Bitcoin Plummets while Bitcoin Cash Rises like Foam – What’s Happening?
The cryptocurrency market continues to show its high volatility: in recent days the valuation of bitcoin has fallen significantly, but what has been lost by this currency has been earned by Bitcoin Cash, the fork that was created in August 2017 and has grown to the beast, from the $350 at the end of October to the $2,350 that it’s now worth as of several hours ago.
Things have stabilized somewhat in the last couple of hours, but there is a clear reason for all these movements of madness: the cancellation of the hard fork that was proposed with the so-called Segwit2x has made those who supported a change in bitcoin that has not occurred. now his interest in the currency that came closest to the proposal of Segwit2x, and that was precisely Bitcoin Cash.
Some go down and others go up, but always in a big way
On November 8 a bitcoin was worth $7,776 dollars, but just four days later, on November 12, its value dropped to $5,519 dollars. The “descent into hell” was motivated by a week in which those responsible for the Segwit2x proposal announced that they preferred to cancel that hard fork to cause a split in the bitcoin community.
The cancellation of this proposal did not seem to have an impact on the cryptocurrency markets, but soon the movements among bitcoin investors who had supported the Segwit2x began. For them that cancellation was a jug of cold water that ended up making their interests align with those of the currency closest to that proposal, Bitcoin Cash.
Part of the problem lies in the bitcoin vision that large investors have of this cryptocurrency. Kyle Samani, a partner at consultancy MultiCoin Capital, said how many of them “believe in bitcoin as digital money, not as gold, and are fed up with the original bitcoin branch.” For those investors bitcoin should not be raised as a reserve of value as gold, but as a means of payment, something that for example is based on Bitcoin Cash.
It is as always impossible to predict what will happen in the short term with both alternatives, and in fact in the last hours the value of both has normalized: BitCoin Cash is now at $1,200 dollars, while a bitcoin is worth $6,320 dollars. The roller coaster of cryptocurrency is still basically just that, and it remains to be seen if these prices will hold…and for how long.