What causes bitcoin value today
Let's start with Bitcoin Cash. Some miners and some exchanges have adopted the new cryptocurrency — and poof! Owners who got a few hundred dollars per Bitcoin are undoubtedly happy, but that doesn't mean the new cryptocurrency will actually get used the same way as Bitcoin, and it definitely doesn't mean that businesses will embrace it. Bitcoin Cash currently has one distinct advantage over Bitcoin: But that's the very thing Bitcoin's next upgrade is aiming to achieve, and since the first part of the SegWit2X upgrade is now complete, it looks like Bitcoin Cash will soon lose that advantage.
The value proposition here is unclear. Right now Bitcoin Cash looks to mostly be an alternative that can take over Bitcoin's place in case it falters in some way though you could argue that several other cryptocurrencies, such as Litecoin , are equally good or better alternatives. This does not mean it holds no value at all, but there's currently no good reason why its price should go up or even stay where it is. Bitcoin, on the other hand, is doing well because it experienced no noticeable problems despite the soft upgrade of its own protocol and the split with BCH.
With every day that Bitcoin keeps ticking without issues, the insecurity that drove BTC's price down in July goes away. But Bitcoin is not fully out of the woods yet. Because miners now have a near-identical alternative to switch to, any problems in fully implementing the SegWit2X upgrade which should happen around November could result in miners massively switching to Bitcoin Cash.
Also, Bitcoin Cash was designed in such a way that mining it will become more, not less, lucrative as time goes on at least in the beginning. In the simplest of terms, Bitcoin now has a clone that is waiting for it to stumble. Many other digital currencies have shown similar swings in recent days. When they collapsed, investors We see similar characteristics in cryptocurrencies right now. Bitcoin investors know this trend as well. Investors saw a similar rise and fall in bitcoin prices in December And there have been dramatic rises and falls in the price of the cryptocurrency within the last year.
It tripled its value within months — then, by the end of the year, tripled again. You might make a profit, but what we are seeing is people who — in the last month or two — put money into bitcoin, are having trouble getting cash back when they sell and are now watching the price fall and panicking. My shower this morning after looking at my portfolio during this crash. Some say that bitcoin shows promise. Many YouTubers have posted very convincing videos on both sides of this argument, so be sure to watch both and come to your own conclusion - not what they're telling you.
Anyone with a significant amount of money invested in cryptocurrency will have an agenda. For the time being while all of this is happening, there are two easy solutions to minimise any risk to you:. This site cannot substitute for professional investment or financial advice, or independent factual verification. This guide is provided for general informational purposes only. The group of individuals writing these guides are cryptocurrency enthusiasts and investors, not financial advisors.
Trading or mining any form of cryptocurrency is very high risk, so never invest money you can't afford to lose - you should be prepared to sustain a total loss of all invested money.
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Don't rush into anything, do your own research. As we write new content, we will update this disclaimer to encompass it. We first discovered Bitcoin in late , and wanted to get everyone around us involved. But no one seemed to know what it was! We made this website to try and fix this, to get everyone up-to-speed!
Click here for more information on these. All information on this website is for general informational purposes only, it is not intended to provide legal or financial advice. Exchange support Bitcoin Argument There are two types of exchange generally, crypto to crypto, and crypto to fiat. Name Recognition Bitcoin Argument For your average non-technical person, the words 'Bitcoin' and 'Blockchain' are associated to the same thing, some sort of virtual currency that might or might not be used for illegal stuff.
Bitcoin Cash Argument The above argument works in reverse for the most part. Bitcoin Transaction Queue As of writing this, the number of unconfirmed Bitcoin transactions is currently , Market Manipulation The below example covers the market actions between the 11thth November , where a significant amount of Bitcoin's value was transferred to Bitcoin Cash.
Miners Another common argument for Bitcoin Cash taking over is that a large amount of the mining power behind Bitcoin has shifted to Bitcoin Cash between the 9thth November Conclusion Well given the above arguments, you might be on one side or the other, but just make sure what you're basing your decision on is not FUD.
For the time being while all of this is happening, there are two easy solutions to minimise any risk to you: One of these coins is very likely to become the most widely used crypto, so if you own equal amounts of both - in the long-term you can't really lose.