KiloCoin - How Trash Coins & FUD are Killing Bitcoin’s Recovery
As of February 2nd, 2018, Bitcoin has slipped below $9,000. What is more, fear, uncertainty, and doubt (FUD) is dominating cryptocurrency news headlines like never before in recent history. The only problem is that the FUD should really be over by now.
Why Bitcoin FUD Shouldn't Even be an Issue Right Now
In recent days, it has been announced that Samsung has invested heavily in the manufacturing of cryptocurrency mining hardware. In like regard, none other than Goldman Sachs luminary Alan Greenspan, has come out to warn of an upcoming stock market correction. All this being the case, the cryptocurrency market should be in full recovery mode.
Sadly, the digital currency market isn’t recovering. If anything, asset prices are pulling back more aggressively than ever. The only question is, why?
KiloCoin & Pumping and Dumping of Other Trash Coins
One thing which no one seems to be talking about at present, is the continuing pumping and dumping of altcoins which are essentially just junk.
To demonstrate, one coin which mooned on February 1st, was none other than KiloCoin, one of the most transparently awful coins on the cryptocurrency market
Calling itself ‘a lot like Litecoin,’ KiloCoin is in no way similar to Litecoin. More tellingly, KiloCoin plans to back each of its tokens with untapped Venezuelan gold reserves and logically, this simply isn’t going to happen.
While Bitcoin use in Venezuela did surge recently, authorities have since busied themselves attempting to ban and confiscate cryptocurrency mining equipment. Venezuela, after all, is on the cusp of launching the countries very own state-run cryptocurrency.
Regardless, however, of the sheer absurdity of KiloCoin, KiloCoin prices have recently rocketed up from $0.01 on January 9th, to a current high of $0.08. What is more, February 1st also saw Bitconnect Coin (BCC) briefly start recovering in value. (This despite the fact that Bitconnect itself collapsed fully a week ago.)
Why are Altcoins like KiloCoin Weathering Better?
Needless to say, coins like Bitconnect Coin shouldn’t be making even 0.001% gains given the current market conditions. The fact that they are, though, may be indicative of why the cryptocurrency market itself is taking so long to recover.
Where Pumping & Dumping Meets Panic Selling
The pumping and dumping of coin offerings like KiloCoin is nothing new. Bitcoin whales regularly bulk buy even novelty coins like Dogecoin. When novice investors see coin prices rising, they then invest also. What novice investors don’t realize, however, is that the same whales will pull their investments as soon as coin prices have increased more significantly.
Sadly, what is likely happening on the market at present, is the mass fleeing of new investors from top market coins like Bitcoin, as prices of tokens like KiloCoin start increasing.
People who paid $17,000 for Bitcoin in December, simply aren't willing to hold at $9,000. Instead, they are moving cash to coins which they think can help them recover their losses.The only problem, of course, is that such investors are losing everything by investing in the very worst altcoins.
When will Bitcoin Start to Recover?
If the above hypothesis is correct, Bitcoin and other top market cap coins won’t start to recover until there is no more cash left to pump the junk altcoin market.
Of course, this doesn’t mean that prices won’t increase again until Bitcoin reaches zero. All this means is that prices won’t recover until new to market investors stop blindly moving BTC, ETH, and LTC into worthless coins like Bitconnect.
Needless to say, putting a date on exactly when Bitcoin will start to recover, is altogether impossible. It should be noted, however, that Bitcoin might not now stabilize until it descends as far as it’s November 2017, $7,500 resistance level. All holders need to hope in the meantime, is that as Bitcoin crashes further, it takes the garbage from the altcoin market out with it.