This is a story of tow bitcoins. after a split which was created Bitcoin (BTC) and Bitcoin Cash (BCH) in August, We have already reached another way as well. while another hard split was planned in the middle of November to increase the Bitcoin’s block size, this slit is now no more. The lack of Agreement among the Bitcoin community was quoted as the reason for abandoning the SegWit2x plan.
Abandoning the split increased the Bitcoin price from $7,200 to $7,800 as the traders realized the problem ( an ugly split) that would be avoided. Anyhow, the excitement is still not ended. Bitcoin is now trading at $6,000 since the traders and investors are scared of SegWit because it will not create enough capacity for scale. There are still more than 1,40,000 unconfirmed bitcoin transactions remaining.
As temporarily, Bitcoin cash was the surprise winner. The currency which has been flowing steadily downward and had increased as high as $2,600 as a surprising pump following the news of SegWit2x’s cancellation. while the price has experienced with 50% retrace, the speculators were stunned at the sudden increment.
An experiential critical point for bitcoin
The lack of the clear path for Bitcoin’s scaling issues is having a serious impact on Bitcoin’s price. As more users use Bitcoin and its popularity increases, there is a growing danger that it will be a victim of its own success. Charles Hoskinson, CEO of Input-Output Hong Kong, described the challenge facing Bitcoin:
“Bitcoin is an existential crisis where it has grown large enough and attracted enough quality people to provide very clear yet different roadmaps for the future backed by passion, money, and brilliance. From one perspective this creates friction and has resulted in splits. From another, we get to see in parallel both philosophies play out in real time and compete for market share.In the end, it’s impossible to say who will win, but this is a predictable sign of maturity rather than a symptom of chaos. No ecosystem can keep everyone happy nor can it satisfy divergent visions. So they have to find a way to split like so many open source projects before then without destroying the value already accumulated and the underlying communities.
More Users and More Confusions
Bitcoin’s high prices may have drawn users like bees to honey but many are likely not savvy. There is a high degree of confusion among these users that are making matters worse. A lot of them can’t probably tell the two Bitcoins apart from each other. We talked with Fran Strajnar, CEO of Bravenewcoin, who thinks we are going through yet another round of FUD (fear, uncertainty, and doubt). He tells us:
Bitcoin’s high prices can draw users like bees to honey but for many users, it is not so easy. There is a huge confusion among these users, who are making the things worse. Most of them cannot even probably tell the two bitcoins apart from the each other. CEO of Bravenewscoin Fran Strjnar says:
“I think the current FUD is very confusing to the millions of new people pouring into the crypto space for the first time. ‘Bitcoin,’ ‘Bitcoin-Cash’ is enough to confuse people as it is.”
BCH is a classic pump or dump?
Altcoins are no stranger to the occurrence of pump and dump. Still those people out there, who has the capacity to increase the price of a particular coin and when there is enough buzz around a coin, it is simply the matter of dumping it and making a neat profit. Kumar Gaurav, Chairman of Auxesis Group and founder of Cashaa talking about the recent increase in BCH (BCC) prices:
“The quick rise [of BCH] from around 600 to 2400 USD in a few days makes it look like a typical artificial pump which was already being followed by a dump back to $1300 USD within 30 min. As compared to the FX market, the crypto market is still small, it is easy to do that and can not be used to estimate the future of BTC vs BCC.”
Gaurav also added:
“Compared to that, Bitcoin has already overcome many challenges, keeps following its pattern of steady rise and its current downwards push is one of the many only temporary ones such as in July and September this year, so we can expect it to be back on the way to 8000 USD soon, whereas [BCH] is too new to estimate whether it will grow in the long term or whether the current move was one of the typical altcoins’ pump and dumps.”
Fran also added:
“However I expect Bitcoin to be ‘just fine’ if it stays above $4500 as the smart money realizes that BCH has no advantage, support or adoption like BTC has.”
Both the Bitcoins can stay along peacefully
The good news is that as more people use cryptocurrencies, there is space for both flavors of Bitcoin to exist and rule. As for the argument within the Bitcoin community, you can’t really rule out more splits or more Bitcoin variants in the future either. This is just the way cryptocurrencies are.
“Bitcoin Cash seems to be a productive split with its existence neither threatening Bitcoin’s nor requiring support from Bitcoin’s remaining adherents. Now Bitcoin is free to provide its small-block vision and cash the large block. My hope is that this will reduce fighting in the long run as both sides realize that the other isn’t going away. Just like we did with Ethereum and Ethereum classic.”
Maybe the democracy is the biggest winner and a byproduct of the cryptocurrencies.