If Bitcoin cash (BCH) takes on Bitcoin (BTC) for real, what happens to Diamond coins (DMD) and other altcoins?
As everyone has noticed, segwit2x fizzeled. Out of the blue, Bitcoin cash threw itself at BTC and as of this writing, BCH is valued at 0.21 BTC. Korean exchange Bithumb is leading the charge against BTC, standing behind the largest share of the buying of BCH (according to coinmarketcap.com). The horns -and the drums of war are sounding loudly...
The declaration of war can be read here.
So what are the implications as we get closer to the cataclysmic event of 1 BCH = 1 BTC?
A moral defeat and a severe financial blow for anyone holding BTC; leads to several drastic corporate and private decisions that must be and will be made, the details of those decisions can be discussed further in a future post.
There will be a massive shift of power from one cryptodeveloper (BTC) team to another (BCH developers).
Miners, the holders of ASIC miners can easily shift from mining one to another coin and they will go with whatever is the most profitable. There will be tumultuous times for miners until the markets settle. Transaction times will rise sharply as miners become unsettled as to what's more profitable to mine.
Bitcoin core will probably, if something close to 1 BCH=1BTC becomes reality, be relegated to a much worse position than that of what BCH holds now, since there is no ideology holding BTC floating. What holds BCH floating now is mainly pure ideology.
In the early phases, DMD and altcoins will drop in fiat valuation as they are pegged to the BTC value. As time passes and BTC sheds further value with respect to USD, those that do not fully believe in BCH will be buying their favorite altcoins for BTC so that altcoin/BTC valuation increases to match the altcoin/USD price. Those that do not believe strongly in the altcoins they have been invested in will force their altcoin face the same fate as BTC. Marketwaves always wash out the weak hands and weak coins. As mentioned altcoin drops not just in valuation against USD, but also against BTC and all other cryptos, that altcoin will also be relegated to the dustbin of history.
The pegging of altcoins to BTC itself will dissolve pretty quickly and all that remains in the aftermath of the catastrophic event of 1BCH = 1 BTC are the DMD/fiat or altcoin/fiat valuations. DMD and those altcoins that survive will then mainly be valuated against USD, EUR and other fiats. Not against other cryptos, which is the case today. DMD and altcoins will get a more independent position in such a scenario.
After this civil war is over and the dust settles, DMD and other strong standing altcoins will go bolstered out of this financial calamity.
Or is this just the mother of all pump-n-dumps? will see soon enough...
Needless to say, I'm heavily invested in DMD coins so please do your research before drawing your own conclusions.
If you're interested, DMD slack channel and ask for an invite and you will receive an invitation shortly.