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Exactly, what did Bitcoin Cash forks make to the value of the coin coin portfolios compared to the rest of the current crypto-community problems?
The Bitcoin Cash fork has caused much damage to the reputation of almost everyone involved, but – since cryptographic markets have entered freefall since the split, it was difficult to estimate the damage to the price of The Cryptocurrrency Previously known as Bitcoin Cash (TCFKABC) was.
There has been much speculation about the costs incurred during the so-called Hash war between the rival blockchains of Bitcoin SV and Bitcoin ABC in terms of mining leasing and energy expenditure. In points, the search for BitMEX seemed to indicate that it was costing both sides well over 1 million dollars a day to be each other, but the real damage to the bottom lines of entities like CoinGeek, nChain and Bitmain and the personal fortunes of some of the personalities involved, they may never be fully known.
Collaterally, the whole affair has undoubtedly damaged the broadest reputation of cryptocurrency. Although it is problematic to trace a definitive cause and effect line between this and recent market fluctuations, it certainly was not helpful.
However, with all this rumors of Market Caps and optics, remember that behind the price of every coin, there are people and companies that have them in their wallets. So, how did those people move from the whole thing? Bad enough, to be honest. However, in a context of bleedings all over the crypto-verse, perhaps not as bad as one might think.
The numbers
A month ago, according to the CryptoCompare Index, the price in US dollars of Bitcoin & # 39; Core & # 39; – the name & # 39; Cashers & # 39; he gave the original Bitcoin (BTC), from which Bitcoin Cash bifurcated in August of last year – was $ 6,374. This morning the price had dropped to $ 3 & 191; A fall of about 46%.
According to CoinMarketCap, its cryptocurrency market index fell from $ 209.5 billion to $ 123.5 billion over the same period of time, a 42% decline in a month.
So, contrary to the trend we saw until 2018, Bitcoin's performance was worse than the overall market at that time – with potentially worse to come. It now occupies over $ 2,500 below its 200-day moving average, and has done since mid-March – making the last three quarters of 2018 a downward period as one might wish to avoid in terms of the market as a whole.
Recently, in May, Bitcoin Cash – we forget – reached its most recent peak at around $ 1,700 according to CryptoCompare. On 6 November, it's pre-fork high, that value was briefly in the $ 630 region. This is already a haircut of over 60% in six months. It is worth noting, however, that BCH was valued close to $ 400 in points.
With these prices in the foreground, the fork between the two seems to have caused significant extra damage in addition to an already bruised 2018. As we have already seen, TCFKABC is now actually two cryptocurrencies, with exchanges and portfolios that plan or already have, divide the deposits of their BCH customers in the new itcoations of Bitcoin ABC and Bitcoin SV. Quite simple, at least for cryptocurrency standards.
However, tracking the price of TCFKABC through exchanges is a bit more complicated, given that some gave Bitcoin ABC a new trading ticker (eg BAB, BCHABC), while others assigned the old "BCH" badge "by Bitcoin Cash. This means that, when indexing prices on various exchanges, as CryptoCompare does to get a weighted price overview, it is now monitoring the BCH, ABC and SV- pairs.
So, for the sake of this piece, we took CryptoCompare's 24-hour trading volumes for each of the two versions of Bitcoin ABC (BCH and the other ABC tickers) for which it quoted a price and attributed a weighting to the price of each. We hypothesized, as SV has previously waived any claim for the BCH ticker that both of these were now effectively ABC.
Currently, the ABC-specific tickers used by some of the largest exchanges, including Bitfinex, Coinbase and Kraken, represent about 63% of the total volume of trade. The old BCH ticker now removes the other 38% in locations like Bittrex and OKex. However, the price on the latter exchanges is slightly higher.
This is the post-fork price of Bitcoin ABC, according to CryptoCompare …
Below is the price of Bitcoin Cash on exchanges using the BCH ticker in the last month, according to CryptoCompare. Bitcoin Cash forked on November 15 – as shown by the decline in volume.
When we recorded our prices, BCH has a value of $ 198 and BCHABC $ 182. This yielded a weighted average price for the two of $ 188 based on a combined volume of $ 243 million over 24 hours.
At the same point, Bitcoin SV is priced at $ 106 – with a 24-hour volume of $ 292 million. This is his price chart from the fork.
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Therefore, in terms of coins in the portfolios, we can estimate the total cumulative value of the dollar currently held by someone with a currency for every dollar in the region of $ 304, which will differ, however, depending on where and when they sell it.
Based on the price of BCH exactly a month ago, which was – at best – $ 514, according to CryptoCompare, it is about a 40% reduction on what someone would have evaluated their old BCH before. This is an extra rather ugly drop.
However, somewhat ironically – and despite everything that has emerged in the last two weeks – that person would currently be as soon as better with their Bitcoin Cash than someone who owns Bitcoin 'Core', if they both bought the same dollar value of them that day.
On hold
If you think it sounds crazy, to be honest we do it too. It may not be the case soon, though.
As we recorded yesterday, following the news of a cessation of hostilities between the two BCH factions, Bitcoin SV rallied in price. At points yesterday, it was worth almost 3.3x what was at its lowest: about $ 37 on November 23rd. If we had done the same mathematics then, using the same formulas and assuming the same currency divisions, the combined price would have been $ 259 for the two. With Bitcoin sitting at $ 4,241 on that date, the BCH portfolios would be worth around 50% less, with the hodlers' core & # 39; & # 39; only & # 39; in the face of losses of one third.
If Bitcoin SV reversed the big price moves of today, while ABC kept the position, the combined value would be $ 255 again, making things worse – even against Bitcoin, which in turn was faster than the encrypted markets in general.
The wild card in all this is the way those who now have two coins in their wallets they once reacted when they can deposit them, withdraw them or sell them on the stock market (maybe even use them to buy stuff) – because the facilities are still limited in this respect. If one of the two currencies were not able to maintain its current price level, or worse than experimenting with a large landfill on an illiquid market – on the basis of the instant of yesterday the volumes of ABC in particular have decreased considerably from those of BCH in October – with little demand, losses could be significantly amplified.
So, for now, Bitcoin Cash holders are suffering neither more nor less than the rest of the crypto-community as a whole. In fact, if you bought Ethereum at its peak in January (and at historical highs), you are currently down 92% in total – compared to our estimated decline of about 90% compared to the maximum 2018 price of Bitcoin Cash.
However, if you bought Bitcoin Cash at its historical maximum of over $ 4,000 on December 20, 2017, we do not have many words of comfort for you right now. Sorry.
