothly, there won't be many currencies which do not perform well when the market turns bullish again. We want to be in the currencies which will far exceed the market when it does turn around though. A good indicator for coins which may exceed market pace will be those which have survived the bear market better than most (I'm looking at you DASH), and those which were oversold during the bear market (ETH & ZEC spring to mind)
Standard investment rules still apply though. For me to invest in a coin, it needs to be backed by a class leading platform with real world usage, and it needs to have ongoing and ethical development by a proven dev team.
The following are coins I will be looking at. As usual though, this isn't investment advice, and you should do your own research.
DashPay https://www.dash.org/
Dash already have a functioning product, Digital Cash. It's fast, convenient and easy to use whether you're sending money peer-to-peer, or using it for commerce. It's already possible to pay electricity bills etc in Australia using Dash.
It's been one of the more reliable and stable currencies over the past year, and I've not heard of anything illicit going on with the platform. It's also held up really well over the past month or so. It's a great hedge against bitcoin, considering it does the same thing as bitcoin, only faster. (It's similar to Litecoin, although it already has more use cases)
Zcash https://z.cash/
Similar to Dash, Zcash already have a working product. A fully anonymous currency using zero-knowledge proof. Unlike Dash though, ZEC has been smashed in the past month, to the point where I think it's oversold. I am looking for a decent entry.
Decred https://www.decred.org/
Decred uses both Proof-of-Work and Proof-of-Stake mining, depending on how the use wants to interact with the coin. The coin is based on a system where users can vote of future proposals, which are then automatically implemented into the code via code updates, or soft/hard forks. This month it became the first coin in history to successfully activate an on-chain hard fork, thus proving its concept. They're looking to implement Lightning support, and decentralized control of developer funds this year among other new features. This coin has held up reasonably well during the recent bear market.
Swarm City https://swarm.city/
Decentralized Application using SwamCityTokens build on the Ethereum blockchain. They're already integrating with ride-sharing platforms etc, and have a bunch of different use cases in the works. I highlighted this coin a few weeks back. It had a small pump but has since dropped back to the previous support level. If it fails to break lower, it would signal a good entry point. This is a riskier trade though.
Stratis Platform https://stratisplatform.com/
Stratis offer blockchain solutions for corporate/enterprise customers. They can tailor their own blockchain infrastructure to suit their corporate needs. It is built on the bitcoin codebase. Some use cases include product tracking, IoT data recording, medical research, identity tracking etc. Strat has just had a big selloff, followed by an ultra wide range doji on ultra-high volume. So there's a very good chance of a reversal here.
My thoughts on LTC...? https://litecoin.org/
I think a LOT of people have been using it to hedge against falling BTC prices during this USAF uncertainty, so it's very likely the price will drop if the USAF is successful. Please keep this in mind if you hold or are considering buying.
I hope everyone is weathering the storm. Now is the time to do your research and due diligence to prepare for the next bull run.
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great analysis
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