Hey Hivers
Did you see that?
Did you notice that the current values in your account have increased by about 50%? At least that was the case at the time of the writing of this post.
Can someone please explain what's going on? I'm often clueless of the cause of these random occurrences.
Or should I say perplexed by the sudden rise in this blockchain currency.
If you have some insight, please shed some light.
Keep going Hive.
Stay connected, stay safe.
Quite often there are sudden pumps in HIVE and HBD (one happened in HBD earlier in the week). Many say this is the market being pumped by Korean investors (I dont have concrete proof that that is the case, but thats what the grapevine generally says when it happens). If BTC isnt doing the same, at the same time, then once the pump is over, it can then relax back down to roughly where it was, which we seem to be seeing with this pump. The pumps do present an opportunity, if you have liquid reserves available to take advantage of them.
When HIVE pumps, you can basically buy HBD cheaper - with the aim being to buy HBD with HIVE at as close to the peak as you can, and then when it relaxes back to where it was, you can simply sell the HBD back again for HIVE. That is, if you can get the market timings right - which is the hard part.
And then the opposite is true for an HBD pump. These can be hard to catch because there is a mechanism that pegs HBD to $1 - when the pump happens, it does not last as long because the mechanism kicks in and takes its value back to $1. But its a similar thing, when HBD is high, then its a good opportunity for buy HIVE with HBD, and then resell it again when HBD gets back to its $1 peg.
Its very difficult to time, and you have to be online at the time if you are trying to do it live - plus all the good advice tells us not too try and time the market, because that is impossible. Alternatively, you can set up buy/sell orders in anticipation of a pump (for either) on the hope that it will come. It means having liquid funds available and sitting around doing nothing else while waiting for a pump, which can sometimes take a good few months to come - but it can be lucrative if you get the numbers right
Anyway, I hope that helps to explain things (thats how I see it anyway !).
Cheers @hoosie
Hello @hoosie
Thanks for dropping by to give such and great explanation of what has been happening. I have indeed heard the Korean investor explanation in past so I'm also interested in why they would do that and why it's always them?
Your approach to the situation is very interesting so I'll definitely refer to your comment again in the future when my strategy changes from building HP.
Again thanks for the super explanation.
!ALIVE
@hoosie! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @bearmol. (1/10)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
