SegWit2x Is Going To Be A Bloodbath - Here's My Strategy
There is so much uncertainty going into the upcoming SegWit2x hard fork in mid November.
For those who haven't yet got your head around the fork, here's a great summary.
There are a few issues.
There are growing murmurs that neither BTC or B2X should be the 'chosen one'. Many believe that Bitcoin Cash actually aligns better with the vision Satoshi had when he created the digital currency. Some people have been calling on miners to abandon the fork and instead back BCH. As a result, BCH price has climbed to ~$650 - many are using it as an insurance policy if both BTC and B2X fail. Here is an open letter to miners appealing for this to occur. There is a fair bit I disagree with in this letter, however it does raise cause for concern.
Regardless, people are loading up on Bitcoin like mad. The price hit an ATH of US$7367 yesterday. It has since cooled off to $~7200.
I'm feeling more and more nervous about this fork. Originally I had suggested holding BTC into the fork, claiming B2X and then immediately (<30 mins) selling off for alts. Personally I am changing my position at this time. Here's what I have done:
- Sold 50% of my BTC holding back into alts (mainly ETH)
- Sold 25% of my BTC holding into Bitcoin Cash, has a hedge/insurance against possible bloodbath or SegWit2x nonevent
- HODL 25% BTC, waiting to claim B2X. After the fork I will either sell B2X +/- BTC for alts, and look at rebuying into whichever chain becomes dominant
Some of you may not agree with this strategy, however I feel it is a safer option going into the fork while still allowing me to profit if the fork goes through successfully.
Let me know your thoughts/concerns on this strategy.