Friday, July 30, 2021
Altcoins BitTorrent Could Rebound With Bitcoin, But Be Aware It's Very Risky

BitTorrent Could Rebound With Bitcoin, But Be Aware It’s Very Risky

- Advertisement -

In the past several months BitTorrent (CCC:BTT-USD) has been through some rough seas. The BTT crypto has dropped precipitously from a peak of 1.1 cents per token on March 28. Now it’s trading below 0.20 cents per BTT crypto token. That represents a drop of 81.8% from its peak.

Source: Shutterstock

- Advertisement -

But that is not the only news. BitTorrent’s token is still well up for the year. Coindesk indicates that it ended 2020 at a price of 0.0289 cents. So at today’s price of about 0.20 cents, it is still up 5.92 times its price at the end of 2020 (i.e., (020 / 0.00289)-1=5.92).

This kind of volatility is typical of several “altcoins,” or alternative cryptocurrencies to Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD). They tend to have a super-leveraged price experience, both on the upside and on the downside.

For example, at its peak on March 28 this year, the BTT crypto token was up 37 times in the space of 3 months. By comparison, Bitcoin at its peak on April 12 was at $63,503, but on December 31, 2020, it closed the year at $29,374.15. So its peak gain was “just” up 116%, compared to BitTorrent’s 3,700% gain. And from its peak Bitcoin is down 53.3% at $29,670 as of July 20. That is less than BitTorrent’s 81.8% drop.

- Advertisement -

So, that begs the question. If Bitcoin rebounds, will BTT crypto recover just as much? The answer is it is highly likely that BitTorrent will stage a major comeback, probably much more than BTC. In fact, at one point, BTT crypto spiked 60% in one day. This is based on its historical pattern, as I have shown.

Where Things Stand With BitTorrent

Developments with BitTorrent have not changed much since my last article on the altcoin on June 7. BitTorrent’s technology was bought by Tron, run by Justin Sun, in 2018. Tron has been trying to expand its integration with Tron and its media usage ever since then.

BitTorrent became well-known after the launch of the BitTorrent token, with the ticker BTT, on Tron’s blockchain in 2019. It operates in the form of a TRC-10 token.

But it’s funny. There were plenty of articles on BitTorrent when the altcoin was moving up dramatically. Then, when it dropped, nothing. No one wants to talk about the cryptocurrency then. Their interest in its progress is minimal, especially since there hadn’t been any news publicly on its progress.

What to Do with BTT Crypto Now

I actually bought some BTT after it had fallen 36% off of its high and I thought it might be a bargain. I also suspected that I would have to buy more in the future in order to average cost into my holding. And I suspect that is just what I will do with the currency. Now, my investment, although small, is down over 71%, even though I bought it at a huge discount from its peak.

Interestingly, that sort of makes me want to see it fall further in order to be able to lower my future cost in the torrent. And it also means that the more it falls the less I have to spend to lower my cost.

But keep this in mind as well. This is an extremely volatile crypto. I have accepted that ahead of time, partly because I am willing to buy the altcoin knowing that I may have to average cost into it. In other words, BTT crypto is highly speculative and not for the defensive investor. Don’t buy into this altcoin without realizing how volatile it can be.

On the date of publication, Mark R. Hake held a long position in BitTorrent, Bitcoin, and Ethereum but not any other security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.

Source link

- Advertisement -

Most Popular

Recent Comments