BITCOIN BREAKS 5000$ MARGIN BUT HUGE DANGERS AHEAD
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Bitcoin is going up and up . Right after the china ban i had advised in my previous posts to a lot of people to buy when the price was around 3000$ and congrats to everyone who made a profit . Well , since the cryptocurrency has now broken the 5000$ barrier i see a lot of risks ,atleast especially till the end of december
WHY ? U ASK . I got 2 reasons .
- BITCOIN GOLD - JUST like bitcoin cash , bitcoin gold is another upcoming fork that is probably going to happen in last week of october .
Why a fork ? - When bitcoin was launched ,it was extremely easy to mine it in a home computer , but right now the only thing that can profitably mine bitcoins are chinese AISC's . With cheap power and huge technology and innovation banking ,the bitcoin mining industry had monopolised in china , until the recent ban on ico and exchanges . To avoid this and to make bitcoin mineable again in home computers , we have .. ta daaaa...BITCOIN GOLD . If i was to analyse why the price of bitcoin is going so high , i would say that it is because of the incoming fork . When bitcoin cash was created , anyone who owned bitcoin got a free small amount of bitcoin cash . Basically free money . Same thing will happen with btc gold
SO YOU GET FREE MONEY , WATS THE RISK ? - well for starters unline bitcoin cash btc gold doesnt have a lot of support from the mining comminuty . Its just a bunch of miners unhappy with monopoly . So with new forks , the price of bitcoin may stumble and imbalances might be created leading to a price decrease
For more info on btc gold
https://bitcointechtalk.com/bitcoin-gold-what-you-need-to-know-8b3e645be409
SEGWIT 2x - This is another proposal to increase the transaction capacity of bitcoin . Without going into too much detail , segwit 2x increases the capacity of bitcoin from 1mb to 2mb . WHAT IT MEANS ?
Faster transactions - since right now the capacity is only 1m , it takes a long time for transactions to be confirmed and the fees paid on transferring is also quite high . With an increased block size , these costs will come down .
Accepted and more accessible - since the segwit2x is accepted by a large group of miners , bitcoin will relatively become more accessible leading to a huge price ... so why DANGEROUS ?
The proposal although supported by bitcoin miners are not supported by butcoin companies and users . The rusk is that segwit x does not get the acceptance it needs and thus creates another FORK IN BITCOIN leading to more uncertainities and competing bitcoin assets .
For a detailed segitx explanation . .
https://www.coindesk.com/explainer-what-is-segwit2x-and-what-does-it-mean-for-bitcoin/