Bitcoin’s wayward son delivers BTC a serious blow

Bitcoin cash (BCH), a more advanced version of the classic Bitcoin, can soon be purchased directly from Coinbase and is the reason behind Bitcoin’s twelve percent drop on Tuesday.

The background 

Many are excited at what many perceive to be the future of money-Bitcoin. Bitcoin is an inflation-proof, counterfeit-proof peer-to-peer system of online payment whose aficionados believe will eventually replace Central Bank issued fiat currency as we know it. There’s just one problem-it’s slow. And while its price keeps soaring at a mid-boggling pace, the truth is that when compared to other cryptocurrencies, Bitcoin’s transaction time is lethargic. Even the process of buying, selling and exchanging BTC can take days to execute. The truth is that Bitcoin’s developers were planning on upgrading the coin’s technology in what’s called a ‘hard-fork’ back in November. But the plans were shelved after a loud minority in the Bitcoin community feared that the fork would compromise the coin’s security.

Along came a group of developers who capitalized on the cancellation and decided to institute a less dramatic upgrade of their own called a ‘soft-fork’. The result was ‘Bitcoin Cash’. Bitcoin Cash is a faster, less congested, more advanced spin-off of the original Bitcoin boasting a lower transaction time and lower verification time.

The problem

So if Bitcoin cash is so much better than classic Bitcoin, why hasn’t everyone rushed to buy it like it’s going out of style? The answer is because in order to get your hands on Bitcoin Cash, you need to first acquire Bitcoin. Once you own Bitcoin, you can sell it for Bitcoin cash if you want to.

Until now! 

A blog post has just confirmed that as soon as there is enough liquidity on the popular digital asset exchange GDAX, Bitcoin cash will be available for users to purchase directly on The most widely used cryptocurrency exchange- Coinbase.

The result

After this story broke, Bitcoin Cash saw its price climbing several hundred dollars and clearing the $3K mark. At the same time, regular Bitcoin suffered a 10% correction falling below $17K on Tuesday.

Conclusion

Is this the beginning of Bitcoin’s ultimate demise or is it a simple correction like all the other ones we’ve seen whereby Bitcoin rebounds with a vengeance? If you think you know the answer, you can respond by trading Bitcoin or hundreds of other CFDs on the iFOREX platform.

 

 

 

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