RE: OBC rise to continue3 Jan 2021 07:13
OBC has so much going for it that it could explode up from its current £5m market cap.
As per previous posts, unfortunately that will always attract some critics, but they are barking up the wrong tree with this one.
Lots of ARB holders seem to be deramping OBC in an attempt to promote their share and coax investors with an interest in crypto across there. I find this behaviour very ugly, but it has made me want to respond by highlighting why I chose to avoid bitcoin miners when I wanted more exposure to cryptos and blockchains in my portfolio. Instead, choosing to invest in cryptos directly and in OBC.
Crypto mining is fraught with difficulty and the control is completely out of the miners’ hands. The mining algorithms are made progressively harder to negate for increasing computer power and to limit the flow of new coins. This happens in small amounts all the time, but the owners can also step it up whenever they want. They last did this for bitcoin on 17th November, which instantly resulted in ARBs mining productivity dropping a further 20% (see Dec 3 RNS). Their monthly mining numbers have dropped by over 60% this year alone (see progressive monthly RNS updates for 2020). They will get a bit more computing capacity (at more cost) in March, but until then, their mining numbers will continue to drop. Watch when December mining figures are released this week. ARB has risen by a similar percentage to bitcoin over recent months, but is a much more risky play than just buying the crypto currencies directly. If bitcoin price drops, ARB drops. If bitcoin price continues to rise, the owners will just makes the mining algorithms much harder again, making it slower and more costly for ARB to mine. Mining it is a constant battle against the ever increasing algorithm difficulties. The crypto owners have complete control.
OBC on the other hand fully own their cryptos and blockchain techs so have complete control over them. They will also directly benefit from increases in the more mainstream cryptos like bitcoin through their other components, like freefaucet. Here, users get rewarded in cryptos (including bitcoin) for online activity. OBC make money from it through advertising revenues and user membership subscriptions. Revenues from this were already increasing before bitcoin took off and it will undoubtedly be even more popular now.
Bitcoin price increases are good for OBC because freefaucet revenues will benefit, but mainly because it’s a marker of sentiment in the sector. The values of all OBCs fully owned cryptos and blockchain techs are rising massively as sector sentiment increases. This is why I chose to invest in OBC when I saw the crypto sentiment rising, instead of miners who are completely at the whim of the crypto owners changing their algorithms. OBCs fully owned cryptos are already each up 100s of percent as sector sentiment has increased over recent months, and they are continuing to rise.
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