You are viewing a single comment's thread from:

RE: The Black Swan That Could Turn Bitcoin Upside Down

in #bitcoin7 years ago (edited)

Found your post very amusing. However, it is of course all complete nonsense. The amount of mining activity in a network really does not determine the value of the currency being mined. First, we have to remember that Bitcoin has really become a digital store of value (like gold) rather than a daily transactional currency. There are other blockchain currencies that are better, faster, and cheaper than Bitcoin in every way that will be used for day to day spending. The reality is, if the Bitcoin network were to become temporarily extremely slow and sending would be very expensive that would not undermine the value of bitcoin (a case can be made that it might actually go up in value). If you purchase a gold coin or a bar of gold, it might not arrive that fast. Regarding Bitcoin Cash, unfortunately it has no reason to exist because there are other cryptocurrencies that already provide the very same function, like Litecoin or Dash. It is extremely unlikely that Bitcoin Cash will become "Bitcoin" due to a powerful network effect. So the only thing that your article was able to demonstrate is that hashing power may drift to Bitcoin Cash and make the "original" Bitcoin slow and expensive to send (I only say original because its the one with ticker symbol BTC and BTC will always have the network effect). Ok, who cares? That will not harm its price. There is no question that BTC will continue making massive gains over time and I hope to see about $500k per Bitcoin in 3 years. The same thing can't be said about Bitcoin Cash because it is a much more speculative investment.

Coin Marketplace

STEEM 0.30
TRX 0.11
JST 0.033
BTC 64320.07
ETH 3154.23
USDT 1.00
SBD 4.34