Tuesday, August 01, 2017

The User Activated Hard Fork is About to Happen ...

... here in a couple of hours, although there will be dislocations/issues early on. Bitcoin is going to split into BTC (Bitcoin) and BCC (Bitcoin Cash).

To the extent that I "go long" (I have very little cryptocurrency), my plan is to probably do so on BCC. Here's why:

Regular old Bitcoin is going to implement a "solution" (Segregated Witness) to a problem that's entirely artificial, created by "Big Mining" to preserve its big take at the expense of the cryptocurrency becoming slower and more expensive to use than it should have become.

Bitcoin Cash is going to solve that "problem" by doing exactly what its creator envisioned (increasing the block size so that transactions can get back to being processed quickly and cheaply).

It's not so much that I expect Bitcoin Cash to "win" as that I want it to, because I want a working cryptocurrency -- something I'll eventually be able to use to buy a Coke at a convenience store. If either of these two currencies might become that, I think Bitcoin Cash is the one to bet on.

I do expect BCC to almost immediately crash in price and BTC to gain -- and if I can move fast enough and predict the equation well enough to take advantage of that, I will be exchanging my BTC for BCC. Because in the long term, I expect BCC to do well, regardless of how BTC does.

If you think BCC is crap and is going to quickly become worthless, I encourage you to donate yours to me -- as soon as my preferred wallet starts taking BCC, I'll get a QR code up for you to do so :) You can, of course, send me regular old BTC via the right sidebar already.

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