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2018 was a watershed year for the cryptocurrency. The volatility that has been an integral part of the digital currency over the past decade has begun to stabilize in a steady and predictable growth pattern. The main actors Bitcoin, Ethereum and Ripple are taken seriously and widespread adoption seems to be closer and closer.
At least, this was the case for the first 10 months of the year. In the last week or so, the major cryptocurrencies turned into a way that many commentators hoped, had been handed over to history. The Bitcoin, Ripple and Ethereum investors were left to lick their wounds, and one sentence was resounding by means of an explanation: the Bitcoin Cash rigid fork. Nodding wisely is fine, but let's be honest – most people wonder what it means and why it's causing chaos in the halls of the crypt. Let's try to find out.
What's so hard on a fork?
Bitcoin Cash is itself, the product of a fork. It was created in 2017 to alleviate scalability concerns by increasing the block size to 8 MB, from 1 MB of Bitcoin Classic and freeing more space within the blocks. Now he has reached a point where it is necessary to start over.
The network undergoes two revisions every year. The problem is that this time, there will be two separate updates, and they are mutually incompatible. Think of Noel and Liam Gallagher, each with their own creative ideas of where to go next. The only solution is that everyone can go his own way, but they can not both be called Oasis.
The parallelism of Oasis is not as imaginative as it may seem. For Liam and Noel, read Craig Wright and Roger Ver, the partners until then, each of whom will now take control of their own fork. The recently released email exchange between the couple it certainly seems more the bickering of rock stars than a professional exchange between two middle-aged computer scientists and business men.
Chain effect
Two adult men who act like schoolboys and call each other names is the kind of thing that most of us might find both slightly amusing or simply pathetic, and that would be the end of it all. However, in this case, the fork, the fallout and the darkness on which the path will retain most of the mining support have combined to give the whole community a cryptic case of collective nervousness.
There are many who use cryptocurrency as more than just an investment tool. For example, as a preferred currency in rapid growth Bitcoin casino sector or as a convenient way of which affects international money transfers. One point on which all these different types of users agree is that any change in the landscape can cause destabilization. This becomes something of a self-fulfilling prophecy, while traders rush to the door, selling off their stocks, and yet, we have a 10 percent price drop on all major cryptocurrencies.
Not surprisingly, it was Bitcoin Cash himself who suffered the weight of losses, a fact made even more ironic since it was the only significant cryptocurrency that had shown gains in recent weeks when they held constant Bitcoin, Ripple and Ethereum.
Angel Versetti is the CEO of Ambrosus, a technology company that uses blockchain technology for its IoT sensors. In an interview with L & # 39; Independent last week, he explained the dynamics at work: "In the first week of November, while the major encrypted markets were flat, bitcoin cash was the only great cryptocurrency to rise, creating strong expectations and raising the price, resulting in outflow from other cryptocurrencies. the division is looming and the result is not yet defined, which has influenced the exit of money from bitcoin money, while people are turning into fiat, cryptocurrencies are falling ".
What will be?
Predicting the future behavior of cryptocurrencies is a notoriously risky business and until last week, market analysts had predicted a strong end to 2018 and a "surge in values. This sudden drop may not have been part of the script, but the prognosis for the coming months is not necessarily sadness and sadness.
If certain market conditions are met, the crypto-market could recover stronger than ever. The market research agency SharePost examined the indicators and their Managing Director, Rohit Kulkarni, said that a certain clarity on the part of the regulatory authorities would be sufficient and perhaps some commercial innovation in the market from one of the start-up blockchains of this year to turn the bear into a bull and bring the market back on track.
The Bitcoin Cash fork has arrived at an unfortunate moment, but the hard forks like these will inevitably hit the road the market will have to drive. From a broader perspective, 2018 could still be considered the year in which cryptocurrency has reached the age of majority.
Image: Pixabay
