After the Bitcoin’s Fork…
Well, time for a bit of: “I told you so”
On July 25th, I made the recommendation to buy bitcoin ahead of the fork. Today bitcoin topped US$3,300.
When I made the buy recommendation the price was around US$2,560.
Also, as I anticipated, the currency did fork and create two currencies, meaning if you followed my buy trade – you would have increased substantially your money and you would also be holding bitcoin cash (BCH) which is now trading at $330 up 29% in the last hour. I recommend if you do hold bitcoin, you need to take some steps to split out BCH, and sell the BCH as soon as you can.
We’ve seen with ethereum classic there is market appetite for these spin off “mistake” currencies – but in my mind – it doesn’t have the critical mass or support to remain a dominant player. I think we’ll see these mistake coins crash and burn in the long run. Time will tell…
In any event, everyone who owned bitcoin at the time of the split owns both the new bitcoin and this alternative of the old bitcoin blockchain BCH.
But – you have to do something first.
How to cash out your bitcoin cash?
Some exchanges are supporting it (such as coinbase) but others have created a complicated debacle. If you want an article on futures, and why it’s just as complicated in crypto as in the ‘real world’ – this article is a good read (warning: fairly technical and not an easy read for the casual observer) but nonetheless a very interesting article, especially with those familiar with trading options or other financial derivatives.
Final word of advice, you always – always should keep wallets locally on your device or ideally backed up in cold storage. In a future newsletter I’ll detail how to be secure with your private keys.
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