Why Bitcoin Cash Could Change The Crypto Game Forever... And That Isn't A Good Thing.
If you had Bitcoin, now you have Bitcoin Cash too. Yay... FREE Money... but at what cost? Could the creation of Bitcoin Cash could change the Crypto world forever?
Here's the thing, just two weeks ago, there wasn't even a plan for Bitcoin Cash, but in two weeks some very smart people created a new coin and split from Bitcoin and overnight gained a market cap of over $7 BILLION. Out of thin air...
If BCC can hold it's value then what is really driving the market? It doesn't have any real use yet and it hasn't done anything, but yet it is the 3 largest coin as of publishing this article. My grandmother always told me if something seems too good to be true, then it probably is.
If coins can just split and make the owners and investors more money, we might see a lot more coins deciding to fork like Bitcoin and Ethereum.
The problem is, it causes so much confusion and so much doubt. There is already a steep enough learning curve to get into crypto, adding confusion and tons of spin-off coins will really muddle the market. People are jumping in to crypto and have been all summer because they think they will get rich. When people start investing because they think they can get free money, that is when things go horribly bad.
With the sudden rise of Bitcoin Cash one of two things will happen.
1. The people who are in the know and holding tons of Bitcoin Cash will dump it and make it a short-lived coin that made some people a lot of money in a very short amount of time.
2. It will survive, have it's ups and downs and eventually find it's niche in the market.
But what will happen in a couple of years when Bitcoin needs to expand again? Will it happen again? What are the longterm effects of creating all of these forked coins? Is there any real value for the market? Of course there is value in it for the people creating money out of thin air, but is it really good for the crypto world in the long run. I don't think so.
(all gifs from www.giphy.com)
What are your thoughts? I would love to know. Thanks for reading.
To my followers, you are the glue that keeps me stuck on Steemit.
Since crypto is so volatile as a whole, AND since this fork thing crept up so suddenly - and without giving most of us busy people proper time to react soundly - I think the conservative approach taken by Coinbase is ideal for me. This recent article is a good read :
Trust Us On Bitcoin Cash Say Coinbase’s Brian Armstrong
http://www.trustnodes.com/2017/07/27/trust-us-bitcoin-cash-say-coinbases-brian-armstrong
I mean, the Coinbase folks have a good enough track record of making cautious decision AND making serious efforts to protect user account privacy, and so it is more valuable to let THEM weigh the risks, take the conservative approach, and if Bitcoin Cash DOES do well it APPEARS that they are insinuating that they will pay out some/all of that which is due to BTC holders. My guess is that they will put the Bitcoin Cash in some sort of escrow type account, and then if/when they feel it is a stable/valuable currency they will release the shares to users. I could be wrong of course, but this APPEARS to be the logic behind what they are doing - that is, proceeding with caution in order to avoid exposing account holders to excessive risk. Any thoughts?
Yeah, it's insane how "money" or "value" is just created out of thin air. Yes, I understand The Fed does this regularly as well. lol
Too soon to tell. I left my btc holdings in krakken. I'll probably sell the bch right quick. I'm not really sure how i feel about the sustainability of bch. I'm defintelt going to take advantage of its short term usage. But BTC will always be king IMO
I agree 100%. I had some on Kraken, but just deposited it all back into wallet. I'm going to hold on to my BCC for the time being. I'm interested to see what it does.
Thanks for the great reply. Hope all is well.
Just general life stress. But otherwise I'm good. I haven't been able to get on krakken like all night. It worked fine this morning and right after the fork...guess there's just a lot of traffic....I'll try again
Yes money is being made and created everyday. The same thing happens in all financial markets. Stocks go public and market caps are created today that did not exist yesterday in the public market (the company already existed and had the perceived / estimated value at the offer price) This is all a good thing for bitcoin .. and it is not free money -- all bitcoin holders earned this money riding it out through the fork. So enjoy the increased value, ride the markets and we will actually continue to see bitcoin improve as it has with BIP91 SegWit and now Bitcoin Cash. There is a lot of money in the world flowing into cryptos and we can have both BTC and BCC succeed... All good, not sure why the worry. If you need the money sell some for fiat.
I agree with you and I'm not worried for the short term, but unlike the financial markets and stock IPOs, there is no product or service that is being valued... With Bitcoin Cash, it was created and then they'll figure out how to use it. What worries me is the long-term effect. I agree this is great for bitcoin, but as the years pass, how many times will this happen? Why wouldn't it happen all the time to create billions out of thin air? It just bothers me a little. We get mad at the FED for printing money out of thin air, but crypto does it in a similar way. Not all cryptos but a lot of the smaller coins. It just find it interesting and we'll see what happens. I really appreciate the reply and well thought out response. You got a new follower.
Thank you! And I agree to a certain extent with your point and certainly you are right about the products/services/value offered from companies vs many of these coins. We may still be in the 'gold rush' days of crypto and there certainly is an element of pure money grab here. That is clear. My hope is that the best coins survive and many useless altcoins go to zero. This would be healthy and limit frivolous new coins and forks. Let's work towards ensuring the inherent - book value so to speak - vs the goodwill value in these coins.
ENOUGH with the fucking animated gifs, I think I'm fucking going crazy.
got it?
I appreciate the feedback, and you have supported me in the past and I appreciate that, but there is no need to come on my blog and tell me what to do and cuss at me. That I don't appreciate. If you don't like what I do, just don't read and reply. I'm cool with that. If you think I am doing something wrong, point it out, but don't be rude.
It is interesting to see how this new form of a digital stock split is going to affect the future of crypto. The 7B market cap is obviously inflated for now and it should settle into the top ten within a few weeks.
You are probably right and it is interesting. 7B is just crazy though, lol. We'll see where it settles. Thanks for the reply, you got a new follower.
I know some not so savvy people who owns a lot of Bitcoin. Smart people who bought tons of it back in 2012-2013. I don't even know if they know it has forked. What happens if they spend some bitcoin? I mean if you have them on for example Electrum wallet and you havent split them?
And another question; I have mine on Electrum wallet, and I have to manually split them. Right now, that doesnt seem safe to do with the electron cash. Can I wait (hypotethically forever?) There is no time limit to split my btc into bcc?
Great questions. I don't know about the Electrum wallet, but yes to the second question. If you have your private keys and you held Bitcoin when the fork happened, you should be able to claim the BCC whenever you want.
Great questions... I'm going to look into the first one a little more. I don't want to give you the wrong answer.