Cryptocurrency Collectors Club
WHAT IS UP WITH BITCOIN?
I have been following the Bitcoin block size debate, not as close as some, but closer than most who just ignore it. It is a huge problem if you want Bitcoin to be a digital Paypal. Now, even though I am more into cryptocurrencies, "Alts," than Bitcoin at the moment, cryptocurrencies all still tie back to Bitcoin for price. If I wake up and Alts are down in price, usually Bitcoin is up a little in price. If I wake up and Alts are up, vice versa. This is a general pattern that you could set a watch by and certainly set your trades by. I have done this for years and it is so reliable most of the time it is almost too easy. Another common theme in Bitcoin, it always seems to peak around the price of one troy ounce of gold, give or take. This is another pattern you can reliably trade with almost like a shortcut or a cheat sheet. If Bitcoin is near the price of Gold and I am holding Bitcoin, that is time to sell some. If it is substantial below the price of Gold, it is time to buy. This is as simple as it gets and it has worked for me for years.
Today I woke up and noticed Bitcoin was up again, and as I know, unlike some, the Block Size debate is really a test of the design of Satoshi, and Satoshi designed Bitcoin to be very resistant to change, so right away I knew Gold was likely up in price rather than some resolution to the Bitcoin block size debate. Sure enough, I checked the price of Gold and it is on a bull run! Bitcoin is coming with it like the reliable immutable Digital Gold that it is. By the way, you can check out the article I wrote on this site “The Meaning and Future of Bitcoin,” way back in 2015 if you want to know what the future for Bitcoin is, at least according to my take on the design and technology. So far I have been right, and if you are right with cryptocurrency, that does tend to help with making the right trading and holding choices. As for 'what is up with Bitcoin,' simple, the price, and the price of Gold. This is not related to the technology being updated to a PayPal, this is the valuation of old school Satoshi “Bitcoin Gold,” nothing more, nothing less.
Is it time to buy Bitcoin right now? Maybe not, unless you don't have it. Same for Gold. If you really are into Gold or Bitcoin you should already have some. At least have some cryptocurrencies like myself if you really want to try and get ahead of the curve, and even if you are some Bitcoin only maximalist, realize it is possible Bitcoin remains as a digital Gold and those silly little Alts keep getting more serious for their various applications every single day, so perhaps appreciate Bitcoin for what it is and not for what some futility have been trying to change it into it. Besides, if they are ever successful changing the fundamentals of Bitcoin, it may not longer be Bitcoin, and then it is competing on an entirely different level. Bitcoin might just be best staying in a class of its own. A digital Gold, a digital commodity, what it does best. The same as it ever was.
5-7-2017 This theory and opinion no longer holds true, it worked for trading for a long time, but Bitcoin has broken the strange psychological barrier at this point, how high it goes, nobody really knows.
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