It seems that the famous phrase “divide and conquer” does not apply for the branched Bitcoin currency. 2017, the year of the hard forks for Bitcoin, had, by far, the best performance since it was born.
Bitcoin Forks: Do They Weaken Bitcoin or Make It Stronger?
SegWit2x fork is coming in November, just a few days after the Bitcoin Gold split in October. Its market capitalization is recovering after struggling in June with the surge of other cryptocurrencies. At the moment, the alt-coins are having trouble to come back to peak levels. This situation calls the attention of specialists thinking about the momentum that other currencies had some months ago.
Investors see the cryptocurrency market in a special way. Profit is always the most important reason that pushes money into one asset or another. Divisions in the Bitcoin blockchain do not bring uncertainty. They bring gains. Furthermore, it gives strength to Bitcoin.
As long as you have Bitcoin and you are in control of your private key, then you will receive the same amount of coins in the next fork. It happened in this way when Bitcoin Cash split from Bitcoin in August. The same happened with Bitcoin Gold, some days ago. And it will happen the same way with the SegWit2x fork.
Cryptocurrency Market Performance
The Bletchley 20 Index, composed of 20 medium sized cryptocurrencies by market capitalization, scored the same as in June. During the last month it lost almost 20%.
The Ethereum Token Index, which measures assets run on the Ethereum platform, is in the worst moment of the year. Since June, this index lost 52%.
As shown above, investors and individual owners of alt-coins, decided to bet for the strongest player in the market. Amid forks, Bitcoin could attract investors. Hence, are forks bad for Bitcoin health? Is Bitcoin recovery just suffering from an artificial recovery? Could we see investors returning to their older cryptocurrencies?
Since the beginning of the year, Bitcoin price grew from $960 to $6189 some days ago. Now it is being traded around $5900 dollars. At the same time, its market capitalization surpassed 100 billion dollars and is expected to keep growing in 2018.
Big businesses and investors are interested to adopt Bitcoin in the future. Amazon is one of he biggest enterprises that is rumoured that wants to accept Bitcoin as a means of payment. In Japan, Bitcoin was recognized as a legal tender currency. And even when Bitcoin and ICOs suffered from regulations in China and South Korea, the biggest bubble of our lifetime didn’t prick.
What can we expect?
“We see a new technology that allows transferring value between people and the number of Bitcoins is finite. There is going to be a correction in the market, but the overall trend will be up. But this is just one use case of ledger technology and the cryptocurrencies have a lot of potential,” commented Antony Jenkins, 10X Future Technologies founder to Bloomberg.
At the same time that Bitcoin grows, other tokens are losing their value. Something that ICOs could suffer. During this year, ICOs moved 2 billion dollars, and is expected to grow further in 2018. But, if investors choose the most known currency, with so many different virtual tokens in the market, do minor ICOs have any chance to survive?
“ICO tokens are not the hot story at the moment, but could return to the forefront of people’s imaginations as the bitcoin fever trade unwinds and searches for yield in returns in other markets,” told Charles Hayter and reported by Bloomberg.