Bitcoin split helps to shake up the altcoin market
Altcoin leader, Bitcoin, officially split in two recently, with the newcomer Bitcoin Cash acting as a sort of upgraded version of the popular cryptocurrency. The two are incompatible, creating what technologists call a fork, with owners of an old Bitcoin now also owning a new Bitcoin Cash.
Given that shortly after the split, old Bitcoins were worth $2,690 and Bitcoin Cash was worth $610 on the open markets, investors are likely to stick with the tried-and-trusted model. However, Bitcoin Cash is already moving ahead of many of the other altcoins in value terms. If it continues to gain traction and interest, then it could become a major investment player, and early adopters are likely to see major returns.
New Altcoin Features
The reasons for creating Bitcoin Cash are largely technical. The new blockchain currency can support block sizes up to 8MB, up from Bitcoin’s 1MB, for more detailed records, and to make it more scalable. This will likely appeal to larger investors and should help secure the currency’s future, assuming it is successful enough to replace old Bitcoin in future.
It also creates an opportunity for new miners to claim the currency, effectively getting them for “free”, in return for computing time using powerful PCs. There are tales of major investors shipping the latest high-performance processors around the world to build faster machines to claim the money faster than rivals, creating a gold-rush feel to the event.
Bitcoin Cash Long Term
However, what happens in the coming weeks or months is largely a sideshow. If Bitcoin Cash grows to become a major playing on the altcoin markets, it could attract the attention of major investors and institutions and become a part of the blockchain ecosystem that could soon drive a new era of banking and trading instruments around the world.
This is where the true gold lies, as any currency with that power will become a major player across the world and able to compete with the dollar, yuan and other major currencies, but with the advantages of global portability in an increasingly digital-commerce world. While altcoins are still a roller coaster market, they create many interesting opportunities for binary option investors.
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