People think they are making a profit from bitcoin gold but actually they are making a loss if they are buying bitcoin right now : My detail analysis
My Detail Analysis on recent price increase of Bitcoin and decrease on the price of other alt coins.
People make these common mistakes when they are trading in stock that is why they don't win in the long run, Below are some of the common facts that people missed before investing in bitcoin right now. they think they are making a short term profit but i will prove how they are going to make a net loss.
Fact 1 : Market cap of Crypto currencies are still the same as of 10 days ago $152 billions hence no new money coming in crypto technology just the current money flowing from here and there within crypto economy.
Fact 2 : Bitcoin Offered a free Bitcoin gold coin to every bitcoin holder which will have (assuming) $300 price so everyone wants to enjoy free profits right.
Fact 3 : Bitcoin Value have increased from $4100 to $4800 in last days so without any new money flowing into the market is proof enough this $4800 is inflated and people who are buying a $4100 worth of coin at $4800 just because of the free coin offer would be buying Bitcoin at a $700 more than its actual worth.
so even if u get a free profit of $300 u are making a net loss of $400 but wait this not the total amount of loss they are making there is more to the story.
Fact 4 : People are selling their alt coins to buy bitcoins at a price less than they actually worth for Example if people are moving from Ethereum to Bitcoin just to avail a free coin
ethereum was valued at $308 as of 9 oct 2017 and right now it is valued at $296.
so if someone is moving his/her money from ethereum to bitcoin right now to avail the free coin will be making this loss on each bitcoin they buy.
To buy 1 bitcoin they have to sell 16 ethereum coins $4800/$296 = 16 coins
Net loss = $308-$296*16 = $192 (ethereum sold at a price less than they actually worth).
Fact 5 : once on 25 october they avail the bitcoin people will start moving their money to the alt coins in which technology they believed it (Resulting a decrease ...