Bitcoin Selloff? Bitcoin Cash Taking Over? Here is what is really going on – And how to profit from it

Bitcoin Price is plummeting, and Bitcoin Cash is skyrocketing

It is hard to miss, people are freaking out as the price of Bitcoin has dropped almost $1,500 in 2 days, while the price of Bitcoin Cash has skyrocketed to $1650.78 (at the time of this article). But the question is why?

Well it all started with the announcement that “Bitcoin Classic” will be shutting down. Let’s get one thing clear: Bitcoin Classic is NOT Bitcoin Core (known at BTC).

In summary of the announcement:

Bitcoin is experiencing another hard fork and major value fluctuations this week. Bitcoin Classic will be shut down and its developers expect Bitcoin Cash to replace it and act as “Bitcoin” within six months.

Many people are confusing Bitcoin Classing with Bitcoin Core (BTC). BTC is not going anywhere.

Now, for a well elaborated conspiracy theory

This was posted on June 30th, 2017:

Traders, certain information has come to my attention that is causing me grave concerns and i feel it is my duty to warn each and every one of you.

We all know the scaling drama has caused a huge rift, resulting in bitcoin forking into the soon to be “Bitcoin Cash”.

I know many have large holdings and savings in bitcoin, and are ‘hodlers’ and will never sell, so when the selling starts, you may lose everything if you don’t also sell.

Gentlemen, this is certaintly not going to be gentlemen.

Certain information has come to light from back room channels, sources i cannot disclose ~ even writing this post will probably reveal my source – but i feel by gods will, I must warn you all.

Selling is coming. Selling the likes of which hasn’t been seen since MtGox era.
Already as i type this, battleships of bitcoin are being shorted on all major exchanges.

Gentlemen, The enemy, the big blockers, have colluded and joined forces. The chinese, Jihan & co have put together a plan to replace bitcoin with bitcoin cash.

The plan goes like this:
Chinese miners (f2pool, antpool etc etc) have organised with major exchanges (via/huobi/okcoin etc) to support and launch bitcoin cash.
Initially they will let everyone who wants to sell, sell.
Once the coin has bottomed out, and everyone who wanted to sell has sold, they [chinese miners/jihad/chinese exchanges] will begin accumulating lots and lots of bitcoin cash.
They will then begin to pump the price to around 0.1 BCC/BTC – 10%
The big pools won’t mine it ~ they will let the smaller pools see the returns from mining this expensive, but low difficulty coin and start mining it.
Later, the larger pools will join, and as we know, jihad has ALOT of hashing power, their plan is for bitcoin cash to have more hashing power than bitcoin ~ and lets be honest, once t he chinese move over, that is pretty much it.
Around this time, the ‘hard fork’ section of segwit 2x is not going to happen ~ it never was – Bitcoin cash will then be seen as the original NYA coin..
At that point in time, Bitcoin cash will be on all major chinese exchanges, possibly some western exchanges aswell, and have majority hashing power. Western companies & other merchant providers (BitPay – @Spair) etc – paid off by bitmain etc will go along with the new bitcoin cash narrative and will push for the ‘bitcoin cash’ to be called ‘bitcoin’ on all their platforms, leaving only coinbase et all which will then be the odd ones out..

Now comes the scary part, The old bitcoin, the bitcoin we know and love, is going to get DESTROYED.
What determines a coins success ? It’s market cap.
Big old school blockers and miners are going to dump bitcoin back to the bottom, they will take literally billions and billions of dollars out of bitcoin. They will use the money to fund the marketing, and development, or ‘bitcoin cash’ – Think, Bitcoin core – FIRED. Think – forbes article, “why bitcoin miners and companies are moving to bitcoin cash” – think – “Why the market is chosing bitcoin cash as bitcoin not bitcoin core” – They wil lsay the market has spoken, that people have voted with their money.

Right now, massive huge shorts are being built, already on finex, shorts are at 32k – not seen since $200 these kinds of numbers of shorts, and its climbing, all the time, consistently, they have A LOT of coins to short.

The most painful kind of selling, is where it never bounces and if you remember MtGox from $1000 to $70, you’ll remember what no bounces feels like ~ and I can tell you. This won’t be any better.

Good luck all, remember – fair warning.

Below is I grabbed, i also have some slack and telegram logs, I will sort them out later when i get back, i just want to confirm what I can safely disclose first for my own protection.

Email from [alice] to [bob] – http://imgur.com/a/FcZIp

Source: https://pastebin.com/n0aGBMQr

So what exactly is going on and how can I profit from this?

The truth? No one except the devs and huge miners (namely a very large one based in China, I’m sure you have heard of them) knows exactly what is going on. The smart ones have pulled out of all BTC (and all its forks/variants), the less experienced are quickly jumping off BTC and into BCH, and some are taking advantage and playing the odds by buying BTC while its low, and buying BCH hoping to sell it when it peaks, but the BCH crash will be EXTREMELY fast. I’m talking dropping 90% of its value within minutes. So that is a very risky move.

At xCoinDesk, we have pulled out of all Bitcoin and all its forks and are waiting for the dust to settle. We like to base our trades and investments on facts (and some gut instincts) and it has proven us successful thus far, why would we abandon this way of trading?

Understand the game the big miners are playing right now.

  • 85% of miners (by hash) were signaling for 2x.
  • 65%+ of hash is on BCH right now.
  • BCH has existed for months.

That means that 50%+ of hash on BCH right now prefers 2X over BCH. The prize has always been the original chain. This is not an opinion, this is an logically deductible fact based upon known facts. If they wanted BCH, they would have moved to it long ago.

So what is going on with BCH then if they don’t actually want it? BCH is being used as a weapon to put pressure on BTC. By moving virtually all of their hash to BCH:

  • Block time slows down dramatically on BTC.
  • Fees rise dramatically on BTC.

These two factors exacerbate the issue with BTC scaling and create a false sense of urgency. However urgent you may have thought it was before, it is now unquestionably a bigger problem than it already was. But there’s a hidden agenda here:

  • Slower block times dramatically increases the amount of time before the 2X fork block hits.
  • They “suspended” the 2X fork. They did not cancel it.
  • BCH has an 8mb block, so a 2mb block seems like a reasonable compromise in comparison.

In other words, they’re buying time, creating a bigger problem, and all of this drama is pushing people towards a reasonable solution that was already on the table. The preferred outcome for miners is still B2X – it’s not an opinion, again it’s a straightforward logical deduction from known facts.

You might argue that miners are moving to BCH because its technically more profitable to mine right now – and you might be right. But at pre-pump market cap it wasn’t terribly difficult for a whale to prime the BCH pump and start a cycle of self-perpetuating fear and FOMO. Regardless, if you look at the numbers there’s still more hash on BCH than there should be based on their current prices. One could argue that the “extra” BCH miners are speculating that BCH will continue to rise – but you have to realize they’re playing both sides here. BCH rises when BTC slows down, so the more hash you move to BCH, the more BTC clogs, the more BCH rises.

It’s a closed loop and easy money if you have the hash and the cash. And there’s no question that they do. The whales literally can not lose here……as long as the money stays between BCH and BTC.

There are many potential outcomes, and lets look at who wins and who loses.

  • 1 – BCH overtakes BTC. Miners win because they got the big blocks they always wanted. BTC bag holders lose big.
  • 2 – BTC adopts 2X as a compromise – and because BTC blocks are so slow right now, there’s plenty of time. Understand this very clearly: This is a plausible scenario, not a longshot. Miners win because they got bigger blocks, and because they always wanted the original chain and not BCH – they dump BCH. And because they’re coordinated, they’ll be the ones to trigger the BCH crash. So they get out at the peak, guaranteed. BCH bag holders lose.
  • 3 – BTC holds their ground past the 2X fork block. Because the prize has always been the main chain, just like they coordinated their cancellation of the 2X fork, they will coordinate their cease-fire on BTC. And BCH bag holders will be the last to hear about it.

As you can see – as long as the money just keeps bouncing between BCH and BTC, the whales can not lose – only bag holders on either side, depending what happens. There is only one scenario where miners lose:

Money flows out of both BCH and BTC into fiat and alts. The real way for investors to protect themselves and/or punish either side playing the game of thrones with BTC right now is not to choose a side, but to refuse to play the game in the first place. And its not all or nothing. Everyone will make this call on their own, so its not a matter of if this happens, but how many will choose to go this route. Thus the real variable here is the magnitude of the shift – otherwise its as much of a sure thing as the game miners are playing. The longer this goes on, the more people will realize it – and once people start refusing to play, there’s a huge opportunity out there waiting for people to seize it. The sooner you get out of BTC/BCH and into alts, the bigger you win.

  • The safest place to ride it out is fiat.
  • The next safest place is high market cap, well known alts like ETH and LTC. I still honestly see no way they can lose here, but the magnitude of their gain is unknown.
  • The third, high risk option is to position on low market cap alts, particularly those that claim to solve the current problems – the two best examples being VTC, which attempts to solves the mining centralization issue, and DCR, which attempts to solve the governance issue. I would include Dash, but they just had a magnificent pump so I think anyone who isnt in by now has missed the boat.
  • The riskiest option of all is to continue to play the BTC/BCH game and time the pumps on either side. Either way it’s a ticking time bomb, and when it blows, you better hope youre on the right side. Because if you’re not, you’re fucked. Real, real hard.

Personally, I bet big on LTC and ETH, and my hail mary is on VTC. The more of us that refuse to play their game, the more of us that benefit from it. But do what you will. However you choose to play it, I sincerely wish you luck. This is going to be a hell of a week.

Source: reddit.com by Darius510

Final thoughts

Don’t fall victim to the FUD (Fear, uncertainty, and doubt). From all the information we have gathered, Bitcoin Cash (at least what is going on right now) is a “scam” or at the very least a type of protest from the ‘Big Whales’. This all comes down to the miners, because they are the backbone of the blockchain. Bitcoin (and all of the forks) have become increasingly centralized with large companies taking up huge percentages of the hash-power. They hold all the cards right now. The best way for the users of these coins, like us, to win is to not participate. Hedge your investments with another large cap coin (such as ETH and LTC to name a couple, or even pull out completely with Fiat currency such as USD).

Stay tuned, stay informed, and make money. This is a passing phase. The real question we need to ask is: with this elaborate “scam” going on, will the trust in not only bitcoin but all cryptocurrency be lost? With companies holding such large hash-power, it is whatever they want. No matter what happens, they come out on top. Will BTC stay at the ‘go to’ coin or will this open the eyes of the people and move to another coin (namely an ASIC-Resistant coin)?

Trust is easy to lose, and extremely hard to gain. This stunt could have devastating, unforeseeable consequences in coming months/years

 

  1. ekkis says:

    pull out completely to fiat? are you mad?? and what about BCG? you don’t mention that at all

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