Thursday, August 3, 2017

Bitcoin Cash, a fruit of hard fork

On July 1st, 2017, Bitcoin encountered a hard fork, finally.

Bitcoin Cash emerged following supporters of an alternative solution for the issue of scalability.

Some trading post provided Bitcoin Cash to the users who were storing Bitcoin. Most posts offered the same amount of coins as they stock. Thus, the number of coins was approximately doubled.

Theoretically, the total value of Bitcoin and Bitcoin Cash should be the same of that of current Bitcoin. There is no additional value produced. However, while the price of Bitcoin Cash is fluctuating, the price of Bitcoin is not so decreasing. As a result, the total value of these coins is now 1.1 times of that in the past.

This issue is not so simple, of course. The price of Bitcoin was considerably damaged by the rumor of the hard fork. In this sense, Bitcoin Cash was cannibalizing Bitcoin for these some months.

Now, the price of Bitcoin Cash is over 600 USD. I think it is over evaluated. Bitcoin Cash is still an immature and vulnerable cryptocurrency. The bubble of Bitcoin Cash will burst soon, I prospect.


No comments:

Post a Comment