Why is the crypto market so slow for weeks now?
Hello Everyone,
Wondering why is the crypto market which has high volatility and quick gains reluctant now? It has become slow in terms of growth and moreover shed off more than 10 billion dollars in the last 2 weeks.
Well, so may say profit taking by traders has caused this, but what I see is a dip in confidence of traders in bitcoin as the major factor for this change and I can surely say this will remain the same till the hard fork happens.
Bitcoin hard fork scheduled for August 1, 2017.
An extract from the Bitcoin Scaling Agreement, SegWit + 2MB Hard Fork:
“This hard-fork is expected to include features which are currently being discussed within technical communities, including an increase in the non-witness data to be around 2 MB, with the total size no more than 4 MB, and will only be adopted with broad support across the entire Bitcoin community. We will run a SegWit release in production by the time such a hard-fork is released in a version of Bitcoin Core,”
Whats a hard fork?
A permanent divergence in the block chain, commonly occurs when non-upgraded nodes can’t validate blocks created by upgraded nodes that follow newer consensus rules.
Its simple as mentioned above. The blockchain splits in two networks.
What should you do about it?
Well, there is nothing you can do about it. Just remember, if you own a bitcoin and hard fork happens, then you have bitcoins on both the networks. There is nothing to worry about.
What will the price of bitcoin be after the hard fork?
Thats something tricky, but I predict the price of both the coins bitcoin and bitcoin unlimited will dip very low and then as per adoption in early weeks one of them would gain the current price of over $2500 and then start scaling normally.
How is the hard fork announcement affecting the price of other coins to lower continuously?
Bitcoin is one of the biggest market capitalised coin and the only one with the vision of becoming a currency globally. Other coins do not have that goal, but have different goals which are important to them. As I say 60% of the traders do not have the knowledge of what they are investing in and only invests gambling on higher and quick returns.
As Bitcoin is the major and main currency out there, other coins follow the trend in terms of market sentiment and traders mood fluctuate as bitcoin moves forth or backward.
I could say hard fork may bring a temporary huge panic in all markets. But holding on and being patient at that time will help everyone in the longer term.
I find this only reason for the market being slow at the moment, traders are confused about the outcomes of the hard fork and the 60% traders I say have no clue so most of them are out with their returns already.
I would say this is the perfect time to invest and keep your belief and research on while we all prosper together.
Thanks.
Shrirang
Follow my other important post on Ethereum Vs. Bitcoin here:
There is no hard-fork scheduled for 1st August. There are parties that signed New Your Agreement agreeing to 2MB block hard-fork in 6 months after SegWit is activated. That should be around 18th of November. And in my opinion most of them will change their minds about 2MB blocks, since they are not a necessity at this time. Maybe next year or a year after that. And even that doesn't mean that two coins will appear. Yes, it requires a hard-fork to run 2MB blocks, but if everyone will run the same code, we will end up with a single chain.
Possible, however, we are still unclear. I have been getting this date from within the community. I would wait and watch.
This date was for USAF (user activated soft-fork) with BIP 148. If SegWit2x doesn't start activation before August 1st or doesn't have enough support, USAF is still a go. But don't confuse it with the hard-fork.
Are we sure this fork will split the chain in 2?
Yes, that is what is agreed at Consensus 2017. Likely to happen on August 1. That is why you dont see much movement in the prices as we are nearing the date.