Sticking With The Original: Why I Am A Believer In BTC Over The Forked Coins
It appears that Bitcoin is headed for another fork somewhere around the beginning of November. This will be the second fork in a 3 month span. This time, it is the Chinese miners who are leading the charge.
This is putting some uncertainty in the equation for those who are invested in Bitcoin. Will this fork create competition for Bitcoin? Is it the start of the demise for this currency? Nobody is quite sure what it means.
My take is rather simple. Bitcoin took over the role of "store of value" in the crypto world. Many made the comparison to gold, even going so far to call Bitcoin "digital gold". I can agree with this assessment. Bitcoin has some challenges in its quest to be "money". One of these is the fact that even with advancements such as segwit, it is doubtful that Bitcoin can handle the number of transactions per second to be a legitimate competitor to organization such as Visa.
That said, one thing Bitcoin has going for it is the name recognition. As I said, it is already being called digital gold. This means that as a place to park one's wealth or for larger transaction such as a house, Bitcoin works very well. When it comes to the cryptocurrency world, people will feel confident with what they know and nothing is known as well as Bitcoin.
The other reason why I am a believer in BTC over either BCH or BCG (or is it BTG) is that Wall Street is just starting to enter this arena. That means that investment personnel are going to talking to their clients about these coins. While these individuals have money, it does not mean they are savvy when it comes to the world of crypto.
Here is how I see the exchange going:
Advisor: Hi Bob. We need to get you into some cryptocurrencies.
Bob: Cryptocurrencies?
Advisor: Yeah digital money. Like Bitcoin.
Bob: Ah yes, Bitcoin. Okay let's take a portion and invest in that.
Advisor: Great. Okay Bob, you have three choices, Bitcoin, Bitcoin cash, and Bitcoin gold.
Bob: What's the difference? Arent they the same?
Advisor: No they are three different currencies which serves three different purposes.
Bob: What is the difference?
Advisor (trying to sound smart): The currencies forked because of the Chinese wanted their own Bitcoin in gold which is now held by the government.
Bob: Sounds confusing. It seems Bitcoin is appreciating in value and I know that one, so let's buy that.
Advisor: Good idea. I dont trust cash or the Chinese.
As foolish as this example might seem, can you imagine a Wall Street advisor trying to understand, let alone, explain the differences in the three Bitcoin currencies? Even worse, can you really see the average investor, even big money, having a clue about this? It simply isnt going to happen.
At the end of the day, Bitcoin has the name recognition which will instill confidence in the Wall Street types that are going to enter the market over the next couple years. This is the same reason why it will hold the store of wealth title: why would it change?
What are you thoughts on this? Do you think that Bitcoin has a serious challenger in the digital realm for the title of "gold" (and not self proclaimed)?
If you found this to be helpful, give it an upvote and a resteem.
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As someone who has only recently gotten into cryptocurrencies, I would have to agree with your assessment that most noobs (like me) and investors would be drawn to the recognizable BTC ... but there are certainly some advisors talking about altcoins, which is how I ended up buying Steem Power
I can see people talking about alt-coins. However, if an advisor or someone is going to to that route, are they really going to go BCH? Wouldnt a conversation about alt coins delve into other areas? If you are going to break from the Granddad of them all, it ought to be an inspiring story like Steem.
Yep most definitely, havent heard much about BCH but definitely Steem has been recommended, along with Monero and Litecoin
I am a huge Charlie Lee fan hence LTC is my biggest holding.
If BTC is a $25K coin at some point, I think LTC will be $5000.
"one thing Bitcoin has going for it is the name recognition..." Name recognition means A LOT!! I have a friend I was talking to about cryptocurrency. The first thing out of his mouth was, "Is that the Bitcoin stuff?"
I didnt put it in the article but consider the similarity;
Kleenex instead of tissue
Xerox instead of copy
Coke instead of cola
Bitcoin instead of crypto
Yes sir. Some people buy 'brands,' only.
This new for will likely never compete with btc on the full scale but i do think BCH will be around is the people behind will keep it that way this new one who knows but it might be worth mining on a few gpus
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If you think dumb investors are going to invest in BTC just for the name recognition, that makes the coin overvalued compared to its actual utility, which means you shouldn't invest in it. Your supposed to invest in coins that you think are under-valued, that have a market cap lower than what you think "fair."
What people shouldnt invest in and what they do are two different things.
We are talking about the retail investors here. They are usually late to the game and have little knowledge about what they are investing in. Look at all those who were holders of MBS. Do you think the financial services industry took to time to properly explain that to those people?
So yes when given a choice by their broker of buying something lhey know in bitcoin or NEO, which do you think they will buy?