Here’s another blog response to Adam’s Bitcoin vlog on YouTube. Adam emailed me yesterday and it was nice to get real feedback on my blog for a change. Adam’s latest video (the one I watched before this) says he has two new clients. It would be cool if they came from my blog ;-) Probably not, but congrats to Adam.
He mentions the fundamentals of Dash and daytraders. Sure, I think daytraders are probably watching Dash because it’s a “top 5” coin. But like I posted last night, the Dash chart looks good to me long term. What does that mean?
Before any new coin can start on a long, upward trajectory, it has to pay the founding creators/miners some real returns before the price can start to swing up. I think those early adopters are just waiting for a payday, for the fruits of their labor to ripen, because I assume they have bills to pay.
So before you buy a coin, I suggest you look for a high adoption price early on from the launch, followed by a long “founder selloff” where the early users get paid something for their initial effort. Eventually, new demand starts to outpace the founders’ urge to sell and the price starts to rise, which as a chart looks like the bottom of a big canyon.
I think most promising coins, as a right of passage, drop into that canyon, conceptually speaking. Then, if they’re lucky enough to outperform BTC, at some point the other side of the canyon forms. If the other side of the canyon never forms and the chart starts to look like a journey to Atlantis, then maybe BTC is just better and there’s little reason to consider a failing alternative.
When I look at DASH and NXT, my impression is they made it through their growing pains and have a chance to rise relative to BTC.
Also the bit at the end about ETC is interesting. Basically, I think he’s hinting there’s an opportunity in September because the Ethereum hacker from a while back (that caused the split between ETH and ETC) has some kind of limited time window, but I’d have to do more research to verify the significance of this September date.