Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin Cash – More questions than answers

Published 09/01/2017, 04:25 AM
Updated 09/01/2017, 04:25 AM

Investing.com -  Since its split from Bitcoin on August first, traders seem divided in their approach to the new currency.

Some believe the technological improvement to the blockchain will undeniably lead to a more efficient cryptocurrency. Others are skeptical of the new Bitcoin Cash, which now has to compete with the original Bitcoin.

"There still are many questions regarding Bitcoin Cash", said Investing.com's senior analyst Clement Thibault.

"There are concerns regarding the value proposition of Bitcoin Cash, as the Bitcoin eco-system will not automatically support Bitcoin Cash".

Indeed, cryptocurrency exchanges decided independently whether to support the new coin. Some, like CoinBase, opted to not support Bitcoin Cash. Others, like Kraken, offer and support the new currency.

Thibault has also noted that Bitcoin Cash's value is entirely speculative as it currently has no use in our day to day lives. "The more Bitcoin is used as a currency to acquire tangible goods, the more its value is engrained in our real world economy, which is an advantage Bitcoin holds over Bitcoin Cash".

Time will tell whether Bitcoin Cash's infrastructure will catch up to Bitcoin's. Mining the new currency has been more profitable than mining Bitcoin during its highs in mid-august and higher prices will surely help creating a strong infrastructure for the currency.

For now, however, the questions far outnumber the answers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.