BCH FOMO Theory =============== Both BTC and BCH have a 21 Million total supply. BCH was so undervalued against BTC, 1 BTC used to buy 100+ BCH. Now when someone converts 1 BTC to 100 BCH, 100 BCH is taken out of circulation and held for speculation, this increases BCH price a little bit. Now let us say, 1 BTC only buys 97 BCH after the price increase, speculators notice BCH is growing faster than BTC on a percentage return basis as a result more BTC speculators convert their BTC to BCH. When 100,000 BTC is converted into BCH, 10,000,000 BCH should be taken out of circulation. However, it doesn't play out like that in reality, as more and more speculators convert their BTC for BCH, the number of BCH a BTC buys decreases because of the appreciating price and increased demand. So, 100,000 BTC will take out 4-6 million BCH out of circulation. Once this feedback loop starts, the price of BCH is going to go parabolic. We may see 6K to 10K bitcoin in an unbelievably short period of time. PS: I am a random homeless guy. Don't take investment advice from a homeless guy. Do your own research.
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2 comments
In principle it is true, except that the BTC is not only converted to BCH.
Great point. This would be still true if BCH is the most undervalued (coinfairvalue) crypto, if all other coins are fairly valued or valued at a premium then BCH will rise faster than others, but the numbers I mentioned won't be the same. They are just approximations anyway.