Bitcoin Price Resolute as Fork Looms
It’s D-Day for Bitcoin. After tonight, at approximately 10:20pm AEST according to our calculations, Bitcoin will split for good — leaving us with Bitcoin (BTC) and Bitcoin Cash (BCC). Bitcoin (the original) will go ahead with its scaling changes and retain SegWit.
Meanwhile, Bitcoin Cash (the new off-spin) will instead remove the SegWit update and increase the block size to 8 megabytes. Which is eight times bigger than bitcoin’s current one-megabyte size.
But the real story has been whether or not bitcoin could even survive the fork. Where’s the carnage, the mayhem, or the volatility?
Normally, when there’s even a whiff of uncertainty, the crypto traders scamper for the hills as the prices promptly sink. Not the case this time apparently. In fact, the bitcoin price is climbing higher again.
Bitcoin price is up, for now…
Bitcoin is up 6% in the past 24 hours, and is currently around US$2,860. That’s close to the record levels seen in May. The real question, though, is where the price will be post-fork?
The split will mean that every bitcoin holder is going to get an equal share of bitcoin and bitcoin cash. A perfect 1:1 ratio. So if you have 10 bitcoins pre-split, you’re going to end up with a free batch of 10 bitcoin cash tokens later tonight.
But don’t celebrate like you’ve won the lottery just yet. The tokens might be free, but the total value of your coins will be roughly the same pre-split.
Think of it like this: Let’s say bitcoin is going to be worth US$2,800 before it splits. Bitcoin cash, on the other hand, is going to be valued at US$800. When the clock strikes 10:20pm and the fork occurs, bitcoin will be worth US$2,000 and bitcoin cash will hold its US$800 value.
So what is bitcoin cash expected to be valued at? Well, that is the million dollar — or rather, million bitcoin — question.
Business Insider reached out to Charlie Morris, chief investment officer of NextBlock Global, a digital asset investment firm. He commented that bitcoin cash has already been trading on the futures market at around US$200–400. This is as good a guess as any, but we’ll be on the lookout for whatever developments come from tonight.
All up, it’s going to be an interesting step in the ongoing bitcoin saga. Not just in the short-term either. We’re excited to see where the two coins end up. Because if Ethereum’s fork taught us anything, there tends to be a winner and a loser.
Litecoin price could be affected
Speaking of losers, Litecoin could be set to be hit the hardest from tonight’s fork.
Litecoin has been riding high on the back of successful implementation of SegWit recently. It covered some serious ground on bitcoin’s lead, but that could prove temporary. The reason for Litecoin’s success was that it got to SegWit first, but now bitcoin has caught back up.
Basically, Litecoin has lost its leading edge. At least for now.
The news just never stops in the crazy world of cryptos.
And remember, if you want to learn more about bitcoin, bitcoin cash or any of the other cryptocurrencies out there, you need to follow Sam Volkering. Sam is our a crypto guru here at Money Morning. But don’t take my word for it, you can get his latest report, ‘The Secret World of Bitcoin’ right now, for free. Click here to read more.
Junior Analyst, Money Morning