Bitcoin breaks a new record and shakes forking fearsAugust 18, 2021
It is safe to say that at least in the short term bitcoin has not dealt a blow to the recent fork event this has led to the creation of bitcoin cash. Just days after that happened, the digital currency managed to break its price record and reach a value of over $ 3,300 for one bitcoin.
At this point, the upward movement continues and there is a likelihood that BTC will cross this limit at $ 3,400 or perhaps even later in the coming hours. As traders seize the opportunity to make more money and the mainstream media covers the success, a long-standing question arises in the minds of members of the bitcoin community – what will the bitcoin ecosystem look like in the coming months, now that bitcoin cash has been established.
There is no simple answer to this multifaceted question, but here are a few of the most important factors associated with the dilemma. Also, here are the threads linking these factors and potential ways of interacting with each other in the near future.
The confidence that traders and investors had in BTC did not disappear after the bifurcation – the price increase and the lack of any dramatic drop during the actual bifurcation are proof of the same idea. Before the fork, it was easy to imagine at least temporary instability after this never-before-seen event in the bitcoin blockchain happened.
At the same time, many analysts have warned of the potential for significantly wider instability or even a complete drop in the price of BTC. The same collapse would be encouraged by investors who, for security reasons, withdraw their funds and thus lower the value to the classic way of selling.
But after the forking began to take place and the birth of bitcoin cash was underway, the price of BTC remained stable and even, even witnessing a brief break in value. All this means that the price and market confidence in BTC have nothing to do with the launch of bitcoin cash.
BTC market capitalization
In addition to price, the total value of BTC market capitalization is also a regularly cited factor of network stability and strength. With the beginning of 2017 , it became extremely important because many realized that the total market cap is not only bitcoin, but also other cryptocurrencies. Ether is one of the best examples of a digital currency that has grown spectacularly along with bitcoin and that can take the lead at the moment.
Now, the latest rise in the price of BTC has also boosted a market capitalization that has exceeded the $ 50 billion mark. This is the first time that the market limit has reached this level. It now stands at over $ 52 billion, mimicking price growth.
There is no reason not to believe that it can act in the same way as price in the short term. If one of these rises, there is a certainty that the other will follow.
The presence of Bitcoin Cash
According to the mainstream media, one of the main reasons why the value of BTC and market capitalization is growing can be found in the simple fact that it did not collapse after the BCC occurred. However, the same statement highlights the fact that most outside the domain of digital currency have limited knowledge about it and its actions.
BCC and BTC are not on a war path and there is no reason here to assume a zero-sum game. An easier way for BCC to understand was to paint it as just another digital currency that was launched. Finally, a small minority of miners who downloaded the new code never had the opportunity (or intent) to disrupt the basic BTC code and the way it is executed after the SegWit2x modification.
There is no rivalry or competition between the two digital currencies other than that imagined by those who are poorly informed on the subject. That’s why the BCC doesn’t have the power to disrupt the BTC, nor do the people who support it want anything like it, no matter how heated the sailing debate has been in recent years.
The story of Ethereum
As for the future of the BTC price, the ethereum network could serve as a good example. The network, in addition to being a digital currency in itself, also provides features of smart contracts that others can use for a variety of purposes. In this way, it offers a unique option in the digital currency market – in addition to being used like bitcoin for online gambling and many other things, it can be incorporated as part of new record keeping and tracking systems.
At the time of launch, the price of individual ETH tokens was measured in individual USD, and the situation remained the same for several months. But then, with the big spread of BTC prices, ETH also started to climb. It is now the second most popular network and its future growth is certain.
As both grow using their own dynamics (ETH fell by almost 40% a few weeks ago, while BTC continued to strengthen), there is no disruption between the two or no sense of sharing the same market capitalization that can go to one or the other network. If successful, both networks will grow, and if one or both fail, market boundaries will weaken and fall.