Could Bitcoin become a big loser as a new Civil War between Bitcoin, Bitcoin Cash, and Bitcoin Gold takes shape
Could Bitcoin become a big loser as a new Civil War between Bitcoin, Bitcoin Cash, and Bitcoin Gold takes shape by Ken Schortgen – The Daily Economist
As Bitcoin Gold goes live today on Nov. 12, the markets have seen the price of Bitcoin fall from an all-time high last week of $7880 down to an interday low of $5604 just four days later. And while the price recovered a bit following today’s opening selloff, it means that Bitcoin owners have seen a decline in value of 29% in just over half a week’s time.
Contrary to the idealistic mantra’s that Bitcoin evangelists have been trying to push that Bitcoin and other cryptocurrencies are the wave of the future in replacing sovereign fiat currencies, the reality today is that they are no different than any other tradable asset, and thus subject to the whims of investors who have now begun to day trade in and out of Bitcoin as well as their derivatives in Bitcoin Cash and as of today, Bitcoin Gold.
In the last few days, a previous fork of Bitcoin (BTC) called Bitcoin Cash (BCH) that was launched in August and immediately dismissed by many Bitcoiners and the wider crypto world alike, has skyrocketed in value. After languishing in the $300 range for a while and jumping up to the $600 range in November, it has now nearly quadrupled to around $2,500 a coin as of press time — it had traded as low as $650 on Friday.
Meanwhile, Bitcoin, which was trading at an all-time high of around $7,800 on Wednesday, is now down to around $6,000 as of press time but had dipped as low as about $5,500.
Kyle Samani, managing partner of MultiCoin Capital, wrote in a message, “There were lots of Bitcoin Cash whales who were in early on Bitcoin who were waiting to see what would happen with 2x. Now they’re making their move. They’re dumping BTC for BCH….I know many Bitcoin OGs who have dumped $10m+ of BTC for BCH … Turns out there were a lot more BCH ideologues than we all thought.” – Forbes
Even though the Segwit2x group has decided to at least temporarily abandon their hard fork scheme, the problems with Bitcoin’s speed and transactability remain. And because two previous forks have spawned two new alternatives to the original, it appears we are seeing a shift among original Bitcoin holders to begin dumping their coins en masse to buy into Bitcoin Cash or Bitcoin Gold to ride that wave as far as they may go.