Bitcoin just passed over $3,000 Again... is this due to dump from Bitcoin Cash?
Photo credits to Lyke Aru on Coin Telegraph.
Bitcoin just passed over $3,000 per coin market cap data. It was still rising as I was reading this. One of my apps alerted me that Bitcoin had passed over $2,900, so I checked out of curiosity. It had passed over $3,100 on Bittrex and on Coinmarketcap.com.
Bitcoin price per Coin Market Cap data.
Why is this happening?
Bitcoin Cash is crashing currently. More exchanges have now accepted Bitcoin Cash, which includes Bittrex and Kraken. With more exchanges, people are able to "dump" their bitcoins. It's free cash, so for most people they want to cash out since it's basically like a company doing a stock split. Except in this case it is free digital coins that were valued at hundreds of dollars and your original coin is still just as valuable. It can also be seen as a nice dividend for holding the coin. It's free cash and people see no reason not to dump it at the moment. On some exchanges like Bittrex (note the picture below), Bitcoin Cash got above $1,000 on August 2nd. Currently Bitcoin Cash has a $203 million volume, so there quite a bit of trading going on. For instance, on Bittrex, Bitcoin Cash has the highest volume at $63 million per coin.
From here it will be interesting to see if Bitcoin can keep this gain going. In the past 24 hours the coin is up over +10%. "What goes up, must come down." We'll see if this statement stands true over the next few days. I would imagine Bitcoin might go back down soon, once people use their bitcoin to exchange for other alt-coins, to diversify themselves.
Next stop $10,000!
It wouldn't shock me at this point. Only time will tell at this point. But there are more people being introduced everyday to cryptocurrency so it keeps growing.
Could you please share my articles, I'm trying to keep growing.
BCH > BTC may be a part of it, but I think this might mostly be an early price-in for the activation of SegWit around Aug 8. LIke the halvening, price rise precedes the event usually. The innovation that will come to Bitcoin (but not Bcrash) now that malleability is going to be fixed, as well as some serious efficiency brought to the netrwork plus an open door to further enhancements--well now, that will be something to see. I think 2018 will be a very moonish year for Bitcoin .
Interesting, didn't know that SegWit was being activated on August 8th. It will be interesting to see if Bitcoin Cash does what what Ethereum Classic does in the long run. The issue I see is that Bitcoin basically kicked it's scaling issue down the road again. It's only a matter of time Bitcoin runs into scaling issues again. If it ever wants to meet global demand, it will need some serious innovation besides making the blocksize larger.
I'm not a comp-sci techy dude, but I have read pretty convincing arguments why scaling by blocksize gets problematic... it's server side. I think there are very important privacy reasons to scale off-blockchain as well. Bigblockers IMO are ignoring huge chunks of why Bitcoin is important in the first place for the convenience of buying friggin' coffee.
Dash may have the right approach by requiring Masternodes to use specially developed custom hardware--if big blocks are what you want, that may 'succeed' in scaling TPS on chain. How Dash manages privacy with all txn's on massive blockchains forever... well, that sounds problematic if not downright Orwellian, and if they build-in tumblers, they get legal issues. Off chain scaling seems the only viable way of doing it while protecting the permissionless character and adding to privacy. The ultra wealthy are not going to use a crypto that can be back-tracked to them.
I haven't done a whole lot of research on Dash, it's something I definitely need to read more on, especially given it's position in crypto. I think Ripple's ability to handle payments will just take over since it's on a sheer scale that many other crypto's don't offer. Along with the fact that they are a company. They aren't three dudes launching an ICO. They've got a lot going for them. I think Ripple is one of the bigger sleepers and it wouldn't shock me if it became the largest market cap. If banks and payment processors start to implement it more and more, the price will soon reflect that.
Call it the bankers coin if you want, but they are solving an actual issue and have a system that works. Unlike many coins currently that are still pre-alpha.
I'll stake my claim on the permissionless and open version of cryptocurrency. IMO it is AOL vs Internet all over again. Ripple being a permissioned system constrained by rules of every jurisdiction under the sun will have a hard time competing IMO.
It's not necessarily constrained. I could send Ripple XRP right now to pay you to go by groceries and it would be done in four seconds. Ripple is going for the banks and payment processors because the masses will follow them. Most people aren't going to switch to digital currency because their cousin talked about it at a family dinner. But when their bank is using Ripple and sending money in seconds, people will wake up and see the value.
Amazing.
Thank you! It will be cool to see where the crypto space is six months from now.