BTFD in Crypto?

I sold more EOS for BCH this past week and added to my fiat. I didn’t like the uncertainty in the charts. Crypto was dancing on the edge of a razor blade.

BCH was on critical support at ~$1200. It held for days (unusual in Crypto). I was waiting for confirmation if this was accumulation or distribution.

BTC is breaking up this morning and most of the market is following.

It may be time to be buying again.

Caveat: I am sticking to my thesis that the amount of malinvestment in Crypto is a systemic risk. There are too many coins that are complete garbage. The Consensus event in NYC produced ZERO interesting announcements, partnerships or momentum.

There is also the SEC to consider. They may rule at any time that Crypto is a security. Some believe this would be a big problem for Crypto but I am not so sure. There’s no way for the SEC to regulate Crypto. They can pass laws to limit Crypto but Crypto is global and there’s no single entity to shutdown. The genie is out of the bottle. However, the SEC did create a honeypot website with a fake coin that has many concerned they are lining up to take action to “protect consumers”.

Those risks are not new in Crypto though. The details change but there’s always been a threat that a government would “shut down Bitcoin”. It’s impossible without shutting down the Internet.

With that said I want to highlight the difference in Crypto between BCH and everything else. Case in point:

hahaha….https://t.co/g6f1lhmpGC

— Calvin Ayre (@CalvinAyre) May 20, 2018

In the top picture you have four leaders in top coins: ETH, BTC, LTC and XMR. They created a youtube channel called Magical Crypto Friends. Imagine My Little Pony mixed with Crypto culture. Cryptos is full of trolls but …how can you take that shit seriously?

The bottom picture is Calvin Ayre who hosted the BCH CoingGeek conference in Hong Kong on Friday. Contrary to Consensus the CoinGeek conference was focused on several big announcements related to BCH: a BCH SDK, BCH adoption by purse.io, atomic swaps coming to BCH, capacity increase to match Paypal transaction volume, and oblivious transfers for privacy. Yes, that’s a lot of tech and it will get normalized/transparent for the average user over time. This is how tech moves. The roadmap has been laid and now the appreciation will grow as adoption grows. It’s still early.

In terms of tech and new partnerships BCH reminds me of ETH during it’s epic run in 2017 before the severe limitations of ETH as a platform were exposed.

The challenge and the opportunity: the market hasn’t figured out what coins have value and what is complete garbage. The challenge is that good coins my get dragged down with market volatility as zero value coins approach their true value of ZERO. Price discovery is a bitch. The opportunity is that if you can muster foresight and some fortitude you can buy coins today that will have outrageous gains as they cannibalize the rest of the market over the next 2 years.

EOS has it’s mainnet launch June 1st. For the past year EOS has been nothing more than a token. In other words, startup phase with no actual product. Extreme volatility ahead for EOS as it goes live.

Long BCH. Trading in and out of EOS.